Faculty of Commerce, Law and Management (ETDs)

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    Substance over Form – Fraus Legis - Simulated Transactions Is there a gap in South African tax law in circumstances where parties conceal or disguise a transaction but still give effect to the agreements in accordance with the tenor of their terms?
    (University of the Witwatersrand, Johannesburg, 2023) Hugo, Grant Anthony; De Koker, A.P
    The above is equally applicable in the context of taxation. The purpose of this research has been to understand the juxtaposition between the intention of the contracting parties and their performance in the context of the tenor of the respective agreements. The adoption into South African law of the doctrine of substance over form and its relationship with the principles of fraus legis and simulated transactions was discussed through the development of cases dealing with transactions in fraudem legis and simulated transactions. The research was undertaken in an endeavour to ascertain if there is a gap in South African tax law in circumstances where the parties disguise or conceal a transaction, but still give effect to the agreements in accordance with the tenor of their terms. In conclusion, there is no gap. More is required than that the parties give effect to their agreements in accordance with their tenor, the parties must in fact mean that the agreements shall have effect in accordance with their tenor. The concealment or disguise is sufficient in and of itself to infer simulation and giving effect to the agreements in accordance with their tenor will not deem the result to be tantamount to giving effect to the real agreement between the parties, or to shield the parties from the operation of the common law. Our courts will not be deceived by the form of a transaction, and in the event of a determination of simulation, they will strip off its ostensible form and give effect to what the transaction really is.
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    What fiscal policy measures are associated with higher economic growth in South Africa? With specific reference to spending and taxation
    (2022) Qomoyi, Siyasanga
    This paper investigated fiscal policy measures that impact economic growth by testing variables such as expenditure, personal income tax (PIT), corporate income tax (CIT), government debt and household consumption expenditure from 1994 to 2019. The study employed the Vector Autoregressive Model (VAR) for short-run and the Vector Error Regression Model (VEMC) for long-run models for model 1 and model 2 since there was more than two cointegration in the models. The study employed the Ordinary Least Squares (OLS) for model 3 since there was no cointegration. The findings indicated that the variables have varying effects on private investment and economic growth in the short run. At the same time, an increase in debt will likely increase expenditure in the long run. A decreased household consumption expenditure would likely increase economic growth in the long run. There is a significant negative relationship between corporate tax and economic growth and a significant positive relationship between government debt and economic growth. The study further provides recommendations.
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    What are the challenges in taxing the informal economy and possible ways to overcome them?
    (2021) Mbedu, Noluvuyo Bridgette
    Recent years have witnessed increased attention towards the challenges of taxing the informal economy (Joshi, Prichard & Heady 2012:1). However, this research report aimed to argue whether informal economy businesses in South Africa should be included in the tax system, given that the challenges of taxing the informal economy will need to be overcome. Other African countries such as Nigeria, Uganda, Cameroon and Ethiopia have attempted to tax the informal sector directly, and some businesses are bribing tax officers to reduce their company's tax payments. If the marginal bribe rate is lower than the statutory marginal tax rate, the company's tax payments will be reduced. (Kundt: 2017:6). Prichard (2012:16) has mentioned that the policy makers focus on the cost and benefits of taxing the informal economy. This research report also aimed to argue about the analysis that is needed to overcome the challenges of taxing the informal economy
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    A critical analysis of the international direct tax solutions for businesses in the digital economy
    (2019) Peres, Monique Helena Alfonso
    Taxes are not paid where value is created when it comes to the digital economy. Current international tax laws were written before the digital economy started. The digital economy has changed our lives and how business is done. Value is created in different ways by digital businesses compared to traditional businesses. Digital businesses can do business in any jurisdiction in the world without a physical presence. The permanent establishment concept is still based on physical presence which is irrelevant to digital businesses. The permanent establishment concept and its irrelevance to the digital economy will be discussed in the report. Foreign digital businesses use the physical presence required by the permanent establishment concept in their tax planning to reduce their tax liability. The questions that will be answered in the report are how and where value is created and where should digital businesses pay direct taxes such as income tax, amongst other taxes. The purpose of this report is to critically analyse how digital businesses should be directly taxed when they have a significant digital presence with little or no physical presence in a jurisdiction. The report will critically analyse the direct tax solutions that have been proposed to tax businesses in the digital economy.