Browsing by Author "Surtees, Peter"

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    A comparative analysis of the Employment Tax Incentive Act, no.26 of 2013
    (2016) Odendaal, Petrus Johannes Loock; Surtees, Peter
    Despite being internationally recognised as an economic powerhouse of the African continent, South Africa struggles to overcome certain socio-economic problems, which predominantly stem from the inequalities within its society. One of the most important areas of prevailing concern is high unemployment, particularly amongst the youth segment of the population. Approximately 42% of South Africans under the age of 30 are unemployed, a fate shared by less than 17% of those above 30 years of age. The South African government appropriately sought to ensure a better future for all its citizens by 'creating', or facilitating the creation, of more jobs. As part of its 'program of action', one of the initial steps was to enact the Employment Tax Incentive Act, No. 26 of 2013 ('ETIA'). The following extract is from the Explanatory Memorandum on the Employment Tax Incentive Bill, 2013: "High youth unemployment means young people are not gaining the skills or experience needed to drive the economy forward. (…) In response to the high rate of youth unemployment, government wishes to implement an incentive mainly aimed at encouraging employers to hire young and less experienced work seekers, as stated in the National Development Plan. The incentive is one among many that will fall under the umbrella of government's youth employment strategy, the National Youth Accord, which outlines a program of action to address youth unemployment." The primary aim of this study is to conduct a detailed analysis of the ETIA in order to ultimately evaluate its merits, i.e. by expressing an opinion on whether or not it is assisting in combatting youth unemployment. The analysis compares similar types of legislation that have been implemented, both successfully and unsuccessfully, in other countries in attempts to address similar unemployment issues. This paper reflects events, legislation and published literature as at 1 December 2015.
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    The contribution of Judge Oliver Deneys Schreiner to the development of South African Tax Law : a mark that cannot be erased
    (2014) Mabudafhasi, Margie; Surtees, Peter
    Oliver Deneys Schreiner made a remarkable contribution to the development of South African tax law during his career on the bench. Not only did he make a substantial contribution to the development of South African tax law, but in my view he also a played a humble and selfless and indeed noteworthy role in the growth of our Nation's democracy. He is an important part of South Africa's judicial history. This dissertation will be looking at the different facets of Judge Oliver Schreiner. The aspects will include his background, the political climate in which he lived and his philosophy and approach to his work on the bench. Oliver Deneys Schreiner delivered several judgments that are important and have played a role in the development of South African tax law. This paper will be examining the significant judgments delivered by Judge Schreiner during his time in the Appellate Division. Cases such as: CIR v Genn & Co (Pty) Ltd 1955 (3) SA 293 (A); CIR v Drakensberg Garden Hotel (Pty) Ltd 1960 (2) SA and CIR v Black 1957 (3) SA 536(A). The dissertation will be assessing the impact these cases have made where they are subsequently cited and accepted as precedent. Judge Schreiner's dissenting minority judgments in cases such as CIR v Richmond Estates (Pty) Ltd 1956 (1) SA 602 (A); CIR v Lever Brothers and Unilever Ltd 1946 AD 441, 14 and CIR v Epstein 1954 (3) SA689 (A) will be analysed. The thesis will also speculate in the theory of the potential impact Schreiner's dissension in CIR v Richmond Estates (Pty) Ltd 1956 could have had on SA tax law if his minority judgment had been the majority.
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    The evolution of the corporate rules
    (2009) Cornelissen, Carel; Surtees, Peter
    The aim and objective of the intended research under the abovementioned title is as follows: • Discuss the ambit of the corporate rules and the purpose for their enactment. • Provide an overview of the history of the corporate rules, in general, and some of the major year on year amendments, in particular, since their inception. • Highlight the significance of some of the major amendments, express a view on shortcomings, if any, and suggest further amendments, where necessary. • Discuss the relevant sections in the new Companies Bill and the affect it may have on the application of the corporate rules. • Discuss the extent of group taxation in short and consider, on a very high level, the advantages and disadvantages of introducing a group taxation regime in South Africa.
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    Farming and manufacturing: The tax consequences of conducting these activities simultaneously
    (2018) Grotepass, Debora Anneke; Roeleveld, Jennifer; Surtees, Peter
    Different tax rules apply to farming and manufacturing activities respectively, and it appears that the South African Revenue Service (SARS) applies an arbitrary practice in determining whether, and if so, at what point a farming operation needs to be distinguished from manufacturing activities. This dissertation explores how and when a taxpayer is required to distinguish between farming and manufacturing activities within the context of a single business i.e. when one form of 'trade’ comes to an end, and when another form of 'trade’ commences. The First Schedule to the Income Tax Act, 1962 (ITA), and paragraph 12, in particular, gives certain privileges to farmers that other taxpayers do not enjoy. Similar to this, taxpayers who are conducting manufacturing activities, or operations accepted and listed by SARS as a process of manufacture or similar process, enjoy advantageous allowances in respect of the write off of machinery and buildings. Thus, the point at which one activity ends and the next activity begins can have significant tax consequences. This dissertation argues that these consequences are too significant to be governed by arbitrary decisions. In conclusion it is shown that the ITA provides the wherewithal to enable the decisions to be made based on sound statutory principles. Where the wherewithal is not present, appropriate additions to the legislation are recommended. Examples from case law are also discussed from which general principles to be used in practice are developed.
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    Open Access
    The evolution of the corporate rules
    (2009) Cornelissen, Carel; Surtees, Peter
    The aim and objective of the intended research under the abovementioned title is as follows: Discuss the ambit of the corporate rules and the purpose for their enactment. Provide an overview of the history of the corporate rules, in general, and some of the major year on year amendments, in particular, since their inception. Highlight the significance of some of the major amendments, express a view on shortcomings, if any, and suggest further amendments, where necessary. Discuss the relevant sections in the new Companies Bill and the affect it may have on the application of the corporate rules. Discuss the extent of group taxation in short and consider, on a very high level, the advantages and disadvantages of introducing a group taxation regime in South Africa.
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    The usefulness (or otherwise) of the concept of
    (2014) Driman, Robert Frank; Surtees, Peter
    The paper discusses and traces the history of tax policy which creates the basis for the difference between illegal tax evasion, and tax avoidance (which may also be illegal). The discussion reveals the cause of ambiguities in judicial interpretation (and through this the effect of avoidance legislation) of schemes which cause tax to be avoided - which is found in policy considerations. The South African anti-avoidance common law and legislation is described. A spotlight is placed on the most subjective policy factor which is used to test for impermissible avoidance - the concept of abnormality. The NWK2 decision is examined in some detail as a useful illustrator of how the policy by which the court approaches anti-avoidance matters affects the outcome of the case - and just how subjective are policy-based tests for what is permissible or not. There is an examination of the obverse of using subjective concepts by removing them from the law. The paper finds that subjective factors while having some use - lead to uncertainty in tax planning, and states why this is undesirable. The paper does not examine in detail whether courts have a pre-judgmental approach to tax matters, but recommends that as far as possible tests in anti-avoidance measures should avoid subjective elements. A recommendation is proposed of how this may be achieved in relation to the concept of abnormality.