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1
Soler, Roch María Teresa. "The Taxation of Capital Gains in Double Tax Convention Models." Derecho & Sociedad, 2015. http://repositorio.pucp.edu.pe/index/handle/123456789/118674.
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The article deals with the taxation of capital gains in cross-border situations, according to the relevant provision in the different Model Conventions (OECD, UN, and US). Following an introduction to the topic, the article analyzes the concept of capital gains, as well as the allocation rules applicable to gains derived from the alienation of different type of assets, including specific anti-abuse provisions and a final reference to the exit taxes.El artículo trata de la tributación de las ganancias de capital en situaciones transfronterizas, de acuerdo con las disposiciones previstas en los distintos Modelos de Convenio (OCDE, ONU y EEUU). Tras una introducción al tema, el artículo analiza el concepto de ganancias de capital, así como las reglas de atribución aplicables a las ganancias obtenidas en la transmisión de distintos tipos de bienes, incluyendo cláusulas anti-abuso específicas y una referencia final a los impuestos de salida.
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Marriage, Wayne Wilson. "An evaluation of the capital gains tax concessions for small business." Thesis, Queensland University of Technology, 2006. https://eprints.qut.edu.au/16326/1/Wayne_Marriage_Thesis.pdf.
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The small business Capital Gains Tax (CGT) concessions were introduced by the Federal Treasurer on 21 September 1999. The provisions are based on the landmark Review of Business Taxation. The Federal Government's intention was to remove impediments to efficient asset management, improve capital mobility, reduce complexity and compliance costs and generally, make Australia's CGT regime internationally competitive.
Division 152 contains four separate small business concessions. In order to qualify for the four CGT concessions, the small business must satisfy stringent tests (basic conditions). It is possible that the small business will receive significant concessional treatment if these basic conditions are satisfied.
Commentary by academics and tax practitioners indicate that the small business CGT concessions are excessively complex. There is concern that the provisions are not achieving their desired outcomes. This thesis involves a critical evaluation of Division 152 against the traditional criteria for a good tax system, using a legal research methodology designed by Wade. Within Wade's framework, the research includes a comparative analysis of the Australian and United Kingdom legislative provisions for small business CGT concessions. This comparison is undertaken with a view to highlighting strengths and weaknesses in the respective legislation to better meet the goals of equity, efficiency and simplicity. The culmination of this thesis will be the proposal of policy recommendations to Subdivision 152-A.
This thesis states the law available as at 30 April 2006. In the light of this, an appendix is inserted to cover changes since this date.
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Marriage, Wayne Wilson. "An evaluation of the capital gains tax concessions for small business." Queensland University of Technology, 2006. http://eprints.qut.edu.au/16326/.
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The small business Capital Gains Tax (CGT) concessions were introduced by the Federal Treasurer on 21 September 1999. The provisions are based on the landmark Review of Business Taxation. The Federal Government's intention was to remove impediments to efficient asset management, improve capital mobility, reduce complexity and compliance costs and generally, make Australia's CGT regime internationally competitive. Division 152 contains four separate small business concessions. In order to qualify for the four CGT concessions, the small business must satisfy stringent tests (basic conditions). It is possible that the small business will receive significant concessional treatment if these basic conditions are satisfied. Commentary by academics and tax practitioners indicate that the small business CGT concessions are excessively complex. There is concern that the provisions are not achieving their desired outcomes. This thesis involves a critical evaluation of Division 152 against the traditional criteria for a good tax system, using a legal research methodology designed by Wade. Within Wade's framework, the research includes a comparative analysis of the Australian and United Kingdom legislative provisions for small business CGT concessions. This comparison is undertaken with a view to highlighting strengths and weaknesses in the respective legislation to better meet the goals of equity, efficiency and simplicity. The culmination of this thesis will be the proposal of policy recommendations to Subdivision 152-A. This thesis states the law available as at 30 April 2006. In the light of this, an appendix is inserted to cover changes since this date.
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Rapera, Corazon L. "Potential impacts of various capital gains tax structures on forest investments." Diss., This resource online, 1990. http://scholar.lib.vt.edu/theses/available/etd-07282008-135205/.
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Devlin, Christopher James. "The Effect of the Capital Gains Tax Rate on Earnings Management." Thesis, The University of Arizona, 2015. http://hdl.handle.net/10150/579041.
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I find evidence that when the capital gains tax rates fell before SOX regulations, earnings were managed up by United States based firms through both accrual and real methods. This maximizes executives take home pay. Just following SOX regulations, earnings were managed higher, which was predominately done through accrual methods. When the capital gains tax rates fell in 2013 levels of earnings management were lower, which is consistent with the idea that executives are looking to maximize their pay. How levels of institutional ownership affect earnings management is less conclusive. Earnings management is also influenced by how executives are compensated showing that managers who are primarily compensated through stock options bonuses may choose to manage earnings higher.
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Pastellas, James P. "Capital gains tax and compensation payments : a clearer understanding of the confusion." Thesis, Queensland University of Technology, 1994. https://eprints.qut.edu.au/36402/1/36402_Pastellas_1994.pdf.
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The Capital Gains Tax legislation is an extensive and
complex piece of legislation which has undergone
significant change in an attempt to widen its scope and
remove uncertainty. This paper will analyse the Capital Gains Tax provisions as they relate to compensation payments and look to specific case law both in the UK and Australia, to assist in interpretation. The view of the Commissioner of Taxation will also be analysed. A pragmatic approach to the problem will then be submitted.
This paper will clearly demonstrate that there is a
fundamental need for the Capital Gains Tax provisions to
be reformed and simplified in totality. In the context
of compensation payments, business as a whole and the
advisers to business, must be given a clear set of
guidelines so that they can adequately prepare for the
process of litigation. At the moment they must simply wait and hope.
7
Schwarze, Corrinna Lina. "A critical analysis of the capital gains tax system for South Africa." Thesis, Stellenbosch : Stellenbosch University, 2002. http://hdl.handle.net/10019.1/52627.
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Thesis (MAcc)--Stellenbosch University, 2002.ENGLISH ABSTRACT: Capital gains tax has been introduced into the South African tax system for the first time, on all capital gains arising on or after 1 October 2001. The issue of whether a capital gains tax will be a suitable tax for South Africa has already been addressed in the form of Commission Reports. In these reports, the idea of adopting this tax system was not recommended for the South African tax system or only a limited capital gains tax was recommended. This study, however, investigates whether the legislation passed by government is in line with the basic principles of an efficient and effective tax system. Firstly, the principles of an efficient and effective tax system are set out as those originally proposed by Adam Smith as well as those that have been adapted to modern tax theory. The factors that impact on capital gains tax are identified and specific criteria are formulated against which the legislated capital gains tax is evaluated. The mechanics of the capital gains tax is discussed, classified into the factors that impact a capital gains tax and evaluated against the abovementioned criteria. lt has been held that the introduction of this new form of tax to the South African tax system addresses many inefficiencies and deficiencies in the current tax system. lt is the writer's opinion that an investigation as to the degree to which this tax system adheres to the principles of an effective and efficient tax system, was thus necessary. For the purposes of this investigation, the legislated capital gains tax was evaluated against the principles of neutrality, certainty and simplicity, administrative efficiency, flexibility, invisibility and equity (fairness, horizontal and vertical equity). lt was found that the principles of flexibility, fairness and horizontal equity are achieved. To a lesser extent, the principles of neutrality, certainty and simplicity, and administrative efficiency are achieved, and the principles of invisibility and vertical equity have not been achieved.
AFRIKAANSE OPSOMMING: Kapitaalwinsbelasting is nou vir die eerste keer deel van die Suid Afrikaanse belastingstelsel. Dit affekteer alle kapitale winste wat op of na 1 Oktober 2001 realiseer. Die vraagstuk oar die geskiktheid van kapitaalwinsbelasting vir Suid-Afrika is alreeds voorheen in die vorm van Kommissieverslae aangespreek. Geen, of slegs 'n beperkte kapitaalwinsbelasting is in hierdie verslae aanbeveel vir die Suid-Afrikaanse belastingstelsel. Die studie wat volg, ondersoek die mate waarin die wetgewing ten opsigte van kapitaalwinsbelasting aan die basiese beginsels van 'n effektiewe en doeltreffende belastingstelsel voldoen. Eerstens word die beginsels van 'n doeltreffende en effektiewe belastingstelsel uiteengesit as die soos oorspronklik voorgestel deur Adam Smith, asook die wat deur moderne belastingteorie aangepas is. Tweedens word die faktore wat kapitaalwins be·invloed ge·identifiseer en laastens word spesifieke kriteria geformuleer waarteen die kapitaalwinsbelasting geevalueer sal word. Die werking van die kapitaalwinsbelasting word bespreek, geklassifiseer in faktore wat 'n kapitaalwinsbelasting be·invloed en teen die bogenoemde kriteria geevalueer. Daar is beslis dat die toevoeging van hierdie vorm van belasting tot die Suid Afrikaanse belastingstelsel die ondoeltreffendheid en ander gebreke in die huidige belastingstelsel aanspreek. Dit is die skrywer se mening dat 'n ondersoek ten opsigte van die mate waartoe hierdie belastingstelsel die beginsels van 'n effektiewe en doeltreffende belastingstelsel nakom, dus nodig was. Vir die doeleindes van hierdie ondersoek, is kapitaalwinsbelasting geevalueer teen die beginsels van neutraliteit, sekerheid en eenvoudigheid, administratiewe doeltreffendheid, aanpasbaarheid, onsigbaarheid en billikheid (regverdigheid, horisontale en vertikale billikheid). Daar word tot die gevolgtrekking gekom dat daar aan die beginsels van aanpasbaarheid, regverdigheid en horisontale billikheid voldoen word. Tot 'n minder mate, word daar aan die beginsels van neutraliteit, sekerheid en eenvoudigheid, en administratiewe doeltreffendheid voldoen. Daar word nie aan die beginsels van onsigbaarheid en vertikale billikheid voldoen nie.
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Novack, Garth F. "Treasury bill yield reactions to the 1997 capital gains tax rate reduction." Diss., The University of Arizona, 2003. http://hdl.handle.net/10150/280313.
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This study tests the equilibrium of after-tax rates of return described in Miller (1977) by investigating whether a change in tax rates affects the return of an investment asset that is not directly taxed by the rate being changed. Using a model of after-tax investment returns I predict the yields of Treasury bills, which are subject only to ordinary tax rates, have an inverse reaction to changes in the capital gains tax rate. In a sample of daily Treasury bill data, yields appear to increase in response to the surprise reduction in capital gains tax rates on May 7, 1997. While small, this increase is statistically significant and is robust to other macroeconomic determinants. These findings contribute to the accounting literature on taxes and investment pricing by providing evidence of Miller's after-tax equilibrium in a potentially cleaner setting than is used in previous studies. Evidence that a financial instrument subject to ordinary rates alone may be affected by the announcement of a change in the capital gains tax rate suggests that shareholder-level taxes are capitalized into prices in ways not investigated by existing research. Accounting researchers will find these results useful because they suggest that the effects of changes in tax rates on asset prices are likely misstated in studies using settings where both the ordinary and capital gains tax rates change. Since the Treasury bill yield forms the basis of many consumer contracts, such as credit card agreements, policy makers should also be interested in these findings because they suggest changes to the capital gains tax rate may have unintended market consequences.
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Fourie, Santie. "A critical analysis of inflation adjustment in the calculation of capital gains tax in South Africa." Pretoria : [s.n.], 2009. http://upetd.up.ac.za/thesis/available/etd-02272009-133118/.
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Smit, Jacobus Gideon. "Analysis of the interaction between the income tax and capital gains tax provisions applicable to share dealers." Thesis, Stellenbosch : Stellenbosch University, 2013. http://hdl.handle.net/10019.1/85830.
