School of Accountancy (ETDs)

Permanent URI for this community

https://hdl.handle.net/10539/37779

Browse

Now showing 1 - 20 of 148

Leadership and resilience at the Islamic University of Gaza, 1978-2012
(2016) EL-Namrouti, Said Ahmed
Leadership in Higher Education Institutions (HEIs) in turbulent times has been undertheorised. A qualitative case study based on document analysis of 70 documents, 39 interviews and 2 focus groups was the vehicle for examining the role of the leadership at the Islamic University of Gaza (IUG). IUG has operated under complex conditions of occupation and ongoing turbulence from its inception in 1978 to the present. This study examines the period 1978-2012. In this time the university grew from 25 men studying Sharia in a tent to 20,000 students (63.7% female) studying across 11 faculties and 112 different specialisations. The study documents and labels four phases of development of the university. The patterns of leadership uncovered in the study include transformational, transactional, heroic, post-heroic and on some specific occasions authoritarian styles, with transformational being the most important. The way in which the leadership resolved short term crises, as well as their long-term and big-picture focus, shaped the development of the university. Resilience theory was applied alongside leadership theory to analyse the responses of IUG leadership. Resilience was taken beyond surviving to capitalising on disruption. Twenty three markers of resilience were found which worked independently and interactively to support resilient responses to the challenges IUG faced. These factors were initially developed from the literature, and new factors were added based on this research. The relationship between leadership styles and the promotion of resilience was examined. The thesis describes a mutual shaping and supporting role between university and society in Gaza, and discusses some of the paradoxes of help and harm coming from players and belief systems external to the university. The paradox of faith which can provide a cohesive, binding set of beliefs to support staff and students, as well as being the source of conflict and harm, is also discussed. A definition of a university as an educational community functioning beyond place, buildings, external recognition, or physical destruction was developed.
The principles governing 'place of effective management' and 'permanent establishments' and their application to the digit al economy: a South African perspective
(2016) Boel, Katherine
The purpose of this research report is to consider the application of existing 'place of effective management' (POEM) and 'permanent establishment' (PE) principles to a company operating in a digital economy in order to determine its appropriateness and limitations. This paper is broadly divided into four parts. The first part of the paper provides a brief background to the above taidng principles and the digital economy. The second part considers, in detail, the guidance and factors that are currently available on how the POEM and the creation of a PE for a company may be determined both internationally and from a South African tax perspective, including the role of the residency tie-breaker article and the PE article in most double taxation agreements (DTA's) with South Africa. The third part of the paper considers how these guidelines and factors may apply to the digital economy and the practical challenges which arise. Finally, the paper seeks to identify possible alternatives to overcome the pitfalls in the POEM and PE interpretations and to highlight aspects which require further consideration.
Customer and employee-based brand equity driving United Bank for Africa's market performance
(2017) Uford, Imoh Charles
With increased competition in the banking industry, particularly in developing economies, United Bank of Africa Plc (UBA) in Nigeria has been thriving. The bank is a multinational financial services provider, which operates in 22 African countries. It also has offices in the US, UK and France. UBA has about 626 global branches and serves more than seven million retail, commercial and corporate global customers. Positioned as a pan-African bank, the UBA Group is firmly in the forefront of driving the renaissance of the African economy. It is also well positioned as a one-stop financial services institution, with growing reputation as the face of banking on the African continent. UBA Plc has grown over the years from being just a brand name to a house hold name in Nigeria. In 2011, it was reported that UBA’s total assets was worth about $12.3 billion. The bank is also gearing to be one of the dominant and leading banking brands in Africa. While the measurement of UBA’s asset worth is important as it reveals information of its financial performance, it can be more important to measure the worth of its intangible assets, which is being captured from the assessment of its brand equity. Brand equity does not only comprise of an organization’s intangible assets, but does reflect the values consumers hold of a brand and can also secure long-term