Masters Degrees (Accounting)

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Determination of the taxable income of certain persons from international transactions : transfer pricing.
(2004) Govindsamy, Kevin.; Deodutt, Jugjith.
Many intra-firm transactions are non-market transactions and therefore lack a market determined price. A transfer price is the price assigned to such nonmarket intra-firm transfers. Transfer prices are especially important for multinational corporations, since a parent company typically has subsidiaries or branches in other countries and transfers are often made between the component parts of the multinational. As the world has become more internationally dependent, these transactions and the associated transfer prices have come under increased scrutiny. The fear often expressed by governments is that a multinational corporation may manipulate transfer prices in order to transfer profits from one country to another, and thereby affect various government policies. Most notably, transfer prices can affect the tax revenues of both the home and host country. A general international consensus is that the appropriate transfer price is the 'arm's length' price. This is the price that would be charged by two unrelated parties. However, it is often difficult to find such a comparable transaction.
An investigation into earnings per share disclosures in South Africa.
(2004) Harrod, Keith.; Stainbank, Lesley June.
This dissertation examines Earning per share (EPS) as a disclosure requirement for listed companies by investigating firstly, EPS disclosures in annual reports of certain selected JSE listed companies and secondly, the attitudes of the preparers of those annual reports to a number of issues relating to EPS. The three mandatory EPS disclosures - Basic EPS, Diluted EPS and Headline EPS - are discussed with a view to determining their information content and reporting framework. This study also considers whether cash based measures of performance are better than earnings based measures. Due to the reliance placed on reported EPS numbers this study attempts, by an examination of annual reports, to provide evidence as to whether or not South African companies are correctly calculating and disclosing the various EPS measures. By means of a questionnaire survey into the attitudes of the preparers of annual reports, this study also attempts to provide evidence as to the importance of the EPS measures as well as the preparers' perceptions on the appropriateness of the Headline earnings definition. The annual report survey into EPS disclosures revealed that South African companies are correctly calculating and disclosing Basic EPS. Even-though all companies correctly calculate Diluted EPS, most companies do not properly disclose Diluted EPS information. As far as Headline EPS is concerned, the annual report survey revealed that many South African companies make disallowed Headline earnings adjustments with most offenders disclosing higher Headline EPS numbers as a result. The survey into the attitudes of preparers of company reports towards various matters concerning EPS revealed that preparers of annual reports consider Headline EPS to be the most important earnings based measure of performance and the adopted Headline earnings definition as being appropriate. It is therefore important that companies calculate and disclose Headline EPS correctly.
The impact of privatisation : ownership and corporate performance in Lesotho.
(2005) Makafane, Thabo Victor.; Stainbank, Lesley June.
Across the globe, privatisation has become one of the key instruments in the economic reform process. The study investigates the impact of privatisation on selected privatised firms in Lesotho. An evaluation was made of former parastatals that included the Government of Lesotho directly-owned enterprises and Lesotho Bank companies that had since been privati sed, after being declared poor performers and that had been regular recipients of Government subsidies for their survival. The country is in the process of rebuilding its economy after experiencing a major setback in its economy in the late 1990's due to a political crisis. Privatisation was seen as one way of fulfilling this enormous task. Hence, the Government of Lesotho decided to offload some of its enterprises to the public whom they believed to be capable of running them in a profitoriented manner given efficient management and fresh capitalisation. Public participation through share ownership is involved in this process therefore it is important to evaluate these companies' performances. Shareholders are primarily interested in improving their values through maximising profits, and in tum getting high returns. This study also measures the effects of privatisation in Lesotho in terms of its contributions to the welfare of shareholders and individual corporate performances, with emphasis on the theoretical background to the subject and the opinions of directors, managements and employees of selected companies towards the critical performance changes that occurred in the pre and post privatisation era ranging from the late 1990s to date. After the analysis, the investigation revealed that the selected companies performed indifferently. Some organisations managed to grow financially and in size, while others struggled in the new competitive environments. Whilst the study did not show their individual financial performances, it did highlight the effects of privatisation on these companies in an economic manner. It was also established that Lesotho had significantly different objectives ofprivatisation to those of other countries especially developed ones. Key Words: Privatisation, state-owned enterprise, shareholders, ownership, corporate performance, Lesotho, economy, private sector, public sector.
