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Item A case study investigating the effects of an Entrepreneurial Development Programme on the business sustainability of its beneficiaries’ pre- and post-Covid-19(University of the Witwatersrand, Johannesburg, 2022) Lobetti, Francesca Maria; Robert, VenterEntrepreneurship in South Africa is complex and multi-faceted. This statement refers specifically to the operational aspects that are indicative of both economic growth and development. This case study investigated the impact of one hotel group’s entrepreneurial development programme on the businesses of its beneficiaries in South Africa. The impact was examined across three primary themes, these being: economic success, employment generation capabilities and long-term business sustainability on the existing businesses of entrepreneurs who have successfully completed the programme. The value of this study was to determine if this particular entrepreneurial development programme has proved valuable to the beneficiaries in growing and sustaining their businesses and creating employment opportunities. As the hotel group’s entrepreneurial development programme provides the fundamental business operational knowledge to the beneficiaries, one aim of the study was to identify the effect of the Covid-19 pandemic on the businesses of the beneficiaries and what measures were put in place to ensure that the businesses were resilient and survived. To date and in the English literature, the impact of this programme had not been properly investigated. The study followed a mixed methods approach and research data was collected using both questionnaires and interviews. The study population consisted of 49 beneficiaries from the hotel group’s entrepreneurial development programme actively operating in different business sectors who had completed the programme between 2005 and 2018, allowing the 2018 beneficiaries to develop their businesses for a two-year period post completion of the programme. The questionnaire data was analyzed with measures of central tendency and presented with graphs and tables. Interview data was analyzed through content and thematic analysis and was also presented with the use graphs and tables. The information gathered in the interview process provided a degree of context to the questionnaire data, which also allowed for complementary analysis where conclusions were drawn between the two data types. The findings indicate that post completion of the programme, a majority of the businesses were on track to be sustainable with the possibility of business growth and expansion. However, during the Covid-19 pandemic, the same conclusions cannot be drawn. The entrepreneurial development programme will need to refocus their main goals and objectives to be more aligned with businesses in the post Covid-19 environment. The ramifications of the effects that the virus has had on the economy will continue to be present and businesses may need to adapt their operations to the new ‘normal’. These changes are expanded upon in this study and recommendations for the hotel group’s entrepreneurial development programme are discussedItem A case study on the impact of section 10(1)(o)(ii) of the South African Income Tax Act on South African Expatriates(University of the Witwatersrand, Johannesburg, 2023) Forbes, NicoleGlobalisation has triggered the onset of the migrant work force, which in turn, has created complexities with regards to striking a fine balance between preventing tax spill overs in relation to potential double taxation and remaining tax competitive in order to retain and attract South African tax residents (De Koker & Brincker, 2010; Fuest, Huber, & Mintz, 2005; Spengel & Fischer, 2022). SouthAfrica taxes residents on their worldwide income, and on 1 March 2020, section 10(1)(o)(ii) of the Income Tax Act 1962 (hereafter referred to as “the Act”) was amended with the objective of addressing tax disparities in respect of taxes being levied on remuneration earned from a local source versus internationally, through limiting tax relief to R1, 250,000 for foreign-derived remuneration (Africa, 2021; De Koker & Brincker, 2010; Ferreira, 2020; Govender, 2019; Hutchon & Kim, 2020; Naidoo, 2019; SARS, 2021a, 2021c; Sebashe, Erasmus, & Erasmus, 2021). This discussion-based research report evaluates the impact of the amendment to section 10(1)(o)(ii) in relation to foreign remuneration earned by South African expatriates. Similar to prior research, conducted by Govender (2019), Naidoo (2019) and Sebashe et al. (2021), this research report draws comparisons amongst South African expatriates earning employment income from (i) the United Arab Emirates (UAE), where no personal income tax is currently levied (PwC, 2022c); (ii) the United Kingdom (UK), where non-residents are entitled to a personal allowance, i.e. tax relieve of GBP 12,500 for the 2020/2021 tax year if their UK sourced taxable income is less than GBP 100,000 (Gov.UK, 2022) and (iii) the United States of America (USA), where non-residents or alternatively termed ‘non-resident aliens’, are not entitled to a standard personal tax deduction (PwC, 2022g). The