Electronic Theses and Dissertations (Masters)
Permanent URI for this collectionhttps://hdl.handle.net/10539/37781
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Item Analysis of Mining Taxation in South Africa(University of the Witwatersrand, Johannesburg, 2011-05) Shikwambana, CallousMining is one of the principal industries in the South African economy, and thus fulfils an important role from the perspective of the fiscus. Mining is a high-level risk investment which involves massive capital expenditure as well as prolonged periods of non-production of mining income. It is because of this that mining taxation receives special treatment. The term ‘mineral’ is central to determining whether or not a taxpayer can be regarded as being carrying on mining operations in South Africa. A mining process usually involves different stages before minerals are obtained, being prospecting and pre-production stages, followed by the production and post-production stages. Income is earned and expenditure is incurred in all the different stages in the life of a mine. The research report will critically evaluate what is meant by ‘mining and mining operations’ as defined in the Income Tax Act 58 of 1962 (‘the Act’). The research report concludes with an analysis and evaluation of how income earned and expenditure incurred in the different stages in the life of a mine are treated in determining the taxable income in respect of a mining taxpayer.Item Sustainability Reporting: Examining the Proposed Changes Included in Stakeholder Commentary Letters Submitted to the ISSB Regarding IFRS S1(University of the Witwatersrand, Johannesburg, 2024) Joala, Hlatsi; Cerbone, DannielleThis research report examines whether various stakeholders participating in the standard- setting process of IFRS S1, exert influence on the ISSB’s decision of which proposed changes to accept and discuss. The research employs quantitative content analysis to examine a sample of 120 IFRS S1 comment letters, categorizing stakeholder amendments by type (outcome-related vs theory-related) and degree (minor, moderate, or major) to assess their impact on the final publication (see, for example, Bamber & McMeeking, 2016; De Freitas et al., 2023). The comment letters were spread across each of the eight stakeholder groups identified by the ISSB. The findings suggest that the ISSB responded to minor and moderate proposals at significantly different rates than it did for major proposals. Evidence indicates that there is a proclivity towards specific stakeholder groups for themes encompassed within sustainability reporting, however, this only applies at a thematic level and not at the overall- level analysis. This could be because the processes that the ISSB follows are based on IFRS standard-setting protocols which also preserve credibility, where major changes are addressed on a more stringent yet consistent basis than the other degrees. While the research focuses entirely on IFRS S1, it contributes to research focused on stakeholder management and standard setting, particularly in sustainability reporting.Item Sustainability assurance: Insights into assured sustainability-related information of the Top 100 companies listed on the ASX and JPX(University of the Witwatersrand, Johannesburg, 2024) Nkosi, Nompumelelo Lizette; Cerbone, DannielleThere is a lack of consensus and ambiguity on the currently adopted standards on sustainability and the assurance thereof which has led to variations in the subject matter assured, criteria used, and the type of assurance provided. This study aims to broaden the extant body of literature related to the assurance of sustainability-related information and provide new insights that can guide future research. The study aims to investigate the sustainability-related assurance practices and reports for the top 100 companies listed on the Australian Stock Exchange (ASX) and the Japan Stock Exchange (JPX). Data was collected for 113 companies (52 companies for ASX and 61 companies for JPX). A content analysis of the audit report and the sustainability-related information reports was used to collect data based on a disclosure checklist. The data was analysed and reported on using descriptive statistics and inferential statistics. Based on the results from the statistics performed, it was noted that there is a difference in the number of subject matter items assured in a category however there is congruence in the subject matter items. This provides evidence of mimetic isomorphism and highlights how companies are using specific subject matter items as an important signal to the market to indicate the credibility of the sustainability reports. Albeit the majority of the assurance provided are limited assurance engagements, some subject matter characteristics should preclude assurance. This finding supports prior research that non- financial assurance engagements do not provide sufficient value to the stakeholders. In addition, it was found that there is variability in the assurance providers based on jurisdiction with financial auditors (traditional auditors) found to be dominate in the ASX and sustainability auditors gaining ground in the JPX. Sustainability auditors could add to the complexity and confusion of the assurance process due to being