A discussion of a tax culture from a South African perspective.
(2005) Reddy, Yugavelli (Sandra); Ally, Liaquath Cassim.
Abstact unavailable.
Residence status and its implications on income and capital gains tax.
(2004) Labuschagne, Trevor.; Sullivan, Phillip Lester.
As the international markets opened up it became imperative that the for South African taxation system be brought into line with those of its major trading partners whose tax systems are residence based. For South Africans the change to a residence base and the introduction of Capital Gains Tax in 2001 drastically altered the previous source-based tax playing fields. The purpose of this research is to investigate all aspects of residence and its effect on natural persons as well as other legal personae and to discuss how the various forms of income are affected by the new tax dispensation. The position in other fiscal dispositions is also scrutinised to give the reader a more comprehensive understanding of residence-based taxation as applied by some of South Africa's major trading partners. For foreign nationals residing in South Africa, the new system has also had its negative impact. Previously, their foreign earnings were free from local tax because of the old source base system, but this has also changed. The South African legal system is also thoroughly canvassed regarding two important concepts, namely, "resident" and "ordinary resident" and what are meant by them in terms of tax law. These concepts have also enjoyed the scrutiny of the other fiscal dispensations legal systems reviewed. Residence tests to determine the tax status of a person in South Africa and in other fiscal dispensations are investigated in this study to give anyone wishing to emigrate to other climes, a better understanding of what they can expect from a taxation point of view from the fiscal authorities there. The impact of residence on most forms of income is discussed including that of foreign workers and on other legal entities such as companies, while Capital Gains Tax, and the importance of residence on this tax is also canvassed by this study. The study concludes with a review of the standard Double Tax Agreement concluded by South Africa with most other countries and lists those countries with which it has such agreements.
A survey of South African registered Accountants' and Auditors' attitudes towards differential corporate reporting.
(2004) Wells, Michael John Cuthbert.; Stainbank, Lesley June.
The aim of this dissertation is to investigate aspects of the differential corporate reporting debate in South Africa. The dissertation summarises the background to the current position and findings in respect of all previous South African research and selected previous international research. The dissertation reports the results of a postal survey of South African registered accountants' and auditors' perceptions of the suitability of selected South African statements of generally accepted accounting practice to a range of South African entities varied by size, legal form and financial statement user base. The dissertation provides evidence of (i) the need for differential corporate reporting in South Africa, (ii) the need for multiple differential reporting thresholds in South Africa, and (iii) the need for differential reporting options to include both presentation and disclosure and recognition and measurement concessions. The dissertation also raises some questions for future research.
Tax and other incentives to small, medium, micro enterprises in South Africa.
(2004) Pancha, Bhagwandas Bhana.; Haffejee, M.
The promotion of Small, Medium and Micro enterprises (SMMEs) has been identified as key strategy of government for employment creation and income generation. For some time now small business owners had to fend for themselves. Small business was neglected and was in the main ignored by government. Since the 1994 democratic process the challenge for the new order has been to create an enabling environment for the small business sector of the economy. The historical neglect and the consequent policy vacuum has had to be re assessed. To this end the 1995 White Paper on a National Strategy for the development and Promotion of Small Business in South Africa was the first major effort by government to design a policy framework targeting the small business sector. The promulgation of the Small Business Act in 1996 and the establishment of the Ntsika Enterprise Promotion agency under the aegis of the Department of Trade and Industry has attempted to provide direction and facilitate the provision of Non Financial support to the Small Business Sector. Various incentive schemes have been developed and put into operation together with a range of tax incentives to help promote Small Business. Eight years have passed since the promulgation of the Small Business Act and the perception that finance for SMMEs has been the greatest stumbling block to development. However the failure of the vast numbers of micro lending agencies have revealed that low levels of entrepreneurship has led to their demise. The provision of meaningful positive incentives need to be measured and their effectiveness needs to be tested. This study will try and identify the incentives available.
The approach by our courts of the apportionment of expenditure in terms of section 11(a) read with section 23(g) of the Income Tax Act no. 58 of 1962.
