Faculty of Commerce, Law and Management (ETDs)

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    Taxing Facebook: user data and participation as taxable assets
    (University of the Witwatersrand, Johannesburg, 2023-02-12) Novazi, Zinhle; Gutuza, T.
    Facebook is said to have 2.93 billion active users and it is estimated that by 2026 the number of Facebook users in South Africa will reach 35.92 million. Facebook is said to generate 98.5% of its revenue from digital advertising in the form of targeted advertisements on Facebook and Instagram. A plausible case can be made about the contribution of user data to the profitability of a highly digitalised company such as Meta Platforms Incoporated. This research report has identified three fundamental problems. First, Meta Platforms Incoporated extracts data from users and generate profits through targeted advertising at the location of the user without paying sufficient income tax in the user jurisdiction. Secondly, there is a fundamental problem with how South Africa deals with the income taxation of companies such as Meta Platforms Incoporated. Thirdly, the current tax rules do not allow for taxation to take place at the location of the user and therefore need to be revised. This research report therefore provides five potential solutions that South Africa can adopt to impose income tax on Meta Platforms Incoporated. The solutions include first, the use of the South African source rules (source being at the location of the server); secondly the use of the South African source rules (source being atthe location of the Internet Service Provider); thirdly a tax akin to the mineral royalty tax in the form of a data royalty tax; fourthly the OECD’s Two Pillar Proposal; and fifthly unilateral legislative solutions (using Nigeria and India as a case study)
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    A critical analysis on the taxation implications of clawback provisions on executive performance incentive schemes
    (2020) Mahomed, Naseeha
    Clawback provisions in executive performance incentive schemes serve as a risk management tool, and the use thereof by companies listed on the JSE has increased in recent years. In South Africa, the regulatory regimes have not been developed to address this. Through a comparative study with the USA, this research proposes a taxation framework that South Africa could adopt in regulating the clawback process with respect to cash and equity-based incentive awards. This research scrutinizes the existing definitions of s 8C, the concept of remuneration and the income tax implications of a clawback. Suggestions and recommendations are made for future reform
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    An examination of tampon tax and how it effects the social, health and economical aspects of countries including a comparative analysis of how some countries have dealt with tampon tax
    (2019) Asmaljee, Sumaiyah Safi
    Tampon tax is a colloquial term in common usage describing taxes levied on female menstrual hygiene products that are taxed as luxury goods in spite of the fact these items are considered necessities such as food and medicine, which are either exempted or taxed at 0% in some countries. Tampon tax in South Africa is the levying of value-added tax (VAT), to female menstrual hygiene products. Internationally, activists have initiated various campaigns and protests for the removal of tampon tax as it is not regarded as a luxury but rather a necessity, and South Africa has followed suit. There have been various campaigns and initiatives towards making female menstrual hygiene products more affordable and/ or accessible to the females from low-income households in South Africa. Reduction in sales tax rates, removal of goods and services tax on female menstrual hygiene products and the utilisation of the income earned from sales tax on female menstrual hygiene products are options available to negate the economic effects of tampon tax on females in their reproductive years. This paper discusses tampon tax and its effect on social, health and the economic well-being of South Africa. The paper will include comparative analyses to what is being done in some countries to alleviate the negative effects of the tampon tax. This paper will also examine the value-added tax in South Africa. Arguments in favour of and against tampon tax are also discussed.
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    Income tax treatment of the transfer of contingent liabilities during the sale of a business
    (2018) Boakye, Stephen
    The objective of this report is to analyse the South African income tax consequences of the assumption of contingent liabilities such as leave pay provisions and bonus provisions during the transfer or sale of a business. This report will consider two methods utilised to transfer contingent liabilities as part of a sale of a business. An analysis of how these two methods have been derived will be performed as part of this report. The report will then consider the income tax implication of the transfer of contingent liabilities under each of the methods. Overall, this report will critically analyse the income tax implications of the assumption of contingent liabilities during the sale of a business. A business generally consists of assets and liabilities. Businesses are often sold as a single unit although for income tax purposes, a distinction would have to be made on the particular assets sold.1 The current South African Income Tax Act caters for the income tax implication of selling assets in a business.2 It however seems to be silent on the income tax implications in instances where liabilities including contingent liabilities are assumed as part of the sale of assets.3 As a result, the income tax implication is subjected to the general tax principles which sometimes yield uncertainties from a taxpayer’s perspective. In an effort to clarify uncertainties in relation to the income tax implication of the assumption of contingent liabilities as part of the sale of a business, the South African Revenue Service in December 2016 released Interpretation Note 94. This report will, firstly, test the legal nature of Interpretation Notes with specific reference to reliance being placed on such Interpretation Notes in relation to the interpretation of the Income Tax Act