A critical analysis on the taxation implications of clawback provisions on executive performance incentive schemes
Date
2020
Authors
Mahomed, Naseeha
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Abstract
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
Description
A research report submitted to the Faculty of Commerce, Law and Management in partial fulfilment of the requirements for the degree Master of Commerce (Taxation), 2020
Keywords
UCTD, Clawback, Performance incentive scheme, Income tax, Income Tax Act, Executive