Residence of an entity for tax purposes – South Africa: a review of the concept ‘place of effective management
| dc.contributor.advisor | Gutuza, Tracy | |
| dc.contributor.advisor | Davis, DM | |
| dc.contributor.author | Majachani, Alex Farai | |
| dc.date.accessioned | 2026-03-19T11:43:36Z | |
| dc.date.available | 2026-03-19T11:43:36Z | |
| dc.date.issued | 2010 | |
| dc.date.updated | 2026-03-19T07:05:03Z | |
| dc.description.abstract | The residence article in the OECD Model Tax Convention provides a `tie-breaker' rule for determining residence where an entity is resident in two different countries in order to avert double taxation. The residence of such a “dual resident” entity is allocated to the country in which its “place of effective management” is situated. One has to determine the location of an entity's PoEM in order to allocate taxing rights to one of the States so as to avert double taxation. According to the OECD, the PoEM is one where the key management and commercial decisions of an entity's business are made. This paper analyses the meaning and effectiveness of the concept ‘PoEM' as a tie-breaker rule. It is pointed out that the concept is under serious subversion by means of; inter alia, the exponential growth in e-commerce and the evolution of the communications technology. These developments have seen changes in the way business is run, including the conduct of board meetings. It is further highlighted that the concept suffers a lack of international agreement on its meaning and application. This article thus highlights these problems, and suggests recommendations to bolster the usefulness of the tie-breaker rule from a South African perspective. | |
| dc.identifier.apacitation | Majachani, A. F. (2010). <i>Residence of an entity for tax purposes – South Africa: a review of the concept ‘place of effective management</i>. (). University of Cape Town ,Faculty of Law ,Centre for Law and Society. Retrieved from http://hdl.handle.net/11427/43024 | en_ZA |
| dc.identifier.chicagocitation | Majachani, Alex Farai. <i>"Residence of an entity for tax purposes – South Africa: a review of the concept ‘place of effective management."</i> ., University of Cape Town ,Faculty of Law ,Centre for Law and Society, 2010. http://hdl.handle.net/11427/43024 | en_ZA |
| dc.identifier.citation | Majachani, A.F. 2010. Residence of an entity for tax purposes – South Africa: a review of the concept ‘place of effective management. . University of Cape Town ,Faculty of Law ,Centre for Law and Society. http://hdl.handle.net/11427/43024 | en_ZA |
| dc.identifier.ris | TY - Thesis / Dissertation AU - Majachani, Alex Farai AB - The residence article in the OECD Model Tax Convention provides a `tie-breaker' rule for determining residence where an entity is resident in two different countries in order to avert double taxation. The residence of such a “dual resident” entity is allocated to the country in which its “place of effective management” is situated. One has to determine the location of an entity's PoEM in order to allocate taxing rights to one of the States so as to avert double taxation. According to the OECD, the PoEM is one where the key management and commercial decisions of an entity's business are made. This paper analyses the meaning and effectiveness of the concept ‘PoEM' as a tie-breaker rule. It is pointed out that the concept is under serious subversion by means of; inter alia, the exponential growth in e-commerce and the evolution of the communications technology. These developments have seen changes in the way business is run, including the conduct of board meetings. It is further highlighted that the concept suffers a lack of international agreement on its meaning and application. This article thus highlights these problems, and suggests recommendations to bolster the usefulness of the tie-breaker rule from a South African perspective. DA - 2010 DB - OpenUCT DP - University of Cape Town KW - South Africa KW - tax LK - https://open.uct.ac.za PB - University of Cape Town PY - 2010 T1 - Residence of an entity for tax purposes – South Africa: a review of the concept ‘place of effective management TI - Residence of an entity for tax purposes – South Africa: a review of the concept ‘place of effective management UR - http://hdl.handle.net/11427/43024 ER - | en_ZA |
| dc.identifier.uri | http://hdl.handle.net/11427/43024 | |
| dc.identifier.vancouvercitation | Majachani AF. Residence of an entity for tax purposes – South Africa: a review of the concept ‘place of effective management. []. University of Cape Town ,Faculty of Law ,Centre for Law and Society, 2010 [cited yyyy month dd]. Available from: http://hdl.handle.net/11427/43024 | en_ZA |
| dc.language.iso | en | |
| dc.language.rfc3066 | eng | |
| dc.publisher.department | Centre for Law and Society | |
| dc.publisher.faculty | Faculty of Law | |
| dc.publisher.institution | University of Cape Town | |
| dc.subject | South Africa | |
| dc.subject | tax | |
| dc.title | Residence of an entity for tax purposes – South Africa: a review of the concept ‘place of effective management | |
| dc.type | Thesis / Dissertation | |
| dc.type.qualificationlevel | Masters | |
| dc.type.qualificationlevel | LLM |