comparative case studies aim to assess whether or not the revised and promulgated section 10(1)(o)(ii) has aided in restoring fairness in the levying of tax, through contrasting i) pre 1 March 2020 tax treatment of section 10(1)(o)(ii), i.e. one hundred percent exemption of foreign remuneration and ii) 1 March 2020 tax treatment of section 10(1)(o)(ii), the introduction of “expat taxation” (Africa, 2021; De Koker & Brincker, 2010; Ferreira, 2020; Govender, 2019; SARS, 2021c; Sebashe et al., 2021). In addition, this report evaluates the impact of through (i) double tax agreements (DTAs); (ii) section 6quat of the Act; (iii) personal allowances/reductions and (iv) change in tax residency on a South African expatriate’s overall local personal tax position (the impact discussed, but not specifically evaluated in the case study computations) (De Koker & Brincker, 2010; Ferreira, 2020; Govender, 2019; Hutchon & Kim, 2020; Sebashe et al., 2021). Furthermore, the report assesses the impact of the revised and promulgatedsection 10(1)(o)(ii) on the low, moderate and high remuneration earners, in accordance with prior research conducted by Sebashe et al. (2021), the aim is to assess whether or not the amended to expat tax exemption, namely, the introduction of the R1,250,000 exemption threshold, had an adverse effect of the local tax positions of low and moderate foreign remuneration earnersItem A comparative analysis and subsequent recommendations for improvement of the draft advance pricing agreement legislation in South Africa(University of the Witwatersrand, Johannesburg, 2023-06) Carvalho, Monique Fernandes; Blumenthal, RoyWhen dealing with multinational enterprises (MNEs) which are connected parties and located within in different jurisdictions, they must transact with each other and set prices at which they transfer goods or services1 between each other on an arm’s length basis (Ernst & Young (EY)(2021); United Nations (UN)(2021: 29)). According to the Organisation for Economic Co-operation and Development (OECD), the arm’s length principle (ALP) assists MNEs to identify the price at which a transaction would take place, had its members in fact been subject to market forces. In other words, the transfer price set for those transactions between unconnected persons should be used as a benchmark against which to appraise those transactions taking place between connected persons; any identified discrepancies may thereafter lead to a potential future adjustment which gives rise to transfer pricing disputes between taxpayers and the tax authorities. (South African Revenue Service (SARS) (1999: 8).) In order to minimise these transfer pricing disputes, the OECD emphasised the need for a more proactive, clear, effective discussion to take place between taxpayers and the tax authorities. The OECD has identified and communicated a proactive, upfront dispute resolution mechanism, known as advance pricing agreements (APAs). APAs are a tool that attempts to prevent disputes from arising through the proactive, upfront engagement betweenthe taxpayers and tax authorities. (Organisation for Economic Co-operation and Development (OECD)(2016: 7 – 8); OECD (2022 a: 213).) APAs are not yet governed under South African (SA) legislation; however, although the South African Revenue Service (SARS) has submitted draft legislation on APAs for public comment, nevertheless no further steps have yet been taken to date (SARS (2021)). One of the biggest challenges of APAs which far removes their practically is the period within which they take place until completion. Statistically, there is a limitation in the amount of data which is available when dealing with APAs as a topic in isolation. The author selected a number of OECD member countries from which she was able to retrieve a limited but relevant amount of data from reliable sources, which clarifies the average time period it takes to complete an APA from start to end. The author selected both the United States of America (USA) and United Kingdom (UK) for reasons which are set out below in this research report. This research report provides a comparative analysis of the draft APA legislation submitted by SARS in SA, in comparison with the APA legislation promulgated and followed in the USA and UK. Subsequently, suggested improvements to the draft APA legislation in SA by reference to the APA legislation followed both in the USA and UK are further provided.Item A comparative analysis of income tax provisions applied to cross border secondment arrangements in South Africa and the UK(2022) Sibeko, ThulileThe world has in recent years become increasingly interconnected as a result of massively increased trade and cultural exchange, and cross-border mobilisation is more frequently discussed in many companies. Most multi-national companies have a global mobility policy in place, which sets out the parameters for cross-border employment. As the internationalisation of South African business activity sped up enormously over the last half century, cross border employment will be one of the priorities for South African multinational companies as well as the South African Revenue Service (‘SARS’). (Mohan, 