Electronic Theses and Dissertations (Masters)

Permanent URI for this collectionhttps://hdl.handle.net/10539/37781

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Subject: search.filters.subject.General Anti-Avoidance Rules (GAAR)

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    The consequences of tax avoidance in South Africa for taxpayers
    (University of the Witwatersrand, Johannesburg, 2024) Seakeco, Koketso Tsetledi
    South African companies use tax planning to structure their tax affairs. Tax avoidance entails the use of legitimate means to reduce the taxpayer’s income tax, and this can be done through tax planning. This will ensure the taxpayer arranges his tax affairs in a manner that allows the taxpayer to reduce their tax liability. Tax avoidance consists of permissible and impermissible tax avoidance. ‘Permissible tax avoidance is the avoidance of tax in a manner that is consistent with statutory purposes and the limits imposed by a GAAR. Impermissible tax avoidance, on the other hand, is tax avoidance that is inconsistent with statutory purpose and is forbidden by a GAAR’ (Kujinga 2014). The General anti-avoidance rules (‘GAAR’) of the Income Tax Act 58 of 1962 (‘the Act’) s 80A to s 80L deals with impermissible tax avoidance. This report investigates the tax consequences of tax avoidance for the taxpayer in South Africa by analysing the new GAAR (ss 80A- 80L). This will be done by focusing on the remedies in s 80B of the Act and penalties in s 222 and s 223 of the Tax Administration Act 28 of 2011 (‘Administration Act’).
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    The analysis of the requirements of the new General Anti Avoidance Rules as compared to the repealed section 103(1)
    (University of the Witwatersrand, Johannesburg, 2023) Ngcobo, Nelisiwe Mukeliwe
    There is a constant struggle between the South African Revenue Services (SARS) and the taxpayer. SARS wants to collect as much money as possible from taxpayers; on the other hand, taxpayers want to pay as little tax as possible. The Government tries to implement new legislation and provisions in the Income Tax Act to make sure that taxpayers are restricted or limited in structuring their agreements in a way that reduces or limits their tax liabilities. On the other hand, taxpayers also try to find loopholes in the Income Tax Act that will work in their favour to reduce their tax liability. Most taxpayers structure their agreements in a way that ensures that they are still within the ambits of the provisions of the Income Tax Act but at the same time, mitigating their tax liability. It has been established over the years that taxpayers have a right to structure their financial affairs in a way that benefits them. This research paper will be looking at the requirements of the new General Anti Avoidance Rules (section 80A – 80L), compared to the now repealed anti-tax avoidance provisions of the old section 103 (1) of the Income Tax Act, which made a huge impact on this topic as most court cases used the interpretation of this section to reach judgments. The new anti-avoidance provisions are based on the important elements of the old provisions. This research report will analyse the General Anti-Avoidance Rules (GAAR) under section 80A to 80L of the Income Tax Act 58 of 1962. The aim is to analyze and conclude on the developments and effectiveness of the new GAAR in curbing tax avoidance