less likely to have professional training on assurance which allows the engagement of financial auditors by companies to be a signal for stakeholders.Item An analysis of the extent of integrated thinking reflected in key performance indicators disclosed by the Top 40 South African listed entities over time(University of the Witwatersrand, Johannesburg, 2024) Ferreira, Claudia Maria PitaThis research explores the extent to which integrated thinking is reflected in key performance indicator (KPI) disclosures. A KPI Integrated Thinking Index (KPI-ITI) is developed to gauge the alignment of KPIs with integrated thinking principles. Indicators of integrated thinking from the academic and professional literature are used to develop a schematic for evaluating the alignment of KPIs with integrated thinking. The application of the resulting KPI-ITI is illustrated using a sample of South African organisations’ primary reports in 2013, 2017 and 2021. Reports are analysed using a content analysis to identify disclosures dealing with KPIs which are evaluated using the schematic. Results are calibrated using well-established integrated thinking proxies. Ten indicators are identified to develop integrated KPIs. The application of the KPI-ITI reveals that, from 2013 to 2021, KPI disclosures evidenced greater integrated thinking application, primarily driven by the increased use of post-implementation reviews, a shift away from financially-focused KPIs and incorporation of the Sustainable Development Goals (SDGs) and multi-capitals in KPI structures. The index developed is calibrated with other integrated thinking proxies supporting its robustness for assessing integrated thinking in performance evaluation structures. The study is among the first to outline formally the dimensions of integrated thinking specifically in the context of KPIs and detail an index which can be applied to evaluate KPIs to evidence integrated thinking, including insights in an emerging economy context. The study is based on KPI disclosure practices by a sample of companies in a single jurisdiction and findings should be generalised with caution. The index offers practitioners, standard-setters and academics an easy-to-apply technique for examining the extent of integrated thinking which can be expanded further into other publicly available information and jurisdictions. The index can inform stakeholders on the aspects to be investigated when assessing whether management is implementing long-term value creation and sustainability initiatives.Item The impact of artificial intelligence on audit quality(University of the Witwatersrand, Johannesburg, 2024) Madotyeni, BanziAudit firms are under pressure to complete high-quality engagements to re-establish the legitimacy of the profession, following several audit failures and the growing repercussions of subpar audit quality. Considering this, firms have started incorporating artificial intelligence technologies into their resource mix to enhance audit quality. Research on the effect of the use of AI on audit quality is limited, despite the growing use of AI technologies in the audit process. This study explores how artificial intelligence (AI) features can improve audit quality in order to address this problem. A mixed-method approach is used in this study, combining correspondence analysis and content analysis. Preliminary links between audit quality themes and AI features were established by conducting a content analysis to analyse the body of literature on audit quality and the use of AI in the auditing process. Following that, a correspondence study was carried out to gather opinions from auditing professionals regarding the perceived impact of AI on audit quality. A correspondence table that linked AI features to audit quality measures was given to the research participants to complete. Using the correspondence table, forty auditing experts shared their viewpoints. The correlation between AI themes and audit quality attributes was evaluated through the analysis of the responses. The results show that the use of AI will have a positive impact on multiple key audit quality elements and enhance overall audit quality. It was discovered that auditors can use AI to analyse all of the available data and do comprehensive risk assessments. Additionally, by automating repetitive audit duties, respondents indicated that AI would free up audit teams to concentrate on more important and high-risk areas that call for professional judgement. It is recommended that audit firms adopt AI to increase the capacity of their resources and the firm’s ability to deliver quality audits. However, while there is a favourable correlation between the use of AI and audit quality, there are some risks and concerns that companies must address before using AI to execute engagements. As one of the first interpretive insights into how AI affects the key audit quality factors, the research contributes to the body of literature on the impact of using AI on audit quality.Item An international comparative analysis of how South Africa can improve its turnover tax regime(University of the Witwatersrand, Johannesburg, 2024) Mbambale-Mathobo, LindelaniThis research report undertakes a comparative analysis aimed at outlining avenues for enhancing the