2016.) The purpose of this report is to examine and compare the legislative, administrative and judicial approaches to cross border employment in South Africa and contrast this with those adopted and endorsed by the United Kingdom. This report will also analyse the implications of an entity creating a permanent establishment through secondment contracts and also tax implications for the employees. The report will provide a comprehensive analysis of the income tax provisions applicable to the residency and non-residency of both the entity and the individual, thus analysing the definition of a resident in s 1 of the Income Tax Act 58 of 1962 in South Africa and UK section 1A(4) of the Finance Act of 2019 in the United Kingdom. The United Kingdom has been rated one of the top countries where South Africans would like to work and to which South Africans would like to emigrate (BusinessTech, 2020). The United Kingdom is also one of South Africa’s main trade partners (IOL Business, 2020). South Africa has a double tax agreement with the United Kingdom. South Africa and the United Kingdom are on a progressive tax system. (SARS 2021) (Brady, 2019)Item A Comparative Analysis of South Africa's Tax Penalty Regime in Relation to the United States of America and the Commonwealth of Australia(University of the Witwatersrand, Johannesburg, 2023) Poyana, Luvuyo Sidewell; Viljoen, MichelleUndoubtedly, tax compliance poses a significant challenge for all revenue collection authorities. Aspects such as self-assessment and electronic commerce further accentuate the importance of tax compliance. With self-assessment, the onus of calculating the appropriate tax liability and ensuring compliance with payment requirements rests on the taxpayer, rather than the revenue authority. While the Republic of South Africa has recently revised its penalty regime and enacted new legislation through the Tax Administration Act 28 of 2011, replacing the previous regime governed by Sections 75 and 76 of the Income Tax Act 58 of 1962, it remains imperative and pertinent to examine the operative penalty regime. Such an examination is essential to comprehend and confirm the extent and application of penalties in various circumstances. In order to ensure that the penalty regime of the Republic of South Africa is in accordance with internationally recognised best practices, this research report undertakes a comparative analysis with the United States of America and the Commonwealth of Australia. These jurisdictions possess extensive practical experience in the realm of tax administrative laws over an extended period. By drawing upon their insights, valuable lessons can be gleaned to enhance the effectiveness and alignment of South Africa's penalty regime. This research report aims to provide insights into the effectiveness of South Africa's penalty regime and identify potential areas for improvement by examining the similarities and differences in the implementation and administration of non-compliance and understatement penalties in the Republic of South Africa (RSA), the United States of America and the Commonwealth of Australia. By analysing the penalty regimes of these three countries, the research report identifies challenges or disputes that may arise with reference to previous litigations and provide policymakers and tax authorities with valuable information to improve the administration and implementation of penalties. The report suggests that, while the establishment of the new Tax Administration Act, No 28 of 2011, has demonstrated a standardised and systematic approach to non-compliance and understatement penalties, the subjective nature of the taxpayer’s behaviour is always going to result in non-compliance by some taxpayers. The comparison indicates that the South African penalty regime is relatively high in terms of understatement penalties and lower in terms of non-compliance penalties. However, the overall administrative penalties are broadly aligned with the Commonwealth of Australia and the United States of America.Item A comparative analysis of the extent of investment banking In Africa versus other emerging markets(2020) Mphakathi, SolomonThis comparative study examines and explains investment banking levels in African emerging markets to the Asia Pacific counterparts. It examines how investment banking activities, especially the raising of capital, influence financial development. There is a paucity of studies conducted in these emerging markets to identify and contrast why their financial development levels are significantly different. African emerging markets appear to be lagging while the Asia Pacific emerging market economies are among the fastest-growing in the world. Finance theory underpins the framing of the study that demonstrates plausible relationship between financial development and economic growth. The methodological procedures followed a quantitative deductive approach through desktop and secondary data analysis to draw conclusions and make inferences. A multiple regression model was used to quantify the effects and extent to which investment banking contributes to financial development. GDP per capita and human development