An analysis of the possible success of a tax on sugarsweetened beverages in South Africa
- Authors: Mabaso, Bandla Sazi
- Date: 2019
- Subjects: Nutrition -- Government policy -- South Africa , Value-added tax -- South Africa , Obesity -- South Africa -- Prevention , Excise tax -- South Africa , Taxations of articles of consumption -- South Africa , Tobacco -- Taxation -- South Africa , Alcohol -- Taxation -- South Africa , Carbonated beverages -- Taxation -- South Africa
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/68333 , vital:29240
- Description: The increase in obesity is a global crisis that is prevalent in both the developed and developing economies, including South Africa. It endangers the health and threatens the life of many people. Sugar-sweetened beverages have become the key target in the fight against obesity, in preference to other foodstuffs that contain added sugar, because of the poor nutritional value they contain and harm they cause if consumed excessively. The Minister of Finance announced in the 2016 Budget Speech, that a proposed tax on sugar-sweetened beverages would be introduced in South Africa and would be implemented in April 2017, but the anticipated date is now 1 April 2018. The thesis examined the possible success of this proposed tax in South Africa, using as a benchmark the process followed prior to implementing the tax and the experience of selected foreign countries that have implemented the tax, one country subsequently abolishing it, and another country considering implementing it. Additionally, the research analysed the success of the existing excise taxes levied on tobacco and alcohol in South Africa, in attempting to predict the possible success of the proposed tax. The success of the proposed tax is, however, threatened by the emergence of illegal markets that offer the targeted products inexpensively, particularly if similar restrictions and laws do not exist in bordering countries. The research was carried out by means of the analysis of journal articles, information from the selected countries’ revenue authorities’ websites, National Treasury publications, commentaries by experts and publications by professional organisations and firms. Overall, the proposed tax has been successful in curbing obesity and high sugar intake in other countries. Similarly, the excise taxes on tobacco and alcohol have been successful in reducing the consumption of targeted products in South Africa. These successes have been realized through a collaborated effort and employing a multi-faceted approach, including advertising restrictions. Nevertheless, the proposed tax is popularly criticised for its regressive nature and the potential job losses that are associated with it.
- Full Text:
- Date Issued: 2019
- Authors: Mabaso, Bandla Sazi
- Date: 2019
- Subjects: Nutrition -- Government policy -- South Africa , Value-added tax -- South Africa , Obesity -- South Africa -- Prevention , Excise tax -- South Africa , Taxations of articles of consumption -- South Africa , Tobacco -- Taxation -- South Africa , Alcohol -- Taxation -- South Africa , Carbonated beverages -- Taxation -- South Africa
- Language: English
- Type: text , Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10962/68333 , vital:29240
- Description: The increase in obesity is a global crisis that is prevalent in both the developed and developing economies, including South Africa. It endangers the health and threatens the life of many people. Sugar-sweetened beverages have become the key target in the fight against obesity, in preference to other foodstuffs that contain added sugar, because of the poor nutritional value they contain and harm they cause if consumed excessively. The Minister of Finance announced in the 2016 Budget Speech, that a proposed tax on sugar-sweetened beverages would be introduced in South Africa and would be implemented in April 2017, but the anticipated date is now 1 April 2018. The thesis examined the possible success of this proposed tax in South Africa, using as a benchmark the process followed prior to implementing the tax and the experience of selected foreign countries that have implemented the tax, one country subsequently abolishing it, and another country considering implementing it. Additionally, the research analysed the success of the existing excise taxes levied on tobacco and alcohol in South Africa, in attempting to predict the possible success of the proposed tax. The success of the proposed tax is, however, threatened by the emergence of illegal markets that offer the targeted products inexpensively, particularly if similar restrictions and laws do not exist in bordering countries. The research was carried out by means of the analysis of journal articles, information from the selected countries’ revenue authorities’ websites, National Treasury publications, commentaries by experts and publications by professional organisations and firms. Overall, the proposed tax has been successful in curbing obesity and high sugar intake in other countries. Similarly, the excise taxes on tobacco and alcohol have been successful in reducing the consumption of targeted products in South Africa. These successes have been realized through a collaborated effort and employing a multi-faceted approach, including advertising restrictions. Nevertheless, the proposed tax is popularly criticised for its regressive nature and the potential job losses that are associated with it.