turnover tax regime in South Africa. This analysis will outline existing shortcomings and furnish recommendations to the National Treasury for potential legislative amendments. By juxtaposing and analysing turnover tax systems operative in Australia, New Zealand, Singapore, and India, valuable insights can be collected to inform potential improvements to South African tax legislation, thereby fostering the advancement of microenterprises within the South African economy. Furthermore, this report aims to examine selected paragraphs of the Sixth Schedule of the Income Tax Act No. 58 of 1962, which governs the administration of microenterprises. It posits that a reassessment of these paragraphs holds the potential to accrue substantial benefits for microenterprises and fortify the overarching tax framework. Ultimately, by furnishing tax legislative recommendations geared towards improving the turnover tax system, this research report seeks to contribute significantly to the sustainability of both the small, medium, and microenterprises (SMME) sector and the broader South African economy.Item An Exploration of How Fast Fashion Companies’ Sustainability Policies and Practices Align To the Sustainable Development Goals(University of the Witwatersrand, Johannesburg, 2024) Dhanjee, Kamini; Aucock, Michele; Sebastian, AvaniBackground: The fast fashion industry is a significant contributor to environmental and social issues by producing greenhouse gases, generating textile waste and underpaying workers. The voluntary nature of sustainability disclosure in fast fashion corporate reports lacks standardisation and oversight. Consequently, fashion companies tend to emphasise their positive actions and policies. Media reports often present proof of actions that are inconsistent with companies’ reported actions. Purpose: This study explores the Sustainable Development Goals which fast fashion companies disclose in their corporate reports, the level of detail this disclosure and how media reports support or discredit these disclosures. Method: For the top eight fast fashion companies by revenue globally, references to each of the 17 Sustainable Development Goals (SDGs) in corporate reports from 2020 to 2022 and the level of disclosure was explored through qualitative content analysis. The analysis was led by the targets set out for each SDG by the United Nations and a total score was computed for each SDG for each company. Descriptive statistics were calculated to uncover patterns relating to disclosure frequency, disclosure detail, revenue and other company characteristics Results: There has been a persistent lack of disclosure of quantitative and information on performance targets. Commonly reported SDGs are SDGs 1, 5, 6, 7, 8, 12 and 13, demonstrating what fast fashion companies prioritise. The SDGs overall do not garner much media attention, but stakeholders tend to prioritise SDGs 8, 12 and 13. The study provides evidence of the disconnect between disclosure and practice. Implications: This implies that companies view the SDGs as a disclosure checklist with non- binding implications. From a practical standpoint, the absence of regulated Sustainable Development Goal disclosures suggests that stakeholders with an interest in the Sustainable Development Goals cannot depend on corporate reports to inform their decisions.Item Crypto assets as a financial service for VAT: An analysis(University of the Witwatersrand, Johannesburg, 2024) Matabane, Lesego‘Crypto assets’ is an umbrella term referring to digital financial assets (such as Bitcoin) founded on distributed ledger technology. The South African Revenue Service (SARS) defines crypto assets as a digital representation of value that are not issued by a central bank; thus, these assets are traded, transferred and stored electronically by individuals and entities – both natural and legal – for purposes such as payment, investment and various forms of utility (Ukwueze, 2021). The underlying technology behind crypto assets incorporates cryptography techniques (SARS, 2023). Since their inception in 2009, crypto assets have drawn increasing attention from regulators (OECD, 2020), and cryptocurrency has emerged as a novel form of payment in recent years. This development is fuelled by the flaws in the presently dominant payment method of fiat currency, which include the centralised structure of fiat currency, high transaction costs, the time it takes to process payments (especially for foreign transactions) and the need for more confidence in the institutions managing the current monetary systems (Hamukuaya, 2021). This report analyses whether a crypto asset can be classified as a financial service according to the South African Value-Added Tax Act, No. 89 of 1991 (VAT Act) legislation through an assessment of the features of crypto assets (also known as cryptocurrencies) and a comparison of the classification of crypto assets by South Africa to that by other countries. According to the study's findings, South Africa has adopted the strictest approach, excluding "the issue, acquisition, collection, buying or selling or transfer of ownership of any cryptocurrency" by categorising cryptocurrency as financial services under Section 2 of the VAT Act. The analysis also reveals that South Africa's