A Demographic Study of South African Attitudes on Tax Evasion

2014 ◽  
Author(s):  
Robert W. McGee ◽  
Adriana Ross
Keyword(s):  
South African ◽  
Tax Evasion ◽  
Demographic Study

scholarly journals Do South African Small Businesses Prefer Conservative Tax Advice To Aggressive Tax Advice?

2012 ◽  
Vol 11 (6) ◽  
pp. 697
Author(s):  
Melissa Lubbe ◽  
Gerhard Nienaber
Keyword(s):  
South Africa ◽  
Small Business ◽  
South African ◽  
Tax Evasion ◽  
Small Businesses ◽  
Tax Compliance ◽  
Rural South ◽  
Tax Practitioners ◽  
Tax Relief ◽  
Compliance Behaviour

Taxpayers relationship with tax practitioners may influence tax compliance behaviour. International research has been inconclusive on whether taxpayers prefer conservative tax approaches or more aggressive approaches. There has been only limited research on taxpayers preferences in South Africa. Several tax relief measures are available to South African small businesses as growing enterprises, but such entities may lack skilled tax staff and they therefore rely on tax practitioners. The first objective of this study is to determine whether such taxpayers prefer conservative or aggressive tax advice from practitioners. The second objective is to determine whether small business taxpayers would continue to use their tax practitioners services if they disagree with a suggested tax approach. Questionnaires were sent to 50 small businesses in a rural South African town. The data showed that most participating small business taxpayers prefer conservative advice but will agree with the tax practitioner, irrespective of the type of tax advice offered. As long as the advice does not involve tax evasion, they prefer to retain a tax practitioners services irrespective of the type of advice and their (dis)agreeing with it.

scholarly journals Tax compliance and behavioural response in South Africa: an alternative investigation

2013 ◽  
Vol 10 (3) ◽  
pp. 357-370 ◽  
Author(s):  
Zurika Robinson ◽  
Rebone Gcabo
Keyword(s):  
South Africa ◽  
South African ◽  
Tax Evasion ◽  
Tax Compliance ◽  
Expected Utility Theory ◽  
Tax Revenue ◽  
Awareness Campaigns ◽  
Tax Amnesty ◽  
Revenue Collection ◽  
Specific Tax

Taxpayer behaviour has in South Africa moved to the forefront of the investigation of revenue collection with regular tax awareness campaigns being launched by the South African Revenue Service (SARS). Issues relating to tax amnesty and the contribution of the informal sector (second economy) to tax revenue have become important. This paper attempts to find explanations, be they economic or psychological, for taxpayer behaviour in South Africa. Factors influencing tax evasion and ultimately collection targets are thus examined. A questionnaire was designed to determine how individuals, in this case a sample of students, respond when filing taxes. Each question frames a scenario to invoke a specific tax regime. The paper’s unique findings show, generally, that behaviour is to a large extent determined by economic factors, specifically inequality as predicted by the expected utility theory. This theory also successfully predicts 50 per cent of the responses to the control questions. The remaining 50 per cent are explained by combined economic and psychological factors, modelled by the prospect theory. This is significant considering the fact that the results were generated within a developing and not a developed context as is the case in most studies of this type.

scholarly journals The illicit cigarette market in six South African townships

2020 ◽  
Vol 29 (Suppl 4) ◽  
pp. s267-s274 ◽  
Author(s):  
Kirsten van der Zee ◽  
Nicole Vellios ◽  
Corné van Walbeek ◽  
Hana Ross
Keyword(s):  
South African ◽  
Low Socioeconomic Status ◽  
Tax Evasion ◽  
Value Added ◽  
Production Costs ◽  
Low Socioeconomic ◽  
The Real ◽  
Excise Tax ◽  
Before And After ◽  
The Government

BackgroundWe estimate the size of the illicit cigarette market in low socioeconomic areas in South Africa before and after a tax increase. In 2018, the real excise tax increased by 3% and the value-added tax (VAT) rate increased from 14% to 15%. Thus, the real tax on cigarettes increased by 4%.MethodsA total of 2427 smokers were interviewed over two rounds of data collection (1234 before the tax increase and 1193 after). Data were collected in six townships across four of South Africa’s nine provinces. Smokers were asked about their most recent cigarette purchase. Cigarettes purchased for R1 (US$0.08) or less per stick are presumed illicit, based on a threshold price, which includes production costs and taxes.ResultsIn 2017 and 2018 respectively, 34.6% and 36.4% of smokers in the sample purchased illicit cigarettes. The increase in the proportion of illicit purchases was not statistically significant. Smokers with relatively low socioeconomic status, those who have low levels of education and those who are older or unemployed are most likely to purchase illicit cigarettes.ConclusionsThe illicit cigarette trade in South African townships is widespread. The government should implement an independent track and trace system to curb tax evasion. This would reduce the availability of illicit cigarettes, improve public health and increase excise tax collection.

scholarly journals The Role of a Tax Legal Specialist within South African Revenue Service during initiation of Tax Audits

2021 ◽  
Author(s):  
Kgabo Freddy Masehela ◽  
King Costa
Keyword(s):  
South African ◽  
Tax Evasion ◽  
Research Question ◽  
Tax Avoidance ◽  
Tax Compliance ◽  
Regulatory Frameworks ◽  
Systematic Methodology ◽  
Mapping Review ◽  
Effectiveness And Efficiency

The problem of tax compliance and tax evasion continually results in a plethora of impediments for tax regulators in South Africa and globally. An alarming number of corporate governance scandals always have an element of tax compliance issues in them. The state of unresolved SARS Audit cases, costly litigations and prolonged arbitration from the tax Ombudsman is an issue of concern and subject of this study. This is further exacerbated by technicalities emanating from legal perspectives, statutory dimensions, and regulatory frameworks. It is for this reason that this seeks to answer the question “What is the role of a tax legal specialist within SARS during initiation of tax audits?”A comprehensive literature analysis, hinged upon mapping review, which is a typology of systematic methodology was conducted to respond to the above-mentioned research question. Mapping reviews are useful when researchers seek to understand literature on a particular phenomenon which might provide a basis for further investigation. The inclusion/exclusion criteria required articles to be between 2014 and 2020 and were supposed to be focused on tax evasion, tax avoidance and current means to combat these classified fraud activities. This resulted in 10 studies included as part of the review. Analysis followed thematic approaches using the COSTA QDA Technique on webQDA cloud-computing software. The study found out that effectiveness and efficiency tax audits was handicapped by lack of competent tax legal audit specialist.

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