(2004) Ngubane, Dumisani Richard.; Hafejee, M.
The primary aim of a dissertation is to try to discover information that could assist in solving a particular problem at hand. The object of this dissertation is to determine the approach by our courts to apportionment of expenditure in terms of section 11(a) read with section 23(g) of the Income Tax Act No 58 of 1962. A single expenditure incurred for more than one purpose poses a problem when deduction of such an expenditure, is sought by a taxpayer. The problem that ttie courts have always encountered when dealing with the deductibility of expenditure incurred for a dual purpose, is that there is no provision in the Income Tax Act that directs what to do when faced with such a problem. The courts have always chosen apportionment of expenditure as a solution to the deductibility of expenditure incurred for more than one purpose, one such purpose being for tax purposes and the other being for non tax purposes. Apportionment of expenditure is used as a device to allocate part of the expenditure, which was incurred to produce income, as taxable expenditure, and another part of that expenditure which was incurred to produce non-taxable income, as non-deductible expenditure. This dissertation seeks to find out whether courts do take into consideration the provisions of the Income Tax Act applicable to the deduction of expenditure when called upon to make a decision on a particular case. The South African Revenue Services use apportionment of expenditure where it deems appropriate and the courts have never opposed it. The Legislature, which is responsible for the enactment of the act, seems to be happy to lie low, and allow the courts to dominate in handling the disputes that arise as a result of expenditure incurred with a dual purpose. It has been suggested that whilst the Income Tax Act does not provide any direction in situations where the deductibility of dual purposes expenditure is in dispute, apportionment is implied in the terms of section 11(a) read with section 23(g) of the Income Tax Act no 58 of 1962. The main aim of this research is to establish whether the path taken by the courts is the correct one in terms of section 11(a) and section 23(g) of the Income Tax Act no 58 of 1962. It is hoped that this work will be of assistance to both The South African Revenue Services and the taxpayers at large in terms of understanding that the courts are within the bounds of the Act.
The predictive value of school performance on the success of students in the accountancy stream at the University of Natal, Pietermaritzburg.
(2006) Millar, Ingrid.; Stobie, Bruce.
Higher education in South Africa is currently undergoing enormous transformation with the traditional matric certificate being replaced by the new school leaving Further Education and Training Certificate (FETC). As a result the use of matric points as an entry requirement for prospective university students will no longer be possible with effect from 2008. The Education Ministry intends setting national admission criteria to which all of the country's universities and technikons would have to adhere. It is therefore an appropriate time to examine existing selection criteria and determine whether they achieve equity in the distribution of opportunities and provide fair chances of success to all those who wish to achieve their potential through higher education. The aim of this research is to find empirical evidence as to the predictive value, if any, of matric points on students' performance at university in the field of accountancy, and to establish whether a good mathematics result is a necessary prerequisite to studying accountancy as a major at university. In order to achieve this a longitudinal study using correlational and linear regression analyses was conducted on the results of two groups of students as they progressed from first year through to fourth year at the University of Natal, Pietermaritzburg. The results showed that at the first and second-year levels there was indeed a positive linear relationship between the final marks of the first-year students and both the matric points held by those students and their matric mathematics results. The results of the linear regression analysis indicated that matric points are a stronger predictor of success in the first-year and second-year accounting course than the matric mathematics results. At third and fourth-year levels, the analyses revealed a moderately positive linear relationship between performance in these two courses and the matric mathematics results. Interestingly, at this level matric mathematics became a more important predictor of performance than matric points. While it may no longer be possible to use matric points as an entry requirement for university study due to the phasing out of the current matriculation certificate, it would seem obvious that some measure of high school performance would also benefit the selectors in providing access to those students most likely to succeed. This study has shown that school performance and mathematics ability, which have a significant impact on the performance of students in the accountancy programme at university, are important factors which cannot be ignored in whatever model is devised for selection.
Section 31 : transfer pricing and thin capitalisation.
(2000) Govender, Shane.; Mitchell, Lindsay.
The aim of this technical report is to provide a detailed and informative understanding of transfer pricing and thin capitalisation. The South African Act that is the subject of this technical report is the Income Tax Act, No.58 of 1962. The principal South African taxes dealt with in this technical report are as follows: • Normal Tax • Secondary tax on companies.
