Inkomstebelastinghantering van klientelojaliteitsprogram-transaksies in Suid-Afrika
Date
2012-10
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
AOSIS
Abstract
Client loyalty programmes are a common phenomenon in the South African market and, although prevalent in South Africa since the 1980s, the South African Revenue Service has issued no guidance
on the income tax treatment of client loyalty programme transactions in the hands of the consumer. Benefits received in the form of goods, services or discounts from a client loyalty programme are currently not subject to normal South African income tax. The main objective of the research was to investigate whether the existing provisions in the Income Tax Act and related case law provide the
basis for taxing client loyalty programmes in the hands of the consumer as natural person. In order to meet this objective local and international literature was analysed to determine the correct income
tax treatment and it was found that points or miles received by a consumer meet all the requirements of the “gross income” definition and as a result should be taxable.
Description
CITATION: Brink, S. M. & Viviers, H. A. 2012. Inkomstebelastinghantering van kliëntelojaliteitsprogram-transaksies in Suid-Afrika. Journal of Economic and Financial Sciences, 5(2):437-458.
The original publication is available at https://jefjournal.org.za
The original publication is available at https://jefjournal.org.za
Keywords
Customer loyalty programs -- Taxation -- South Africa
Citation
Brink, S. M. & Viviers, H. A. 2012. Inkomstebelastinghantering van kliëntelojaliteitsprogram-transaksies in Suid-Afrika. Journal of Economic and Financial Sciences, 5(2):437-458.