commercial and competitive advantages for companies. With the notion that the value or power of a brand lies in what customers perceive in their minds concerning the brand, most studies have measured brand equity mainly from the customer-based brand equity (CBBE) perspective using Aaker’s (1996a) and Keller’s (1998) models. Aaker’s (1996a) model is however considered to be the most comprehensive CBBE model and it measures brand equity from five dimensions – brand awareness, brand association, perceived quality, brand loyalty and proprietary assets. While CBBE can secure long-term market performance, it is being recommended that the contribution of employee-based brand equity (EBBE) should also be measured. This is particularly important in the service sector, such as banking, where “what is delivered is less important than how it is delivered”. More so, with the increasing importance of internal branding, there is a need to measure EBBE, which assesses how knowledgeable, happy and committed employees are willing to deliver on the brand promises to build brand equity. In addition to the importance of measuring both CBBE and EBBE, there is also the need to further compare the extent to which both CBBE and EBBE predict market performance, an outcome anticipated, but rarely empirically tested. This study therefore employs Aaker’s (1996) CBBE model and Kwon’s (2013) EBBE model to examine the sources of UBA’s CBBE and EBBE respectively and the extent to which each of the equities drive market performance indicators, such as consumer purchase intention, willingness to pay a price premium and brand preference. A positivist research paradigm with a quantitative survey of 182 UBA employees and 178 UBA customers were used to test the hypotheses. The relationships hypothesized in the conceptual model were empirically tested using structural equation modeling (SEM). The results indicated that the conceptual model satisfactorily fitted the data and provided reasonable explanations among variables. In terms of the relationships, it was found that UBA’s CBBE was accounted for by brand associations or image and brand loyalty. UBA’s overall CBBE positively and significantly affected all the market performance indicators of purchase intention, willingness to pay a price premium and brand preference. UBA’s EBBE which was found to be positively and significantly driven by role clarity and brand commitment could only positively and significantly predict the bank customers’ willingness to pay a price premium. Conclusively, it was found that while UBA’s EBBE make some contribution to the bank’s market performance, its CBBE is the major driver of its performance. This study theoretically contributes by not only empirically testing Aaker’s (1996b) CBBE and Kwon’s (2013) EBBE in the Nigeria’s banking sector, but by also showing how both models explain market performance. Practically, the study reveals sources of CBBE and EBBE, which not only UBA should prioritize in improving their market performance, but other service sectors in Nigeria and the continent should take special note of. Keywords: Brand equity, customer-based brand equity (CBBE), employee-based brand equity (EBBE), United Bank for Africa (UBA) Plc, United Bank for Africa (UBA) Plc, structural equation modelling (SEM), United Bank for Africa (UBA) Plc, willingness to pay a price premium and brand preference
Tax deductibility of interest and finance charges: the real cost of credit
(2017) Haines, Chantelle
Borrowers will commonly incur various finance charges when acquiring loan funding, which may include, inter alia, interest expenditure, guarantee fees, introduction fees, commitment fees and service fees. The tax deductibility of these finance charges is an important consideration for borrowers. Prior to the amendment of the definition of ‘interest’ in section 24J of the Income Tax Act 58 of 1962 (as amended), related finance charges were deductible for tax purposes. The term related finance charges was interpreted very widely by the Supreme Court of Appeal in C:SARS v South African Custodial Services (Pty) Ltd1 to include guarantee fees, introduction fees, commitment fees and even selected service fees. It is submitted that following the recent amendment of the interest definition by the Taxation Laws Amendment Act 15 of 2016, to now allow the deduction of ‘similar finance charges’ rather than ‘related finance charges’ the tax treatment of finance charges are uncertain. The objective of this study is to evaluate how this amendment will affect the deductibility of finance charges incurred by borrowers for tax purposes. The study proposes to first evaluate whether finance charges will be deductible in terms of section 24J, consider the definition of ‘interest’ and provide some general tests aimed at assessing the ‘trade requirement’ and the meaning of the phrase ‘in production of income’. The impact of the anti-avoidance legislation in sections 8F and 8FA will be considered, and finally, a brief discussion of the deductibility of finance charges in terms of the general deduction formula in section 11(a) read with section 23(g).