- Full Text:
- Date Issued: 2019
A comparative study of South Africa's vat rate
- Authors: Pieterse, Marli
- Date: 2018
- Subjects: Value-added tax -- South Africa , Value-added tax -- Law and legislation -- South Africa Taxation -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/23049 , vital:30401
- Description: This treatise compared South Africa's VAT rate to the VAT rate trends of other developing counties (such as Brazil and India), as well as international VAT rate developments. Brazil introduced VAT in 1965 and currently has a multi-dimensional VAT rate system consists of five types of VAT, each type of taxing consumers a t different rate depending on the type of product, the municipality or the consumer's turnover. Brazil's average VAT rate is currently 19%. India moved from an origin-based VAT rate system to a GST rate system in 2017. Their GST system levies VAT on a federal level. as well as a state level and on all interstate transactions. India's GST rates varies depending on the luxurious nature of the supply and their average GST rate is currently 15%. South Africa VAT in 1991 and it comprises of a single-rate VAT system where goods and services of vendors are taxed at 14%, unless the specific goods or services fall under the list of exepted or zero-rated items. South Africa's VAT rate remained unchanged since 1993. Per the research it was noted that despite facing similar political, economical and social dilemmas, developing countries such as India and Brazil changed their VAT rates numerous time since its inception, where South Africa only increased their VAT rate once. Brazil and India furthermore have higher average VAT rates than South Africa, despite correlation with the respective poverty levels indicating otherwise.
- Full Text: false
- Date Issued: 2018
- Authors: Pieterse, Marli
- Date: 2018
- Subjects: Value-added tax -- South Africa , Value-added tax -- Law and legislation -- South Africa Taxation -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/23049 , vital:30401
- Description: This treatise compared South Africa's VAT rate to the VAT rate trends of other developing counties (such as Brazil and India), as well as international VAT rate developments. Brazil introduced VAT in 1965 and currently has a multi-dimensional VAT rate system consists of five types of VAT, each type of taxing consumers a t different rate depending on the type of product, the municipality or the consumer's turnover. Brazil's average VAT rate is currently 19%. India moved from an origin-based VAT rate system to a GST rate system in 2017. Their GST system levies VAT on a federal level. as well as a state level and on all interstate transactions. India's GST rates varies depending on the luxurious nature of the supply and their average GST rate is currently 15%. South Africa VAT in 1991 and it comprises of a single-rate VAT system where goods and services of vendors are taxed at 14%, unless the specific goods or services fall under the list of exepted or zero-rated items. South Africa's VAT rate remained unchanged since 1993. Per the research it was noted that despite facing similar political, economical and social dilemmas, developing countries such as India and Brazil changed their VAT rates numerous time since its inception, where South Africa only increased their VAT rate once. Brazil and India furthermore have higher average VAT rates than South Africa, despite correlation with the respective poverty levels indicating otherwise.
- Full Text: false
- Date Issued: 2018
Analysis of VAT compliance challenges in municipalities
- Authors: Nkonzombi, Linda
- Date: 2018
- Subjects: Value-added tax -- South Africa , Income tax -- South Africa Income tax -- Law and legislation -- South Africa Taxation -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/33429 , vital:32864
- Description: The study was carried out to identify challenges that municipalities have with becoming Value Added Tax (‘VAT’) compliant. This study has been prompted by the ongoing findings reported by the Auditor General (‘AG’) in its audit reports. The increasing demand on the services of tax consultants also suggests that municipalities are having challenges in independently fulfilling their tax obligations. It was found that municipalities are often challenged with the application of the following VAT sections: The VAT apportionment methodology, section 8(27) dealing with unallocated payments, VAT reconciliations and claiming of VAT on invalid documentation and where VAT credits are denied. The main causes of non-compliance were identified as complexity of the tax laws, interpretation issues, behavioural attitude, lack of technical expertise within municipalities, and the fact that VAT is a self-assessed tax. Based on the findings of the study, it is recommended that all municipalities should be required to have a designated tax team to handle the tax matters of a municipality. The municipalities’ governing body, South African Local Government Association (‘SALGA’), should consider introducing penalties to non-VAT compliant municipalities. SARS should establish ‘customer relationships’ with the municipalities.