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Thesis (MAccounting)--Stellenbosch University, 2013.ENGLISH ABSTRACT: The interaction between the income tax provisions contained in sections 9B, 9C, 11(a) and 22 of the Income Tax Act No. 58 of 1962 (the Act), and the capital gains tax (CGT) provisions of the Eighth Schedule of the Act, are complex and share dealers should approach the tax consequences of share dealing profits with caution. The objective of the assignment was to ensure that the share dealing profits of share dealers (who transact on revenue account) are taxed correctly, with specific reference to the interaction between the aforementioned provisions. This was achieved by considering tax cases, the interpretation notes of the South African Revenue Services (SARS) and commentary of tax writers. Examples of share disposals were incorporated to illustrate that consistency is required between the calculation of profits for income tax and CGT purposes. The guidelines laid down by case law to determine the revenue nature of share disposals were investigated. It was concluded that share dealing profits which are designedly sought for and worked for, either as part of a business operation or not, are of a revenue nature and taxable as such. The method of identification of shares sold as trading stock is important when calculating the income tax profit, since it is used in order to determine both which shares are sold as well as the cost of the shares sold. It was concluded that the method of identification applied in terms of generally accepted accounting practice (GAAP) is generally also acceptable from an income tax perspective. Section 9C of the Act provides a share dealer income tax relief when a ‘qualifying share’ is disposed of. Any amount received or accrued as a result of the disposal of a qualifying share is deemed to be of a capital nature, regardless of the revenue intention of the share dealer. Prior to 1 October 2007, section 9B of the Act provided similar relief to the disposal of an ‘affected share’. It was concluded that section 9C of the Act has a wider scope of application compared to section 9B of the Act. Because the proceeds received on the disposal of affected or qualifying shares are excluded from gross income, the acquisition costs previously incurred and deducted in respect of such shares must be included in taxable income. It was determined that the amount to be included in income is the actual cost of such shares and not the opening trading stock value determined in terms of GAAP and claimed in terms of section 22(2) of the Act. It was concluded that the first-in-first-out (FIFO) method of identification should be applied to determine which affected or qualifying shares have been disposed of. From a CGT perspective, it was illustrated that a share dealer loses the opportunity to choose which identification method to apply and is obliged to also apply the FIFO method in calculating the CGT base cost of the shares. It is concluded that the Eighth Schedule of the Act should be amended to clarify that the FIFO method should be applied for CGT purposes where sections 9B or 9C of the Act find application. Only then will the tax profits of a share dealer be in sync with his or her cash benefit.
AFRIKAANSE OPSOMMING: Die interaksie tussen die inkomstebelastingbepalings vervat in artikels 9B, 9C, 11(a) en 22 van die Inkomstebelastingwet No. 58 van 1962 (die Wet), en die kapitaalwinsbelastingbepalings (KWB bepalings) van die Agtste Bylae tot die Wet is kompleks en aandelehandelaars moet die belastinggevolge van aandelewinste met omsigtigheid benader. Die doelwit van die werkstuk was om te verseker dat die winste van aandelehandelaars (wat aandele verkoop op inkomsterekening) korrek belas word, met spesifieke verwysing na die interaksie tussen die voorgenoemde bepalings. Dit is bereik deur die oorweging van hofsake, uitlegnotas van die Suid-Afrikaanse Inkomstediens en kommentaar deur belastingskrywers. Voorbeelde van aandeleverkope is gebruik om te illustreer dat konsekwentheid tussen die berekening van winste vir inkomstebelasting en KWB-doeleindes ‘n vereiste is. Die riglyne wat deur regspraak daargestel is om die inkomste-aard van aandeleverkope vas te stel, is ondersoek. Daar is bevind dat aandelewinste wat opsetlik nagejaag word en voor gewerk word, ongeag of dit deel van die bedryf van 'n besigheid is al dan nie, van ‘n inkomste-aard is en aldus belasbaar is. Die metode van identifikasie van aandele wat as handelsvoorraad verkoop word is belangrik by die berekening die inkomstebelastingwins aangesien dit gebruik word om vas te stel watter aandele verkoop is en wat die koste van die verkoopte aandele is. Daar is bevind dat die metode wat ingevolge algemeen aanvaarde rekeningkundige praktyk (AARP) toegepas is, gewoonlik ook vir inkomstebelastingdoeleindes toelaatbaar is. Artikel 9C van die Wet verskaf aan ‘n aandelehandelaar inkomstebelastingverligting met die verkoop van 'n 'kwalifiserende aandeel' deurdat die bedrag ontvang of toegeval geag word van 'n kapitale aard te wees, ongeag die inkomstebedoeling van die aandelehandelaar. Voor 1 Oktober 2007 het artikel 9B van die Wet soortgelyke verligting verskaf met die verkoop van n 'geaffekteerde aandeel’. Daar is vasgestel dat artikel 9C van die Wet 'n wyer toepassing het in vergelyking met artikel 9B van die Wet. Omrede die opbrengs ontvang met die verkoop van geaffekteerde of kwalifiserende aandele uitgesluit word van bruto inkomste, moet die vorige aankoopskostes wat voorheen ten opsigte van die aandele aangegaan en afgetrek is, by belasbare inkomste ingesluit word. Daar is bepaal dat die bedrag wat by belasbare inkomste ingesluit word, die werklike koste van die aandele is en nie die AARP openingswaarde van handelsvoorraad wat ingevolge artikel 22(2) van die Wet geëis nie. Daar is bevind dat die eerste-in-eerste-uit (EIEU) metode van identifikasie gebruik moet word om te bepaal watter geaffekteerde of kwalifiserende aandele verkoop is. Vir KWB doeleindes verloor 'n aandelehandelaar ook die geleentheid om te kan kies watter identifikasiemetode toegepas moet word. Hy of sy is verplig om die EIEU metode toe te pas in die berekening van die KWB basiskoste van die aandele. Daar word tot die gevolgtrekking gekom dat die Agtste Bylae van die Wet gewysig moet word om te bevestig dat die EIEU metode toegepas moet word vir KWB doeleindes waar artikels 9B of 9C van die Wet van toepassing is. Slegs dan is die belasbare wins van 'n aandelehandelaar in lyn is met sy of haar kontantvoordeel.
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Lin, Sandy. "The effect of the capital gains tax on donations of cash and appreciated assets." CONNECT TO ELECTRONIC THESIS, 2006. http://hdl.handle.net/1961/3606.
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Brooks, Miki. "The long arm provisions of capital gain tax: An analysis of the capital gains tax consequences on the indirect disposal of immovable property by non-residents in selected African Countries." Master's thesis, University of Cape Town, 2016. http://hdl.handle.net/11427/22990.
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A non-resident who disposes of a direct interest in immovable property or an indirect interest in immovable property through the disposal of shares may be subject to capital gains tax in the country in which the immovable property is situated. Certain African countries were selected and the capital gains tax consequences on disposal of such property were determined by analysing the domestic tax legislation of the country in which the property is situated. In addition, the effect of any applicable double tax agreement ('DTA') to such disposals was considered. In certain countries - such as Angola and Nigeria - in terms of their domestic tax legislation, a non-resident will not be subject to capital gains tax in the respective country where the property is situated regardless of the value of the shares that is attributable to immovable property. In certain countries - such as Mozambique, Namibia, Tanzania and Zimbabwe - in terms of their domestic tax legislation, a non-resident may be subject to capital gains tax upon the disposal of an interest in immovable property in the respective country in which the immovable property is held regardless of the value of the shares that is attributable to immovable property, unless a DTA provides otherwise. In certain other countries - such as Botswana, Ghana, Lesotho and South Africa - in terms of their domestic tax legislation, a non-resident may be subject to capital gains tax upon the disposal of an interest in immovable property in the respective country in which the immovable property is held, however this will depend in general on the percentage of the value of shares that is attributable to immovable property, unless a DTA provides otherwise. Certain countries domestic tax legislation have specific provisions regulating how this percentage is determined. A DTA may provide relief to taxpayers who are subject to capital gains tax in both their resident country and the source country, on the disposal of an interest in immovable property held in the source country. In terms of domestic tax legislation, where the non-resident is liable to pay capital gains tax in the source country, the non-resident will in general have to comply with the withholding tax and filing obligations of that country where applicable.
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LEGGETT, DAVID NEAL. "INCOME TAXES AND CAPITAL ASSET PRICING THEORY: SOME EMPIRICAL EVIDENCE." Diss., The University of Arizona, 1985. http://hdl.handle.net/10150/187910.
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Capital asset pricing theory assumes a no-tax, after-tax efficiency equivalence; ie., that the efficient information produced in a no-tax analysis is equivalent to that which is produced in an after-tax analysis. However, if the effect of income taxes is not systematic throughout the market, the useful application of the theory may be impaired by this assumption. This research seeks to determine the effect of income tax imposition on the risk-return expectations or individual investors. If the effect of income tax imposition is to produce non-homogeneous after-tax investor risk-return expectations, then the efficiency equivalence hypothesis must be rejected. This efficiency equivalency hypothesis is evaluated by testing two alternative hypotheses, (1) the systematic riskiness of any individual security, both with and without adjustment for the imposition of income tax, is equivalent, and (2) the no-tax and after-tax expected risk-return rank order of each individual security is the same. An after-tax capital asset pricing model is derived. This model is based upon the premise that the current income tax laws, which require investors to share with the taxing government the uncertain returns from risky assets, allow investors to reduce the riskiness of those returns. The returns on investment assets are derived from both capital gains and from ordinary income distributions. However, the tax treatment of capital gains (losses) and ordinary income (dividends/interest) is not the same. This results in an unsystematic effect on the risks and returns of investments, thus, the income tax effect is not likely to be homogeneous as an efficiency equivalence hypothesis would imply. The analysis focuses on the expected risk-return equivalencies for 465 firms, using ex-post data over a 10 year period. The findings of this study imply that income tax effects on the market are not homogeneous. Income tax differentials are apparent in both the observed beta terms and the risk-return rank-ordering of the securities.
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Johnson, Niel. "An analysis of the proposed annual mark-to-market taxation of the capital gains of long-term insurance policyholders." Thesis, University of Cape Town, 2013. http://hdl.handle.net/11427/4640.
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Includes bibliographical references.This dissertation explores National Treasury's mark-to-market proposal which aims to tax the unrealised capital gains of long-term insurance policyholders on an annual basis. Although the proposal was ultimately rejected it remains under consideration. The mark-to-market proposal is evaluated against its intended purpose. The intended purpose is understood to be the collection by the South African Revenue Service (SARS) of capital gains tax (CGT) which has been 'effectively withheld' from policyholders by the insurer. Having gained an understanding of the mark-to-market proposal and its intended purpose, the proposal will be measured against the following criteria: Does it succeed in recovering capital gains taxes which have been 'effectively withheld' from policyholders? What are the side-effects of the proposal, if any?
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Bornman, Christine. "Estate planning : the impact of estate duty and capital gains tax on offshore assets / C. Bornman." Thesis, North-West University, 2010. http://hdl.handle.net/10394/4569.
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Death and taxes are unavoidable. In terms of the current legislation both estate duty
and capital gains tax (hereinafter referred to as 'CGT') are levied upon death. The
South African National Treasury is reconsidering taxes on death as estate duty
contributes minuscule revenue, and its administration is cumbersome. Worldwide
taxation is based on either source or residence. Because of the R3 500 000 exemption
from estate duty, only wealthy individuals are generally subject to estate duty. Wealthy
individuals make use of the annual R4 000 000 foreign investment capital allowance
by owning offshore property.
The aim of this study is to document how death taxes are currently levied on an estate
which holds offshore property, given the perception that foreign property is exempt
from death duties, and also to consider the impact on taxes payable on offshore
property at death if estate duty were to be abolished. These objectives cannot be
achieved without a thorough understanding of the development and future of estate
duty, the impact of CGT on death, how selected foreign countries levy taxes upon
death, and how residents of South Africa are taxed on property situated within foreign
countries. When CGT was introduced in 2001 the estate duty rate was reduced and it
is likely that, if estate duty is repealed, the rate of CGT will be increased.
