Browsing by Author "Steenkamp, Lee-Ann"

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    An analysis of the applicability of the OECD Model Tax Convention to non-OECD member countries : the South African case
    (AOSIS, 2017) Steenkamp, Lee-Ann
    Most tax treaties (including South Africa's) are based on the OECD Model Tax Convention on Income and Capital and the related Commentary (the 'OECD Model'). Notwithstanding the uncertainty surrounding its legal status, the courts in many countries use the OECD Model in the interpretation of their tax treaties. The OECD launched an action plan on Base Erosion and Profit Shifting ('BEPS') in 2013, which is aimed at improving international tax cooperation between governments. In South Africa, the importance of combating BEPS is highlighted by the fact that the Davis Tax Committee has appointed a sub-committee specifically to address concerns pertaining to BEPS. South Africa's participation in the BEPS project and its tax treaty negotiations with other countries, especially OECD member states, are of the utmost importance to South Africa's National Treasury. Consequently, it is the primary objective of this article to analyse the applicability of the OECD Model to non-OECD member countries, with particular emphasis on South Africa. It will be argued that, if the treaties of non-member countries are in conformity with the OECD Model and no specific position has been taken, the non-members also accept the provisions of the Model and the Commentary as an interpretative aid.
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    First, do no harm? an overview and ethical evaluation of South Africa’s climate change mitigation commitments in light of the Paris Agreement
    (Medknow Publications, 2018) Steenkamp, Lee-Ann; Naudé, Piet, 1956-
    South Africa ratified the Paris Agreement in 2016 and thereby committed to reducing Greenhouse Gas (GHG) concentration levels as part of its self-determined goals in its Nationally Determined Contribution (NDC). This article viewed the targets in the NDC through an ethical lens. It was demonstrated that the commitment below the ‘business-asusual’ (BAU) level allowed for large increases in South Africa’s emissions without explaining how these were consistent with a specific understanding of what equity required. Also, the NDC targets were found to be highly insufficient. Consequently, South Africa’s climate change mitigation commitments were deemed inconsistent with the ethical ‘no-harm’ principle.
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    The relationship between investor tax preferences and the payout methods of JSE listed companies
    (AOSIS, 2022-08) Nel, Rudie; Wesson, Nicolene; Steenkamp, Lee-Ann
    Background: Investor tax preference parameters have been included as an explanatory variable for changes in payout methods in developed countries. There is, however, a lack of research in this area in developing countries. Tax reform in South Africa – comprising a change in the tax regime and successive increases in tax rates – offers a unique setting to examine investor tax preference parameters as a contribution to literature. Aim: This study investigated the relationship between investor tax preference parameters (of individuals, corporates, and institutions) and payout methods (namely dividends, capital distributions, additional shares, and share repurchases). Setting: The study used data collected in respect of companies listed on the Johannesburg Stock Exchange (JSE) in South Africa for the financial reporting periods ranging from 2012 to 2019. Method: A regression analysis of panel data was employed to relate the changes in payout methods to changes in profits, investor tax preference parameters, the lagged levels of variables, and ownership concentration dummy variables. Findings: The empirical evidence of this study revealed that investor tax preferences affected dividends as a payout method. This accordingly suggests that the tax differential of dividends and capital gains affect the supply of dividends in South Africa. Conclusion: The study contributes empirical evidence in support of the taxes and tax clienteles theory from a developing country perspective. This could suggest that tax reform in a developing country, in this case, South Africa, has a more pronounced effect on payout methods than in developed countries.
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    The use of the OECD Model Tax Convention as an inrpretative aid : the static vs ambulatory approach debate considered from a South African perspective
    (AOSIS, 2017) Steenkamp, Lee-Ann
    Most tax treaties (including South Africa’s) are based on the OECD Model Tax Convention on Income and Capital and the related Commentary (the ‘OECD Model’). Notwithstanding the uncertainty surrounding its legal status, the courts in many countries use the Commentary in the interpretation of treaties. This article aims to contribute to the debate regarding the use of a static or ambulatory approach when using the OECD Model Commentary. If a double tax agreement (DTA) is based on the OECD Model and a certain provision follows the wording of the OECD Model, it could be contended that the contracting states intended such a provision to have the meaning it has in the OECD Model. However, the interpretation of revisions made to the OECD Model and Commentary subsequent to the conclusion of a DTA remains contentious, as scholars appear to be divided between an ambulatory and a static approach. A four step approach is recommended when considering the application of the Commentary.