The arm’s length pricing for intra-group services – transfer pricing
(2017) Lee, Yi Ying
The purpose of this research report is to identify any improvements that can be made to the South African transfer pricing legislation for intra-group services. South Africa’s transfer pricing legislation for intra-group services will be compared to Aligning Transfer Pricing Outcomes with Value Creation, Action 8-10, 2015 Final Reports, OECD/G20 Base Erosion and Profit Shifting Project (‘BEPS Action Plan’) released by the Organisation for Economic Co-operation and Development (‘OECD’). The Action 10 of the BEPS Action Plan introduces a simplified transfer pricing approach for low value-adding intra-group services. The simplified approach aims to reduce base erosion payments through excessive management fees and head office expenses (OECD, 2015:141). According to Verlinden and Katz (2015:1): ‘… the simplified approach lowers the burden on multinational enterprise groups to demonstrate the beneficial nature of the low value-adding activities for other MNE group members; and allows for an elective approach for reducing the administration involved in the pricing of low value-adding services. The OECD is achieving an appropriate balance between theoretical sophistication and practical application that is commensurate with the tax at stake in the countries paying and receiving the charges … .’ This approach will benefit tax authorities with limited resources in performing transfer pricing audits enabling them to verify the arm’s length nature within the intra-group services charge (Watson, 2015:8). Key words: Anti-avoidance, BEPS Action Plan, Transfer Pricing, Arm’s Length Method, Arm’s Length Price, Intra-Group Services, Low Value-Adding Intra-Group Services, Comparable Uncontrolled Price Method, Resale Price Method, Cost Plus Method, Transactional Net Margin Method, OECD Guidelines, OECD.
A critical analysis into the Organisation for Economic Co-operation and Development ‘Standard for Automatic Exchange of Financial Account Information in Tax Matters’
(2017) Mohanlal, Dhanesh
The impact of the Organisation for Economic Co-operation and Development’s Standard on Automatic Exchange of Financial Account Information in Tax Matters has a significant impact on Financial Institutions globally. This paper aims to critically evaluate the current South African legislation and the obligations it places on financial institutions. The research also highlights the challenges faced by a financial institutions in interpreting and implementing the often complex requirements of the regulations with a particular focus on the following areas namely customer on-boarding and enhanced due diligence procedures, monitoring of accounts, remediation of the existing customer base, system development, and reporting to the South African Revenue Service. The research also looks into the readiness of developing countries in implementing the Automatic Exchange of Information. The research concludes with a discussion into the appropriateness of South Africa’s decision to agree to be one of the early adopters of this legislation despite the challenges identified above. Key Words: OECD, Standard on Automatic Exchange of Financial Account Information for Tax purposes, Common Reporting Standard, Financial Institutions.
Reconstruction and recovery process of the 2007/2008 post-election violence victims in Kenya
(2017) Kinyeki, Julius M.