In South Africa, residents are taxed on worldwide income and capital gains. The
international perspective is that the foreign country has the sovereignty to levy taxes
on a person who owns property situated within its boundaries. An estate which holds
offshore property may also be subject to estate duty in terms of the tax law of that
country which results in double taxation in the hands of the deceased estate. South
Africa has concluded international agreements with a number of foreign countries
through double tax agreements and estate tax treaties to prevent double taxation.
In terms of the Estate Duty Act, and in some of the treaties, a rebate is allowed in
respect of foreign estate taxes paid. However, if estate duty is abolished, the
deceased estate may be liable for estate tax in the foreign country where the assets
are situated and the deceased estate may not qualify for any rebate in South Africa in
respect of foreign taxes paid. Hence, the abolition may have detrimental consequences on the liquidity requirements, and on the heirs, in cases where offshore
property is involved. It is vital that proper estate and tax planning advice is given
before a resident acquires offshore property as the tax implications may be enormous.
The current impact of estate duty and CGT on a resident who owns offshore assets is
that the said taxes will be levied either here in South Africa or in the foreign country.
The effect of capital transfer tax on a resident with an offshore asset can never be
underestimated.Thesis (M.Com. (Tax))--North-West University, Potchefstroom Campus, 2011.
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Fourie, Santie. "A critical analysis of inflation adjustment in the calculation of capital gains tax in South Africa." Diss., University of Pretoria, 2008. http://hdl.handle.net/2263/30649.
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Inflation is a widespread occurrence in the modern world. Even in very stable economies inflation has increased rapidly over the past 20 years. In South Africa rising food, fuel and power costs will ensure that inflation remains high for some time to come. The income tax system cannot afford to ignore the importance of inflation. Capital gains on assets accumulate over the period the asset was held. The inflationary component included in the capital gain will be bigger the longer the asset is held. Capital gains are taxed only when an asset is sold, thus on a realization and not on an accrual basis. Capital gains are taxed as part of normal income in South Africa. If the annual capital gains are allowed to accumulate over years it might push the taxpayer into a higher marginal tax rate because of the use of a progressive income-tax system. A number of countries used indexation to adjust capital gains for inflation. In some countries indexation has been frozen or abolished and in others it is still used extensively today. Before a system of indexation can be introduced in the taxing of capital gains, a number of key factors should be considered. The benefits derived from inflation adjustment should not be out-weighed by the administrative and compliance cost. In the research it is concluded that South African taxpayers enjoy some limited indirect inflation adjustment. If attention is just focused on the asset side, indexation will create a tax benefit for some taxpayers who will finance the purchase of assets with borrowed funds. The liability side cannot be ignored and therefore further research will be needed to determine if the inflationary interest component should also be disallowed as a deduction for taxpayers. CopyrightDissertation (MCom)--University of Pretoria, 2008.
Taxation
MCom
Unrestricted
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Weyers, Margaretha Magdalena. "The implication of capital gains tax on different business entities in South Africa / Margaretha Magdalena Weyers." Thesis, North-West University, 2004. http://hdl.handle.net/10394/507.
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Marcus, Matthew. "A critical assessment of the capital gains tax as a fiscal policy tool for South Africa." Master's thesis, University of Cape Town, 2006. http://hdl.handle.net/11427/19812.
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Includes bibliographical references.This dissertation attempts to critically analyse the tax on capital gains as an addition to South Africa's fiscal framework. The method of the analysis involves the collation of international research on the effects of capital gains tax on the economies, financial markets, labour markets and revenue authorities of various countries. The focus is on the economic and fiscal areas directly relating to the long-term economic and fiscal policy goals of the South African government. These goals, as well as the justification given by the South African Department of Finance and the South African Revenue Service for the introduction of the capital gains tax are presented in the literature review section of this study. Research of international tax practices indicates that the taxing of capital gains has a depressive effect on capital formation, labour productivity, foreign and domestic direct investment, business creation, entrepreneurship and taxpayer equity. In addition, the introduction of such a tax has no proven growth effects on governmental revenue, and does not significantly dissuade tax avoidance schemes using arbitrage measures. By applying the globally observed effects of the capital gains tax to the long-term policy goals mentioned above, I conclude that the capital gains tax does not assist in the achievement of the economic and fiscal policy goals of the South African government, neither in the short- nor the long-term. Conversely, the capital gains tax acts as a countermeasure to the achievement of the said goals.
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Grundmark, Sofia. "The current tax system on the Swedish residential market – problems and possible solutions." Thesis, KTH, Fastigheter och byggande, 2014. http://urn.kb.se/resolve?urn=urn:nbn:se:kth:diva-150794.
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Idag präglas den svenska bostadsmarknaden av en trögrörlighet som bland annat beror på höga flyttrelaterade skatter. Dessa flyttrelaterade skatter består av reavinstskatt, stämpelskatter, expeditionsavgifter och uppskovsränta. Många hushåll anser det idag vara för dyrt att flytta och avstår därför. Detta leder till att flyttkedjor stannar upp och arbetsmarknaden påverkas negativt eftersom många hushåll drar sig för att flytta och många tackar därför nej till arbeten som kräver en flytt. Detta beteende leder till att den individuella välfärden och hela Sveriges ekonomiska välfärd drabbas negativt. Detta är ett aktuellt och omtalat ämne och många rapporter har skrivits och det finns många förslag på förbättringar till dagens system. Många har som syfte att ge förslag på olika åtgärder som skulle leda till ett bättre system på bostadsmarknaden och många har gjort beräkningar på hur resultat av bland annat en minskning av reavinstskatten skulle se ut. Det är dock i detta examensarbete första gången som en siffra över hur hög en fastighetsskatt skulle behöva vara för att kunna ersätta dagens alla flyttrelaterade skatter redovisas. Detta arbete har som syfte att se över dagens flyttrelaterade skattesystem och uppmärksamma eventuella problem med dagens situation. En litteraturstudie redovisas för att en bredare inblick ska ges och utifrån litteraturstudien kommer sedan ett antal förslag till förbättringar av dagens flyttrelaterade skattesystem att sammanfattas. Sedan kommer en utredning av hur mycket dagens flyttrelaterade skatter faktiskt genererar i pengar till staten att redovisas och sist kommer beräkningen över hur hög en fastighetsskatt skulle behöva vara för att kunna ersätta dagens flyttrelaterade skatter. Slutsatserna visar på att en del av problemen med dagens flyttrelaterade skattesystem kan lösas med en rad olika åtgärder som flera författare har utrett. Beräkningarna över hur hög en fastighetsavgift skulle behövara vara för att kunna ersätta dagens flyttrelaterade skatter visar på att alla bostadsägare årligen ska betala 5900 kronor eller 0,47 % av sitt taxeringsvärde i skatt, oavsett om man äger ett småhus eller en bostadsrättslägenhet.The Swedish housing market is presently characterized by low mobility. This could partly be a result of the high taxes on moving from one house to another. Not only is there a capital-gains tax on moving, but also a stamp duty, a service charge and an interest charge on postponed capital gains tax. Many households consider the price of moving too high, making them reluctant to move. This will have a negative effect on the labour market due to the fact that people will be less willing to move to places where labour is needed. This type of behaviour will ultimately affect both the wealth of the individual and Sweden’s economy in a negative way. The purpose of this thesis is to examine the current tax-system and emphasize the problems with it. Firstly, a literature study will be presented to give a wide perspective of the subject. This will be the basis for a number of suggestions that will resolve the problem with low mobility on the housing market. After this, an investigation of how much money the taxes on moving actually generate to the government. Lastly, a calculation of how high a real estate tax would have to be in order to replace the taxes on moving. The conclusions of this paper suggest that there are a number of actions that can be taken in order to resolve some of the problems with the tax system on the Swedish housing market. The calculations show that the taxes on moving could be replaced by a real estate tax where the homeowners would pay 5900 SEK or 0,47% of the assess value of the home yearly, instead of paying taxes only when moving.
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Du, Plessis Louis Philippus. "Die skenkingsbelasting- en kapitaalwinsbelastingimplikasies van rentevrye lenings." Thesis, Link to the online version, 2007. http://hdl.handle.net/10019/1010.
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Grebe, Alta-Mari. "The income tax implications resulting from the introduction of section 12N of the Income Tax Act." Thesis, Nelson Mandela Metropolitan University, 2014. http://hdl.handle.net/10948/d1020787.
Full textAbstract:
Section 12N, introduction into the Income Tax Act by way of Taxation Laws Amendment Act and which became effective on 2 November 2010, provides for allowances on the leasehold improvements on government-owned land and land leased from certain tax exempt entities as stipulated in section 10 (1) (cA) and (t). As section 12N deems the lessee to be the owner of the leasehold improvement, the lessee now qualifies for capital allowances which were previously disallowed.
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Papp, L. (Linda). "The feasibility of the introduction of additional wealth taxes in South Africa : an African perspective." Diss., University of Pretoria, 2012. http://hdl.handle.net/2263/41536.
Full textAbstract:
From all over the globe the inequality between the rich and the poor is a topic that is debated politically and socially. Wealth tax is often mentioned as an easy solution to reduce this inequality effectively. Even in South Africa cries for a wealth tax have been heard following Archbishop Emeritus Desmond Tutu’s comments that such a tax can help reduce the effect of past injustices.
The imposition of a wealth tax has various advantages and disadvantages that are strongly debated by the proponents and opponents of the tax. The impact of these advantages and disadvantages has however not been measured and quantified up to date. Although the disadvantages seem to outweigh the advantages, it seems that there is some scope for a wealth tax to be politically motivated.
The dawning of the modern era has however changed the landscape for tax policies. Global mobility has resulted in individuals being able to choose where they work, live and invest. Taxes have been proved to be a factor that influences these decisions of individuals on where to live and invest.
It is therefore becoming increasingly important to have tax policies that are competitive in comparison to peer countries. This study focused on determining how competitive South Africa’s tax policies are, relating to wealthy individuals, compared to the equivalent taxes in other African countries with similar sized economies. The study consists of qualitative, non-empirical research performed in the form of a literature review.
The study’s finding is that South Africa has more types of taxes imposed on wealthy individuals than any other of the sampled countries. In addition, the taxes imposed are more often than not substantially higher than the equivalent charged by its peers. This could have a detrimental effect when investors start to realise that they could optimise the resources available to them by choosing not to work and live in South Africa, but would rather select one of its neighbouring countries. Not only will potential new investors be discouraged from investing, but the question also arises at which point South African residents will start to seek their fortune elsewhere. Based on these findings, it seems that there is no scope for imposing yet another wealth tax in South Africa at present.Dissertation (MCom)--University of Pretoria, 2012.
lmchunu2014
Taxation
unrestricted
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Walpole, Michael Law Faculty of Law UNSW. "Proposals for the reform of the taxation of goodwill in Australia." Awarded by:University of New South Wales. Law, 2006. http://handle.unsw.edu.au/1959.4/24362.
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This thesis analyses the Australian approach to taxation of goodwill and related intangibles. It asks the questions: 'Is the current Australian approach to taxation of goodwill coherent?'; and 'Could a different approach minimise any distortions?' The thesis identifies the increasing importance of goodwill and other intangible property in a modern information-based economy. It identifies benchmarks for a 'good' tax system ??? such as efficiency, simplicity, and equity. It emphasises the criteria of simplicity and efficiency but includes other criteria and specifically considers the issue of alignment of accounting and legal concepts. It concludes that the current misalignment makes it difficult for the tax system to deal with goodwill coherently. The thesis criticises the treatment of goodwill under various Australian taxes, including stamp duty; Goods and Services Tax; taxation of capital gains; and income tax. It specifically considers the treatment of intangible sources of goodwill and their relationship with goodwill itself. The discussion of income tax pays particular attention to the role of goodwill and other intangibles in international transfer pricing. The thesis draws conclusions about the treatment of goodwill in Australia and whether the Australian approach meets the benchmarks established at the outset. The thesis demonstrates that the current Australian approach leads, inter alia, to tax avoidance. The current approach also offends a number of other criteria of a 'good' system. The thesis considers the UK tax treatment of intangibles held by resident companies and considers this model for Australia. It also considers the abandoned 'Tax Value Method' previously proposed for Australia. From this and other material, it suggests possible new directions and an alternative approach to taxing goodwill in Australia. These include a consistent and coherent definition of goodwill for tax that is compatible with law and accounting. The thesis also urges the development of a consistent approach to taxing goodwill at both the state and federal levels; and suggests greater reliance on the existence of goodwill as a means to establish jurisdiction to impose tax in international tax situations.
