Masters Degrees (School of Accountancy)
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Browsing Masters Degrees (School of Accountancy) by Author "De Jongh, R. B. (Robert Barnard)"
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- Itemn Kritiese evaluering van die verblyfbeginsel as belastingbasis in Suid-Afrika(Stellenbosch : Stellenbosch University, 2003-04) De Jongh, R. B. (Robert Barnard); Van Schalkwyk, C. J.; Stellenbosch University. Faculty of Economic and Management Sciences. School of Accounting.ENGLISH ABSTRACT: Internationally there are mainly two principles on which taxation systems have been based, namely the source and residence principles. Until the end of 2000 the South African tax system was based on the source and deemed source system. In the budget speech of 23 February 2000 it was announced by the Minister of Finance that the residence principle would replace the source and deemed source system as tax base with effect from the 1st of January 2001. Residence-based tax was implemented two years ago and the question can be asked whether the implementation of this principle was indeed sensible. This question was answered by adjudicating whether the residence-based system in South Africa was fair and efficient. Fairness was evaluated with reference to the benefit principle and the ability-to-pay principle. Efficiency of the residence principle as taxation base was evaluated with reference to the following criteria: • Ability to generate income for the state. • Adherence to the concept of neutrality. • Ability to create a favourable investment climate. • Compatibility of the residence principle as documented in the Act with international legislation and convensions. • Administrative efficiency. • Ability of the tax system to prevent tax avoidance. • Ability of the tax system to prevent and alleviate double taxation. • Competitiveness of South African residents in the international market and the ability of the tax system to stimulate economic growth. • Ability of the system to tax income generated by electronic commerce. The conclusion is made that the residence based tax system is indeed fair with regard to residents and non-residents respectively. The conclusion is also made that the residence based tax system is efficient. Certain aspects must however be adressed to improve the efficiency of the residence-based tax system. In the whole it was found that the implementation of the residence based tax system was indeed a sensible one.