This research addresses three questions: how Internally Displaced Persons (IDPs) following the post-election violence of 2007/2008 in Kenya are recreating their community resilience capacities; how the Kenyan government and non-state interventions are influencing the victims’ livelihood strategies towards their reconstruction and recovery process and how social support and social capital has accelerated their reconstruction and recovery process. It proposes a post-conflict reconstruction and recovery approach based on the research findings. The research adopted Qualitative research methodology and primary data were collected from the month of January, 2015 continuously and concurrently with data analysis. The key findings were that ownership of land is perceived and identified as a milestone in the process of post-conflict reconstruction and recovery, an avenue for community resilience. The main means of livelihood for IDPs are casual labour and other menial jobs. The Kenyan government has made an effort towards resettlement of IDPs although this is ad hoc and ineffective due to lack of experience and a specific framework for any major resettlement. NGOs abandoned the reconstruction and recovery projects as soon as the humanitarian crisis ended. But the United Nations Development Programme (UNDP) had reconstruction and recovery projects which ended in 2011. In displacement, IDPs lost their original support system, but developed new emergent norms to support each other. Integration of IDPs is a better option in the reconstruction and recovery process compared to the government farm resettlement approach. The key recommendations are that government should evaluate the economic loss of every integrated IDP and those resettled in government procured farms should be provided with legal ownership documents. There should be an urgent re-profiling of IDPs in camps and use of UN Guiding Principles on IDPs to re-integrate them into society. The findings of this research bring to light new knowledge on the theory of social capital: victims of displacement develop new emergent norms, values and culture to support each other, which eventually creates a new society/community. Key Words: Post-conflict reconstruction and recovery; integrated IDPs; government resettled IDPs; camp-based IDPs; social capital: social support; livelihood strategies.
The implementation of Section 139(1) of the Constitution in the Ngaka Modiri Molema District Municipality
(2017) Kampi, Zoliswa
The Ngaka Modiri Molema District Municipality (NMMDM) is situated in the North West Province, South Africa. It has persistently been placed under provincial administration (s139 (1) of the Constitution) and continuously resisted the interventions including taking legal actions against the North West Provincial Executive. The objectives of the research study were to explore and provide insights into the factors that informed and impacted the planning and implementation of s139(1) interventions in the NMMDM, and to explain how these factors either promoted or undermined the success of these interventions. From the literature review undertaken, the researcher drew critical themes and concepts that underpin the research study. The leadership and governance theories provided the theoretical perspectives and the principal-agent theory underscored the conceptual framework. In line with the exploratory nature of the research study, the qualitative research method was preferred and the NMMDM was adopted as a single case study to get a deeper understanding of the intricacies involved in the planning and implementation of s139(1) interventions. The researcher obtained the primary data through semi-structured interviews with the municipal leadership and used document analysis to gather secondary data. The research findings revealed the richness and complexity of the local government discourses. Through analysing the results of these discourses, a number of critical aspects that informed and impacted these interventions in the NMMDM emerged. These aspects range from the nature of to the quality of support provided to the NMMDM prior to the interventions. These include the communication of the directives and notices to assume responsibility, details given on the rationale for the interventions, political dynamics and their influence on reactions to the interventions, capacity of the province to plan and implement the interventions, and perceptions of the impacts of the interventions. Nevertheless, it is not the intention of the research study to generalise the findings but to present them as they manifested in the NMMDM.
Application of South African VAT on e-commerce transactions
(2017) Xaba, Nduduzo Justified
The present study sought to investigate self-selection among internal and international migrants in Gauteng by making use of the Gauteng City Region Quality of Life Survey data. The present study also sought to disentangle the effects of observed and unobserved characteristics in the self-selection of migrants by conducting Oaxaca-Blinder decomposition on overall employment and self-employment outcome variables. Preliminary descriptive statistics indicated that international migrants experienced markedly higher levels of employment than both locals and internal migrants driven by higher rates of informal and self-employment. System GMM analysis of pseudo panel data confirmed these results and showed that international migrants had a higher probability of employment and self-employment. Oaxaca Blinder decomposition indicated that unobserved characteristics explained the greatest share of the differences in the rates employment and self-employment of locals, internal migrants and international migrants. These results provide evidence for the positive selection of international migrants to Gauteng on unobservable characteristics relevant to the region’s labour market. Key Words Self-Selection; Migration; Self-Employment; Employment