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Rademeyer, Conrad. "The impact of capital gains tax on estate planning : a practical decision making model for investing and estate planning." Thesis, Stellenbosch : Stellenbosch University, 2002. http://hdl.handle.net/10019.1/53122.
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Thesis (MBA)--Stellenbosch University, 2002.ENGLISH ABSTRACT: After many years of speculation about the possible introduction of a capital gains tax in South Africa, the tax is finally with us. Coming on top of the move to a residence basis of taxation, the introduction of the capital gains tax will impose a massive burden on the limited, skilled administrative recourses available to taxpayers and the SARS alike. Amongst investors and even some professional financial advisors such as auditors and attorneys there still is confusion and not a lack of knowledge on CGT. Appropriate planning and structuring is seldom performed. The potential CGT liability escalates every year depending on the growth rate of the particular asset. CGT will therefor be an unavoidable and growing problem for investors. Planning for the CGT goes hand in hand with estate planning and requires decisions to be taken now. The purpose is to position and structure your portfolio to avoid or reduce future tax liability (CGT and estate duty). In this study an Excel program was developed in order to calculate CGT. The model (Estate Advisor) also has a decision function and can calculate and predict future CGT liability. The purpose of the model is to test the result of a range of decisions and assumptions quickly and accurately. This enables the investor to decide on entities and structures that would best suit his situation given the assets under his control. The Estate Advisor is a tool for producing different scenarios of future situations regarding CGT and estate duty. It helps the investor to investigate and consider different options regarding his investments with regard to CGT.
AFRIKAANSE OPSOMMING: Na baie jare van onsekerheid en gissings omtrent die moontlike implementering van Kapitaalwinsbelasting in Suid-Afrika, is hierdie belasting finaal geïmplementeer deur die SAID. Die implementering van KWB val saam met die verskuiwing na "verblyf' as "bron" van inkomstebelasting. Tesame sal dit groot druk uitoefen op die beperkte administratiewe bronne wat aan die belasingbetaler en die SAID beskikbaar is. Tussen gewone beleggers en selfs ook tussen sommige professionele finansiële adviseurs (ouditeure en prokureurs) heers daar in 'n groot mate onsekerheid en onkundigheid met betrekking tot KWB. Die probleem is dat 'n ferm basis van kennis van KWB benodig word om in staat te wees om die berekeninge te doen. 'n Gevolg van hierdie situasie is dat dringend benodigde aandag nie altyd aan beleggers geskenk word nie. Die potensiële KWB aanspreeklikheid eskaleer elke jaar met die betrokke groeikoers van die onderliggende bate. KWB is dus 'n onafwendbare en groeiende realiteit vir beleggers. Die beplanning vir toekomstige KWB gaan hand aan hand met beplanning vir boedelbelasting doeleindes. Die doel is om die belegger se portefeulje te posisioneer en struktureer sodat toekomstige belastingaanspreeklikheid (KWB en boedelbelasting) beperk kan word. In hierdie tesis is 'n eenvoudige Excel model ontwerp om KWB en boedelbelasting te bereken. Die model doen al die berekeninge en haal dus die las van die belegger af om oor detail kennis van KWB te beskik. Die model (Estate Advisor) het ook 'n besluitnemingsfunksie waar die belegger verskillende opsies kan oorweeg en toets. Die model word gebruik om toekomstige KWB te voorspel en bereken. Dit stel die belegger in staat om besluite te maak omtrent entiteite en strukture wat in sy situasie die gepaste antwoord sal wees. Die model moet nie gesien word as 'n instrument om beleggingsbesluite te neem nie en dit kan nie keuses uitoefen tussen verskillende beleggingsbates nie. Die doel van die model is uitsluitlik om die effek van verskillende besluite en aannames te vinnig en akkuraat te bereken. Dit dien as hulpmiddel vir die beplan van KWB en boedelbelasting wat in die toekoms betaal moet word. Die Estate Advisor is 'n instrument vir die produsering van verskillende scenarios van toekomstige situasies met betrekking tot KWB en boedelbelasting. Dit help die belegger om verskillende opsies te oorweeg en die beste beleggingsbesluit te maak.
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Silvester, James L. "A longitudinal analysis critiquing the effect of capital gains tax policy on the investment preferences of venture capital companies in the United States of America." Thesis, Anglia Ruskin University, 2015. http://arro.anglia.ac.uk/701473/.
Full textAbstract:
Long term changes in capital gains tax affect the investment preferences of venture capital companies over time. This is an acceptance of the working hypothesis and answers the basic research question, which is: Do Longitudinal Changes In The Capital Gains Tax Effect The Investment Preferences Of Venture Capital Companies? The literature review was delimited by time and terminology, and orbited about the theoretical foundation of the thesis. The secondary data displayed unusual depth and richness yet was subject to rapid obsolescence and political polarization due to the topical and controversial nature of capital gains tax. The methodological inquiry protocol was positivist and deductive in practice, using vetted and static survey instruments with which strict ethical standards were maintained. Nonparametric tools were employed given the quantitative and categorical nature of the data, and the null hypothesis was rejected. Findings were triangulated via the primary and secondary data. The secondary data proved helpful but inconclusive, as did the minor phenomenology inputs. Reliance on primary data was key to the outcome. This thesis concludes that statistical significance exists between capital gains tax and the investment preferences of venture capital companies over time in the United States. This does not mean there is an association in the form of a correlation or a causal relationship. The work contributes to scholarly endeavour and to date is unique in its longitudinal posture. Future research should build upon the thesis findings to update and refine the longitudinal interaction between the variables in question.
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Silvester, James L. "A longitudinal analysis critiquing the effect of capital gains tax policy on the investment preferences of venture capital companies in the United States of America." Thesis, Anglia Ruskin University, 2015. https://arro.anglia.ac.uk/id/eprint/701473/1/Silvester_2015.pdf.
Full textAbstract:
Long term changes in capital gains tax affect the investment preferences of venture capital companies over time. This is an acceptance of the working hypothesis and answers the basic research question, which is: Do Longitudinal Changes In The Capital Gains Tax Effect The Investment Preferences Of Venture Capital Companies?
The literature review was delimited by time and terminology, and orbited about the theoretical foundation of the thesis. The secondary data displayed unusual depth and richness yet was subject to rapid obsolescence and political polarization due to the topical and controversial nature of capital gains tax.
The methodological inquiry protocol was positivist and deductive in practice, using vetted and static survey instruments with which strict ethical standards were maintained. Nonparametric tools were employed given the quantitative and categorical nature of the data, and the null hypothesis was rejected.
Findings were triangulated via the primary and secondary data. The secondary data proved helpful but inconclusive, as did the minor phenomenology inputs. Reliance on primary data was key to the outcome.
This thesis concludes that statistical significance exists between capital gains tax and the investment preferences of venture capital companies over time in the United States. This does not mean there is an association in the form of a correlation or a causal relationship.
The work contributes to scholarly endeavour and to date is unique in its longitudinal posture. Future research should build upon the thesis findings to update and refine the longitudinal interaction between the variables in question.
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Björkholm, Johan, Mattias Dahlberg, and Viktor Johansson. "Inlåsningseffekten : Skattens effekt på svenskars fondsparande." Thesis, Linnéuniversitetet, Institutionen för ekonomistyrning och logistik (ELO), 2014. http://urn.kb.se/resolve?urn=urn:nbn:se:lnu:diva-35396.
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Bakgrund: I Sverige har 76 % av befolkningen innehav i fonder och den totala fondförmögenheten uppgår till 1 925 miljarder. Kapitalvinstskatten ligger på 30 % och utlöses endast vid en realisation av vinsten. Många svenskar undviker gärna att aktivera denna skatteeffekt och blir därmed inlåsta i sina fonder. Syfte: Syftet med denna uppsats är att utifrån intervjuer med privata fondsparare och aktörer inom branschen förklara hur kapitalvinstskatten påverkar privatpersoners resonerande och agerande. Detta beteende kommer sedan att analyseras utifrån befintliga teorier inom beteendeekonomi. Metod: För att nå studiens syfte har vi använt oss av en abduktiv metod. Det empiriska materialet har samlats in med hjälp av semistrukturerade intervjuer. Totalt har vi intervjuat 10 fondsparare och 6 personer inom branschen. Materialet från intervjuerna har sedan förklarats med hjälp av de teorier vi valt ut. Slutsats: I vår studie har vi kommit fram till att inlåsningseffekten varierar beroende på fondspararens ålder. Den yngre gruppen ställde sig mer likgiltig inför kapitalvinstskatten, med anledning av en kort placeringshorisont. Den äldre gruppen hade en mer ospecificerad placeringshorisont och baserade sina investeringsbeslut utefter skattekonsekvensen. Kapitalvinstskatten hade då en bromsande effekt, eftersom det skulle minska den totala förmögenheten.Background: In Sweden 76 % of the population has savings in mutual funds, with a combined wealth of 1 925 billion SEK. The tax on capital gains is 30 % and is activated when the profit is realized. Many Swedes avoid triggering this tax effect and is therefore locked-in in their mutual funds. Purpose The purpose of this study is, from interviews with private fund investors and industry players, to explain how the capital gains tax affects individuals’ reasoning and actions. This behavior will then be analyzed in terms of existing theories in the field. Method: We have used an abductive method to achieve the purpose of this study. The empirical material has been collected through semi-structured interviews. We have conducted 10 interviews with private fund investors and 6 people in the fund industry. The material from the interviews was then explained by means of the theories we have selected. Conclusion: In our study we came to the conclusion that the lock-in effect varies depending on the fund savers age. The younger group was more indifferent to the capital gains tax, due to a shorter investment horizon. The older group had a more unspecified investment horizon and based their investment decisions along the tax consequence. Capital gains tax then had a braking effect, as it would reduce the total wealth.
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Evans, Christopher Charles Law Faculty of Law UNSW. "The operating costs of taxing the capital gains of individuals : a comparative study of Australia and the UK, with particular reference to the compliance costs of certain tax design features." Awarded by:University of New South Wales. Law, 2003. http://handle.unsw.edu.au/1959.4/20738.
Full textAbstract:
This study investigates the impact of aspects of tax design on the operating costs of the tax system. The thesis focuses on the Australian and UK regimes for taxing the capital gains of individuals. It contends that the compliance burden faced by personal taxpayers and the administrative costs incurred by revenue authorities are directly influenced by the design of the capital gains tax ('CGT') regimes in each country. The study bridges the divide between theoretical analysis of CGT and empirical studies on tax operating costs. It uses a hybrid research design to test a series of hypotheses that emerge from a review of the literature and the experience of the researcher. It combines a technical analysis of the relevant Australian and UK legislative provisions (including an analysis of the policy and other background data that underpins those provisions) with empirical research on the views and experience of practitioners who are responsible for the operation of the legislation in the two countries. The results obtained from this combined methodology indicate that the operating costs of taxing capital gains in Australia and the UK are directly affected by the design of the legislative provisions. Moreover, the study outcomes indicate that operating costs in both countries are high (on a number of comparative measures), have not reduced over time, and are both horizontally and vertically inequitable. The research indicates that the primary factors that cause the high operating costs include the complexity of the legislation and the frequency of legislative change, together with record-keeping and valuation requirements. The thesis identifies specific legislative changes that would address operational cost concerns. These include the phasing out of the 'grandfathering' exemption together with the introduction of an annual exempt amount, and the rationalisation of business concessions in Australia; and the abolition of taper relief and its possible replacement with a 50% exclusion in the UK. More importantly, it seeks a more principled approach to the taxation of capital gains in both countries, and emphasises that legislative change can and should only be enacted with a full and clear understanding of the operating cost implications of that change.
