The impact of IFRS 17 transition mechanisms legislated by tax authorities on the GloBE effective tax rate of South Africa headquartered insurers

dc.contributor.advisorFutter, Alison
dc.contributor.authorModise, Keletso
dc.date.accessioned2025-12-23T07:38:06Z
dc.date.available2025-12-23T07:38:06Z
dc.date.issued2025
dc.date.updated2025-12-23T07:36:30Z
dc.description.abstractDuring 2021 the Organization for Economic and Cooperative Development (‘OECD') released the Global Anti-Base Erosion Rules (‘GloBE Rules') as part of a two-pillar solution to address the challenges identified regarding the digitization of the economy. This significant development was preceded by the release of IFRS 17 Insurance Contracts in the same year and is issued by the International Accounting Standards Board. IFRS 17 is the culmination of a multi-year two phase project aimed at developing what is considered the first truly international insurance contract standard. The combination of the implementation of these two key developments and the practical impact of them on long-term insurers has not yet been fully ascertained. The research conducted seeks to determine the extent to which the transition mechanism legislated by tax authorities in response to and in preparation for the transition to IFRS 17 may impact the effective tax rate computed under the GloBE Rules. In addressing the research problem a two-pronged approach was taken, the first being a comparative analysis between the transition mechanisms opted for by tax authorities in South Africa and the United Kingdom, and the second being a case study using Discovery Limited, a South Africa headquartered MNE Group as the subject to illustrate the potential impact of the former, on the effective tax rate in the jurisdictions it operates in. The research indicated that the tax transition approach may have a significant impact on the effective tax rate of long-term insurers headquartered in South Africa resulting in the liability for top-up taxes.
dc.identifier.apacitationModise, K. (2025). <i>The impact of IFRS 17 transition mechanisms legislated by tax authorities on the GloBE effective tax rate of South Africa headquartered insurers</i>. (). University of Cape Town ,Faculty of Commerce ,Department of Finance and Tax. Retrieved from http://hdl.handle.net/11427/42480en_ZA
dc.identifier.chicagocitationModise, Keletso. <i>"The impact of IFRS 17 transition mechanisms legislated by tax authorities on the GloBE effective tax rate of South Africa headquartered insurers."</i> ., University of Cape Town ,Faculty of Commerce ,Department of Finance and Tax, 2025. http://hdl.handle.net/11427/42480en_ZA
dc.identifier.citationModise, K. 2025. The impact of IFRS 17 transition mechanisms legislated by tax authorities on the GloBE effective tax rate of South Africa headquartered insurers. . University of Cape Town ,Faculty of Commerce ,Department of Finance and Tax. http://hdl.handle.net/11427/42480en_ZA
dc.identifier.ris TY - Thesis / Dissertation AU - Modise, Keletso AB - During 2021 the Organization for Economic and Cooperative Development (‘OECD') released the Global Anti-Base Erosion Rules (‘GloBE Rules') as part of a two-pillar solution to address the challenges identified regarding the digitization of the economy. This significant development was preceded by the release of IFRS 17 Insurance Contracts in the same year and is issued by the International Accounting Standards Board. IFRS 17 is the culmination of a multi-year two phase project aimed at developing what is considered the first truly international insurance contract standard. The combination of the implementation of these two key developments and the practical impact of them on long-term insurers has not yet been fully ascertained. The research conducted seeks to determine the extent to which the transition mechanism legislated by tax authorities in response to and in preparation for the transition to IFRS 17 may impact the effective tax rate computed under the GloBE Rules. In addressing the research problem a two-pronged approach was taken, the first being a comparative analysis between the transition mechanisms opted for by tax authorities in South Africa and the United Kingdom, and the second being a case study using Discovery Limited, a South Africa headquartered MNE Group as the subject to illustrate the potential impact of the former, on the effective tax rate in the jurisdictions it operates in. The research indicated that the tax transition approach may have a significant impact on the effective tax rate of long-term insurers headquartered in South Africa resulting in the liability for top-up taxes. DA - 2025 DB - OpenUCT DP - University of Cape Town KW - finance LK - https://open.uct.ac.za PB - University of Cape Town PY - 2025 T1 - The impact of IFRS 17 transition mechanisms legislated by tax authorities on the GloBE effective tax rate of South Africa headquartered insurers TI - The impact of IFRS 17 transition mechanisms legislated by tax authorities on the GloBE effective tax rate of South Africa headquartered insurers UR - http://hdl.handle.net/11427/42480 ER - en_ZA
dc.identifier.urihttp://hdl.handle.net/11427/42480
dc.identifier.vancouvercitationModise K. The impact of IFRS 17 transition mechanisms legislated by tax authorities on the GloBE effective tax rate of South Africa headquartered insurers. []. University of Cape Town ,Faculty of Commerce ,Department of Finance and Tax, 2025 [cited yyyy month dd]. Available from: http://hdl.handle.net/11427/42480en_ZA
dc.language.isoen
dc.language.rfc3066eng
dc.publisher.departmentDepartment of Finance and Tax
dc.publisher.facultyFaculty of Commerce
dc.publisher.institutionUniversity of Cape Town
dc.subjectfinance
dc.titleThe impact of IFRS 17 transition mechanisms legislated by tax authorities on the GloBE effective tax rate of South Africa headquartered insurers
dc.typeThesis / Dissertation
dc.type.qualificationlevelMasters
dc.type.qualificationlevelMCom
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