- Full Text:
- Date Issued: 2018
- Authors: Nkonzombi, Linda
- Date: 2018
- Subjects: Value-added tax -- South Africa , Income tax -- South Africa Income tax -- Law and legislation -- South Africa Taxation -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/33429 , vital:32864
- Description: The study was carried out to identify challenges that municipalities have with becoming Value Added Tax (‘VAT’) compliant. This study has been prompted by the ongoing findings reported by the Auditor General (‘AG’) in its audit reports. The increasing demand on the services of tax consultants also suggests that municipalities are having challenges in independently fulfilling their tax obligations. It was found that municipalities are often challenged with the application of the following VAT sections: The VAT apportionment methodology, section 8(27) dealing with unallocated payments, VAT reconciliations and claiming of VAT on invalid documentation and where VAT credits are denied. The main causes of non-compliance were identified as complexity of the tax laws, interpretation issues, behavioural attitude, lack of technical expertise within municipalities, and the fact that VAT is a self-assessed tax. Based on the findings of the study, it is recommended that all municipalities should be required to have a designated tax team to handle the tax matters of a municipality. The municipalities’ governing body, South African Local Government Association (‘SALGA’), should consider introducing penalties to non-VAT compliant municipalities. SARS should establish ‘customer relationships’ with the municipalities.
- Full Text:
- Date Issued: 2018
A discussion and comparison of company legislation and tax legislation in South Africa, in relation to amalgamations and mergers
- Authors: Sloane, Justin
- Date: 2014
- Subjects: Corporation law -- South Africa , Taxation -- Law and legislation -- South Africa , Consolidation and merger of corporations -- South Africa , Income tax -- South Africa , Capital gains tax -- South Africa , Value-added tax -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:908 , http://hdl.handle.net/10962/d1013028
- Description: In his 2012 Budget Review, the Minister of Finance, Pravin Gordhan acknowledged that the introduction of the "new" Companies Act had given rise to certain anomalies in relation to tax and subsequently announced that the South African government would undertake to review the nature of company mergers, acquisitions and other restructurings with the view of possibly amending the Income Tax Act and/or the "new" Companies Act, to bring the two legislations in line with one another. These anomalies give rise to the present research. The literature reviewed in the present research revealed and identified the inconsistencies that exist between the "new" Companies Act, 71 of 2008 and the Income Tax Act, 58 of 1962, specifically the inconsistencies that exist in respect of the newly introduced amalgamation or merger provisions as set out in the "new" Companies Act. Moreover, this research was undertaken to identify the potential tax implications insofar as they relate to amalgamation transactions and, in particular, the potential tax implications where such transactions, because of the anomalies, fall outside the ambit section 44 of the Income Tax Act, which would in normal circumstances provide for tax "rollover relief". In this regard, the present research identified the possible income tax, capital gains tax, value-added tax, transfer duty tax and securities transfer tax affected by an amalgamation transaction, on the assumption that the "rollover relief" in section 44 of the Income Tax Act does not apply.
- Full Text:
- Date Issued: 2014
- Authors: Sloane, Justin
- Date: 2014
- Subjects: Corporation law -- South Africa , Taxation -- Law and legislation -- South Africa , Consolidation and merger of corporations -- South Africa , Income tax -- South Africa , Capital gains tax -- South Africa , Value-added tax -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:908 , http://hdl.handle.net/10962/d1013028
- Description: In his 2012 Budget Review, the Minister of Finance, Pravin Gordhan acknowledged that the introduction of the "new" Companies Act had given rise to certain anomalies in relation to tax and subsequently announced that the South African government would undertake to review the nature of company mergers, acquisitions and other restructurings with the view of possibly amending the Income Tax Act and/or the "new" Companies Act, to bring the two legislations in line with one another. These anomalies give rise to the present research. The literature reviewed in the present research revealed and identified the inconsistencies that exist between the "new" Companies Act, 71 of 2008 and the Income Tax Act, 58 of 1962, specifically the inconsistencies that exist in respect of the newly introduced amalgamation or merger provisions as set out in the "new" Companies Act. Moreover, this research was undertaken to identify the potential tax implications insofar as they relate to amalgamation transactions and, in particular, the potential tax implications where such transactions, because of the anomalies, fall outside the ambit section 44 of the Income Tax Act, which would in normal circumstances provide for tax "rollover relief". In this regard, the present research identified the possible income tax, capital gains tax, value-added tax, transfer duty tax and securities transfer tax affected by an amalgamation transaction, on the assumption that the "rollover relief" in section 44 of the Income Tax Act does not apply.
