The meaning of place of 'effective management' in the context of South African domestic tax law
- Authors: Daniels, Paul
- Date: 2012
- Subjects: Double taxation -- Treaties , Management
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:8960 , http://hdl.handle.net/10948/d1018822
- Description: South Africa has a residence based system of taxation in which South African tax residents are taxed on their worldwide income. A company or other artificial person is regarded as a South African resident for tax purposes if it is incorporated, established or formed in South Africa or if its ‗effective management‘ is located in South Africa. Where a tax treaty determines in terms of its tie breaker rule that an artificial person is not resident in South Africa for treaty purposes, the company will also not be regarded as a tax resident in terms of South African domestic law. Treaties to which South Africa is party will often use the effective management‘ as the tie-breaker where a person other than an individual is resident in both Contracting states in terms of the respective states‘ domestic laws. The tests of ‗incorporation, established and formed‘ provide simplicity and certainty to governments but are easily open to manipulation by taxpayers. Therefore, the legislature found it necessary to incorporate effective management‘ as a test for residency into the Act. Effective management‘ is a substance over form concept which be described as a function which embodies the periodic, most senior executive management functions, which are required for the management of the affairs of the entity as whole. The test of effective management‘ by its very nature is concerned with where the crucial decisions are made in order to make a business function. To identify the location of effective management‘ it is necessary to enquire who calls the shots‘ in the context of the management of the company as opposed to who controls the company notwithstanding that there may in certain instances be overlap between the two functions. It is submitted that any person who, on the face of it seems unconnected to a company, could effectively manage‘ a company if that person is, in substance, responsible for the most senior executive management functions of the company. The discussion paper issued by SARS recognises the principal difficulties experienced with its current interpretation of the concept and makes valuable points, concessions and recommendations. It also recognised that the 'calling of shots' by the most senior executive is a critical marker of effective management‘ and that control of a company is irrelevant in determining effective management‘. To determine who effectively manages‘ a company each situation would have to be analysed on its own as it is not possible to create a definitive rule on the concept. In many cases the nature of the entity and its modus operandi would have to be taken into account to determine effective management.
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- Date Issued: 2012
The assessment of the international organisations high performance strategy, through global business unit managers
- Authors: Van den Heever, Andette
- Date: 2012
- Subjects: Organisation Effectiviness , Management
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:8837 , http://hdl.handle.net/10948/d1019966
- Description: In today’s competitive global environment it is vital for businesses to continuously outperform their competitors, making each business more and more dependent upon product quality and the ability to adjust rapidly to change. To survive, businesses more and more depend on the creativity, initiative and problem-solving abilities of their employees. The research in this treatise will focus on the components of a high performance organisation, when assessing the international high performance strategy of Company A, developed by top management. The implementation of Company A’s strategy relies on how well the organisation fosters an environment which is conducive to high performance. At this stage it is not clear if the chosen strategy will succeed and direct the organisation towards sustainable high performance in the long run. Hence, the research question, which is the crux of this study, is to assess the effectiveness of Company A’s international high performance strategy in creating a sustainable high performance organisation in the long run. To achieve the primary objective of this research study, the researcher compared various prominent models of high performance organisations with one another. Despite the limitations, the researcher believes that the significance of De Waal’s model is that he managed to identify the factors involved in creating a high performance organisation. Based on the quantitative and qualitative comparisons, the researcher decided to use the research conducted by De Waal as the framework for the basis of this study. The Delphi Technique was used to identify the effectiveness of the strategy through a consensus seeking and commitment building process. Contrary to expectations, the empirical results indicated that Company A’s strategy does clearly indicate a high percentage of effectiveness. Although it definitely indicates that there is still a long road ahead of Company A to reach ultimate sustainable high performance, it definitely is on the right track. The research highlighted a few areas of concern, but with continuous adjustment and alignment of their strategy Company A would have a solid framework to work towards high performance in the long run.
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- Date Issued: 2012