3. Electronic Theses and Dissertations (ETDs) - All submissions

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An analysis of tax challenges arising due to digitalisation in South Africa
(2019) Mochusi, Thabang
Since e-commerce started, a lot of studies on its taxability and possible solutions have been done with the aim of enforcing compliance to protect governments from eroding tax bases. The traditional way of doing business is rapidly changing and companies are using e-commerce to trade with each other. Goods and services are exchanged digitally using the internet and various software without physical presence in the state which the goods and services are being provided. As a result, the current traditional tax rules do not effectively address the issue of digitalised business models. At present the enforceability of relevant tax legislation to cater for digitalisation remains a challenge in South Africa and globally. Hence, the focus of this study is to critically analyse the challenges which are brought about by digitalisation to South African tax and recommendations on how the tax rules can be modified to effectively address taxation of digital transactions. It has been reviewed and found that the greatest challenge that relate to fourth industry revolution from a tax perspective is the enforceability of the relevant tax legislation that was amended to make provision for digital transactions by South Africa. On the other hand, digitalisation also brought with its tremendous opportunities from an enforcement perspective as information can now be collated and linked in order to identify and detect evasion or avoidance with the use of specialised software which tax authorities can use. The research gives details of these main challenges and recommendations to tax policy makers.
Competition and profit persistence in the South African Banking Sector
(2019) Letlaka, Katiso
he objective of this paper is to determine the level of competition in the South African banking sector. This is achieved by answering two fundamental questions. Firstly, what is the level of competition in the South African banking sector? Secondly, is there profit persistence in this sector? We make use of panel data sourced from the Bankscope database. OLS, FE and GMMSYS are used for estimation. Competition measures are split into two streams, the structural and the non-structural approaches. We follow the non-structural approach and outline two methods under this approach, namely the Lerner Index and the Boone Indicator. The innovation in this paper is bourne out of estimating the persistence of profits in the South African banking sector and then comparing the results with the already existing models in the literature. The main finding is that the South African banking sector exhibits low levels of competition. The 2008 financial crisis does not alter the main findings in any fundamental way. This supports the call for reform and better regulation in the South African banking sector.
A critical analysis of South Africa revoking its income tax exemption for United Nations officials
(2019) Mutwanamba, Ntungufhadzeni Olga
The United Nations (UN) runs an extremely complex payroll system, complicated mainly by the fact that the organisation wants to treat all employees equally, wherever in the world they may be (Loan, 2003). The Charter of the United Nations (UN Charter), signed on 26 June 1945, provided certain privileges and immunities to the UN as an organization, to its officials, and to representatives of Member States to the various organs of the UN. Immunity has been defined in the Oxford Dictionary as ‘protection or exemption from something, especially an obligation or penalty’. Stemming from articles 104 and 105 of the UN Charter, the UN later introduced an exemption from national income taxation on all UN officials’ earnings in terms of section 18(b) of the Convention on the Privileges and Immunities of the United Nations, 1946 (Convention). Taxing rights and related exemptions are regulated by a country’s tax laws. In South Africa, those are clearly stated in various tax acts. South Africa taxes on a residence basis as clearly stipulated in section 1 of the Income Tax Act 58 of 1962 (Income Tax Act), under the ‘gross income’ definition. Absent the UN Charter and agreements reached regarding UN privileges and immunities, the UN would have to work around avoiding juridical double taxation by determining which countries should have taxing rights on UN employees. The following categories of the UN employees are applicable in this study: South African residents working in South Africa, South African residents working outside South Africa or non-residents working in South Africa. South African residents working outside South Africa will normally obtain a foreign employment income exemption in terms of section 10(1)(o)(ii) of the Income Tax Act. The section will be amended from 01 March 2020 to exempt only the first R1 million earned from foreign employment.
A critical analysis of the relevance of the South African research and development tax incentive to small and medium-sized enterprises (SMEs) and start-ups
(2019) Tau, Thato
Industries, companies, and economies; all are changing and staying still is not an option. This highlights the importance of innovation, and how it can no longer be dismissed as just another business buzzword. In the same vein, the important role that small and medium-sized enterprises (SMEs) and start-up companies play in driving innovation, job creation, economic growth, and social values cannot be ignored. One way in which governments can better nurture and support the participation of SMEs and start-ups in the promotion of innovation, thereby driving productivity, growth and job creation, is through research and development (R&D) tax incentives. There are a variety of ways in which the design of R&D tax incentives can be shaped. There is also scope to sharpen its focus by closer targeting of organisations identified as vital for society but have special needs for support. For instance, many countries who offer an R&D tax incentive either explicitly or implicitly target SMEs and start-ups who are often loss-making and for whom some incentives can be a highly-valued source of finance. This research report explores whether the South African R&D tax incentive benefits SMEs and start-up companies by comparing various design features of the South African R&D tax incentive against some other countries’ R&D tax incentives. The main findings show that although the Department of Science and Technology has gone some way to fixing the issues previously faced by the R&D tax incentive programme, there is still more that can and should be done to ensure that the incentive better meets the interests of SMEs and start-ups.