- Full Text:
- Date Issued: 2014
The distinction between types of commercial and residential property for value-added tax purposes in South Africa
- Authors: Ferreira, Melanie
- Date: 2012
- Subjects: Property tax -- South Africa , Value-added tax -- South Africa , Tax assessment -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:8955 , http://hdl.handle.net/10948/d1008710 , Property tax -- South Africa , Value-added tax -- South Africa , Tax assessment -- South Africa
- Description: It is important to distinguish between types of commercial and residential property for value-added tax (VAT) purposes. The reason for this is because the supply of residential property may be exempt from VAT in certain cases, whereas the supply of commercial property is a taxable supply. One of the aims of this treatise was to generate some characteristics that can assist vendors to distinguish between types of commercial and residential property for VAT purposes. SARS proposed numerous changes to the VAT Act with regards to fixed property in 2011. This treatise explains the reason for the changes made and also comments on them. Firstly, property developers previously had to account for an output tax adjustment when they changed the use of their property i.e. from a taxable use (selling the completed units) to a non-taxable use (renting the completed units as a residential dwelling). This „output tax adjustment‟ sometimes places developers in a financial dilemma, especially in times of an economic depression. SARS therefore provided „developers‟ as defined with a short term solution. This short term solution provides property developers with a 36 month temporarily relief period, before they have to account for the „output tax adjustment‟. Therefore, the new section 18B was proposed to assist property developers in times of an economic recession. Secondly, in the past a vendor who acquired a property from a non-vendor to make taxable supplies was allowed a notional input tax deduction, limited to the transfer duty paid. SARS has however "delinked VAT from transfer duty‟, which means that the notional input tax deduction will no longer be limited to the transfer duty paid. This change may benefit vendors as they may now be allowed a bigger input tax deduction. Furthermore, the treatise also compares the VAT treatment of the above issues to that of the goods and services tax treatment in New Zealand. The treatise concludes with a summary of all distinguishing characteristics identified and other findings noted.
- Full Text:
- Date Issued: 2012
- Authors: Ferreira, Melanie
- Date: 2012
- Subjects: Property tax -- South Africa , Value-added tax -- South Africa , Tax assessment -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:8955 , http://hdl.handle.net/10948/d1008710 , Property tax -- South Africa , Value-added tax -- South Africa , Tax assessment -- South Africa
- Description: It is important to distinguish between types of commercial and residential property for value-added tax (VAT) purposes. The reason for this is because the supply of residential property may be exempt from VAT in certain cases, whereas the supply of commercial property is a taxable supply. One of the aims of this treatise was to generate some characteristics that can assist vendors to distinguish between types of commercial and residential property for VAT purposes. SARS proposed numerous changes to the VAT Act with regards to fixed property in 2011. This treatise explains the reason for the changes made and also comments on them. Firstly, property developers previously had to account for an output tax adjustment when they changed the use of their property i.e. from a taxable use (selling the completed units) to a non-taxable use (renting the completed units as a residential dwelling). This „output tax adjustment‟ sometimes places developers in a financial dilemma, especially in times of an economic depression. SARS therefore provided „developers‟ as defined with a short term solution. This short term solution provides property developers with a 36 month temporarily relief period, before they have to account for the „output tax adjustment‟. Therefore, the new section 18B was proposed to assist property developers in times of an economic recession. Secondly, in the past a vendor who acquired a property from a non-vendor to make taxable supplies was allowed a notional input tax deduction, limited to the transfer duty paid. SARS has however "delinked VAT from transfer duty‟, which means that the notional input tax deduction will no longer be limited to the transfer duty paid. This change may benefit vendors as they may now be allowed a bigger input tax deduction. Furthermore, the treatise also compares the VAT treatment of the above issues to that of the goods and services tax treatment in New Zealand. The treatise concludes with a summary of all distinguishing characteristics identified and other findings noted.
- Full Text:
- Date Issued: 2012
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