A critical analysis of the vat apportionment method in the banking sector in South Africa
(2018) Chitando, Makgolane Kutlwano
Value-Added Tax (VAT) has the standing of being a fairly simple tax. Where vendors solely supply taxable goods and services, the VAT on expenditure acquired for the sole mandate of making taxable supplies may be recovered from the VAT imposed on their output. VAT is therefore a tax on the value added at every stage of production. Accordingly, the tax is levied on the value of the final product but is collected in small portions from each part in the supply chain. ―In the banking sector, consumers are not purchasing financial services from the bank, so there is no sale on which VAT must be imposed. This has resulted in the VAT exemption of financial transactions as it is difficult to define the value added of financial services‖. (Mirrlees et al 2011:196). The exemption of financial transactions raises a number of complicated issues for banks as there is a requirement to apportion input credits. This is common to all countries operating a VAT system, although the basis of apportionment differs. The intention of this research report is to draw a distinction between the taxing of financial services in South Africa compared to other countries. This research report will analyse the appropriateness of the apportionment method approved by SARS for the banking sector in light of the concept of direct attribution of costs. Through an analysis of the foreign treatment on the matter of VAT apportionment and the taxation of financial transactions, this study will seek to determine whether the taxation of financial transactions in the South African VAT System and the VAT apportionment method approved by SARS for the South African banking sector is consistent with international best practice
Income tax treatment of the transfer of contingent liabilities during the sale of a business
(2018) Boakye, Stephen
The objective of this report is to analyse the South African income tax consequences of the assumption of contingent liabilities such as leave pay provisions and bonus provisions during the transfer or sale of a business. This report will consider two methods utilised to transfer contingent liabilities as part of a sale of a business. An analysis of how these two methods have been derived will be performed as part of this report. The report will then consider the income tax implication of the transfer of contingent liabilities under each of the methods. Overall, this report will critically analyse the income tax implications of the assumption of contingent liabilities during the sale of a business. A business generally consists of assets and liabilities. Businesses are often sold as a single unit although for income tax purposes, a distinction would have to be made on the particular assets sold.1 The current South African Income Tax Act caters for the income tax implication of selling assets in a business.2 It however seems to be silent on the income tax implications in instances where liabilities including contingent liabilities are assumed as part of the sale of assets.3 As a result, the income tax implication is subjected to the general tax principles which sometimes yield uncertainties from a taxpayer’s perspective. In an effort to clarify uncertainties in relation to the income tax implication of the assumption of contingent liabilities as part of the sale of a business, the South African Revenue Service in December 2016 released Interpretation Note 94. This report will, firstly, test the legal nature of Interpretation Notes with specific reference to reliance being placed on such Interpretation Notes in relation to the interpretation of the Income Tax Act
The foreign business establishment exemption and other aspects of section 9D of the Income Tax Act
(2018) Ismail, Faizel
This research report considers a number of practical issues that arise in relation to the enforcement of section 9D of the Income Tax Act No. 58 of 1962 (“ITA”) read together with complementary provisions of the Tax Administration Act No. 28 of 2011 (“TAA”). More particularly, this research report considers the following issues: the onus and burden of proof under section 9D; the scope of SARS’ power under section 46 of the Tax Administration Act No. 28 of 2011 (“TAA”) to request information in order to give effect to section 9D; the interlinking definitions in terms of section 9D; whether an outsourcing business model can constitute the primary or core operations of a CFC for the purposes of determining whether the CFC qualifies for the ‘foreign business establishment’ exemption under section 9D status; and, if the issue of whether a CFC correctly claimed an FBE status during the years of assessment be revisited by SARS, particularly in respect of years of assessment which have prescribed. It is submitted as follows. Section 46 of the TAA provides SARS with the effective procedural powers to ensure compliance with section 9D. SARS is however required to provide the taxpayer with grounds for assessment with sufficient and reasonable detail in order to enable the taxpayer to understand the basis of and reason for such assessment and respond appropriately thereto. SARS is constrained by a three-year prescription period (from the date of an original assessment) for issuing additional assessments unless SARS can demonstrate that the taxpayer committed a fraud or misrepresentation which caused SARS failure to properly assess the taxpayer. The onus is on the taxpayer to show, on a preponderance of probability, that the decision/s of SARS in terms of section 9D against which it appeals is/are wrong. There is an arguable case for contending that the active management of service providers and agents may constitute the primary operations for purposes of determining whether an FBE arises in relation to a CFC.