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De, Villiers Dawid Frederik. "'n Ondersoek na die afskaffing van boedelbelasting / D.F. de Villiers." Thesis, North-West University, 2011. http://hdl.handle.net/10394/7422.
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Estate duty in South Africa is levied in terms of the Estate Duty Act since 1955. Estate duty is currently calculated at a flat rate of 20% on the amount of which the net worth of an estate exceeds a primary rebate of R3,5 million.
Statistics show that only a small percentage of estates in South Africa is taxable. Furthermore, many estate owners – particularly those whose estates are liable for estate duty – have the financial means to afford estate planning services to reduce estate duty. This reality has the effect that estate duty is paid by a very insignificant number of estates.
Similar to estate duty, capital gains tax has the tax incentive of constituting vertical equity – creating the outcome that taxpayers with greater capability to pay taxes should be taxed more severely. Capital gains tax is also a tax payable (among other instances) at the death of an estate owner. This gives rise to double taxation.
Further matters that need to be considered are constitutional justification of estate duty and the question whether the categories of current taxable estates correlate with the taxable estates envisaged by the legislator in 1955.
In amending fiscal policy, it is useful to consider international trends. In countries such as Australia, New Zealand and Canada estate duty has been abolished. This phenomenon demonstrates that estate duty is not an essential element of a tax system.
The aim of this study is to investigate the contribution of the abolishment of estate duty to South African tax law.Thesis (LL.M.)--North-West University, Potchefstroom Campus, 2011.
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Xu, Zhaojin. "Selling Winners, Holding Losers: Effect on Mutual Fund Performance and Flows." Diss., Virginia Tech, 2007. http://hdl.handle.net/10919/27878.
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In this dissertation, we examine whether the disposition effect, the tendency to sell winners and hold losers, exists among U.S. equity mutual funds and how the disposition effect influences fund performance and particularly flows. We find that a significant fraction (32%) of all funds exhibit some degree of disposition behavior. These funds underperform funds that are not disposition prone by 4-6% per year.
Moreover, we find that the disposition effect has a significant impact on future fund flows. Without controlling for performance, disposition-prone funds experience 2-3% less flows each quarter than other funds. The difference in flows is probably due to poor performance of such funds. However, even after controlling for performance and other factors that potentially influence flows, funds with a high disposition effect experience 0.7-2% less flows than funds without such behavior.
Past research has found that funds with low tax overhang garner larger inflows. Though disposition-prone funds are likely to have a lower tax overhang because they sell their winners quickly, we find that fund flows to disposition-prone funds are smaller than flows to non-disposition oriented funds after controlling for tax overhang. These results suggest that performance and tax efficiency as well as tax overhang are all important to mutual fund investors.Ph. D.
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Turvey, Phillip. "The impact of taxes on optimal portfolio choice : an Australian study." Thesis, Queensland University of Technology, 2011. https://eprints.qut.edu.au/46825/1/Phillip_Turvey_Thesis.pdf.
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Taxes are an important component of investing that is commonly overlooked in both the literature and in practice. For example, many understand that taxes will reduce an investment’s return, but less understood is the risk-sharing nature of taxes that also reduces the investment’s risk. This thesis examines how taxes affect the optimal asset allocation and asset location decision in an Australian environment. It advances the model of Horan & Al Zaman (2008), improving the method by which the present value of tax liabilities are calculated, by using an after-tax risk-free discount rate, and incorporating any new or reduced tax liabilities generated into its expected risk and return estimates. The asset allocation problem is examined for a range of different scenarios using Australian parameters, including different risk aversion levels, personal marginal tax rates, investment horizons, borrowing premiums, high or low inflation environments, and different starting cost bases. The findings support the Horan & Al Zaman (2008) conclusion that equities should be held in the taxable account. In fact, these findings are strengthened with most of the efficient frontier maximising equity holdings in the taxable account instead of only half. Furthermore, these findings transfer to the Australian case, where it is found that taxed Australian investors should always invest into equities first through the taxable account before investing in super. However, untaxed Australian investors should invest their equity first through superannuation. With borrowings allowed in the taxable account (no borrowing premium), Australian taxed investors should hold 100% of the superannuation account in the risk-free asset, while undertaking leverage in the taxable account to achieve the desired risk-return. Introducing a borrowing premium decreases the likelihood of holding 100% of super in the risk-free asset for taxable investors. The findings also suggest that the higher the marginal tax rate, the higher the borrowing premium in order to overcome this effect. Finally, as the investor’s marginal tax rate increases, the overall allocation to equities should increase due to the increased risk and return sharing caused by taxation, and in order to achieve the same risk/return level as the lower taxation level, the investor must take on more equity exposure. The investment horizon has a minimal impact on the optimal allocation decision in the absence of factors such as mean reversion and human capital.
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Stemmet, Vicki. "Multiple taxes levied on deceased estates:A comparison of the determination of the value and the taxation of limited interests for estate duty,capital gains tax and value-added tax." Master's thesis, University of Cape Town, 2018. http://hdl.handle.net/11427/29277.
Full textAbstract:
South Africa has one of the highest wealth inequality rates in the world, and there is a dire need for practical methods of redistribution of wealth in South Africa (SA). For this reason, the need for wealth tax in SA is undeniable however the multiple taxes imposed on deceased estates have generated discussions, with many being of the opinion that the taxes imposed on deceased estates are excessive. The main objective of this research is to discuss the multiple taxes levied on certain limited interests in property on death. The imposition of estate duty (ED), capital gains tax (CGT) and value-added tax (VAT) on usufructuary and fiduciary interests in deceased estates were examined. The valuation methods and taxation of these limited interests for the aforementioned taxes were compared to determine if they are stream-lined and if any relief is provided between taxes. It was found that valuation methods and taxation methods are not stream-lined and it appears that no interplay exists between taxes. The substantial differences in valuation and taxation methods between taxes results in the same asset being taxed at different values for each tax. This places a heavy administrative burden on the executors of deceased estates and goes against the characteristics of an efficient tax system which should be fair, simple and easy to administer. Due to the complexities involved in the different tax computations of these rights, it was not possible to provide a conclusive answer regarding whether or not taxes imposed on deceased estates are fair or excessive. In conclusion, however, recommendations have been made to align deductions and valuation methods across taxes in order to bring about transparency which would enable the determination of whether or not the tax burden is excessive and identification of any weaknesses in the tax systems. The alignment could ultimately result in a more efficient tax system, and could address and resolve the concerns regarding the levying of multiple taxes on the same asset in deceased estates.
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Beck, Tracy Geraldine. "A critical analysis of the definition of gross income." Thesis, Nelson Mandela Metropolitan University, 2008. http://hdl.handle.net/10948/805.
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Income tax is levied upon a taxpayer’s taxable income. Various steps are taken in order to arrive at the taxpayer’s taxable income. The starting point when calculating taxable income is determining the taxpayer’s ‘gross income’. ‘Gross income’ is defined in terms of section 1 of the Act. Various terms within the gross income definition are not clearly defined, except in the case of a ‘resident’. Even in the case of the definition of a ‘resident’, the aspect of ‘ordinarily resident’ is not defined and nor is the ‘place of effective management’. The following components fall within the definition of ‘gross income’: • The total amount in cash or otherwise; • received by or accrued to, or in favour of, a person; • from anywhere, in the case of a person who is a resident; • from a South African source (or deemed source), in the case of a non-resident; • other than receipts or accruals of a capital nature. The ‘total amount’ in ‘cash or otherwise’ is the first step when determining the taxable income of a taxpayer for a particular year of assessment. Gross income only arises if an amount is received or has accrued; this amount need not be in the form of money but must have a money value. The next component, ‘received by or accrued to’, is related to time and implies that a taxpayer should include amounts that have been ‘received by’, as well as amounts that have ‘accrued to’ him during the year of assessment. ‘Resident’ and ‘non-resident’ unlike the other components, are defined in terms of section 1 of the Income Tax Act. There are two rules used to determine whether natural persons are residents, these are: • To determine whether natural persons are ‘ordinarily resident’; or • where the natural person is not an ‘ordinarily resident’, the ‘physical presence test’ will be applied. ‘Source’ means origin and not place; it is therefore the ‘originating cause of the receipt of the money’. There is no single definition for the word ‘source’ as circumstances may differ in various cases. The facts of each case must be analysed in order to determine the actual source of income for that particular case. The last component of the definition of ‘gross income’ is the exclusion of ‘receipts and accruals of a capital nature’. The Act does not define the meaning of ‘capital nature’ but does indicate that receipts or accruals of a capital nature are, with certain exceptions, not included in ‘gross income’. Receipts or accruals that are not of a capital nature is known as ‘revenue’ and subjected to tax. This study is primarily aimed at an examination of court cases related to the various components falling within the definition of ‘gross income’.
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Strydom, Marlize. "Die gevolge van kapitaalwinsbelasting by die vermindering of aflossing van 'n skuld / deur M. Strydom." Thesis, North-West University, 2005. http://hdl.handle.net/10394/908.
Full textAbstract:
The decision of an estate owner to employ a trust as an estate planning
instrument normally involves the disposal of all or part of his growth assets to
the trust. This is done to ensure that the value of such growth assets is
pegged down in his personal estate, whilst any growth in the assets occurs in
the trust. The objective is to minimise any estate duty that will be payable
after his death. The transfer of such assets and the concomitant negotiation
of the settlement of the purchase price are normally agreed to occur on loan
account which will be repayable on demand.
Subsequent to the disposal of the assets, it is a well established estate
planning technique for the estate owner to reduce the loan account by
annually waiving R30 000 of such loan in favour of the trust. This results in
reducing the debit loan (asset) in the hands of the estate owner and thereby
also improving his position from an estate duty point of view. The liability
(credit loan) of the trust is thereby annually reduced. Because an individual
can donate R30 000 annually free of donations tax, no additional donations
tax liability will be incurred when applying this technique.
Most estate owners that have applied the abovementioned technique, include
in their will a provision whereby they bequeath any outstanding loan from the
trust at the date of the testator's death, to the trust as a legatee.
On 1 October 2001 South Africa entered into a new tax dispensation with the
introduction of capital gains tax (CGT). Comprehensive legislation was
included in the Income Tax Act (8th schedule) to regulate this new form of
taxation. Paragraph 12(5) of the 8th schedule specifically stipulates that a
reduction or waiver of a loan/debt will attract CGT.
Therefore the above mentioned techniques of donating a portion, and
subsequently bequeathing the outstanding loan amount to a trust suddenly
became the target of SARS' close scrutiny from a CGT perspective. Hence, it
was no surprise that the first High Court decision on CGT had recently been
delivered in this regard.
The purpose of this dissertation is to investigate and scrutinise, not only the
decision in the abovementioned court case, but also the various opinions and
arguments raised on this topic. The submission is that the findings and
conclusions of such an investigation should enable those involved in estate
planning and the preparation of wills to be wary of the CGT risks attached to
the abovementioned techniques and to avoid the pitfalls. Certain
recommendations and conclusions to achieve the same estate planning
result, are proposed in this dissertation. Certain suggestions were also made
with regards to the wording of provisions to be included in a will in order to
bequeath a loan or debt to a trust without the risk of attracting unforeseen
CGT.Thesis (LL.M. (Estate Law))--North-West University, Potchefstroom Campus, 2006.
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Louw, Andries Adriaan. "Kapitaalwinsbelastinggevolge by die vermindering of aflossing van skuld." Thesis, Stellenbosch : Stellenbosch University, 2004. http://hdl.handle.net/10019.1/19900.