The use of earnings per share disclosures in annual financial statements by managers of South African equity unit trust portfolios as a performance indicator.
(2000) Suliman, Yasmeen.; Jackson, Robert David Charles.
The earnings per share ratio is often quoted in financial publications as an indictor of how well a company has performed financially. However, there is much controversy over the usefulness of earnings per share information, especially in respect of its potential for manipulation by the preparers of financial information. Recent changes to South African accounting standards through the International Harmonisation Project resulted in a revision of the Statement of Generally Accepted Accounting Practice 104: Earnings per Share (AC104). Significant changes to the method of calculation and disclosure of both basic and diluted earnings per share were implemented. Unit trusts have gained popularity in South Africa over the past decade. Members of the public prefer to invest on the Johannesburg .Stock Exchange through intermediaries such as unit trusts rather than undertake investment decisions personally. Unit trust portfolio managers are in an important and a responsible position: they wield significant power on the stock exchange with their daily dealings in shares but they also carry the responsibility of making sound investment decisions. Research has tended to focus more on earnings than earnings per share. A review of literature and prior research revealed several controversial issues: the usefulness of earnings in making investment decisions, the susceptibility of both earnings and earnings per share to manipulation, the predictive value of earnings, the use of earnings in the valuation of securities and the use of earnings and earnings per share in performance measurement. The research problem was thus developed as follows: are the earnings per share disclosures of South African listed companies sufficient to meet the needs of equity unit trust portfolio managers in South Africa as a performance indicator, and if not, what additional information do they require? In addressing the research problem, the following four objectives were formulated: (i) to determine what changes have been made to earnings per share calculation and disclosure by the issue of the new ACI04, (ii) to determine what characteristics South African equity unit trust portfolio managers regard as indicative of a good financial performance indicator, (iii) to determine what impact the changes made to the earnings per share calculation and disclosure by the new AC104 has had on the use of earnings per share information by South African unit trust portfolio managers as a performance indicator, and (iv) to determine the extent of use of other similar performance indicators, such as headline earnings per share and cash flows per share, as compared to earnings per share. In order to meet these objectives, it was necessary to conduct a survey of South African equity unit trust portfolio managers. The descriptive survey method was identified as being appropriate and a mailed survey was undertaken. The main conclusions to this research were that: (i) the characteristics of a useful performance indicator are related to reliability, consistency, comparability, adequate disclosure and ease of computation and understanding, (ii) equity unit trust portfolio managers regard the changes to the calculation and disclosure of basic earnings per share to be improvements to the standard but their use of basic earnings per share as a performance indicator has remained unchanged, (iii) equity unit trust portfolio managers regard the changes to the calculation and disclosure of diluted earnings per share to be improvements to the standard and their use of diluted earnings per share as a performance indicator has, as a result, increased, (iv) headline earnings per share and diluted earnings per share are considered to be better performance indicators and are used more frequently as performance indicators than basic earnings per share. Thus the research project achieved its objectives. In addition, interesting findings in respect of other issues were identified. Further areas for research were also identified.
The constitutional validity of the search and seizure provisions in the fiscal laws and how they impact on the taxpayer's constitutional rights.
(2002) Tulwana, Mcebisi James.; Deodutt, Jugjith.
No abstract available.
An analysis of the approach of the courts in determining the capital or revenue nature of income and expenditure.
(2002) Maliti, T. L. C.; Garach, D.; Sullivan, Phillip Lester.
The aim of this research is to analyse the approach of the courts in determining the capital and revenue nature of income and expenditure.
A critical analysis of fringe benefits in South Africa.
(2002) Nkosi, Alfred Sandile.; Garach, D.; Sullivan, Phillip Lester.
No abstract provided.
Tax implications of a credit agreement.
(2001) Kotze, Tian.; Mitchell, Lindsay David.
The aim of this dissertation is to provide a detailed analysis of, and commentary on, the tax implications of a credit agreement, based on current legislation, case law and practice as applied by the Commissioner. The South African Acts that are the subject of this dissertation are as follows: • The Income Tax Act 58 of 1962 (as amended). • The Value-Added Tax Act 89 of 1991 (as amended). The principal South African taxes dealt with in this dissertation are as follows: • Normal tax. • Value-added tax.
