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

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    Possible solutions to the challenges posed by e-commerce on the permanent establishment concept: a South African perspective
    (2018) Lamula, Nomthandazo Evelyn
    Electronic commerce (‘e-commerce’) is an essential part of the modern world that people live in. It involves cross border business transactions operating simultaneously. Where a business operates in two different jurisdictions at the same time, it faces challenges when determining to what extent, it becomes liable for taxation in either or both jurisdictions.1 The objective of this research is to examine the evolution of the concept of permanent establishment, the manner in which e-commerce affects this concept, and explores possible mechanisms of imposing tax on cross-border e-commerce transactions. It commences with an analysis of the application of the South African tax jurisdiction over residents and non-residents, in order to establish the extent of its jurisdiction over cross border transactions. It then proceed to provide a perspective on the functioning of e-commerce and the challenges it posed to the current South African taxation system. The research findings indicate that the current Organization for Economic Cooperation and Development (‘OECD’) concept of permanent establishment does not accommodate for the taxation of e-commerce transactions. It concludes with recommendations which can be used by the South African revenue authorities to ensure efficient tax collection on e-commerce transactions.
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    Analysing VAT on imported services in the financial service industry and the VAT treatment of banking income
    (2016) Bhagowat, Ershrin
    Value-Added Tax (VAT) on imported services in South Africa and the VAT treatment of banking income / products has been a contentious issue for a number of years in South Africa. South African companies, individual taxpayers, students and the South African Revenue Service (SARS) have difficulty to interpret whether section 7(1)(c) and section 14 of the Value-Added Tax Act No. 89 of 1991 is applicable to certain transactions. The aim of the study is to discuss and analyse VAT on imported services in South Africa in order for an individual taxpayer, company and SARS to understand which section should be applied to a certain transaction. This study also aims at clearly showing the type of income / products generated in the banking industry and how VAT is treated on the types of income / products in the bank. This will give students, tax professionals in the financial industry, auditors, companies, individuals and the SARS a better understanding of how VAT is treated in the financial industry.
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