4. Electronic Theses and Dissertations (ETDs) - Faculties submissions

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    A comparative study of VAT on cryptocurrencies
    (University of the Witwatersrand, Johannesburg, 2024) Schmidt, Werner
    The research landscape pertaining to cryptocurrencies has witnessed extensive exploration across various disciplines, including information technology, legality, accounting, and taxation. However, a noticeable shortage of comprehensive investigations exists regarding the challenges faced by tax regimes and jurisdictions in taxing cryptocurrencies. This study aims to bridge this gap by conducting a meticulous analysis of the characteristics of Bitcoin and the tax implications of cryptocurrencies in South Africa and other jurisdictions. Special attention will be devoted to scrutinizing the ramifications of Value-Added Tax (VAT) on cryptocurrency transactions. Notably, existing literature sheds light on the challenges encountered by the South African Revenue Service (SARS) in revenue collection from cryptocurrency transactions. The necessity for SARS and the Treasury to refine prevailing legislation emerges as a critical consideration to curtail tax evasion in cryptocurrency transactions and ensure the effective collection of tax revenue. Cryptocurrencies, as virtual currencies existing outside central bank control, have triggered varied responses from different jurisdictions. While some tax jurisdictions permit the use of cryptocurrencies, others outrightly prohibit them. In the South African context, the use of cryptocurrencies is not prohibited, and SARS has implemented VAT legislation specific to cryptocurrencies. Designating cryptocurrencies as financial services for VAT purposes renders them exempt from VAT, as financial services fall within the category of exempt supplies under Section 12 of the VAT Act 89 of 1991 (VAT Act). This exemption implies that neither standard nor zero rates are applicable to financial services. The primary objective of this research is to explore alternative classifications for cryptocurrencies by SARS for VAT purposes. To achieve this, a comparative study was conducted, focusing on the VAT classifications of cryptocurrencies in Bahrain, Thailand, Colombia, and Ireland. The research revealed that Thailand and Bahrain have adopted a categorization resulting in the imposition of actual VAT on cryptocurrency transactions. This finding challenges the argument against levying VAT on cryptocurrencies, based on the perceived difficulty in determining their value and subsequently determining the appropriate VAT charges. Consequently, the study suggests that SARS should explore alternative approaches that may broaden the VAT tax base and enhance the effectiveness of VAT collection in the context of cryptocurrency transa
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    Investigating the digital divide in South Africa as it relates to financial services
    (University of the Witwatersrand, Johannesburg, 2024) Khumalo, Anna; Totowa, Jacques
    This study’s aim falls on investigating the digital divide in South Africa. Grounded on the principles and assumptions of positivism, the study adopted the quantitative research approach to investigate the issue. Thus, a structured questionnaire was used to gather data from 211 South Africans: employed, unemployed, students, elderly, and disabled individuals. SPSS version 25 was used to analyze the data and both inferential and descriptive statistical analyses were performed. The results, therefore, revealed that South Africans generally possessed a strong grasp of digital skills, such as using mobile apps, installing mobile apps, completing online applications, and finding information online. However, some South Africans concerns regarding confidence in using banking apps or internet banking and the user-friendliness of banking services. Regarding, transaction monitoring, show positive experiences with daily banking transactions and investment growth, but there are mixed perceptions regarding banking products, monthly bills, electricity, lotto, and airtime transactions, proof of payments and statements, and product exploration and financial education. Drawing on these results, the study provided recommendations in three main categories: improving access and availability, enhancing user confidence and security, and promoting digital inclusion and innovation. These recommendations include enhancing banking infrastructure in underserved areas, reducing transaction costs and fees, strengthening data protection measures, improving user interfaces and experiences, providing financial education, fostering partnerships and collaborations, offering tailored solutions for different user segments, and launching public awareness campaigns. Implementing these recommendations can help bridge the digital divide, promote financial inclusion, and ensure a positive user experience with digital financial services in South Africa