The effects of retailer innovation on customer retention in small independent retailers
(2019) Zulu, Valencia Melissa
The South African government (Department of Trade and Industry) classifies small independent retailers as part of small, medium, and micro enterprises, making these retailers a significant and critical industry in the South African economy. However, there have been numerous challenges that influence the high failure rate of small independent retailers. The lack of innovation is one of the biggest challenges. The skill and capability of a retailer to innovate has become an important differentiating factor and one of the primary means of enhancing a competitive advantage. While scholars have cited that small businesses that innovate increase their chances of survival, and enriched performance, there is a lack of studies on the potential of innovation as a consumer retention strategy within the small retailing context. The purpose of this study was to investigate the effects of retailer innovation on consumer retention in small independent retailers in the township economy. Following a quantitative approach, the data was collected conveniently from 500 consumers. Structural Equation Modelling (SEM) was used as the statistical technique to analyse the data and test the hypotheses. The findings revealed that retailer innovation had a non-significant direct relationship with consumer retention. However, findings identified consumer participation, consumer advocacy, consumer experience, and consumer satisfaction as the mediators that enable the relationship. These results provide a valuable contribution to current literature by generating new knowledge for scholars in the field of township economy, consumer behaviour, retail marketing and small businesses innovation. Furthermore, this study provides valuable information to policy makers, entrepreneurs, and the private sector, particularly those with interests in the revitalisation of the township economy.
An evaluation of the ‘separation of powers’ governance model in the Johannesburg Metropolitan Municipality
(2018) Chikwema, Salatial
The absence of the separation of executive and legislative functions in local government limits oversight, accountability, and public participation. Governance in municipalities in South Africa is ‘distressed’ because of weak accountability measures resulting from a lack of separation of the functions between the legislature and the executive. In 2006, the City of Johannesburg undertook governance reforms and established a governance model that separated the executive and legislative functions of Council in response to the challenge of weak accountability, inadequate oversight and weak public participation in Council. This study evaluates the governance model implemented in the City of Johannesburg Metropolitan Municipality. Using a qualitative research strategy, a case study design and semi-structured interviews as the key data collection method, thirty-five key governance model stakeholders were identified and interviewed across the political and administrative spectrum. All interviews were transcribed and coded according to the relationship between individual leader themes and the extent they linked to particular research focus areas. The patterns determined from the data (interviews and document analysis) were used to explain the conceptualisation, strengths and weaknesses as well as challenges of the ‘separation of powers’ governance model in the City of Johannesburg. The results are discussed and interpreted using institutional, principal-agent and democratic governance theories as analytical frameworks. The study found that, despite positively influencing the practice of governance, the model failed to maximise its potential for ‘real’ oversight and accountability. Routine, overt, practices were implemented and promoted accountability practices, such as oversight committees, oversight visits, Council debates, performance monitoring and oversight reporting on performance. However, lack of capacity, inability to track Council resolutions, inadequate resourcing, mistrust between the legislature and administration, among other challenges, limited the evidence of the effect of such practices. The more subtle processes of values and culture of oversight were elusive leading to routine oversight activities failing to influence decision making. There was little evidence too that the model promoted public participation in Council processes.