Full textAbstract:
AFRIKAANSE OPSOMMING: In die praktyk is daar talle situasies waar 'n krediteur wetend of onwetend 'n verwante
of nie-verwante debiteur se skuld verminder of aflos. Voor die instelling van
kapitaalwinsbelasting het daar reeds talle nadelige inkomstebelastinggevolge bestaan
wat uit sodanige vermindering of aflossing kan voortspruit. Die instelling van
kapitaalwinsbelasting en meer spesifiek paragraaf 12(5) van die Agtste Bylae tot die
Inkomstebelastingwet Nr 58 van 1962, het tot gevolg dat die vermindering of
aflossing van skuld ook nadelige kapitaalwinsbelastinggevolge tot gevolg kan he.
Die studie sal kortliks na die moontlike inkomstebelastinggevolge van die
vermindering of aflossing van skuld verwys aangesien hierdie gevolge in sekere
omstandighede die kapitaalwinsbelastinggevolge kan be'invloed. Die
inkomstebelastinggevolge wat bespreek sal word is die vermindering van 'n persoon
se vasgestelde verlies as gevolg van 'n vergelyk met of konsessie deur skuldeisers,
verhalings wat ontstaan by die veIjaring of afstanddoening van skuld, geagte
dividende onderhewig aan sekondere belasting op maatskappye, skenkings
onderhewig aan skenkingsbelasting en ook byvoordele wat ingesluit word by 'n
werknemer se belasbare inkomste.
Die fokus van die studie verskuifvervolgens na die uitleg van paragraaf 12(5) van die
Agtste Bylae tot die Inkomstebelastingwet. Die uitleg van hierdie paragraaf aan die
hand van die normale reels wat geld by die uitleg van belastingwetgewing in die
algemeen sal daarop wys dat die belangrikste elemente wat moet bestaan alvorens
hierdie bepaling sal geld is dat daar 'n skuld moes bestaan het en dat hierdie skuld
verminder of afgelos moes word.
Die studie ondersoek daama die regswerking van die terme 'verminder' en 'aflos' om
te bepaal watter gebeure daartoe aanleiding gee dat skuld verminder of afgelos word.
Na aanleiding van hierdie gebeure wat tot gevolg kan he dat skuld verminder of
afgelos word, word 'n aantal praktiese gevallestudies bespreek waardeur die
toepasssingsveld van paragraaf 12(5) van die Agtste Bylae tot die
Inkomstebelastingwet gei1lustreer kan word.
Uit die ondersoek word daar tot die gevolgtrekking gekom dat daar 'n groot aantal
situasies bestaan wat moontlik kapitaalwinsbelastinggevolge vir 'n persoon kan inhou
wanneer skuld verminder of afgelos word. Die studie bespreek ook moontlike
voorkomende maatreels wat die trefwydte van hierdie bepaling kan inperk.ENGLISH ABSTRACT: It often occurs in practice that a creditor knowingly or un-knowingly reduces or discharges a debt owed to it by a related or unrelated debtor. Prior to the introduction of capital gains tax there already existed many negative income tax implications from such a reduction or discharge. The introduction of capital gains tax, and more specificly paragraph 12(5) of the Eighth Schedule to the Income Tax Act No 58 of 1962, now extends these negative income tax consequences to also include negative capital gains tax implications. This study will briefly look at the potential income tax implications associated with reduction or discharge of debt as these implications will also impact on the potential capital gains implications. The income tax implications that will be discussed are the reduction of a person's assessed loss as a result of a concession granted by or a compromise made with his creditors, recoupments as a result of the prescription or waiver of a debt, deemed dividends subject to secondary tax on companies, donations subject to donations tax and fringe benefits included in the taxable income of an employee. The focus of the study subsequently moves to the interpretation of paragraph 12(5) of the Eighth Schedule to the Income Tax Act. The most important elements that will arise from this interpretation, based on the normal rules of the interpretation of income tax legislation, are that there must be a debt and that the debt must be reduced or discharged. The study then examines the legal implications of the terms 'reduce' and 'discharge' in order to determine what circumstances can have the effect that a debt has been reduced or discharged. These circumstances are then applied on various examples to illustrate the scope of paragraph 12(5) of the Eighth Schedule to the Income Tax Act. From this examination the conclusion is drawn that there are many circumstances that exists that could lead to capital gains tax implications as a result of the reduction or discharge of a debt. The study also discusses possible preventive measures that could be implemented to prevent the application of paragraph 12(5) of the Eighth Schedule to the Act.
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Tennant, Tracy. "The nature of interest-free loans and the tax implications thereof / T. Tennant." Thesis, North-West University, 2010. http://hdl.handle.net/10394/4439.
Full textAbstract:
The tax world as we knew it was turned upside down on 13 September 2007 when the Supreme
Court of Appeal (“SCA”) announced its decision to deem the right to use an interest-free loan as
an amount that accrued to the taxpayers in the case Commissioner for South African Revenue
Service v Brummeria Renaissance (Pty) Ltd and others 69 SATC 205. The findings of SCA
brought about a “great deal of consternation in the business world” (Loubser, 2007:20).
Due to the controversy as a result of this case, SARS drafted an Interpretation Note that
illustrates the reasoning and tax treatment of an interest-free loan. On 30 June 2010,
Interpretation Note No 58 was finally issued by SARS, providing guidance with regard to “an
amount” that “accrues” to a taxpayer for the purposes of the gross income definition.
This Interpretation Note will have a significant impact on a number of taxpayers. The purpose of
this study is to understand the nature of an interest-free loan and identify its tax implications. The
methodology followed in this study will be that of qualitative research. This will be conducted
through analyzing the nature of a loan, specifically an interest-free loan, the gross income
definition, including the value and timing of such amount, and whether a deduction may be
claimed in respect of an interest-free loan. Notwithstanding the above, the study also includes an
investigation of other taxes inter alia capital gains tax, donations tax, value-added tax, secondary
tax on companies and newly proposed dividends tax.Thesis (M.Com. (Tax))--North-West University, Potchefstroom Campus, 2011.
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Shev, Joanne. "A study of some of the combined tax effects of capital gains tax and estate duty and a comparison with similar legislation in the United States of America and the United Kingdom." Master's thesis, University of Cape Town, 2003. http://hdl.handle.net/11427/6904.
Full textAbstract:
Includes bibliographical references.This paper presents a study of some of the combined effects of capital gains tax and estate duty. In addition, the current estate tax and inheritance tax situations in the United States of America and United Kingdom, respectively, are discussed in this paper for comparative purposes. The tax regimes in the United States of America and the United Kingdom are relevant to this investigation due to their ability to avoid imposing both capital gains tax and estate tax upon the same assets on the death of an individual. The generation-skipping transfer tax in the United States of America and the United Kingdom inheritance tax generation-skipping provisions are also examined as they may assist to close some of the loopholes in the existing South African estate duty legislation. By closing these loopholes, the need to subject the estate assets to both capital gains tax and estate duty on the death of a person may be negated.
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Isaacs, Henry David. "'n Kritiese evaluering van die inkomste- en kapitaalwinsbelastinghantering van kollektiewe beleggingskemas in effekte en kollektiewe beleggingskemas in eiendom." Thesis, Stellenbosch : Stellenbosch University, 2006. http://hdl.handle.net/10019.1/20426.
Full textAbstract:
Thesis (MComm)--University of Stellenbosch, 2006.AFRIKAANSE OPSOMMING: Kollektiewe Beleggingskemas in Effekte ("KBS in Effekte") en Kollektiewe Beleggingskemas in Eiendom ("KBS in Eiendom") is besigheidstrukture wat baie gewild is in Suid-Afrika. Desondanks bestaan daar nog heelwat onsekerhede rondom die belastinghantering van hierdie twee tipes Kollektiewe Beleggingskemas ("KBS"). Die Suid-Afrikaanse KBS industrie is In multi biljoen rand industrie hoofsaaklik as gevolg van die feit dat dit uitstekende beleggingsgeleenthede vir Jan en alleman asook groot finansiële instellings soos versekeraars bied. Dit is dus logies om te verwag dat die belastinghantering van KBS met redelike sekerheid gereguleer word. In KBS kan of as In trust opgerig word of as In oop beleggingsmaatskappy. Die belastinghantering van In KBS hang dus daarvan af of dit as In trust of oop beleggingsmaatskappy opgerig is. Die Inkomstebelastingwet No. 58 van 1962 ("die Inkomstebelastingwet") bevat inkomsteen kapitaalwinsbelastingbepalings wat uitdruklik die belastinghantering van KBS in Effekte en KBS in Eiendom reguleer ("die spesiale belastingreels"). In KBS in Effekte word vir belastingdoeleindes as In maatskappy beskou en so hanteer. Dit is nie maklik om vas te stel wat die wetgewer se onderliggende bedoeling was toe daar besluit is om In KBS in Effekte as In maatskappy te hanteer. Dit blyk wei dat hierdie besluit van die wetgewer nie deeglik deurdink is nie na aanleiding van die verskeie praktiese en teoretiese probleme wat met die belastinghantering van KBS in Effekte bestaan. Meeste van hierdie probleme is In direkte gevolg van die besluit om In KBS in Effekte vir belastingdoeleindes as In maatskappy te hanteer. Een die probleme wat in die konteks van KBS in Effekte bestaan hou verband met die vraag of die geleibuisbeginsel, wat bepaal dat inkomste wat deur In trust aan sy begunstigdes uitgekeer word hul aard en karakter behou, in die konteks van In KBS in Effekte (wat as In trust opgerig is) toepassing vind. Alhoewel die KBS in Effekte as In trust opgerig is, word dit vir belastingdoeleindes as 'n maatskappy hanteer en dit is duidelik dat die geleibuisbeginsel nie in die konteks van 'n maatskappy geld nie. Na oorweging van die regsaard van 'n KBS in Effekte wat as 'n trust opgerig is asook die gevolge van die vrystellingsbepalings in artikel 10 van die Inkomstebelastingwet wat ten opsigte van KBS in Efekte geld, word daar aan die hand gedoen dat die geleibuisbeginsel wei toepassing sal vind in die geval van 'n KBS in Effekte was as 'n trust opgerig is. Die gevolge van die vrystellingsbepalings in artikel 10 van die Inkomstebelastingwet is sodanig dat die inkomste wat die KBS in Effekte (wat as 'n trust opgerig is) aan sy begunstigdes uitkeer op dieselfde basis as die geleibuisbeginsel belas word. Gevolglik blyk dit of voorgenoemde standpunt van die skrywer in ooreenstemming met die bedoeling van die wetgewer is. Soortgelyke probleme kom voor in die konteks van die 'verbonde persoon' definisie in artikel 1 van die Inkomstebelastingwet sowel as die terugkoop van 'n deelnemende belang deur 'n KBS in Effekte, veral waar daardie KBS in Effekte as 'n trust opgerig is. Daarteenoor word 'n KBS in Eiendom nie as 'n maatskappy vir belastingdoeleindes hanteer nie. Indien "n KBS in Eiendom dus as 'n trust opgerig is word dit vir belastingdoeleindes soos "n trust hanteer. Ewe-eens, indien 'n KBS in Eiendom as "n oop beleggingsmaatskappy opgerig is, is dit vir aile doeleindes In maatskappy en sal so hanteer word vir belastingdoeleindes. Die belastinghantering van KBS in Eiendom bied ook sekere probleme veral waar die KBS in Eiendom wat as 'n oop beleggingsmaatskappy opgerig is sy aandele terugkoop. In hierdie verband bepaal die Wet op Beheer van Kollektiewe Beleggingskemas No. 45 van 2002 ("die Wet op Beheer van KBS") dat artikel 85 van die Maatskappywet No. 61 van 1973 ("die Maatskappywet") nie ten opsigte van 'n terugkoop van 'n deelnemende belang deur 'n oop beleggingsmaatskappy geld nie. Dit beteken egter nie dat 'n oop beleggingsmaatskappy nie sy eie aandele mag terugkoop nie. Vir belastingdoeleindes sal daar vasgestel moet word of bepalings in die Inkomstebelastingwet wat na artikel 85 van die Maatskappywet verwys, soos paragraaf (c) van die 'dividend' definisie, steeds met betrekking tot sodanige terugkoop toepassing sal vind siende dat die terugkoop nie ingevolge artikel 85 van die Maatskappywet gedoen word nie. Na oorweging van die wye omvang van paragraaf (c) van die 'dividend' definisie, word daar aan die hand gedoen dat paragraaf (c) van die 'dividend' definisie steeds toepassing sal vind om die terugkoop van aandele deur "n oop beleggingsmaatskappy te reguleer, nieteenstaande die feit dat artikel 85 van die Maatskappywet nie op die terugkoop van toepassing is nie.