level relate positively to African countries' financial development level. The literature review also revealed some interesting and relevant facts about African economies and the challenges they face. Despite some marked growth in some African economies vis-a-vis others, important structural adjustments appear necessary prerequisites for enhancing Africa's financial and economic development more sustainably. Surprisingly, the empirical analysis identified no evidence of statistically significant relationship between the measure of level of investment banking (in this study) and financial development.Item A comparative analysis of the impact of Covid-19 and the global financial crisis on capital structure: Evidence from the Johannesburg Stock Exchange(University of the Witwatersrand, Johannesburg, 2023) Mjeso, Thandiwe; Chipeta, ChimwemweSince Modigliani and Miller (1958) introduced the modern theory of capital structure, various studies have been conducted on capital structure. This study contributes to the existing capital structure literature by investigating how the Covid-19 pandemic impacted the capital structure of Johannesburg Stock Exchange (JSE) listed non-financial firms and comparing this impact to that of the 2008 global financial crisis. Furthermore, this study seeks to determine the relationship between capital structure and fundamental firm factors (business risk, profitability, firm size, growth, and asset tangibility). To conduct this analysis, the financial data of these firms for the 2005 to 2022 period is extracted from Bloomberg and the Generalized Method of Moments (GMM) model is used to conduct the analysis of this study. The results of this study indicate that Covid-19 did not have a statistically significant impact on the capital structure of the JSE listed non-financial firms whereas, the 2008 global financial crisis had a statistically significant impact. Overall, the results of this study are consistent with the empirical evidence reported by previous studies, and they provide evidence in support of both the trade-off theory and the pecking order theoryItem A comparative analysis of transformation between local and global media and advertising agencies in South Africa(University of the Witswatersrand, Johannesburg, 2023) Ndinguri, KevinPoverty, unemployment and inequality among black people have been identified as key consequences of apartheid. To redress these, the Broad-Based Black Economic Empowerment Act was enacted. In the Media and Advertising industry in South Africa, the B-BBEE Act is translated through the Media and Communications Charter (MAC) which describes five elements, namely; management inclusion, skills development, responsible advertising, preferential procurement and socio-economic development. Most of the media industry studies on the compliance to the MAC charter focus on descriptions of how companies have applied the B-BBEE Act. This study’s specific objectives were to describe the nature of transformation in local media and advertising agencies, describe the nature of transformation in global media and advertising agencies and describe the effect of B-BBEE codes on local and global media and advertising agencies in South Africa. The study used a qualitative approach and an exploratory-descriptive design. The data collection tool was semi-structured interviews and data was collected through in-depth interviews. Data were analysed using thematic content analysis and presented in narrative format.The study found four themes that compare the transformation of local and global media and advertising agencies. The first theme is that transformation has taken place in local media agencies, the second is that few transformation initiatives have taken place in global media companies. The third theme is that B-BBEE codes have enabled local media companies to secure clients and the fourth theme is that B-BBEE codes have obligated global media agencies to transform the way they manage their businesses. In conclusion, global media and advertising agencies have been affected by transformation through increased diversity and change in the way they managed their businesses. Recommendations for future research should use a quantitative approach to enable the generalisation of findingsItem A comparative study and analysis of the amended foreign employment income exemption in South Africa(University of the Witwatersrand, Johannesburg, 2023-01) Essop, Ahmed; Blumenthal, RoyTax exemptions are granted by the government for a multitude of reasons. These include providing some form of tax relief, alleviating specifically identified tax burdens, encouraging investment, promoting donations to approved public benefit organizations and avoiding the possibility of double taxation (Kransdorff, 2010, p. 79). One specific provision in section 10(1)(o)(ii) of the South African Income Tax Act of 1962, pertained to South African residents working abroad, namely the foreign employment income exemption. The intention of this exemption was to prevent residents from being double taxed (SARS, 2021a). Over the last few years, there has been a noted increase in the number of South Africans working abroad