approach to classifying cryptocurrency for VAT purposes is similar to that of other countries. Therefore, this research suggests that South Africa should broaden the investigation into categories such as the source of cryptocurrencies, nature of supply and place of supply transactions that include exchanging cryptocurrency assets for fiat money or other assets, as well as utility tokens when they are used. These suggestions might serve as further evidence that consensus about the VAT consequences of transactions involving cryptocurrency assets is still pending.Item The impact of dividends withholding tax reclaim processes on foreign investment returns: exploring the complexities and challenges(University of the Witwatersrand, Johannesburg, 2024) Maxongo, Vuyowethu Tony; Ndlovu, JaneInvestors continually seek opportunities for portfolio growth, long-term capital appreciation, return on investments, and/or diversification in their investment portfolio. This investor outlook often leads investors to invest in shares outside of their local stock exchange or invest in dual- listed shares. With advances in technology, cross-border transactions have increased, making it easier for resident investors to purchase shares in foreign markets and for non-resident investors to purchase shares in local markets. Withholding taxes are taxes which are withheld for payments of dividends to shareholders. Dividends withholding taxes, however, have the potential to reduce an investor’s return on investment due to the complexities involved in the process of claiming a refund in instances where dividends tax has been incorrectly withheld. The complexities in the refund process often include the time-consuming process of submitting appropriate documentation to support the claim, the long timeframe for processing refunds, forfeiture of the refund as a result of failing to claim within the specified timeframe, burdensome administrative procedure to be followed, language barriers in claiming a refund in a foreign jurisdiction, unfamiliar legal requirements and the potential for tax authorities to conduct audits and reviews to verify the legitimacy of the refund claim. This research report examines the complexities of dividend withholding tax reclaim processes and the impact on foreign investment returns. To achieve this aim, the research report is grounded in a systematic literature review approach. This approach involves a rigorous analytical methodology that aggregates, interprets and synthesises data extracted from the literature in applicable legislation, book chapters, journal articles and case law. The report analyses a sample of two double tax agreements concluded by South Africa. The first tax treaty is with the Netherlands (SARS 2009), a developed country, and the second tax treaty is with Namibia (SARS 1999), a developing country. The findings of this report indicate that the complexities of the dividend withholding tax reclaim processes significantly impact foreign investors’ returns on investment. The report highlights the need for greater transparency and consistency in these processes, including the reduction of documentation requirements and the development of efficient electronic systems. The report's implications are essential for policymakers, financial institutions, and foreign investors, emphasising the importance of improving the efficiency and effectiveness of dividend withholding tax reclaim processes to support cross-border investmentsItem Does Twitter (now known as “X”) disclosure influence share price?(University of the Witwatersrand, Johannesburg, 2024) Minnaar, Courtney; Sebastian, AvaniAn effective corporate communication strategy is essential for firms to establish and maintain good relationships with capital market participants to ensure continued financial support. Firms are increasingly adopting social media platforms like Twitter as a medium of communication. This study investigates the effectiveness of Twitter as a channel for firms to disclose financial performance and enhance their overall information environment, thereby improving share price performance. In doing so, this study seeks to establish whether JSE-firms that tweet about financial performance experience better share price performance. Additionally, this study aims to determine whether share price performance varies depending on the nature of the news, favourable or unfavourable, contained in the tweets about financial performance. This study employs ordinary least squares (OLS) regression analyses using Twitter and share price data of 148 JSE-listed firms over their 2022 fiscal year. This study reveals a positive relationship between the frequency of firms' tweets about financial performance and changes in share price. Additionally, a positive relationship exists between the type of news disclosed in tweets about financial performance and changes in share price. The findings of this study contribute to Agency Theory, Internet Investor Relations (IIR) and dialogic communication literature, as it provides evidence of the benefits of utilising social media as a dialogic communication channel to effectively communicate with capital market participants to improve the firm's information environment to obtain and maintain their continued financial support.