Fighting impunity through prosecution of international crimes in Africa
(2019) Asaala, Evelyne Owiye
Over the years, it has become increasingly difficult to sustain any discourse on the challenges facing Africa without mentioning impunity for atrocious acts. Impunity has habitually characterised political instability on the continent and often led to civil unrest. Impunity continues to expose African civilians to horrendous human rights violations, such as war crimes, genocide, crimes against humanity, torture, rape, extra-judicial executions, corruption and autocratic rule. Arguably, in the last few decades, almost all African countries have experienced conflicts that resulted in serious human rights violations. Unfortunately, these atrocities were met in the past with either a total lack of accountability or only half-hearted measures. This necessitated a regional response in line with principles of the African Union (AU) that, inter alia, underscore good governance, respect for human rights, and accountability for past crimes. Several initiatives to root out impunity were introduced both at the regional and international level. The initiatives at the international level entailed setting up a number of ad hoc tribunals on the African continent to undertake prosecution. The eventual adoption and entry into force of the Rome Statute establishing the International Criminal Court (ICC) raised considerable hope, with some commentators describing it as a ‘Grotian’ moment for international law. At its inception in 1998, the ICC was seen as a permanent solution to the problem of accountability for past crimes. A majority of African states took part in the negotiations, adoption, signature and ratification of the Rome Statute. In 2003, the Democratic Republic of Congo (DRC) was the first state to trigger the ICC’s jurisdiction through the self-referral mechanism. Subsequent efforts by African states through such ‘self-referrals’ ensued. In sum, in addition to DRC, Uganda, Central African Republic (CAR) and Mali have referred situations in their countries to the ICC. Unfortunately, this euphoria has come to naught. Enthusiasm about the ICC and the promise it held as a solution to impunity seems to have faded away, with much criticism directed to it amidst AU calls for an African solution to Africa’s problem of impunity. The Gambia, Burundi and South Africa submitted notices to withdraw from the ICC. Although the Gambian notice has been withdrawn and a South African court invalidated the South African withdrawal, as it was procedurally irrational (resulting in the government revoking its withdrawal notice), there are impending threats that Namibia, Kenya and Uganda as well as South Africa (should it meet the relevant domestic procedural requirements) could seek to withdraw. This study identifies two central themes that, arguably, have informed the AU’s discontent about the ICC. They are: the perceived bias of the ICC against Africa; and the divergent opinions in the ‘peace versus justice’ debate. These are covered in chapters two and three of this thesis, respectively. Chapters four and five interrogate African approaches to their concerns against the ICC in addressing the problem of impunity. While chapter four discusses the criminal mandate of the African Court of Justice and Human Rights, chapter five considers traditional African approaches and truth and reconciliation commissions. Chapter six then concludes the study. This dissertation seeks to answer four research questions: What are Africa’s concerns about the prosecution of international crimes at the ICC? On what bases does Africa have these concerns? Do African approaches add value to the fight against impunity in Africa and how can one strengthen them? Is a regional criminal mechanism - which takes into consideration African approaches or perspectives – the solution to fighting impunity in Africa?
Individual use of enterprise mobility application systems in a banking environment
(2019) Manhuwa, Abigail
Advances in mobile technology, coupled with the explosive growth in the use of mobile devices, have seen the birth of a new organisational technology trend termed Enterprise Mobility. Enterprise mobility is where employees can work from any location other than their offices. Mobile technology use is potentially changing people’s everyday tasks and freeing individuals from tethered systems such as desktop computers. Nevertheless, the Information System (IS) field has witnessed the use and non-use of organisational technologies which has led many researchers seeking to understand what influences employees to use or not use the innovated technologies. Purpose: The study sought to describe the use of enterprise mobility application systems by individual employees in a banking environment through the theoretical lens of Task-Technology Fit (TTF) model. The goal was to determine the appropriateness and fit of enterprise mobility technologies to employees’ tasks, in the context of a South African banking environment. Design/Methodology/Approach: This is a descriptive case study following an interpretive philosophy and using a qualitative research approach. Semi-structured one-on-one interviews were administered with study participants at their offices, in a South African bank. Originality/Value: The study describes what influences the use of enterprise mobility. That is, the study extends enterprise mobility body of knowledge in the context of a banking environment. It informs practitioners with factors that may influence use and non-use of enterprise mobility application systems. Findings in Summary: Through the lenses of TTF theoretical framework the study findings reveal that, to influence individual use of enterprise mobility applications systems there should be harmony between the tasks at hand and the technologies used. The study shows that for the enterprise mobility technologies to be used, banking organisations should look on improving the underlying technology capabilities so that they are scalable to accommodate the changing user tasks requirements. The study further shows that, organisations should strike a balance between enterprise mobility and working in the office so that the essence of human interaction is not completely lost.
An investigation into the relationship between debt sustainability and fiscal support for Eskom
(2019) Dlamini, Khethinkosi
Eskom — South Africa’s state-owned electricity utility — is facing difficulty servicing the large debt obligations it has incurred over the last decade. This study investigated the trade-off between debt sustainability and the improvement in Eskom’s financial position. The empirical analysis is based on annual South African public finance data covering the period 2006/07 to 2016/17. The data analysis showed that the subsidies to the power utility did not detract from the underlying debt-sustainable public finance position. In fact, the analysis showed that the government subsidies improved Eskom’s valuation and profitability. Using simulations, a case was tested in which Eskom was provided with more subsidies instead of a loan guarantee, and the results showed that these subsidies would have further raised Eskom’s value while not harming the sustainable debt position of the public finances. Based on the results of this investigation it is recommended that the fiscal authorities employ the debt sustainability, guarantee valuation and cashflow techniques discussed in this report to evaluate whether issuance of a guarantee is aligned with the broader public finance objectives.