and this has been alluded to as being one of the reasons that government decided to review and amend the section 10(1)(o)(ii) foreign employment income exemption (Ryan, 2020). The impact of this amendment on South African residents working abroad will be analysed and investigated. A comparative analysis will be done on the tax payable of South African residents working in the following countries: the UK, the UAE and IndiaItem A comparative study of green taxation in South Africa, Australia, Singapore, and India(University of the Witwatersrand, Johannesburg, 2023) Mokwena, Dankie; Kolitz, MaveveGlobal warming and climate change have been on the agenda for years, with discussions on dealing with and mitigating their effects on humanity and the environment (Brink, 2019, Para. 1) Industrialization, as the driver of economic development, has resulted in massive pollution emissions (Ahhmad and Zhao, 2018:3). In an effort to protect the environment and encourage sustainability, tax policies and mechanisms have been used and trusted as effective methods for government to influence society`s behavior (Brink, 2019, Para. 2). Government across different countries have introduced green taxation, including tax incentives, cash grants, and soft loans aimed at encouraging investment in environmental, social, and governance-related projects (PwC, 2023a:3)Item A comparative study of housing affordability in South Africa using the adjusted Debt-Service Ratio and Price-Income Approach(University of the Witwatersrand, Johannesburg, 2021) Mmesi, Lesotla; Alovokpinhou, Sedjro AaronThis study compares the adjusted Debt-Service Ratio (DSR) model and the widely used Price-Income Ratio (PIR) in the South African context to establish which of the measuring approaches give better and reliable results over time. In South Africa, housing unaffordability remains a challenge and accurately quantifying the extent of the problem is of key importance. The adjusted DSR model was seen as an appealing housing affordability measure to be explored as it corrects for household income changes and net financing cost of the mortgage loan thereof giving a refined calculation for housing affordability. The research also explores the relationship of both the adjusted DSR and PIR to key macroeconomic variables, that is, economic growth (EG), mortgage rate (MR), unemployment rate (MR) and house price (HPI). The findings show that the PIR is the better measure of housing affordability than the adjusted DSR. The PIR accurately parallels other banking sector data regarding housing affordability, whereas the adjusted DSR tends to underestimate housing affordability in the South Africa context. Another key finding is that, on average, the housing prices are too high for an economy like South Africa, which is still battling with, low GDP growth rate, high unemployment rate, inequality and povertyItem A comparative study on the Inflation-hedging properties of REITs and Common Stocks in South Africa(University of the Witwatersrand, Johannesburg, 2023-06) Maratela, Tsholofelo Keletso; Godspower-Akpomiemie, EuphemiaThe aim of this paper is to examine the ability of South African REITs and common stock to hedge against inflation in the short run from 2014 to 2022. Given the volatile economic environment that South Africa operates in, this poses a risk to the financial market. One of the major risks relates to inflation as it erodes real returns on investments, and this drives the need of gaining clarity on the inflation-hedging characteristics of assets in the stock market. Studies evaluating the inflation-hedging abilities of real estate and common stock present mixed results and the literature on this comparison is vast but largely excludes African countries. Moreover, the introduction of the REIT regime in South Africa in 2013 has created a new opportunity for real estate investment, which may have different implications for inflation hedging than traditional real estate. This paper adopts the Fama and Schwert approach, which is based on the Fisher model, to analyse the relationship between inflation and asset returns. The paper considers both actual inflation, measured by CPI, and expected and unexpected inflation, estimated by an ARIMA model. Using CPI as a proxy for actual inflation, a negative relationship is found between equities and inflation, and a positive relationship between REITs and inflation. These relationships were consistent for both the actual and the unexpected components of inflation. However, both asset classes exhibited a negative relationship with expected inflation. None of these regression results were statistically significant. Findings imply that neither SA Equities nor REITs can serve as reliable inflation hedges. However, the findings also imply that the relationship between inflation and the returns of these assets is nuanced and may depend on the nature of inflation (actual, expected, or unexpected). The findings will assist investors in making investment decisions, especially on protecting their wealth from excessive inflation.Item A comparison between internet anti-money laundering statutes and preventative mechanisms in South