Using business models to drive classification: the case of debt instruments in the financial services sector
(2018) Holmes, Dominique
Faithfully representing financial instruments in financial statements is critical to the sustainable functioning of the global economy. This was highlighted in the aftermath of the Global Financial Crisis (GFC) where the relative financialisation of the global economy was implicated as contributing to the crisis (Barth and Landsman, 2010; Laux, 2012; Zhang and Andrew, 2014). Following the GFC, efforts to develop an improved accounting standard for reporting financial instruments were accelerated (IASB, 2014). This culminated in the release of IFRS 9 which uses the business model to determine the accounting treatment of financial assets. The standards’ predecessor, IAS 39, used the concept of management’s intention to determine accounting classification. This was perceived as being unnecessarily complex (IASB, 2008). Accounting commentators question whether the move to a business model basis is in substance different from management’s intention (Leisenring et al., 2012). Arguing that representing a contractually identical asset differently, based on its use, potentially undermines faithful representation and impairs comparability. This has led to questioning whether the use of a financial asset has the ability to alter its economic substance (Leisenring et al., 2012; Barth, 2013). This thesis explores IFRS 9’s logic of using the business model to determine the classification of financial assets in the financial services sector. Initial insights are obtained by conducting detailed interviews with some of South Africa’s leading practical and technical minds. These insights pertain to differences between management’s intention and the business model, whether a financial asset can be ‘used’ and how this may impact the economics of the financial. This research finds that financial assets can be used by financial institutions for various purposes. These are consistent with the business models of IFRS 9. Further, this thesis finds that communicating these alternate ‘uses’ is important to represent the differing economics of those assets. Participants also indicate that the business model enhances comparability through enabling comparison between similar business models, as opposed to accounting for identical financial assets in the same way. This thesis contributes to the growing calls for research into business models in financial reporting (EFRAG, 2010; Nielsen and Roslender, 2015). This thesis is also the first to provide the perceptions of South African experts on IFRS 9’s logic of using the business model as a method for classifying, measuring and presenting financial instruments.
Change of audit firms and whether it enhances independence
(2018) Govender, Keshika
This paper explores the change in auditors and whether it enhances auditor independence and credibility of financial statements. In recent years due to financial crises and accounting scandals, the rotation of a company’s auditors, after long standing relationships, have come into the limelight. The independence of auditors has come into question and the credibility of financial statements. Interviews were conducted to gain an understanding of how an audit client, referred to in this report as the Company, changed its auditors. The interviews gained an understanding of how the Company: • Made the decision to change and appoint new auditors • Determined whether this change enhanced independence and • Created processes in order to manage the changeover. The Company carrying out the change was analysed in order to understand the processes which were put in place to manage the change. Understanding the criteria and skills required from the new auditor was also investigated. The study finds that the process of appointing and transitioning to new auditors is a comprehensive and rigorous task. This process requires proper and careful planning, risk identification and process and project management. Throughout the process, the Company met with business its operations and provided feedback to members of the boards to ensure gaps were filled and targets and milestones were met. The onboarding of the new auditors required engagement with both the auditors and different functions and businesses of the Company. The success of this project required intense planning and incredible momentum, which the study shows, over the period of time in which the change took place. It required integration with all businesses of the Company and the group finance function.
