Islamic finance versus conventional finance and the taxation consequences.

Lall, Rabia D

Islamic finance versus conventional finance and the taxation consequences.

Master Thesis

2013

Publisher

University of Cape Town

Department

Department of Finance and Tax

Faculty

Faculty of Commerce

Abstract

The focus of this research paper is to discuss the underlying principles of Islamic finance and its tax implications for investors and financial institutions. The nature of Islamic financial products is compared to its conventional financial counterpart to identify whether differences exist between Islamic and conventional finance from a tax perspective. The proposed changes to the South African Income Tax Act No. 58 of 1962 relating to Islamic finance contain deeming provisions to provide tax neutrality between Islamic and conventional finance. It appears that certain international tax issues for Islamic finance have not yet been addressed by the proposed changes and will have to be considered for the tax neutrality to be achieved.

Description

Includes abstract.

Includes bibliographical references.

Keywords

Taxation

Reference:

Collections

Masters

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