ENGLISH ABSTRACT: Notwithstanding that Collective Investment Schemes in Securities ("CISS") and Collective Investment Schemes in Property ("CISP") are common business vehicles in the South African economy, there remains uncertainty with regard to the tax treatment of these business structures. The South African Collective Investment Scheme ("CIS") industry is a multibillion rand industry as it offers attractive investment vehicles for the general public as well as for big financial institutions such as insurers. One would therefore think that the tax treatment thereof would be fairly tightly regulated. A CISS and CISP may either be constituted as a trust or as an open ended investment company ("OEIC"). The tax treatment of a CIS differs depending on whether it is constituted as a trust or as an OEIC. The Income Tax Act No. 58 of 1962 ("the Income Tax Act") contains specific income tax and capital gains tax provisions that regulates the tax treatment of CISS and CISP (the "special tax provisions"). For tax purposes, a CISS is deemed to be a company and treated as such. It is difficult to ascertain what the intention of the legislature was in deciding to treat a CISS as a company. It does however seem as if this decision was not thoroughly considered by the legislature based on the fact that the application of the special tax provisions to CISS presents many practical and theoretical problems. Most of these problems are directly attributable to the legislature's decision to treat CISS as companies for tax purposes. For example, one difficulty relates to the question whether the conduit pipe principle, which determines that income distributed by a trust during a year of assessment will retain its nature and character, will find application in respect of a CISS constituted as a trust. For although the CISS is constituted as a trust, it is deemed to be company for tax purposes and it is clear that the conduit pipe principle cannot find application in the instance of a company. However, considering the legal nature of a CISS constituted as a trust, as well as the effect of the exemption provisions in section 10 of the Income Tax Act relating to CISS, it is submitted that the conduit pipe principle will find application in respect of a CISS constituted as a trust. The effect of the exemption provisions is such that the income distributed by a CISS to its investors will be taxed on the same basis as if the conduit pipe principle applied. As such, the aforementioned submission also appears to be in accordance with the intention of legislator. Similar difficulties arise in the context of the 'connected person' definition in section 1 of the Income Tax Act as well as the repurchase of a participatory interest by a CISS, especially where such CISS is constituted as a trust. Contrary to a CISS, a CISP is not deemed to be a company for tax purposes. Thus, where the CISP is constituted as a trust, it will be treated as a trust for tax purposes. By the same token, if the CISP is constituted as an OEIC, it will be a company for all intends and purposes and will therefore be treated as such. The tax treatment of CISP also presents difficulties, especially where it is constituted as an OEIC. In the instance of a repurchase of a participatory interest by a CISP constituted as a OEIC, the Collective Investment Schemes Control Act 45 of 2002 ("CISCA") states that the provisions of section 85 of the Companies Act 61 of 1973 (lithe Companies Act"), does not apply in respect of such repurchase. However, that does not mean that an OEIC may not repurchase its own shares. For tax purposes, one will have to determine whether the provisions in the Income Tax Act relating to section 85 of the Companies Act that governs the repurchase of shares by an OEIC, such as paragraph (c) of the 'dividend income' definition, will still apply to determine the tax consequences of the repurchase. After considering the wide scope of paragraph (c) of the 'dividend' definition, it is submitted that paragraph (c) of the 'dividend' definition will still find application in respect of a repurchase of shares by a OEIC, notwithstanding the fact that the repurchase is not effected in terms of section 85 of the Companies Act.
39
Maule, James Alexander Carteret. "The income tax nature of derivatives hedges: A critical analysis of the classification of gains made hedging a capital share investment with a single stock futures contract." Master's thesis, University of Cape Town, 2018. http://hdl.handle.net/11427/29767.
Full textAbstract:
In 1992 the Taxation Sub-Committee of the South African Institute of Chartered Accountants noted that one of the primary problems facing the taxation of derivatives used as hedges was the capital/revenue distinction, due to the fact that the application of wellestablished legal principles to these new derivative instruments and investment strategies could lead to inequitable results. Notwithstanding recommendations that special rules be developed to govern the taxation of derivatives used as hedges, little has changed. The South African Revenue Service have stated in their 2014 'Tax Guide for Share Owners’ that the sale of futures contracts is likely to be on revenue account, even if used as a hedge against losses on underlying shares held as capital assets, ostensibly on the basis that such assets derive no return for the holder and are therefore only held to be realised at a profit. This study seeks to investigate whether or not the sale of a futures contract used as a hedge against losses on an underlying share investment, held as a capital asset, should be taxed on revenue account or if in fact an argument can be made for the gain realised on the derivative to be treated as capital in nature. Against a background on the mechanics of traded futures contracts and the adopting of a 'short position’, consideration will first be given to existing South African precedent and the authority cited by SARS in support of the expressed revenue treatment. Alternative arguments proposed by writers, based on the analogous treatment of insurance proceeds or the practice of 'following the underlying asset’, will be considered against both South African and international support. This study will then consider the application of common law principles of the capital/revenue determination to identify arguments applicable to futures hedging. It is submitted that some of these common law principles identified, in particular those relating to a taxpayer’s purpose, as compared with his or her intention, would provide a cogent argument in this regard. The above findings will then be critically evaluated to determine what, on balance, the correct tax treatment in the circumstances should be bearing in mind the words of Friedman J in ITC 1450 (1988) 51 SATC 70 at 76, and Smalberger JA in CIR v Pick n Pay Employee Share Purchase Trust (1992) 54 SATC 271 at 279: 'when all is said and done, whatever guidelines one chooses to follow, one should not be led to a result in one’s classification of a receipt as income or capital which is … contrary to sound commercial and good sense.’
40
Kotze, Jan Harmse, and Wyk E. Van. "Die invloed van kapitaalwinsbelasting op boedelbeplanning en boedelbelasting en die toepaslikheid van trusts in boedelbeplanning na die inwerkingtreding van Kapitaalwinsbelasting." Thesis, Stellenbosch : University of Stellenbosch, 2009. http://hdl.handle.net/10019.1/15522.
Full textAbstract:
Thesis (MAcc)--University of Stellenbosch, 2009.AFRIKAANSE OPSOMMING: Met die bekendstelling van kapitaalwinsbelasting in 2000 was belastingpligtiges en belastingadviseurs bekommerd oor die invloed daarvan op belasting- en boedelbeplanning. Om die volle impak daarvan te verstaan moet die werking van kapitaalwinsbelasting ondersoek word. Paragraaf 10 van die Agste Bylae definieer die belasbare kapitaalwinste vir die jaar van aanslag. Hiervolgens word kapitale winste in die hande van verskillende belastingpligtiges teen verskillende “koerse” belas. In die algemeen word daar na Paragraaf 10 verwys as die insluitingsartikel wat op kapitaalwinste van toepassing is. Aangesien slegs ‘n “gedeelte” van kapitaalwinste onderhewig is aan normale belasting is een van die grootste faktore in die huidige belastingomgewing steeds om te onderskei tussen inkomste van ‘n kapitale of nie-kapitale aard. Deur die toepassing van Paragraaf 10 word kapitaalwinste gerealiseer deur Trusts en Maatskappye teen hoër koerse belas, as in die geval van individue. Dit het tot gevolg dat belastingpligtiges en belastingadviseurs die gebruik van trusts as ‘n effektiewe hulpmiddel vir boedelbeplanning begin bevraagteken het. Die effektiewe belastingkoers van toepassing op kapitaalwinste gerealiseer deur individue is egter die laagste van al die verskillende belastingpligtiges. Wanneer ‘n individue te sterwe kom is sy boedel onderhewig aan boedelbelasting, wat ‘n verdere belasting las tot gevolg het. Indien ‘n trust effektief toegepas word tydens die opstel van ‘n boedelplan vir ‘n individu sal die bates van die trust nie onderhewig wees aan boedelbelasting nie. Deur die verskeie opsies wat beskikbaar is vir ‘n belastingpligtige, wanneer hy ‘n besluit moet neem watter beleggingsvoertuig hy moet gebruik vir die belegging, kan die effektiewe belastingkoerse vergelyk word. Deur die uitkomste van die verskeie opsies teenoor mekaar te vergelyk bewys dit dat indien ‘n trust korrek aangewend word, dit steeds as ‘n effektiewe hulpmiddel in ‘n boedelplan kan aangewend word. Tydens die uitvoer van die vergelyking van die verskillende opsies wat vir die belastingpligtige beskikbaar is, is die tydwaarde van geld buite rekening gelaat. Indien die lewensverwagting van ‘n individu in berekening gebring word kan die uitkoms van die vergelyking moontlik anders wees. Deur dit alles in ag te neem bevestig dit weereens dat elke individue se boedelplan uniek sal wees indien sy persoonlike finansiële omstandighede in ag geneem word.
ENGLISH ABSTRACT: With the introduction of capital gains taxation in 2000, taxpayers and their advisors feared the impact thereof on tax planning and estate planning. To determine the impact thereof the taxation of capital gains must be understood. Paragraph 10 of the Eight Schedule define the taxable portion of capital gains for the year of assesment. Paragraph 10 is also commonly known as the inclusion clause applicaple on capital gains. This application of paragraph 10 has the effect that capital gains realised by different types of taxpayers are taxed at different rates. Due to the application of paragraph 10 only a portion of the capital gain realised by the taxpayer is subject to normal taxation. Therefor one of the biggest concerns for taxpayers still is to determine if income are of a capital nature or not. The inclusion rate, according to paragraph 10, applicable on capital gains realised by trusts and companies is higher than that of a individual and gives rise to a bigger tax burden relating to capital profits for trusts and companies. Therefor taxpayers and their advisors doubt wether a trust could still be used as an effective tool for estate planning. The effective tax rate on caiptal gains for individuals is the lowest for all types of taxpayers. But when an individual dies his estate is subject to estate duty, which leaves an additional burden for an individual to take into account. When a trust is effectively utilised in preparing an estate plan for an individual, the assets of the trust should not be subject to estate duty. By evaluating the effective tax rates applicable to the different options available to a taxpayer when he needs to determine which investment vehicle to use when making an investment, a comparision can be made. By comparing the effective tax rates a conclusion can be drawn that a trust can still be used as an effective tool for estate planning when utilised properly. When the comparison was made the time value of money was ignored. If the life expectancy of a individual are taken into account the outcome could be different. When everything is taken into consideration the conclusion is that the estate plan for every individual is unique and determined by his or her personal financial circumstances.
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Přibylová, Petra. "Účetní a daňové prostředí pro podnikání v Nizozemí." Master's thesis, Vysoká škola ekonomická v Praze, 2011. http://www.nusl.cz/ntk/nusl-142304.
Full textAbstract:
Thesis deals with the accounting and tax environment for business in the Netherlands and seeks to highlight the differences in legislation in comparison with the European trend. The work describe regulation of business and the related accounting and tax legislation. It focuses on group and tries to provide the answer to the question why the Netherlands is regarded as tax haven. There is obvious growing pressure of the European Union, the Netherlands implements IFRS principles to national accounting standards known as DAS. Although some issues still keep the original national treatment. Fiscal adjustments have a distinctive character, the country is an attractive destination in terms of taxation of dividends, interest, royalties and other capital gains.