Africa(University of the Witwatersrand, Johannesburg, 2022) Maistry, KireenSouth Africa has come a long way since the apartheid era, transitioning to a country of democracy for its people and advocating for non-violence. However, struggles persist in inequality, poverty, unemployment and crime. Due to the social, economic, and political challenges and allegations of continuous corruption the country is often perceived negatively. Despite a growing body of laws, regulations, and systems geared to fight crime, the crime rate remains high and prosecution low. As a result, South Africa has become a soft target for criminals who conceal the proceeds of crimes through money laundering. Through money laundering, criminals have exploited the banking and financial sector, the casino and gambling industry and the real estate business in South Africa. As a consequence of the onset of money laundering, the South African government has had to enact legislation and regulatory bodies in each sector to detect, prevent and prosecute organised crime. The latest challenge to combating money laundering is the advent of the internet which has created newer, faster and more evasive channels for criminals to launder money via cyberspace. Given that the internet and technology are ever-changing, historic anti-money laundering laws and mechanisms may not be effective enough to combat the crime of ‘cyberlaundering’. This thesis discusses pre- and post-internet methods of money laundering in the banking, casino and gambling and real estate sectors in the South African economy and focuses on whether current legislation and mechanisms are effective enough to combat developments in money launderingItem A comparison of investor attractiveness of oil and gas exploration and production regulatory environments and fiscal regimes in South Africa and Mozambique(2022) Sigedle, AnelisaThe petroleum industry plays an important role both in South Africa (SA) and Mozambique’s economies. It is one of the most important sources of energy and the largest single commodity in international trade. This study aimed to explore and compare the fiscal policies of Mozambique and SA in respect of the attractiveness of the fiscal regime used to attract investment to South Africa as opposed to Mozambique. The study explored the evolution of policies in both countries. This was done by comparing the fiscal regimes using a hypothetical case model for both countries, which applied different tax rates and state participation in an oil field project. Net present value (NPV) and internal rate of return (IRR) were used to evaluate the project success and how much the government or the contractor stands to make from the different fiscal regimes. The results showed that the project NPV is highest for the investor when the proposed Mineral Petroleum Resource Bill is applied than the current Mineral and Petroleum Resources Development Act (MPRDA) and the Petroleum Law in Mozambique. The results also showed that the proposed fiscal regime in SA will decrease the NPV for the investor, which makes it less attractive. The study showed that increased state participation has a greater impact on changing the contractor’s NPV. If these two governments want to encourage investors to continue exploration in their countries, there should be a balance between the profit that companies make and the revenue that the governments can collect. Thus, the policy recommendation for SA includes having negotiable royalties that promote investment in exploration and increase resources in oil and gas.Item A comparison of the United Kingdom’s Digital Services Tax regime and the OECD Two-pillar approach: Is this unilateral measure hindering the implementation of the Pillar Two model?(© University of the Witswatersrand, Johannesburg, 2023-05) Nong, Thato; Padia, MishaBase Erosion and Profit Shifting (BEPS) has become the focal point for Multinational Enterprises (MNEs) with the aim of maximising their profits and minimising or totally avoiding their tax payable to a jurisdiction. The goal of this study is to highlight the tax concerns that have arisen as a result of digitisation, which have exacerbated the erosion of the tax base and profit shifting in the United Kingdom from the standpoint of Corporate Income Taxes (CIT). It will examine the Digital Services Tax in further depth, contrast it to the OECD Pillar Two, and provide a proposal on whether the DST impedes a global solution. BEPS has left several governments concerned about their revenue collection regulations, especially as the world commerce economy becomes more computerised. The research methodology used for this study is qualitative and interpretive of the UK's Digital Services Tax Act and the OECD Two- Pillar model. The introduction of the Digital Services Tax in the United Kingdom to tax in- scope earnings is an appropriate interim solution; nonetheless, multinational corporations face the possibility of being double-taxed, with no easily available redress, thus not aligning with global best practices as explained in the study. In order to combat BEPS, the Organisation for Economic Cooperation and Development (OECD), in collaboration with the