3. Electronic Theses and Dissertations (ETDs) - All submissions
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Item The income tax provisions that are applicable to foreign employees temporarily working in South Africa(2018) Mazwi, Zukile DumoThe taxation of foreign employees who are temporarily working in South Africa has been an area of focus for the South African Revenue Service (‘SARS’) since the introduction of the SARS special project in July 2010 (www.ensafrica.com, 2010). According to Brand South Africa (www.brandsouthafrica.com, 2002), ‘global companies with a presence in South Africa cite numerous advantages for setting up shop in the country’. Having worked for one of the Big 4 Global Audit firms in the expatriate department, it is the author’s experience that multinational companies operating in South Africa often utilize expatriate employees for their business needs. The purpose of this research report is to provide an in depth analysis on the problems with the current income tax provisions that are applicable to expatriates (foreign employees temporarily working in South Africa who are not resident for tax purposes in South Africa) and contrasts the provisions with the SARS practice generally prevailing as detailed in the SARS Guide on the Taxation of Foreigners Working in South Africa, SARS interpretation notes and SARS binding private rulings and the tax principles as adopted by the Organisation for Economic Co-operation and Development (‘OECD’) as published in the OECD Model Tax Convention on Income and on Capital. An analysis of the current tax provisions suggests that income sourcing provisions as found in s 9 (source of income provisions) of the Income Tax Act and interpreted by the South African courts need to be further developed to address remuneration sourcing provisions which will cater for expatriates working in South Africa. Further, the complexity of domestic tax legislation and the Double Tax Agreement provisions make compliance and implementation difficult.Item Interactions of stock market turnover and exchange rate volatility as determinants of net FDI inflows into emerging economies: an African empirical analysis(2018) Mokgosi, IpelengInvestment by multinational firms into emerging markets can simply be put down to the attraction to new markets and their attractive operating environments. The cost of operation and ultimate profit will depend on the exchange rate between home country and foreign country. This study analyses the effects that African country exchange rate volatility and its’ interactions with stock market activity against G-7 nations has on the net foreign direct investment inflows into Africa. GARCH (1, 1), VAR and VECM methods were used for estimation of the results in this study. The findings are that stock market activity does drive the volatility of the exchange rate over an annual basis in some cases. Additionally, the exchange rate volatility is simply not a causal influence on whether more investment money flows into and African country versus flowing outItem The effects of mergers and acquisitions on investment returns: cases of Massmart and SABMiller(2017) Mohapi, Doreen SefalwanaThis study investigates the effects of M&A to investment returns in South Africa. The value of M&A executed in emerging economies (EM) is around $129 billion (The United Nations Conference on Trade and Development (UNCTAD), 2014) and this figure is projected to double in the next ten years bringing positive economic development in EM. In light of this perspective, there is renewed interest in understanding the economics of M&A in developing countries. Our aim was to assess the extent of mergers and acquisition on shareholder returns in South Africa using a case study approach. A case study approach was adopted in order to analyse the impact of specific events on shareholder value by date. Two prominent mergers involving acquiring companies from Developed Markets (DM) were selected namely AB Inbev (Belgium) and Walmart (US). As anticipated, the results show that each merger update announcement had an impact on the share price of the target based on the type of announcement. Positive news increased the share price and bad news adversely impacted the share price. Post the merger, Massmart’s headcount increased and profitability decreased. The same could not be measured for SABMiller as the company has been delisted.Item Should South Africa have an FDI policy? : a critical analysis of South Africa's current policy stance(1998) Cohen, RichardThe purpose of this paper is to provide a critical assessment of the Foreign Direct Investment (FDI) policy stance in South Africa. We analyse whether investment incentives will be effective in increasing FOI inflows and look at the importance of the behaviour of transnational corporations (TNCs) in determining the impact of FDI on the host. This analysis allows us to determine the appropriate objective of FDI policy, namely channelling TNC behaviour' such that they generate the desired benefits for the host-This raises the question of how such behaviour may be channelled in practice. Using the framework of information economics, we identify the nature of the difficulties with which policy makers must deal in designing behavioural incentives. Although this does not lead us directly to policy prescriptions, when augmented with practical considerations, it provides us with a basis for analysing whether FDI policy (as distinct from industrial policy) is called for by isolating one instance in which a differentiated approach. would be likely to increase the efficacy of policy, we show that there is good reason to suspect that the absence of a distinct FDI policy in South Africa may be suboptimal.