Browsing by Author "Holwill, Robyn"

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    Employee share incentive schemes : an integrated approach
    (2006) Bezuidenhout, Louise Mercia; Holwill, Robyn
    The problem definition examined in this thesis is how employee share incentive schemes are taxed in the hands of employers and employees. This involved an analysis of the new section 8B and 8C of the Income Tax Act ("the Act") as well as the old section 8A. Sections 10, 1 1 (a), 56 and the Fourth, Seventh and Eighth Schedules to the Act were also studied. Case law was considered where applicable. Other areas that were investigated include the impact of IFRS 2 on employee share incentive schemes, the requirements of the Companies Act, the JSE Listing Requirements and Corporate Governance Guidance. Conclusions are drawn and recommendations include: • the amendment of certain sections of the Act (including making provision for the deductibility of expenses incurred and settled by way of issuing shares); • the issue of guidelines by SARS with relation to the taxation of share incentive schemes and the interaction between section 8C and the Eighth Schedule; • the introduction of a wider selection of "approved" employee share incentive schemes in the line of section 8B to fit the different needs of companies; • the alignment of the Income Tax Act with the Broad-Based Black Economic Empowerment Act; and • the availability of public information on employee share incentive schemes.