Faculty of Commerce, Law and Management (ETDs)
Permanent URI for this communityhttps://hdl.handle.net/10539/37778
Browse
1391 results
Search Results
Item The consequences of tax avoidance in South Africa for taxpayers(University of the Witwatersrand, Johannesburg, 2024) Seakeco, Koketso TsetlediSouth 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’).Item Zero- Hours Contracts in South Africa: Is there a need for Legislative Intervention(University of the Witwatersrand, Johannesburg, 2024) Serakwana, Promise Babiki MamoketiThe South African law of contract is centred on the principles of freedom of contract and good faith. These principles mean that parties are free to choose what terms to contract on and with whom to contract with, provided that the result is not contrary to public policy. Consequently, the resulting contract is likely to be more favourable to the party in a higher bargaining position. It is noted that there is no general rule providing that contracts must be fair. Considering this, zero-hours contracts freely entered into, which are not against public policy, are valid in South Africa, even if they are unfair. According to research conducted by the CIPD, zero-hours contracts can benefit both parties if they are well regulated. The CIPD research also suggests that the contracts are often only advantageous to employees whose circumstances do not allow them to be engaged in full-time employment. This paper explores the need for the legislature to intervene in regulating zero- hours contracts. It emphasizes the need for the legislature to limit the unfettered exercise of bargaining power in zero-hours contracts to provide for the balancing of employee and employer rights. South Africa’s current legal framework does not specifically regulate the use of zero-hours contracts. In the absence of such regulation, vulnerable employees find themselves at the mercy of unscrupulous employers who exploit the weaknesses in the legal system for their own gain. The effect, thereof, being the blatant disregard of statutory obligations, Constitutional rights and values, and an unfettered exercise of power. The paper further explores the regulation of zero-hours contracts in jurisdictions such as the United Kingdom and New Zealand which have legislation specifically dealing with these contracts and recommends that South Africa should follow suit. It also recommends, inter alia, that the Labour Relations Act be amended to specifically deal with zero-hours contracts, that the use of exclusivity clauses be reserved for specific circumstances, and the amendment of the Basic Conditions of Employment Act to provide for minimum working hours. It concludes that there is a need for the legislature to intervene in regulating zero-hours contracts to ensure the protection of vulnerable employees from exploitation; the fair balancing of employee and employer rights; the advancement of Constitutional values of Ubuntu, fairness, and dignity; and the prevention of abuse of power by parties in strong bargaining positionsItem The impact of ‘compensating’ women for hours of unpaid care work on household poverty(University of the Witwatersrand, Johannesburg, 2024) Shedi, Olwethu; Benhura, MiracleEstimating the effect of ‘compensating’ women for unpaid care work on household poverty levels, we used Time Use Survey data for 2000 and 2010 to estimate time spent on unpaid care work, and Post-Apartheid Labour Market Series to estimate earnings for both 2000 and 2010. To achieve this, we used the Economy- wide Mean wage approach, the Opportunity Cost Average wage approach, and the Generalist wage approach. In line with literature, we confirm that, on average, women spend more time on unpaid care work than men do, and that women's average earnings are lower than that of men. We found that the estimated monthly ‘compensation’ does indeed reduce the level of household poverty. However, the Generalist wage approach compensation had the least impact on household poverty levels. Unpaid care work affects women all around the world. While some countries have made progress in recognizing, reducing, and redistributing unpaid care work, women continue to bear the brunt of the burden. Governments have a role to play in encouraging a more equitable distribution of unpaid household care duties. Flexible work hours and shared parental leave are two options for businesses to facilitate more equitable split of unpaid family care duties and assist women in achieving a better work/life balance.Item Remote work and employee privacy in South Africa law(University of the Witwatersrand, Johannesburg, 2024) Sibanyoni, Aaron BonginkosiIn South Africa, the right to privacy is guaranteed in the Constitution, and is given effect by the Protection of Personal Information Act (POPIA) and protected by other pieces of legislation. This research looks at remote work and employee privacy under South African law. The right to privacy, which is a human right that employees must also enjoy. However, the right to privacy impacts the employer’s right to manage the business enterprise in a remote working setting. Therefore, the research explores the concept of control and subordination, which