Knowledge in modern organisations: establishing the link between knowledge management, organisational learning, environmental dynamism and innovation : (a comparative study of mobile companies in Zimbabwe and South Africa)
(2019) Masoka, Tinashe
Knowledge Management has become a key fundamental asset for any organisation`s productivity gains, i.e. product or service innovation. But it does not work in isolation; aspects such as Organisational Learning have proved to be important too as organisations aim to have their employees well equipped with the internal and external environment. That being said, organisations operate in a dynamic environment that keeps changing all the time in terms of technology, financial markets, customer buying-behaviour, amongst other factors. As such, mobile organisations are innovation bound in terms of their products and services that they offer; hence, innovation is their main priority. This research study examines the link that exists between knowledge management, organisational learning, environmental dynamism towards achieving innovation amongst mobile organisations, Organisation A and Organisational B, in Zimbabwe and South Africa respectively. This research study will hypothesize and test knowledge management, organisational learning and environmental dynamism against innovation across the two organisations with a total sample of 370. The results highlight knowledge management, organisational learning and environmental dynamism as positively correlated and there is a statistical significant relationship between knowledge management, organisational learning and environmental dynamism towards innovation. The results also indicated that ED plays a moderating role in regulating how innovative organisations can be with organisations in high unstable environments having high innovation levels. The major implication that will be a limitation for this research study is that the data collected is limited to organisations in South Africa and Zimbabwe only. The practical implications for this research study will aim to contribute to management of organisations to utilise and illustrate that knowledge management, organisational learning and environmental dynamism form part of the bottom line of the organisation towards achieving innovation levels. This research study aims to contribute to the literature that exists on knowledge management, organisational learning, and environmental dynamism by empirically analysing their effects on innovation. It also highlights the interaction and link that exists between knowledge management, organisational learning and environmental dynamism and how these facets work hand in hand to attain innovation levels in organisations that will make them competitive over their rivals.
The legal risks in IoTs processing of personal information: a South African perspective
(2019) Naidoo, Anola
The technological and competitive landscape has undergone a significant change over the past decade, leading to cheaper processes, improved networking capabilities, smart devices, appliances, vehicles, security systems, machine learning and artificial intelligence that have exponentially enhanced the manner in which humans interact globally. While the Internet of Things has facilitated the Fourth Industrial Revolution, the push for universal access to the internet and the intelligent collaborations between various objects anywhere and at any time, requires the Internet of Things more often than not, to demand an extensive amount of an individual’s personal information be processed in order to perform its daily functions. This processing and increased complexity of these devices creates new safety, security, privacy, and usability challenges far beyond the difficult challenges’ individuals face just securing a single device. Furthermore, without the ability of manufacturers, internet service providers and/or government being able to guarantee an acceptable security level to protect the personal information being processed, this report aims to ascertain the legal risks to data privacy and security when these Internet of Things process a person’s personal information, the importance of one’s Constitutional right to privacy together with attempting to highlight possible ways industry and individuals can mitigate these risks1.
Tax implications of the proposed repeal and enacted amendment of the foreign employment exemption, section 10(1)(o)(ii) on South African expatriates
(2019) Govender, Kirissa
The purpose of this report is to discuss how the proposed repeal and enacted amendment of the foreign employment income exemption, section 10(1)(o)(ii) of the Income Tax Act of 1962 (Act 58 of 1962) (‘the Act’), impacts on South African expatriates (expats) and its impact on the economy. As a result of the proposed amendment in the draft Taxation Laws Amendment Bill 2017, a comparison will be done to compare South African expatriates in a country with no income tax, such as the United Arab Emirates (UAE), to a country with income taxes such as Australia. With this comparison, the aim is to also determine if National Treasury’s purpose of the proposed repeal are met. National Treasury’s main purpose for proposing this repeal was to prevent income earned by South Africans not being taxed in jurisdictions where no tax is imposed on income or in jurisdictions with low tax rates. National Treasury also stated that this exemption creates unequal tax treatment between South African residents employed by a national, provisional or local sphere of government, any public or municipal entity or the private sector (National Treasury, 2017b). The proposed repeal may be a solution to prevent unequal tax treatments amongst South African residents, as mentioned above; it may however result in unfair tax consequence amongst South African expatriates in counties with similar or lower tax rates than South Africa. This report will also analyse alternative solutions for these expatriates such as double taxation agreements (‘DTA’) (tax treaties), other exemptions in the Act, such as a section 6quat rebate or deduction in respect of foreign taxes on income and change of tax residency.