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França, Diana Margarida Rodrigues. "Impacto do englobamento obrigatório dos rendimentos de capitais e prediais em IRS." Master's thesis, Instituto Superior de Economia e Gestão, 2020. http://hdl.handle.net/10400.5/21000.
Full textAbstract:
Mestrado em Contabilidade, Fiscalidade e Finanças EmpresariaisO atual governo (2019-2023) pretende "construir um sistema fiscal mais justo e progressivo" através "do englobamento dos diversos tipos de rendimentos em sede de IRS, eliminando as diferenças entre as taxas". Nesta investigação, pretende-se analisar a perceção dos contribuintes sobre o impacto do englobamento obrigatório dos rendimentos de capitais e prediais. Esta questão surge pelo facto de não se conhecerem quais os impactos multidimensionais que uma medida destas tem na economia portuguesa. Para abordar a questão de investigação, foi aplicado um questionário a contribuintes singulares com conhecimentos de fiscalidade ou direito fiscal, resultando em 363 respostas válidas. Os resultados obtidos indicam que o sentimento de justiça dos contribuintes, em relação à forma como são tributados os rendimentos em IRS, varia consoante a fonte dos rendimentos auferidos pelos mesmos, existindo diferenças estatisticamente significativas. No que diz respeito às potenciais consequências do englobamento obrigatório dos rendimentos de capitais e prediais, os dados mostram que, para todas as situações apresentadas, a maioria dos contribuintes respondeu "concordo (4) ou "concordo totalmente" (5). Quando os rendimentos de capitais e prediais são tributados progressivamente, existe pouco ou nenhum interesse dos contribuintes em investir no mercado imobiliário e no mercado de produtos financeiros. Portanto, o Governo deverá tomar medidas que mitiguem as possíveis consequências do englobamento obrigatório dos rendimentos de capitais e prediais.
The current government (2019-2023) wants to create a more progressive and fairer tax through the option to aggregate the differents types of income in the PIT, eliminating the differences between taxes. This investigation means to analyse the perception of taxpayers about the impact of the obligatory aggregation of capital and real estate income. This question arises because the multidimensional impacts that this measure could bring to the Portuguese economy are still unknown. To approach this investigation questionary was applied to individual taxpayers with knowledge of taxation or tax law, resulting in 363 valid responses. The results indicate that the taxpayer's sense of justice, regarding the way the PIT income is taxed, varies according to the source of income earned by them, existing significative differences. Regarding the potential consequences of the obligatory aggregation of capital and real estate income, the data show that most taxpayers responded, "I agree" (4) or "I totally agree" (5), for every situation. When the capital and real estate income is progressively taxed, the taxpayers have low or zero interest in investing on the real estate market and on financial products. Therefore, the Govern should take measures that mitigate the possible consequences of the obligatory aggregation of capital and real estate income.
info:eu-repo/semantics/publishedVersion
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Loyson, Richard Michael. "A critical analysis of the income tax implications of persons ceasing to be a resident of South Africa." Thesis, Nelson Mandela Metropolitan University, 2010. http://hdl.handle.net/10948/1180.
Full textAbstract:
Over the last 10 years the South African fiscus has introduced numerous changes to the Income Tax Act (ITA) which affect the income tax implications of persons ceasing to be a resident of South Africa. The two main changes were: - The introduction of a world-wide basis of taxation for residents - The introduction of capital gains tax (CGT) as part of the ITA The aim of this treatise was to identify the income tax implications of persons ceasing to be a resident of South Africa. Resulting from this research, several issues in the ITA have been identified, and the two major ones are summarised below. Firstly, upon the emigration of the taxpayer, there is a deemed disposal of a taxpayer’s assets in terms of paragraph 12 of the Eighth Schedule. It is submitted that the resulting exit tax may be unconstitutional for individuals. It is recommended that South Africa should adopt the deferral method within its domestic legislation for individuals who are emigrating. The deferral method postpones the liability until the disposal of the asset. Secondly, on the subsequent disposal of assets by former residents where there was no exit charge in terms of the exemption under paragraph 12(2)(a)(i) of the Eighth Schedule. Depending on the specific double tax agreement (DTA) that has been entered into with the foreign country, taxpayers have been given vii the opportunity to minimise or eliminate the tax liability with regard to certain assets. This should be of concern from the point of view of the South African government. Further issues noted in this treatise were the following: - It is submitted that the term ‘place of effective management’ has been incorrectly interpreted by SARS in Interpretation Note 6. - It is further submitted that the interpretation by SARS of paragraph 2(2) of the Eighth Schedule is technically incorrect. The above issues that have been identified present opportunities to emigrants to take advantage of the current tax legislation. It is further recommended that taxpayers who are emigrating need to consider the South African domestic tax law implications, respective DTA’s, as well as the domestic tax laws of the other jurisdiction, not only on the date of emigration but also on the subsequent disposal of the respective assets.
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Sloane, Justin. "A discussion and comparison of company legislation and tax legislation in South Africa, in relation to amalgamations and mergers." Thesis, Rhodes University, 2014. http://hdl.handle.net/10962/d1013028.
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In his 2012 Budget Review, the Minister of Finance, Pravin Gordhan acknowledged that the introduction of the "new" Companies Act had given rise to certain anomalies in relation to tax and subsequently announced that the South African government would undertake to review the nature of company mergers, acquisitions and other restructurings with the view of possibly amending the Income Tax Act and/or the "new" Companies Act, to bring the two legislations in line with one another. These anomalies give rise to the present research. The literature reviewed in the present research revealed and identified the inconsistencies that exist between the "new" Companies Act, 71 of 2008 and the Income Tax Act, 58 of 1962, specifically the inconsistencies that exist in respect of the newly introduced amalgamation or merger provisions as set out in the "new" Companies Act. Moreover, this research was undertaken to identify the potential tax implications insofar as they relate to amalgamation transactions and, in particular, the potential tax implications where such transactions, because of the anomalies, fall outside the ambit section 44 of the Income Tax Act, which would in normal circumstances provide for tax "rollover relief". In this regard, the present research identified the possible income tax, capital gains tax, value-added tax, transfer duty tax and securities transfer tax affected by an amalgamation transaction, on the assumption that the "rollover relief" in section 44 of the Income Tax Act does not apply.
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Durán, Rojo Luis Alberto, and Acosta Marco Mejía. "El Impuesto de Alcabala en el Perú." Derecho & Sociedad, 2015. http://repositorio.pucp.edu.pe/index/handle/123456789/118994.
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The present paper is a thorough study on the recent developments of excise tax in Peru. It begins by showing the most recent regulatory treatment on this tax, then focusing on the current system of it, analyzing the most relevant aspects of the excise tax, aiming to be a contribution to the future improvement of this tax.El presente artículo es un estudio minucioso de la evolución reciente del Impuesto de Alcabala en Perú. Parte de presentar los más recientes tratamientos normativos de dicho impuesto, para luego centrarse en el actual régimen del mismo, analizando los aspectos más relevantes del Impuesto de Alcabala, procurando servir de aporte para la futura mejora de este tributo.
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Ostler, Luise Marie. "The impact of estate planning on the effectiveness of estate duty as a wealth tax in South Africa." Thesis, Rhodes University, 2013. http://hdl.handle.net/10962/d1003741.
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The thesis examined the current system of the taxation of wealth in South Africa with an emphasis on the taxes that apply upon the death of the taxpayer. The focus of the research was on the problems associated with estate duty, namely the issue of double taxation; the alleged cumbersome administration of the tax and the limited revenue that it brings in; it’s questionable efficacy due to extensive estate planning on the part of taxpayers while they are still alive and its lack of uniformity with other wealth taxes. An interpretative research approach was followed which involved analysing documentary data. The conclusions that were reached were that estate duty as a wealth tax in South Africa has been rendered ineffective due to the inherent problems associated with its application, namely the fact that double taxation exists, not only in the context of capital gains tax, but also in that taxpayers resent being taxed upon death after having paid income tax during their lives. The perceived unfairness that is associated with estate duty has caused the creation of a secondary industry of estate planning, with the aim of minimising estate duty, which industry has resulted in the ineffectiveness of estate duty and its limited revenue. No evidence could be found regarding the Treasury’s assertion that estate duty is a cumbersome tax to administer. The final conclusion reached was that the current estate duty regime needs to be overhauled preferably by extending the current system of capital gains tax and abolishing estate duty, with due consideration being given to the consequences associated therewith.
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Van, der Mescht Elizabeth. "Limited interests in property an overview of limited interests in property with particular reference to the taxation of usufructs and more specifically the capital gains tax effects on disposal for individuals and for trusts." Master's thesis, University of Cape Town, 2012. http://hdl.handle.net/11427/12202.
Full textAbstract:
Includes abstract.Includes bibliographical references.
The aim of this dissertation is to provide an overview of limited interests in property with particular reference to the taxation of usufructs and more specifically to the capital gains tax effect on disposal for individuals and trusts.
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Du, Toit Leo. "Tax implications for business rescues in South African Law." Diss., University of Pretoria, 2012. http://hdl.handle.net/2263/26627.
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The South African Revenue Service has in the past had difficulty in applying debt forgiveness in cases of corporate and business rescues. Taxation legislation was drafted to counter innovative section 311 schemes of arrangements where the sole purpose was to obtain maximum taxations benefits in relation to entities in financial difficulties. This approach was only concerned with the interests of the Revenue authorities. The central theme of this study focuses of the procedures now available to tax authorities and debtors alike when compromises were and are considered in South Africa in terms of income tax and company legislation. The South Africa Revenue Service’s approach the corporate rehabilitation is examined which is vital for investors, creditors and debtors alike. A comparative study with similar procedures in England is undertaken to establish how valid the procedures are in establishing a viable corporate rescue environment in South Africa in the future.Dissertation (LLM)--University of Pretoria, 2012.
Procedural Law
unrestricted
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Lin, Ke-Rong, and 林克融. "The Welfare Analysis of Capital Gains Tax." Thesis, 2015. http://ndltd.ncl.edu.tw/handle/13792830045306720204.
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碩士國立臺灣大學
經濟學研究所
103
This paper examines the economic and welfare effects of capital gains tax in a productive economy where investment decisions are constrained by the share value of firms. Given that the government budget is balanced each period, with or without lump-sum recourse, I analyze the steady state effects of a swap between capital gains tax and other forms of taxation, including labor income tax and consumption tax. The results indicate that the consumers’ welfare rises with a tax on capital gains in the stock market. This paper also examines the distributional consequence of capital gains tax. In the presence of lump-sum transfers to workers, taxing on capital gains could improve capitalists as well as workers welfare.
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Tsao, Shujung, and 曹淑蓉. "A Study on Tax Avoidance of Individual Capital Gains Tax." Thesis, 2011. http://ndltd.ncl.edu.tw/handle/62370681533896733167.
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碩士大葉大學
管理學院碩士在職專班
99
During the past decade, more than 70％ income tax revenue is concentrated in the salary income earners. However, the capital gains are unearned, but much don’t tax, it’s break the tax equity and efficiency principle of taxes system. Taiwan’s income distribution have worsened, and the gap between rich and poor keeps getting wider. Taiwan’s capital gains tax provisions of the personal are different, high income earners often make use of a security trading income tax exempted to dutiable obtained trans-formation for tax-free obtained, result in tax avoidance. The result causes the tax base to corrode seriously, not only act against taxes and levies fair principle, also seriously distort the efficiency of the resource allocation. After each advanced countries indi-vidual capital gains tax system characteristic, suggested that refers to Japan to pick the proportional tax rate and the separation system of taxation, and a guideline for future amendment of the capital gains tax system. This study is based on the tax dispute issue caused from tax avoidance case. In closing, this study is based on taxation fairness, taxation efficiency and prevent tax evasion to provide suggestions the resumption of stock transaction tax for mitigating tax burden on labour incomes.