are central to the employment relationship. The employee is subordinate to the employer; otherwise, there would not be a contract of employment. These characteristics of control and subordination are drastically diminished by the employee’s right to privacy and consequently impact negatively on the employer’s entrepreneurial control. Employers should take note that it is not the “activities” of the employee that matter but the “purpose” of monitoring, which must be balanced with the rights and interests of both parties in the employment relationship.1 South African law does not adequately deal with the issue of employee privacy in the context of remote work. South Africa can draw lessons from jurisdictions where this aspect of the law has been significantly developed. These jurisdictions include EU countries such as Germany, France and the UK. In the US, protection of privacy is based on liberty which requires a person to prove the expectation of privacy to enjoy the protection and therefore individualistic in nature, while in the EU it is based on dignity as a fundamental right which gives the power of individuals to control information about themselves and therefore communal.2 The research explores these two analytical approaches and argues that the South African Constitution elevates human dignity and has been confirmed by the Constitutional Court in AmaBhungane Centre for Investigative Journalism NPC v Minister of Justice and Correctional Services (Media Monitoring Africa Trust) and a related matter 2021 (4) BCLR 349 (CC)(Amabhungane). Thus, it should be the yardstick as in the EU countries instead of the US culture. This research makes a proposal for South Africa to adopt legislation or a Code of Good Practice on remote work and employee privacy.Item Factors Affecting Blockchain Technology Adoption by Organizations in the Livestock Supply Chain Industry in Zimbabwe(University of the Witwatersrand, Johannesburg, 2024) Tambudze, Pelagia; Isabirye, NaomiBlockchain is a distributed ledger technology that provides the building block for many innovations. The distributed nature of blockchain, its immutability, and anonymity enable trust, transparency, and security among transacting or trading partners. The accelerated unfolding of 4IR due to the COVID- 19 pandemic recently unveiled several critical gaps within global supply chains, including livestock supply chains. The main challenges faced by organizations in the livestock supply industry in the developing world include difficulties for farmers in accessing new markets, no flexibility in production times, and no traceability for the consumer market to trace food component authenticity. In Zimbabwe, livestock is an important sector contributing about 22% of the total GDP. From several studies done by other researchers in different industries, such as health care, banking, mining, education, and agriculture, it is evident that blockchain technology solves most of these issues by decreasing data asymmetries and the cost of transactions to benefit all stakeholders. Blockchain-based solutions have recently been introduced to the livestock sector, and Zimbabwe is one of the early adopters among its African counterparts. However, the adoption rate by organizations within the livestock supply chain has been minimal. Using the lens of the TOE framework, this study investigated the factors that affect the decision by organizations in Zimbabwe's livestock supply chains to adopt blockchain technology. A qualitative approach was applied, interviewing fifteen informants from various levels of the livestock supply chain. Responses were analysed using thematic analysis. The study found that adopting blockchain benefits organizations and the overall livestock supply chain. The study found that technological, organizational, and environmental factors influenced organizations' decision to adopt blockchain technologies within livestock supply chains. These factors included availability of the technology, cost of the technology, skills availability, regulation and policies, competitive pressures, presence of blockchain providers, political and socio- economic factors and market trends.Item The role of the company secretary in promoting good corporate governance in South Africa(University of the Witwatersrand, Johannesburg, 2024) Thabit, ShaaistaThe global prevalence of corporate scandals involving misconduct has drawn public attention to corporate governance, highlighting the role of the company secretary as a key corporate governance officer. However, company secretaries are often overlooked, despite their importance for facilitating corporate governance. The term ‘secretary’ itself is misleading, as it suggests a purely administrative position. Prior to the role’s development, the connotation was correct. Company secretaries were known as the administrative officer of the company. The implication of this has been, and remains, that the role is not fully leveraged. This view contrasts with the multifaceted functions company secretaries perform today in corporate governance matters and beyond. The emphasis on corporate governance has resulted in modern company secretaries taking on a range of