Traditional justice systems as sui generis frameworks for the protection of traditional ecological knowledge in Kenya
(2019) Kamau, Francis Kariuki
Traditional ecological knowledge (TEK) has huge ecological, cultural and socio-economic value to TEK holders, and the society in general. Due to its value, and a multiple of factors including biodiversity loss, biopiracy, cultural deterioration and disruption of traditional resource management systems, TEK is being lost at an alarming rate thus warranting its protection. The protection of TEK has principally been sought within the prevailing intellectual property (IP) regime, and at times within human rights and environmental law frameworks. However, the ideological, conceptual and epistemological foundations, and orientation of existing legal and IP frameworks, make them inapt in protecting the holistic nature of TEK. Moreover, these frameworks are not shaped by the concerns, beliefs, worldviews and customary laws and practices of TEK holders. It is for this reason that this thesis investigates the appropriateness of traditional justice systems (hereinafter ‘TJS’) as sui generis frameworks in the protection of TEK in Kenya. Using Laura Westra’s tripartite framework of cultural, ecological and self-determination integrity, the thesis shows that an appropriate regime for TEK protection must secure the cultural, ecological and self-determination rights of TEK holders. The thesis argues that the obligation to protect TEK ought to be placed on custodial institutions such as TJS, which takes into account the multiple values of TEK to its holders and the integral links they have with the knowledge. Additionally, the thesis argues that due to the role played by TJS in asserting TEK holders’ rights, regulating access to and use of TEK, designing bio-cultural protocols, granting free prior informed consent, TEK inventorying, gazettement, restoration of lost knowledge and ecosystems, a TJS approach can be used in striking a balance between protection and safeguarding measures, and thus bridge the current protection gap. Notwithstanding the inadequacies of the IP regime in protecting TEK, the thesis concludes that a TJS approach will work well in collaboration with the IP regime and not in isolation since there are components of TEK that can still be protected within the IP framework. Three case studies of TEK holding communities in Kenya, namely Meru, Mijikenda and Ogiek are used to assess the prospects and appropriateness of a TJS approach in protecting TEK. The findings show that TEK is holistic and entails spiritual, socio-cultural, technological and traditional management systems dimensions. Consequently, TEK has ecological, cultural, and economic value, and is integral to the clamor for the right to self-determination by TEK holders. Additionally, the findings show that TEK holders are custodians with responsibilities over TEK to the communities and ecosystems in which it is used, and its protection cannot simply be a matter of conferring IP-like rights to custodians. Notably, the communities under study have traditional structures that they use in protecting TEK. These structures proffer what the thesis describes as a TJS approach that provides a holistic, bottom-up orm of protection that dovetails with Westra’s tripartite framework in the protection of TEK.
Transfer Pricing Documentation in a Post-BEPS environment : a study of the evolution of transfer pricing documentation in South Africa and its alignment with the global standard
(2019) Sukhlal, Limahl
n terms of the South African Income Tax Act 58 of 1962 (“the Act”), the South African Revenue Service (“SARS”) has the power to make transfer pricing adjustments. This arises when SARS deems that Multinational Entities (“MNE”) have been transacting at prices which do not reflect prices expected to be charged if parties to the transaction were independent persons dealing at arm’s-length. By having the ability to make transfer pricing adjustments, SARS can minimise the effects of Base Erosion and Profit Shifting (“BEPS”).1 BEPS refers to tax planning strategies that shift profits from high tax jurisdictions like South Africa to locations where little or no corporate tax is being paid. In order to provide governments with the necessary domestic and international instruments to prevent companies from paying limited amounts of taxes, the Organisation for Economic Co-operation and Development (“OECD”) formulated the BEPS Action Plan at the request of the G20. The BEPS Action Plan consists of 15 Action Points with the objective of minimising or eliminating transactions that erode or decrease a MNE’s tax base by routing its profits from high tax jurisdictions to low tax jurisdictions. The overriding concept of the BEPS Action Plan is that all taxable profits should be taxed once. Among the 15 Action Points addressed in the BEPS Action Plan, Action 13 which provides guidance on transfer pricing documentation and Country-by-Country reporting (“CbCR”), provides one of the bigger challenges to taxpayers in terms of transparency and disclosure This approach to transfer pricing documentation provides tax authorities with relevant and accurate information to perform an effective transfer pricing risk analysis.

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