Faculty of Commerce, Law and Management (ETDs)

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    The proposed global minimum tax: implications for South Africa
    (University of the Witwatersrand, Johannesburg, 2022) Moticoe, Lucky Calvin
    Digitalisation and globalisation have resulted in the free movement of capital and trade between countries and has had a profound impact on the global economy. These global business reforms have brought with them challenges to the international tax laws that have existed more than 100 years without any reforms, therefore, creating an opportunity for base erosion profit shifting (BEPS). These challenges resulted in a need for a co-ordinated effort by the global communities to ensure that business income is taxed where economic activities take place, and international tax laws keep up with the accelerated rate of development in international business. To bring reforms to the international tax laws and level the playing field in international corporate taxation, the OECD and the G20 countries joined forces and developed an Action Plan to address BEPS in September 2013; an action plan that came with 15 recommendations to tackle BEPS to be implemented by interested jurisdictions. Much progress had been made during the years, but one key issue remained outstanding on the BEPS issues; taxing the digital economy. On 08 October 2021, over 135 Inclusive Framework members joined forces and agreed to a two-pillar solution to reform the international tax rules. The two-pillar solution proposed a global minimumtax of 15% to ensure that multinational enterprises pay their fair share of tax where economic activities are conducted.South Africa is one of the jurisdictions that expressed interest in the proposal and is asignatory to the proposal. It is, however, not clear how the global minimum tax will impact South Africa should it decide to adopt this. This report aims to evaluate the impact the global minimum tax will have on South Africa should it decide to adopt, with focus on policy implications, its ability to use tax incentives to attract investment (specific focus on the SEZ programme), and infringement on its tax sovereignty. The results of the report revealed that South Africa might be faced with some tough policy implications that will need careful consideration before the decision to adopt can be made. It was further found that the ability to use tax incentives as a policy instrument to attract investment (under the SEZ programme) may be under a serious threat, considering all the other challenges with which the country is currently faced. The adoption of the proposal will not infringe on the tax sovereignty of the country as it is a voluntary process that countries may chose not to adopt if they so wish.
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    Examining coordination among stakeholders in implementing the OR Tambo special economic zone
    (University of the Witwatersrand, Johannesburg, 2022) Masinga, Kgothatso Anamelita; Pillay, Pundy
    South Africa has adopted the Special Economic Zone (SEZ) programme as a mechanism to attract Foreign Direct Investment and increase job creation. However, despite the country’s implementation of SEZs over the past years, the country continues to experience socioeconomic challenges such as poverty, unemployment, and inequality. In this regard, this study examined coordination among stakeholders in implementing the OR Tambo SEZ, particularly given that the OR Tambo SEZ was designated as an Industrial Development Zone in 2002, and the zone received its operating permit in 2010. This delay in the issuance of the permit signals that there might be coordination challenges among key stakeholders responsible for implementing the zone. The research adopted a case study design to examine the extent of coordination among stakeholders that are responsible for the implementation of the OR Tambo SEZ. A qualitative research method was adopted to collect the data using interviews and document analysis. The study found that key stakeholders such as the Department of Trade and Industry, Gauteng Industrial Development Zone and the Municipality of Ekurhuleni are involved in the implementation process of the zone. However, there is a need to improve on the coordination mechanism by clearly indicating the role and responsibility of each stakeholder and the rules and procedures for coordination. In addition, there is a need to involve other vital stakeholders who can contribute towards the successful implementation of the OR Tambo SEZ.