positions with broader powers and extensive duties transforming their roles into guardians of corporate governance. The position is already incorporated into governance codes, the recent Companies Act 71 of 2008 and practice. However recent corporate failures raise concerns whether the role of the company secretary within South Africa's corporate governance framework has the potential to fulfil this corporate governance expectation. This research report will discuss how factors such as the historical marginalisation, legal ambiguity, lack of knowledge and framework fragmentation of the role has contributed to its underutilisation and undervaluation. Effectively hindering it from reaching its full potential within corporate governance and relegating it to the status of an unrecognised hero despite its significant role in corporate governance. This research report further examines the role of the company secretary within the corporate governance framework, highlighting its potential to succeed in this crucial corporate governance position and proposing improvements to maximise this potential. This research report asserts that selection, implementation and utilisation of a suitable company secretary can prevent or mitigate instances of poor corporate governance and, in some cases corporate scandals, bringing to the fore a new corporate ‘governance hero’.Item Re-examining the effectiveness of monetary policy in achieving price stability and output growth in Botswana(University of the Witwatersrand, Johannesburg, 2024) Tlhako, Kefilwe; Mahonye, NyashaThis study reassessed the effectiveness of Botswana's monetary policy, emphasizing its two main goals of maintaining price stability and promoting output growth. Output and inflation are our dependent variables, and they are proxied, respectively by mining and non-mining GDP and the consumer price index. We examined quarterly data from 2005 to 2022 using a Vector Error Correction model. Stationarity tests were conducted using both the ADF test and the Phillips-perron (PP-test), where both tests confirmed all variables to be stationary at levels except money supply which was stationary at first differences. Through the integration of macroeconomic factors like inflation, GDP, interest rates, exchange rates, money supply, and the bank rate, our goal is to offer a thorough comprehension of the relationship between monetary policy decisions and their consequences in the economy of Botswana, a small open economy that is prone to both internal and external shocks. By considering both internal and external elements that could have an impact on the framework's performance, our analysis provides light on how less effective Botswana's monetary policy framework has been over the studied period. The results from the study show that policy shocks have little effect on output growth and inflation. This is proven by the results of the VECM showing a significant impact of the bank rate on non-mining GDP only, while the other two variables; mining GDP and inflation proved that the bank rate does not impact them both in the short run and long run. The VAR decomposition also showed that at most 5% of the changes in our dependent variables are explained by the shocks on the bank rate. The results bring us to the conclusion that other external shocks, such as controlled prices and exchange rates, are the primary causes of inflation than it is driven by the bank rate. With respect to output, the results bring us to the conclusion that the mining sector is heavily influenced by global commodity prices, which are determined by international supply and demand dynamics, rather than domestic interest rates. So significant changes in the bank rate may not alter these global factors. Lastly the non- mining GDP is seen to respond to changes in the bank rate due to the interest rate sensitivity of the sector. The non-mining sector is made up of sectors such as manufacturing, services, retail etc, and these are very sensitive to changes in the interest rates as they rely mainly on short term borrowings for capital and investment. Therefore, changes in the bank rate quickly affect lending rates, consumer loans and business financing, leasing to more immediate economic impacts. Based on the above results, we therefore recommend that policy makers should diversify monetary policy tools and implement sector specific support for the mining industry and focus more on controlling external factors such as exchange rates. 4 Enhanced financial sector regulation and coordination with fiscal policy are also crucial. The employment of these measures can help stabilize the economy and improve the effectiveness of monetary policy, and ensure that non-mining sectors which are more sensitive to interest rates changes, benefit from targeted interventions. This holistic approach acknowledges the varying responsiveness of different sectors and the influence of global economic conditions.Item South Africa’s greylisting due to deficiencies in its corporate legal framework on illicit financial flows: is there a need for measures enhancing transparency in relation to beneficial ownership?