Place of effective management : an analysis of South African legislation and United Kingdom case law
- Authors: Sackoor, Shaaira
- Date: 2017
- Subjects: South Africa. Income Tax Act, 1962 , Double taxation , Income tax - Law and legislation
- Language: English
- Type: Masters (Thesis)
- Identifier: http://hdl.handle.net/10210/272385 , uj:28991
- Description: M.Com. , Abstract: The Income Tax Act, No. 58 of 1962, defines a resident as a “person (other than a natural person) which is incorporated, established or formed in the Republic or which has its place of effective management in the Republic”. It is therefore possible for a company incorporated outside of South Africa to be regarded as tax resident in South Africa if the company’s Place of Effective Management (“POEM”) is in South Africa, thus giving rise to double taxation. POEM is not defined in the Act and each country has its own interpretation with regards to POEM. The South African Revenue Service (“SARS”) has provided guidance in the form of Interpretation Note 6 as to the meaning of POEM. However, criticisms were identified and SARS therefore issued a new Interpretation Note 6. This was to conform to international guidelines and provide more certainty for taxpayers. The new Interpretation Note 6, however makes reference to the fact that each case would need to be determined on a fact-by-fact basis and makes mention of UK case law. This study therefore looks at case law in South Africa and the United Kingdom in order to determine if specific guidance can be ascribed to Place of Effective Management, or if any lessons learnt from the United Kingdom case law can be used and incorporated in a South African environment.
- Full Text:
Place of effective management : an analysis of South African legislation and United Kingdom case law
- Authors: Sackoor, Shaaira
- Date: 2017
- Subjects: South Africa. Income Tax Act, 1962 , Double taxation , Income tax - Law and legislation
- Language: English
- Type: Masters (Thesis)
- Identifier: http://hdl.handle.net/10210/272385 , uj:28991
- Description: M.Com. , Abstract: The Income Tax Act, No. 58 of 1962, defines a resident as a “person (other than a natural person) which is incorporated, established or formed in the Republic or which has its place of effective management in the Republic”. It is therefore possible for a company incorporated outside of South Africa to be regarded as tax resident in South Africa if the company’s Place of Effective Management (“POEM”) is in South Africa, thus giving rise to double taxation. POEM is not defined in the Act and each country has its own interpretation with regards to POEM. The South African Revenue Service (“SARS”) has provided guidance in the form of Interpretation Note 6 as to the meaning of POEM. However, criticisms were identified and SARS therefore issued a new Interpretation Note 6. This was to conform to international guidelines and provide more certainty for taxpayers. The new Interpretation Note 6, however makes reference to the fact that each case would need to be determined on a fact-by-fact basis and makes mention of UK case law. This study therefore looks at case law in South Africa and the United Kingdom in order to determine if specific guidance can be ascribed to Place of Effective Management, or if any lessons learnt from the United Kingdom case law can be used and incorporated in a South African environment.
- Full Text:
A comparative analysis of the legislative requirements of transfer pricing documentation
- Authors: Moyo, Lloyd Muchineuta
- Date: 2015
- Subjects: Transfer pricing , Transfer pricing - Law and legislation
- Language: English
- Type: Masters (Thesis)
- Identifier: http://hdl.handle.net/10210/124160 , uj:20881
- Description: Abstract: Transfer pricing is currently a very topical subject and it has been like that for the last decade. Transfer pricing concerns the prices charged between related or connected companies trading in different countries for goods, services or intangible traded between themselves. The arm’s length price is widely acceptable globally as an arbitrary price that should be charged between these related companies to circumvent tax base erosion as a result of transfer prices that move profits from high tax jurisdictions to low tax jurisdictions to reduce the tax burden on the inclusive group of companies. In South Africa transfer pricing legislation has been in existence since 1995. Practice Note No. 7 was issued by the South African Revenue Service in 1999 to provide guidelines on the procedure to follow to comply with the transfer pricing legislation. However uncertainty still exists as to the procedures taxpayers need to abide by to satisfy documentation requirements. This study is aimed at investigating shortcomings of legislated transfer pricing documentation requirements in South Africa compared to international standards, being Australia, Canada and the Organisation for Economic Co-operation and Development with the aim of making recommendations for improvement. , M.Com.
- Full Text:
- Authors: Moyo, Lloyd Muchineuta
- Date: 2015
- Subjects: Transfer pricing , Transfer pricing - Law and legislation
- Language: English
- Type: Masters (Thesis)
- Identifier: http://hdl.handle.net/10210/124160 , uj:20881
- Description: Abstract: Transfer pricing is currently a very topical subject and it has been like that for the last decade. Transfer pricing concerns the prices charged between related or connected companies trading in different countries for goods, services or intangible traded between themselves. The arm’s length price is widely acceptable globally as an arbitrary price that should be charged between these related companies to circumvent tax base erosion as a result of transfer prices that move profits from high tax jurisdictions to low tax jurisdictions to reduce the tax burden on the inclusive group of companies. In South Africa transfer pricing legislation has been in existence since 1995. Practice Note No. 7 was issued by the South African Revenue Service in 1999 to provide guidelines on the procedure to follow to comply with the transfer pricing legislation. However uncertainty still exists as to the procedures taxpayers need to abide by to satisfy documentation requirements. This study is aimed at investigating shortcomings of legislated transfer pricing documentation requirements in South Africa compared to international standards, being Australia, Canada and the Organisation for Economic Co-operation and Development with the aim of making recommendations for improvement. , M.Com.
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An analysis of the Mineral and Petroleum Resources Royalty Act
- Authors: Visagie, Karin
- Date: 2014-01-27
- Subjects: Mineral royalties - Taxation , Mineral resources - Taxation , South Africa. Mineral and Petroleum Resources Royalty Act, 2008 , South African Revenue Services
- Type: Thesis
- Identifier: uj:7950 , http://hdl.handle.net/10210/8851
- Description: M.Comm. (International Taxation) , Lyn Bourne (n.d.) once wrote "The concept of royalties evolved from a time when the government owned all of the land, including mines, to the situation where free miners won the right to claim minerals, but paid a portion of their production to the royal treasury. Today, a mineral royalty is a payment to the owner of the mineral rights for the privilege of producing the mineral commodity"...
- Full Text:
- Authors: Visagie, Karin
- Date: 2014-01-27
- Subjects: Mineral royalties - Taxation , Mineral resources - Taxation , South Africa. Mineral and Petroleum Resources Royalty Act, 2008 , South African Revenue Services
- Type: Thesis
- Identifier: uj:7950 , http://hdl.handle.net/10210/8851
- Description: M.Comm. (International Taxation) , Lyn Bourne (n.d.) once wrote "The concept of royalties evolved from a time when the government owned all of the land, including mines, to the situation where free miners won the right to claim minerals, but paid a portion of their production to the royal treasury. Today, a mineral royalty is a payment to the owner of the mineral rights for the privilege of producing the mineral commodity"...
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