Browsing by Author "Cramer, Peter"

Now showing 1 - 7 of 7
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    An analysis of the perceived effectiveness of remuneration committees in deciding on executive compensation in South African listed companies
    (2009) Penkin, Kenneth David; Wormald, Michael; Cramer, Peter
    This thesis will examine the administration of executive compensation in listed companies in South Africa in order to understand the background to the topical emotion expressed by the public about the quantum of executive earnings. The Thesis attempts to explain how approaches are made to these vast payments. It commences with the history of the management of executive compensation. Before the 1990s, disclosure of directors' emoluments was limited to one amount. Companies suffered losses due to the Agency Theory where executives dominated boards. With the introduction of remuneration committees and corporate governance, control was moved to a committee of the board of -non-executive directors (a remuneration committee). The purpose of this research was to ascertain whether such a committee is effective. Interviews were held with leading executives and an analyst. An electronic survey was dispatched to the chief executive officers and chief financial officers of a large selection of listed companies. The results of the research are summarised and conclusions expressed on all such views with the addition of limited input of the author's views. The question requires an examination of the effectiveness of remuneration committees. Some suggestions are also made as to future research and actions which may be conducted. This thesis shows that remuneration committees are not as effective as they should be and will explain why this is so.
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    Group taxation in South Africa : a contextual analysis
    (2009) Omar, Shaheen; Cramer, Peter
    A group taxation regime can be defined as: "a set of rules that enables corporate taxpayers to compute the tax liability of related corporations on a consolidated or combined basis(.) (and) ... encompasses not only full consolidation. but also tranifer of particular tax allributes between the members (?f a corporate group .. I. This definition is very broad and group taxation could be better understood when considering the more common forms of group taxation such as the group relief regime and the consolidation regime. The consolidation regime generally involves each company within a group of companies computing its own income after which the income is consolidated at the holding company-level for tax purposes. The holding company would thereafter become liable for the group's tax2 , whereas a group relief regime involves the ability of losses incurred by one company in a group of companies to be transferred to another member group company3. Does group taxation exist in South Africa? Based on the above, it would appear not. The more pertinent question that has to be answered is whether or not elements of group taxation currently exist in South African tax legislation. The debate in terms of the introduction of group taxation in South Africa was raised for the first time by the Margo Commission of Inquiry, which ultimately decided against recommending the introduction of group taxation. The Katz Commission of Inquiry however recommended the introduction of group taxation. National Treasury has however failed to act on the Katz Commission's recommendations.
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    Mitigating climate change through the income tax legislation : a brief analysis of section 12K of the Income Tax Act no. 58 of 1962 and its implications for South African CDM projects
    (2011) Garrod, Yashaswini; Cramer, Peter
    [This] dissertation is dedicated to this attempt of making South Africa a more environmentally sustainable economy through the development of new CDM projects. This dissertation examines the introduction of section 12K in the Income Tax Act 58 of 1962 and how this novel incentive interacts with our current income tax legislation. This dissertation highlights some issues surrounding the section 12K exemption which may detract from its true potential and proposes ways to resolve these issues in order to make this incentive more attractive to the CDM project developers.
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    The tax consequences for a seller (also briefly commenting from the perspective of the purchaser) when contingent liabilities are transferred in a sale of a business as a going concern with specific reference and evaluating income tax case no. 1839 : (South Gauteng Tax Court)
    (2010) Rossouw, Dewald Pierre; Cramer, Peter
    The selling of a business as a going concern can have various tax consequences for both the seller and the purchaser. This is so whether the purchase price is determined with reference to the net asset value, i.e. gross assets less liabilities, or not. Accounting liabilities are always part of a business and therefore part of a business sales contract. The basic transaction is normally that some or all of the assets of the business are transferred to the purchaser who also assumes all or some of the liabilities of the business. The liabilities transferred may include various accounting provisions.
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    Tax consequences of the 2010 FIFA World Cup
    (2011) Olckers, Teresa; Cramer, Peter
    With all the excitement in South Africa about the 2010 FIFA World Cup kicking off on 11 June 2010, tax relief will be granted on import tax and VAT, amongst others, in terms of the Revenue Laws Amendment Act 20 of 2006 (hereafter referred to as RLAA). FIFA (Federation Internationale de Football Association), confirmed that SAFA may have the right to serve as a host for the 2010 FIFA World Cup, but in order to qualify 17 guarantees were to be given by South African government to FIFA which is a general requirement for all host cities. These guarantees will be provided by various government departments focusing on the financial environment, safety and security, intellectual property and marketing rights, transport and telecommunications as well as custom duties, other taxes and duties and levies by the Minister of Finance. The government of The Republic of South Africa issued several guarantees that they would comply with to meet certain requirements set out by FIFA for World Cup hosts (Wilson, 2008:1). These include, inter alia, the provision of taxation relief for qualifying individuals and entities. Trevor Manuel, former Minister of Finance, included certain provisions in the RLAA, to give effect to FIFA’s requirements. The RLAA created a tax-free bubble around the FIFA-designated sites so that profits on consumable and semi-durable goods sold within these areas will not be subject to Income tax; nor will VAT be levied. Tax relief will be given on specific goods and services for qualifying taxpayers, as defined in the Income Tax Act 58/1962 ("The Income Tax Act"), (Wilson, 2008:1). This relief system will be governed by an accompanying abuse paragraph in the legislation in order to limit any loss that may be suffered by the South African Revenue Service ("SARS"). The positive and negative impacts, which will arise from hosting such an international event, are important to discuss and consider.
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    The tax deductibility of contingent liabilities transferred in the sale of a going concern
    (2012) Jacobs, Angela; Cramer, Peter
    The debate around the deductibility of transferred contingent liabilities, when a business is sold as a going concern has been raging for many years with no definitive guidance provided in legislation and limited court decisions on the issue, with the exception of the recent Ackermans Ltd v CSARS ("Acermans case") judgment and BCR 029 issued by SARS.
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    Tax implications of transfer pricing on supply chain management
    (2011) Eich, Bettina; Cramer, Peter
    Increased globalisation has lead to centralised risk management and decision-making in multinational enterprises, which gives rise to the principle of tax efficient supply chain management and the need to focus on the integration of tax considerations into the multinational's supply chain. In order to retain a competitive advantage in the global economy, multinational enterprises need to constantly search for cost benefits. This has created a market for tax motivated structures and the consequential action by tax authorities world-wide to regulate transfer pricing, in order to protect their respective tax bases. As revenue authorities increase their focus on transfer pricing compliance, it is vital that multinationals adhere to the arm's length principle and ensure their transfer pricing documentation can substantiate the transfer prices selected.