An investigation of the resident based tax system and its impact on the general scheme of the Income Tax Act No. 58 of 1962.
(2005) Naidoo, Sugandran.; Ally, Liaquath Cassim.
No abstract available.
Estate planning.
(2002) Garach, Persen Govin.; Garach, D.; Sullivan, Phillip Lester.
No abstract available.
The impact of the business purpose test on section 103(1)
(1999) Jonsson, Jennifer.; Mitchell, Lindsay David.
The aim of this collection of essays is to provide a detailed and critical commentary on and analysis of the legislation and case law relating to the impact of the 'business purposes test' on section 103(1) of the Income Tax Act. The Income Tax Act No. 58 of 162 and case law that are the subject of these essays were promulgated on or before 28 February 1999.
A critical commentary on and analysis of the general anti-avoidance section in the Income Tax Act 58 of 1962 paying particular attention to the introduction of the so-called business purpose test.
(1999) Ismail, Yusuf.; Mitchell, Lindsay David.
The aim of this technical report is to provide a detailed and critical commentary on and analysis of the general anti-avoidance section in the Income Tax Act 58 of 1962 paying particular attention to the introduction of the so-called business purpose test. The South African Acts that are the subject of this technical report are as follows: • The Income Tax Act 58 of 1962. • The Income Tax Act 21 of 1995. • The Income Tax Act 36 of 1996. • The Revenue Laws Amendment Act 46 of 1996. • The General Law Amendment Act 49 of 1996. • The Income Tax Act 28 of 1997. • The South African Revenue Service Act 34 of 1997. • The Estate Duty Act 45 of 1955. • The Value-Added Tax Act 89 of 1991. • The Transfer Duty Act 40 of 1949. The principal South African taxes dealt with in this technical report are as follows: • Normal Tax. • Donations Tax. • Estate Duty. Also covered is the legislation contained in the abovementioned Acts affecting estate planning schemes, generation skipping devices, income splitting schemes and tax avoidance schemes.
Segment reporting and trade unions in South Africa.
(1997) Peters, Linda Dawn.; Jackson, Robert David Charles.
During the early 1970's two trends emerged in the South African business environment. The first trend was that the number of diversified enterprises started increasing, and the second trend was that there was a steady increase in the activities and power of trade unions. These two trends were considered during the evaluation of prior research on the topic of segment reporting. Prior research on segment reporting focused on the usefulness of segment reporting, the problems associated with segment identification, the objections to providing segment information, and the extent to which diversified companies disclose segment information. Using the trends identified and the prior research, the research problem developed was as follows: are the segment disclosures of South African listed companies sufficient to meet the information needs of trade unions in South Africa, and if not, what additional information do trade unions require? The research problem was limited to listed companies as it was identified that trade unions may experience difficulty in obtaining information which is not available to the general public. In addressing the problem, the following three objectives were formulated: (i) to determine if trade unions use segment information, (ii) to determine what their requirements are in respect of segment information, and (iii) if trade unions do not use segment information, to determine why segment information is not used. In order to achieve these three objectives, it was necessary to conduct a survey of trade unions on their use of segment information. This survey was undertaken as a series of replicative case studies with the primary data being obtained by means of interviews. Generalisations were then made about the use that trade unions make of segment information. The main conclusions to this research were: (i) trade unions use segment information unless they are part of a national bargaining forum, (ii) trade unions consider segment information to be at least as useful as consolidated information, and (iii) trade unions use segment information primarily to form the basis for wage negotiations and to assess overall company performance. Once these conclusions had been drawn, the results were compared to results of a survey of investment analysts in South Africa, and evaluated against proposals contained in the International Exposure Draft (E51) on segment reporting. There were similarities between the segment itnformation needs of trade unions and investment analysts, although the trade unions required more information regarding employees and the remuneration of management. Trade unions also indicated that the proposals contained in the exposure draft would be acceptable, although the unions would require more employee information on a segment basis to be disclosed. Thus, the research project achieved its objectives. In addition, areas for further research within the area of segment reporting were identified.

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