Group of Twenty (G20) forum and other developing countries, established a two-pillar approach, which, before implementation, will require the rejection of all unilateral measures such as DSTs. This study supports the worldwide proposal that unilateral actions adopted by jurisdictions such as the UK to safeguard their tax base must be opposed in the context of direct taxeSItem A conceptual framework for the South African fintech ecosystem(2021) Masangwana, VuyelwaThe term ‘ecosystem’ is synonymous with multi-company dynamic teamwork and a new way of organised economic activities. It is thus important to understand the modes of interaction among the heterogeneous actors in the ecosystem. Financial Technology (FinTech) became prominent after the financial crisis when the financial industry's role in economic growth became a global concern. Many FinTech companies were established by bankers who found themselves unemployed after the financial crisis and found creative ways to use their skills in financial services. The purpose of FinTech companies in the economy became pre-eminent due to their ability to reduce economic risks and costs through innovation. It also became clear that FinTech would benefit the financial system due to its efficiency in addressing transaction costs, information asymmetry and in addressing issues of taxation. No market player can afford to operate in a silo in the digital age, as collaboration and partnerships are more critical than ever. According to the IMF website (2020), South Africa is a dual economy and has one of the highest inequality levels worldwide. According to a Business Technology article published in 2019, there is still an untapped consumer opportunity, as there are nearly 1.2 billion people globally who do not have bank accounts. South Africa has a large unbanked or underbanked population, estimated to be about 11 million people. A healthy FinTech ecosystem will develop in South Africa if there is an improvement on barriers to entry and a better understanding of the consumer. The study aimed to establish whether the existing FinTech ecosystem models are suitable for the South African context and identify any discrepancies and similarities between developed and developing world FinTech ecosystem models. Qualitative research in the form of semi-structured interviews was conducted. The sample included 12 executives from South Africa who represented entrepreneurs and start-ups, policymakers and financial institutions. The sampling technique was purposive in nature, and it was chosen because of its convenience. The study found that an additional function of funding must be explicitly specified as a government role in the South African context. In addition, the study revealed that in the South African sense, customers must be segmented further to include the unbanked and underbanked market. There is no existing FinTech ecosystem model for South Africa, and this study has developed a model that suits developing countries, specifically South Africa. Finally, the study ii uncovered that incubation and mentorship are essential components of the FinTech ecosystem in South Africa. The study will assist policymakers and other FinTech ecosystem players to gain a better understanding of their roles and how they can contribute and collaborate to make the FinTech ecosystem a success. The study will also aid policymakers and FinTech companies to focus on consumers and help policymakers consider some of the frustrations that participants have raised about policies. It will further assist them in FinTech policy formulation and amendment of the existing or the creation of new policies and legislation.Item A consideration of the bank’s position in the context of an erroneous deposit made(University of the Witwatersrand, Johannesburg, 2023) Ncube, Vanessa; Dass, DavenThe issue of erroneous deposits is one that is of importance not only to academics and the public but banks too, especially with the rise of and change in technological developments which comes with the ineluctable erroneous/mistaken deposits, for example, through internet banking. It is within the context of the above that I seek to consider the bank’s position where an erroneous deposit has been made. In tackling this, I will examine whether a bank owes an obligation to a third party (the person that made the deposit) if the bank allows its customer (the accountholder to whom the erroneous deposit was made) to utilise the mistakenly deposited funds, given that the bank is aware that the customer does not have a well-founded entitlement to the funds. Within the context of the bank’s obligation, regard will be had to whether in fact the bank can use the funds for its own benefit by setting off the customer’s debt owed to it, taking into consideration the lack of legal entitlement of the customer to the funds. I will also discuss the bank’s ownership and potential liability in relation to the use of erroneously deposited funds. I also seek to examine possible remedies having regard to the litigious regulatory framework in subsequently recovering the mistaken deposit from the bankItem A creative business venture to promote youth development