Tax planning in the light of tax avoidance provisions in the South African income tax Act Section 103- as amended in the income tax Act No 36 of 1996

Letete, Puseletso Idleatte

Tax planning in the light of tax avoidance provisions in the South African income tax Act Section 103- as amended in the income tax Act No 36 of 1996

Thesis / Dissertation

1997

Publisher

University of Cape Town

Department

Centre for Law and Society

Faculty

Faculty of Law

Abstract

The first question that comes to one's mind, in dealing with question of tax planning and tax avoidance is, what is tax planning? What is its significance in the economy of each particular country? How does it affect every taxpayer and what consequences does it have for the Receiver of Revenue? Every country has got its own system of taxation, depending on the prevailing socio-economic factors. For example, one would not expect that the system of tax existing in the Republic of South Africa would be similar to the one existing in the Kingdom of Lesotho. This difference is brought by the fact that South Africa is a bigger country, with a larger economy. Therefore, the system of tax would be more complex than the one existing in Lesotho. However, one is not suggesting that the size of the country is the determining factor. The determining factor might be related to the economy of each country.