Summary
Summary Tax in context - notes
- Course
- BEL200
- Institution
- University Of Pretoria (UP)
In-depth notes fully covering the first section done in BEL200 - 'Tax in Context'.
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Tax in Context:Lecture 1 & 2
Brief history of taxation in South Africa:
Been around since 1600’s – when transfer duty was imposed on property transferred
by sale and customs taxes were imposed on goods imported into the Cape Colony
Taxes were based on a colonial level in the colonies existing at that time, i.e. Cape
Colony, Orange Free state, Natal and Transvaal
resulted in a creation of requirements – most of the taxes were subsequently
nationalized in an attempt to simplify these requirements
Income tax had been levied since the 1800’s, it was only until the early 1900’s when
amendments were made that income tax was transformed into the format we know
today
NB contributors to the transformation of South Africa’s tax system
The Commission of Enquiry into Fiscal and Monetary Policy in RSA (Franzsen
Commission) – issued 2 reports in 1968 & 1986
The Commission of Enquiry into the Tax Structure of the RSA (Margo Commission)
- issued 1 report in 1986
The Commission of Enquiry into Certain Aspects of the Tax Structure of RSA (Katz
Commission) – issued 9 interim reports during 1994 – 1999
The Davis Tax Committee – inquiring into the role of the tax system in
encouraging inclusive growth, employment, development, and fiscal policy in order
to make recommendations to the Minister of Finance
The Legislative Process:
RSA’s tax policy has made serious advancements – 1996 constitution ensures that a
thorough and transparent process is followed to introduce new legislation and to
amend existing legislation
Legislation process issuing of a green paper, then white paper, the Draft Money
Bill, then the act of Parliament
Green paper – policy document intended for public discussion, National Treasury
is the Government Department that deals with tax laws and takes in comments from
the public and may elect to adjust the Green Paper – becomes the White Paper once
adjusted
White paper – more refined version of the Green Paper, it may also be subject to
adjustments, commentary and discussion before being transformed into a draft set
of legislation known as the Draft Money Bill
Draft Money Bill – prepared by the National Treasury and submitted to the
Minister of Finance. Once it has been cabinet approved – it must be reviewed by
state advisors to ensure it does not contradict the Constitution or other laws
Draft Money Bill is then introduced to the Finance Minister in Parliament to the
National Assembly & the National Council of Provinces, then published in the
Government Gazette for public comment
- Only after the Draft Money Bill has successfully passed through Parliament – then
is it submitted to the President for assent
- Once assented by the President, the Draft Money Bill becomes an Act of
Parliament and becomes binding on one of the following dates
, the date the act is published in the government gazette
the date determined in accordance with the Act
Minister of Finance: Enoch Godongwana
Governor of the Reserve Bank: Mr Lesetja Kganyago
Commissioner of SARS: Edward Kieswetter
The Tax Ombud:
The mandate of the Tax Ombud is to review and address any complaint by a taxpayer
regarding a service matter or a procedural or administrative matter arising from the
application of the provisions of a Tax Act by SARS; and review, at the request of the Minister
or at the initiative of the Tax Ombud with the approval of the Minister, any systemic and
emerging issues related to a service matter or the application of the provisions of this Act or
procedural or administrative provisions of a tax Act.
Director-General of National Treasury: Dondo Mogojane
Find three examples of virtual currencies: Bitcoin, Ethereum & Ripple
Find the implementation dates of Sugar tax and Carbon Tax in South Africa:
sugar: April 2018
carbon: 1 June 2019
Lecture 2
CONSTITUTION
Legislation branch Executive branch Judicial branch
Legislation branch
Communication management Informatics Ethics Philosophy
- Run by 2 policies: monetary policy & fiscal policy
- Monetary policy: the control of the quantity of money available in an economy
and the channels by which new money is supplied. By managing the money
supply, a central bank aims to influence macroeconomic factors including
inflation, the rate of consumption, economic growth, and overall liquidity.
- Fiscal policy: where taxation comes in - it seeks to support structural reforms of
the South African economy consistent with long run growth, employment
creation and an equitable distribution of income.
, all goes into the south African economy
- economy, stats, accounting, business management, financial management,
internal auditing/auditing
Executive branch:
- Communication management (social skills) & ethics/philosophy
Judicial branch:
- Communication management
- Commercial law & business law
Ethics
- Def: discipline of dealing with what is good and bad, with moral duty and
obligation
- The principle of conduct governing an individual or group
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