Attitudes to integrated reporting in small-to medium-sized companies
(2018) Du Bourg, Caroline
The purpose of this research is to explore the attitudes of small- to medium-sized entities (SMEs) towards integrated reporting. This report analyses the motivations to produce an integrated report, the reasons for not preparing one, the isomorphic processes present in the field, and the logics of resistance evident. The thesis employs an interpretive methodology. Interviews were held with a sample of professionals involved with corporate reporting for SMEs’ to establish their attitudes towards preparing integrated reports. These attitudes were then analysed to identify the key themes. The research finds that the respondents perceive the primary benefits of preparing an integrated report to be improved relationships with stakeholders and an enhanced strategy and business model. Cost, lack of resources and no buy-in to the concept are the reasons that were identified for not SMEs to not adopt integrated reporting. The benefits are currently overshadowed by the perceived challenges which results in limited isomorphic pressures present in the field to engender the change. SMEs preparing integrated reports understand them to be best-practice. In contrast, those that do not prepare integrated reports disagree with this claim, as they are unaware of the topic or do not believe it to be applicable in the smaller environment. These attitudes have resulted in logics of resistance. The resistance has taken the form of either not preparing reports or not adhering to the essence of the concept. However, there is also evidence that some SMEs have complied with the requirements of integrated reporting. The research further revealed that the interaction between the isomorphic processes and logics of resistance determines the extent to which an SME prepares an integrated report. The results of this thesis indicate that the isomorphic pressures within the field need to grow to stimulate further preparation of reports. To achieve this, there needs to be widespread instruction on the topic, as well as an adaptation of the framework to be more relevant for smaller entities. This research shows how a social context impacts isomorphic processes and how the relatively new concept of integrated reporting is applied in an SME environment. The interpretive-style financial reporting research that has been employed addresses a void in the existing literature.
Market reactions to financial and resources BEE deals on the JSE
(2019) Hertz, Jenna
In South Africa, Black Economic Empowerment (BEE) has been instrumental in the transformation of the country post-Apartheid. The involvement of key sectors in transformation is dependent on specific Industry Charters and the impact of these charters on the implementation of BEE by companies has been largely ignored by prior literature. This research examines the short-run impact of BEE equity/ownership deals on the share price performance of JSE-listed stock by calculating abnormal returns (ARs) and cumulative abnormal returns (CARs) subsequent to announcements in the resource and financial sectors. The objective of the study is to determine whether announcements of BEE deals resulted in the creation of shareholder wealth in these specific sectors. The study further explores whether size of the issuing company was a factor in how the markets received BEE deal announcements. The research employed a standard event study methodology which is widely used in finance literature to examine the impact of corporate events on shareholder wealth. The sample included 111 BEE deal announcements by resource sector companies during the period January 2003 until October 2018 and 75 BEE deal announcements by financial companies during the period January 2004 until October 2018. ARs and CARs were analysed over an 11 day event window. The results of the study found that qualifying announcements had a significant positive impact on the CARs of financial sector companies and an insignificant negative impact on the CARs of resource companies over the 11 day event window. This demonstrated that BEE deals were perceived to destroy value in the resource sector and create value in the financial sector for shareholders. The difference in reaction between the two sectors was found to be significant. Furthermore, the research findings indicated that the market reacted more favourably to BEE deal announcements made by ‘small’ companies regardless of the sector. However, while these findings were significant for the financial sector, they were proven to be insignificant for the resource sector.
Equalising taxing rights in the digitalised economy: an analysis of diverse tax practices implemented globally
(2019) Forman, Ashleigh
There are limitations to the application of existing international tax laws as a result of digitalisation as these were formulated based on traditional ‘brick and mortar’ transactions. These laws are not well suited to the realities of the ‘modern way of doing business’ as they do not cater for business models which can generate returns from offering digital services in a jurisdiction without being physically present in that jurisdiction. Ultimately, if left unaddressed, these weaknesses threaten to expose tax authorities to erosion of national tax bases and profit-shifting manipulation (OECD, 2015b). The international tax framework needs to be responsive to the changing nature of global economies in the digital age. The tax framework should be able to accommodate new digital businesses which operate and create value in different ways (Saint-Amans, 2017). As a result, “there is a disconnect between where value is created and where taxes are paid” (European Commission, 2018b). In response to digitalisation, different jurisdictions have hastily imposed their own domestic tax practices to prevent further base erosion and to improve the collection of tax revenue (Petruzzi and Buriak, 2018). The OECD has attempted to address these tax challenges but has failed to provide clear guidance on taxing rights, as well as on how the profits should be allocated (Medus, 2017). The objective of this report is to summarise the tax practices implemented by the United Kingdom, the European Union, Italy and India in responding to the digitalisation of the economy. The aim will be met through a correspondence analysis between the different tax solutions implemented or proposed by these jurisdictions, and the problems identified in taxing the digital economy.