in townships(University of the Witwatersrand, Johannesburg, 2022) Ngidi, Tebogo Lorna; Venter, RobertFrom the apartheid era up until the current state, unemployment has been a challenge in South Africa, especially amongst the young people in underprivileged townships (Hodge, 2009). To try and redress this, profit and non-profit sectors have undertaken a mixture of commercialised and social tasks to respond to changes that occur within the economic and social contexts (Social Enterprise Alliance , 2021). Such tasks include start-up businesses, interactive technologies and constantly evolving demographics that try to reach different aspects of life (Social Enterprise Alliance , 2021). It is through such convergences that social entrepreneurships were established. This social entrepreneurship project investigates whether a more creative business venture can assist with regards to promoting youth development in townships. According to Venter and Urban (2015), government support on its own is not enough to meet societal demands. This is more especially with regards to wicked problems that tend to be more complex to tackle due to its interlocked nature with other issues. Even though social entrepreneurship operates in diverse realms within the community, for the context of this research paper, this project investigates the introduction of newer and more creative business ventures within the Southwest Townships (SOWETO), a township that accommodates close to half of the Gauteng population. The report draws on the findings from reviewed literature and interviews with various stakeholders; entrepreneurs (both new and established), community support institutions and the local government.Item A critical analysis of Section 19 and Paragraph 12a of the eighth schedule of the Income Tax Act for debt transactions(2020) Tifflin, TanyaThe Income Tax Act 58 of 1962 was amended, with effect from 1 January 2013, by the introduction of a set of structured debt relief rules (also referred to as the debt relief provisions). The rules were stipulated in section 19 and paragraph 12A of the Eighth Schedule of the Income Tax Act. These rules have been amended several times since they came into effect on 1 January 2013. Section 19 and paragraph 12A of the Eighth Schedule of the Income Tax Act regulate the situation where a debt is cancelled, waived, forgiven or discharged for no consideration (or for a consideration which is less than the amount of the debt). The rules were intended to assist distressed debtors by simplifying the debt reduction process without creating further tax liabilities. Since the introduction of section 19 and paragraph 12A of the Eighth Schedule, there have been many issues raised in the media around the application and interpretation of various aspects of the legislation. This has resulted in numerous amendments. The purpose of this study is to analyse the legislation from its inception to establish whether (despite the numerous amendments) there are any unintended consequences in the legislation applicable to the 2020 tax year, in order to suggest possible solutions. The study revealed flaws and unintended consequences of the exclusions to the debt relief rules which relate to donations tax, estate duty and liquidated companies. Appropriate recommendations have been suggested to solve these problems. The study identified issues with the concepts of ‘market value’ and ‘effective interest’ in the context of debt to share conversions and recommended, among other things, that interpretation notes be provided to solve the problems. In addition, the study discussed the loophole which exists in section 19(6A) and paragraph 12A(4) of the Eighth Schedule. This loophole has resulted in the application of the debt relief rules not triggering any income tax in instances where assets are sold in the same tax year in which a debt benefit arises. Finally, the study discussed the implications and consequences of the retrospective application of the 2019 amendment to section 19(6A) and paragraph 12A(4) of the Eighth Schedule of the Income Tax Act and recommended that these amendments only apply to transactions which were concluded from 1 January 2019.Item A critical analysis of section 45 of the income tax act 58 of 1962(University of the Witwatersrand, Johannesburg, 2023) Nyoka, Rejoice Nombulelo; Blumentha, RoyThe introduction of CGT in SA resulted in the birth of the corporate restructuring rollover tax relief to avoid tax on the transfer of assets within the same economic unit. Section 45 of the Act specifically provides a deferral tax rollover relief for the transfer of assets within the same group of companies. The built-in anti-avoidance rules in section 45 of the Act did not prevent taxpayers from abusing this tax rollover relief, instead it gave birth to innovative tax-free exit from investments and debt-push down schemes. Lawmakers mitigated the tax relief abuse by implementing burdensome rule-based anti-avoidance rules. This study aims to critically analyse the intended purpose of section 45 of the Act and how the rule-based anti-avoidance rules in section 45 of the Act unduly hamper the efficacy of this tax relief.