(University of the Witwatersrand, Johannesburg, 2024) Tshinaba, Tshianzi Palesa; Samaradiwakera-Wijesundara, CharmikaOn 24 February 2023, the Financial Action Task Force’s decision to ‘grey list’ South Africa sent shockwaves through the Republic, placing it under increased monitoring by the intergovernmental body. The economic consequences thereof are dire: loss of investor confidence, increased difficulty in obtaining donor funding from abroad, among many others. The greylisting is a consequence of South Africa’s failure to address the deficiencies in many aspects of its anti-money laundering and counter-terrorist financing regime, including those relating to the obscure beneficial ownership framework designed for companies that operate within its territory. Motivated by the pressure of being greylisted, the South African government is in the process of establishing a new beneficial ownership regime that is much more transparent and aims to prevent the use of companies by their beneficial owners to facilitate illicit financial flows. However, the obscurity of the “old” beneficial ownership regime was rooted in the need to protect beneficial owners’ privacy and safety. It is on this basis that this paper investigates whether there is truly a need for a new beneficial ownership regime and, if there is, whether the regime being established by the South African government will be effective in preventing and deterring beneficial owners from using companies as vehicles through which they can engage in illicit financial flows in and out of the Republic.Item Caregiver capabilities and socio-economic disparities in children’s health-related quality of life(University of the Witwatersrand, Johannesburg, 2024) Turner, GeorgiaThis study investigates the relationship between children’s health-related quality of life and the associated contextual factors. Furthermore, this study analyses the socio-economic disparities that exist amongst children and what particular social determinants of health are influencing their health and wellbeing. Using an OLS regression as well as the Blinder-Oaxaca decomposition, the results show how children with a lower socio-economic status experience a lower HRQOL as opposed to those with a higher socio-economic status. Furthermore, this paper reports new research on the association of caregiver’s capabilities and children’s HRQOL which represents an important explanation for children’s health-related quality of life. Caregivers’ capabilities are a set of tools that enables parents to manage work, life and parenting effectively. The results provide evidence how important these capabilities are as it contributes to a better health related quality of life in their children. The findings show how a higher socio-economic status is associated with better caregiver capabilities. This is an important finding in the South African context, as exorbitant social inequalities exist, and hence, improving adult capabilities could potentially result in not only aiding to narrow the socio-economic disparity gap, but also improving the overall quality and health of children. This also leads to the premise of a bi-directional association whereby improving caregivers’ socio-economic status may likely also improve their capabilities.Item Considering estate duty as a source of wealth tax in South Africa: an African analysis(University of the Witwatersrand, Johannesburg, 2024) Venketsamy, KanushkaTaxation has been employed across the world to generate government revenue, which in turn is spent on public goods and services. Income taxes, consumption taxes and taxes on assets (wealth) make up total tax revenue. A wealth tax has been implemented in various countries through different means. Advocates for wealth taxes argue that its implementation would assist in bringing balance to societies with income and wealth inequalities. Income inequality is abnormally high in South Africa. Wealth tax is imposed in different forms: estate duty, donations tax, transfer duty and securities transfer tax. Studies have been conducted on the implementation of a wealth tax in South Africa; however, it is not considered practical. This research report focuses on revenue collected from estate duty as an existing type of wealth tax. It is considered whether the amount of tax revenue collected can be increased through improvements in the estate duty regime, as opposed to introducing a separate wealth tax. This is determined by comparing the estate duty regime of South Africa to that of selected African countries, namely Angola, Botswana, Cameroon, Equatorial Guinea, Malawi, Morocco, Mozambique, Senegal and Zimbabwe. These African countries were selected because of their similar levels of income inequality. Only Malawi and Zimbabwe employ estate duty, while the other selected countries employ an inheritance tax, gift tax or transfer tax. The observed trend in the death tax regimes of the chosen countries was the relationship between the deceased and receiver of the estate/assets playing a role in the determination of the tax rate levied. South Africa’s estate duty regime does not consider this relationship. A potential adoption from the African death tax regimes would be to simplify the estate administration process.