Masters Degrees (School of Accountancy)

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Browsing Masters Degrees (School of Accountancy) by browse.metadata.advisor "Matthee, J. A."

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    Kapitaaloordragbelasting in Suid-Afrika : 'n evaluering van die huidige posisie, met spesifieke verwysing na sekere aanbevelings ten opsigte van trusts
    (Stellenbosch : Stellenbosch University, 1999-11) Nel, Ada Mara; Van Schalkwyk, C. J.; Matthee, J. A.; Stellenbosch University. Faculty of Economic and Management Sciences. School of Accountancy.
    ENGLISH SUMMARY: The distribution of wealth and income is very unequal in South Africa. The poorer 80 percent of the population was prevented from accumulating wealth, largely as a result of political factors. The possibility of tax reformation with regards to capital transfer tax, is an important issue in South Africa, especially in times during which the government is under pressure to address the inequality in the distribution of wealth. Wealth can only be taxed directly by means of capital taxes. Capital taxes can be sub-divided into tax on capital gains and wealth tax. Wealth tax can further be distinguished into an annual wealth. tax, capital transfer tax and land-tax. The only capital transfer taxes in South Africa are estate duty and donations tax. The Margo and Katz Commissions however made certain recommendations with regards to the structure of the capital transfer tax in South Africa. One of these recommendations was the subjection of generation skipping methods (for example trusts in which no beneficiary has a vested right), to capital transfer tax. The apparent unimportant role of capital transfer tax in South Africa, as well as the possible use thereof to accomplish redistribution necessitates the evaluation of the current capital transfer system in the light of certain general principles, namely neutrality, reasonableness, incentive, economical efficiency, certainty; simplicity, cost, effectiveness, flexibility and stability. It was found that the capital transfer tax system in South Africa does not comply with the requirements of neutrality, reasonableness, simplicity and effectiveness. The following changes will improve this problem: Estate duty and donations should be administered through a single act, the rebate of R1 000 000 (with regards to estate duty) should be reviewed, and thereafter adjusted each year to take into account the effect of inflation, anti-avoidance provisions should be included in the estate duty act and capital transfer tax should be calculated on the difference between interest at an efficient rate and the actual interest rate on low interest and interest free loans. The provisions in the Constitution, the opinion of a tax expert, as well as the report of the Parliamentary Commission on the results of a discussion about the Katz Commission report, support these all these changes, with theĀ· exception of the tax on low interest and interest free loans. Therefore the above-mentioned changes, excluding the tax on interest free loans is recommended to address the problems. Although the reform of the capital transfer tax system in South Africa seems necessary, there are certain other factors which should be taken into account: The proportion of direct to indirect taxes in South Africa, which is currently higher than in other developing countries, the administrative capacity of the South African Revenue Services, and the incentive to saving and investment. The final decision about the reform of the capital transfer tax system in South Africa is however, a policy consideration, and therefore lies with Government.