An examination of tampon tax and how it effects the social, health and economical aspects of countries including a comparative analysis of how some countries have dealt with tampon tax
(2019) Asmaljee, Sumaiyah Safi
Tampon tax is a colloquial term in common usage describing taxes levied on female menstrual hygiene products that are taxed as luxury goods in spite of the fact these items are considered necessities such as food and medicine, which are either exempted or taxed at 0% in some countries. Tampon tax in South Africa is the levying of value-added tax (VAT), to female menstrual hygiene products. Internationally, activists have initiated various campaigns and protests for the removal of tampon tax as it is not regarded as a luxury but rather a necessity, and South Africa has followed suit. There have been various campaigns and initiatives towards making female menstrual hygiene products more affordable and/ or accessible to the females from low-income households in South Africa. Reduction in sales tax rates, removal of goods and services tax on female menstrual hygiene products and the utilisation of the income earned from sales tax on female menstrual hygiene products are options available to negate the economic effects of tampon tax on females in their reproductive years. This paper discusses tampon tax and its effect on social, health and the economic well-being of South Africa. The paper will include comparative analyses to what is being done in some countries to alleviate the negative effects of the tampon tax. This paper will also examine the value-added tax in South Africa. Arguments in favour of and against tampon tax are also discussed.
A comparative study of the tax considerations of traditional funding available to small, medium and micro enterprises versus alternative sources of funding
(2019) Zungu, Sibongile Nomzamo Goodness
During the February 2018 National Budget speech, the 2018 GDP growth projection was anticipated at 1.5% (National Treasury 2018), 0.6% higher than the percentage projected by the International Monetary fund (IMF) just a month before (Khumalo 2018). In a country with a low GDP and an unemployment rate sitting at a straggering 26.7% (Statistics South Africa 2018), small, medium and Micro Enterprises (SMME's) sometimes referred to as small businesses. play a pivotal role in the success of the economy.
Market reaction to the FTSE/JSE responsible investment index series
(2019) Usher, Hayden Philip
Responsible investment has seen considerable growth since the turn of the millennium, and this has spurred the creation and continuous development of responsible investment indexes across the globe. The purpose of this paper is to investigate whether the release of the RI index series contains price sensitive information content and therefore has value relevance for the market. Using event study methodology applied to the six releases of the FTSE/JSE Responsible Investment Index series from October 2015 to June 2018, this paper investigates the impact on the share prices of constituent, included and excluded firms from this index series. The study finds that the release of the constituents of the RI index does not contain new information content while constituents of the RI top 30 experience positive and statistically significant abnormal returns as a result of their constituency. The inclusion of firms on the RI index is not a release of new price-sensitive information, while firms included on the RI top 30 experience a sustained increase in share price throughout the event window. Firms excluded from the RI index and RI top 30 experience negative and statistically significant share returns and the market applies a greater discount toward firms excluded from the RI top 30. Finally, there are statistically significant differences between firms that were included and firms that were excluded from the RI index and the RI top 30 post-announcement date, and this is caused by the market applying a value discount toward firms with deteriorating ESG performance and disclosure. From an investors perspective, investors are able to generate significant arbitrage returns by shorting (longing) shares of firms expected to be to be excluded (included) from the RI index series. Consequently, firms should strive to be included or remain on the RI index series in order to signal the market that there has not been a deterioration in their ESG performance and disclosure, which would have a negative impact on their share price.

Browse

Browsing School of Accountancy (ETDs) by Issue Date

Results Per Page

Sort Options