Chapter 1 - Introduction
1.1 Work Programme of the Commission
1.2 Changes in the Membership of the Commission
1.3 Role of the Joint Standing Committee on Finance
1.4 Tax Administration
1.5 Financial and Fiscal Commission
1.6 Holistic Approach to Tax Reform
1.7 Dedicated Taxes and User Charges
1.8 Inflation and Taxation
1.9 The International Dimension of Taxation
1.10 Structure of This Report
1.11 Further Work
1.12 Acknowledgements
Chapter 2 - Towards a Guiding Framework
2.1 Introduction
2.2 Major Considerations
2.3 The Level of Overall Taxation in the Economy
2.4 The Relationship between VAT and Poverty Relief
2.5 The Relationship between Income Tax and Income Distribution
2.6 Efficiency and Effectiveness of the Tax System
2.7 A Transition Strategy
2.8 Recommendations
Chapter 3 - Dedicated Taxes and User Charges
3.1 Background
3.2 Dedicated Taxes and User Charges in Use at Present
3.3 Arguments For and Against Tax Earmarking and User Charges
3.4 Consolidated Revenue and Expenditure Estimates
3.5 Constitutional Provisions
3.6 Local Government Finance
3.7 Comments on Certain Specific Dedicated Tax Proposals
3.8 Compulsory Income-Related User Fees
3.9 Recommendations
Appendix 1: Extra-budgetary Earmarked Taxes and Levies - 1993/94
Appendix 2: General Government Revenue from User Charges, Fees and Sales -
1993/94
Chapter 4 - Land Tax
4.1 Introduction
4.2 Findings
4.3 Recommendation
Chapter 5 - Regional Service Council Levies
5.1 Introduction
5.2 Impact of Changed Circumstances
5.3 Difficulties in the Implementation of Regional Services Council Levies
5.4 Revenue Potential
5.5 Conclusions
5.6 Recommendation
Chapter 6 - Capital Gains Tax
6.1 Introduction
6.2 Defects of the Present Approach in South Africa
6.3 Key Issues in the Design of a Capital Gains Tax System
6.4 The Main Arguments For and Against the Introduction of a Capital Gains Tax
6.5 Revenue Potential
6.6 Conclusion
6.7 Recommendations
Chapter 7 - Capital Taxes
7.1 Introduction
7.2 Approach of the Commission
7.3 Identification of Relevant Issues
7.4 Recommendation
Chapter 8 - Retirement Fund Taxation
Part A: Overview of the Commission's Approach
8.1 Introduction: Size and Structure
8.2 Current Tax Regime
8.3 Funds as Tax Shelters
8.4 Proposals for Reform
Part B: Analysis of Retirement Fund Taxation and Detailed Recommendations
8.5 Tax Deferral and Tax Loss
8.6 Overview of Recommendations
8.7 Contribution Deductibility
8.8 Taxation of Investment and Trading Income
8.9 Taxation of Benefits
8.10 Provident Fund Contributions
8.11 Equality Between Private and Public Sector Funds
8.12 Miscellaneous Issues
8.13 Summary
8.14 Summary of Recommendations
Appendix 1: Principles for Retirement Funding
Chapter 9 - Secondary Tax on Companies and Dividends
9.1 Introduction
9.2 The Conceptual Argument
9.3 Administration
9.4 Fiscal Considerations
9.5 Foreign Considerations
9.6 Cross-Border Problems with Imputation
9.7 A Final Withholding Tax
9.8 Corporate and STC Tax Rates
9.9 Tax Losses, Capital Gains and Exempt Recipients
9.10 Certain Other Issues
9.11 Conclusion
9.12 Recommendations
Appendix 1: Economic Double Taxation - a seven point classification system
Chapter 10 - Group Income Taxation
10.1Introduction
10.2 Advantages and Disadvantages of the Group Base of Company Taxation
10.3 Consolidation or Loss Transfer
10.4 A Gradual Approach
10.5 The Consolidation Method
10.6 Recommendations
Appendix 1: Basic Examples of the Proposed Consolidation Mechanism
Chapter 11 - Tax Avoidance
11.1 Introduction
11.2 The Margo Commission
11.3 Comparative Experience
11.4 Substance over Form - The United Kingdom Approach
11.5 The Approach to the Formulation of a New Anti-Avoidance Provision for South Africa
11.6 The Imposition of Penalty Interest where Anti-Avoidance Provisions are Successfully
Invoked
11.7 Anti-Avoidance Provisions Against Trafficking in Assessed Losses
11.8 Recommendations
Chapter 12 - Statement of Taxpayer Rights
12.1 Introduction
12.2 The Role, Status and Content of a Statement of Taxpayer Rights
12.3 Public Protector and Tax Ombudsman
12.4 Recommendations
Chapter 13 - Further Aspects of the Taxation of Small and Micro-Enterprises
13.1 Introduction
13.2 Definition of a Small Business Undertaking
13.3 Qualification for the Cash Basis of Taxation
13.4 Anti Avoidance Measures
13.5 United Kingdom Business Expansion Scheme
13.6 Recommendations
Chapter 14 - Value Added Tax in Respect of Financial Services
14.1 Introduction
14.2 Qualifications Regarding the Estimates of Yield
14.3 Financial Services Levy
14.4 Recommendations
Chapter 15 - Tax on Gambling
15.1 Introduction
15.2 Constitutional Position
15.3 Gambling in the Erstwhile TBVC States and VAT
15.4 Current Principles Applicable to the Liability of Gambling Transactions to VAT
15.5 Relevant Principles
15.6 Recommendations
Chapter 16 - Employee Share Ownership
16.1 Introduction
16.2 History of Tax Aspects of Employee Share Ownership in South Africa
16.3 Approach of the Commission to Employee Share Schemes
16.4 Benefits of Adopting the Commission's Recommendations
16.5 Recommendations
Chapter 17 - Miscellaneous
17.1 Incentives for Personal Saving
17.2 Marketable Securities Tax
17.3 Taxpayer Education
17.4 Recommendations
Chapter 18 - Summary of Recommendations
Appendix A Written Submissions Received by the Commission
Appendix B Report of the Land Tax Sub-Committee
Appendix C Report of the VAT Sub-Committee into the Taxation of Financial Services
