Factors contributing to taxpayer morale: a multi-country perspective
- Authors: Kosiorek, Jakub
- Date: 2018
- Subjects: Taxpayer compliance -- South Africa , Tax evasion -- South Africa , Taxpayer compliance -- Social aspects -- South Africa , Taxpayer compliance -- Economic aspects -- South Africa , Tax morale -- South Africa
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/60255 , vital:27759
- Description: Tax morale is the intrinsic motivation to pay taxes that arises either from a belief that one should contribute towards society by paying taxes or from a moral obligation to pay taxes. The goals of this thesis were to identify the various factors that influence tax morale in a country and use these factors in order to attempt to determine whether tax morale in South Africa has improved or deteriorated over the years. A further goal of this thesis was to identify strategies that could be implemented by a country in order to improve the tax morale of its citizens. The period covered by this thesis is between the years 2000 and 2015. The factors that have an effect on tax morale were identified by a review of the literature. It was found that a number of factors appear to have an impact on tax morale, but certain of these factors are incapable of being directly influenced by tax administrations. With regard to South Africa, it was found that a number of factors affecting tax morale appear to have improved over the years, while others had deteriorated. However, overall it appeared that tax morale in South Africa had deteriorated. With regard to strategies that could be used to improve tax morale, a number were identified by reviewing the literature and include strategies implemented in certain countries, as well as those discussed by scholars. Ii was found that South Africa had implemented a number of the strategies aimed at improving tax morale in its own tax system, but the manner in which some of them were implemented could have been improved. Furthermore, a number of strategies were identified that South Africa has not yet implemented and thus should look to attempting to implement these strategies to improve tax morale.
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- Date Issued: 2018
A comparative analysis of the new behaviours and terms introduced in the understatement penalty table in section 223 of the Tax Administration Act
- Authors: Doolan, Kim
- Date: 2017
- Subjects: South Africa. Tax Administration Act, 2011 , Taxation -- South Africa , Taxation -- Law and legislation -- South Africa , Tax administration and procedure -- Law and legislation -- South Africa , Tax penalties -- Law and legislation -- South Africa , Taxpayer compliance -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/5802 , vital:20977
- Description: The Tax Administration Act became effective on the 1 October 2012 and in Chapter 16 introduced the understatement penalty regime which replaced section 76 of the Income Tax Act. The understatement penalty is calculated by applying a percentage in terms of the table included in section 223 of the Tax Administration Act to the shortfall in tax giving rise to the imposition of the penalty. There are five behaviours reflected in the understatement penalty table in section 223, namely, “substantial understatement”, “reasonable care not taken in completing return”, “no reasonable grounds for tax position taken”, “gross negligence” and “intentional tax evasion”. “Substantial understatement” is the only behaviour defined in the Tax Administration Act. Section 222(1) of the Tax Administration Act requires SARS to impose the penalty reflected in the table in the event of an “understatement”, unless the “understatement” results from a “bona fide inadvertent error”. The term “bona fide inadvertent error” is not defined in the Tax Administration Act; neither is the term “obstructive”. The Memorandum on the Objects of the Tax Administration Laws Amendment Bill confirmed that guidance would be developed in this regard for the use of taxpayers and SARS officials. This guidance has not yet been released. Media reports express the view that the lack of definition of the behaviours is problematic for both SARS and taxpayers as the table is new and there is still room for interpretation and understanding of the meaning of each of the behaviours. The primary goal of this study was is to obtain a better understanding of the meaning of the new behaviours and terms introduced in the understatement penalty table. In addressing this main goal, the penalty tables and behaviours in legislation in New Zealand were compared to South Africa’s understatement penalty. The similarities and differences between the understatement penalty imposed in terms of Chapter 16 of the Tax Administration Act and the additional tax previously imposed in terms of section 76 of the Income Tax Act were also discussed to determine whether this would be of assistance in enabling a better understanding of the meaning of the behaviours and terms in section 223. Guidance on the interpretation of the various behaviours and terms was developed and a definition was proposed for the meaning of “bona fide inadvertent error” and “obstructive” to assist in the objective and consistent application of the understatement penalty table in relation to each shortfall identified. The proposed definition for “bona fide inadvertent error” is as follows: “An honest mistake made or simple oversight, which the taxpayer was not aware of, despite taking reasonable care and displaying a prudent attitude while making a genuine attempt to comply with all applicable tax obligations.” The definition for “obstructive” is proposed as: “Deliberately interfering with, causing difficulties (impeding) or delays in, or preventing the progress of a SARS audit or review.”
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- Date Issued: 2017