The impact of tax avoidance practices on tax revenue collection in South Africa

Nkadimeng, Hendrick Legamane
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The study examines the impact of the tax avoidance practices on the collection of tax revenues by the South African Revenue Service. It examines the extent to which collection of tax revenues is compromised by the application of some of the tax avoidance practices by the taxpayers. Various tax avoidance practices were studied and analyzed for the purposes of the study. The analysis includes, amongst others, the court cases, online academic articles, books, media releases and theses for the purposes of putting together reliable source of data. Each source of information was studied and analyzed separately for the purposes of the study. South Africa, as a developing country, has been impacted negatively by some of the tax avoidances practices applicable within the South African tax law. The country has lost quite significantly, over the years, some of the tax revenue amounts which could have been collected had the tax avoidance practices not been applicable within the tax legislation in South Africa. The research study concludes by analyzing few possibilities and recommendations on how the South African Revenue Service could possibly ensure that collection on tax revenues is maximized while the tax legislation remains fair and transparent to the taxpayer.
A research report submitted partial fulfilment of the requirements for the degree of Master of Commerce to the Faculty of Commerce, Law and Management, Wits School of Accountancy, at the University of the Witwatersrand, Johannesburg, 2023