Browsing by Author "Du Plessis, I."

Now showing 1 - 8 of 8
  • Thumbnail Image
    Item
    Die aftrekbaarheid van rente en huurgeld vir inkomstebelastingdoeleindes
    (Juta Law, 2007-01) Taljaard, C.; Du Plessis, I.
    In die onderhawige saak het BP Suid-Afrika (Edms) Beperk ("BPSA") op 'n kwartaallikse grondslag dividende aan sy houermaatskappy, BP Plc, verklaar. Sodanige verklarings is deur die houermaatskappy vereis. BPSA het in die betrokke jaar van aanslag oor verdeelbare reserwes van R683 miljoen beskik welke reserwes die maatskappy volgens getuienis sou wou behou. BP plc het egter sy belegging in Suid-Afrika op daardie stadium as riskant beskou en wou die fondse uit die land neem. Die gevolg was die verklaring van 'n dividend van R683 miljoen.
  • Thumbnail Image
    Item
    A comparative perspective on the "joint-action rule" in the context of business trusts
    (Juta Law Publishing, 2014-01) De Waal, M. J.; Du Plessis, I.
    The "joint-action rule" in South African trust law entails that all trustees must act jointly in order to bind the trust. Non-compliance with the rule will most often lead to the invalidity of a contract between the trustees and an outsider. Hence, in the context of business trusts, the application of the rule may be particularly problematic. We submit that the main reason why the business trust remains a useful institution is that the trust brings with it, through the importation of certain standard features, important advantages that need not be specifically bargained for. However, normal rules of trust law, such as the joint-action rule, must also be complied with. Hence, mechanisms to ameliorate some of the problematical effects of this rule can be put in place, such as provisions stipulating that decisions can be taken by a majority of the trustees, or that the trustees can delegate certain defined duties or powers. It is clear, however, that difficulties remain and that South African courts are still facing challenges in developing this area of trust law. But South Africa is not the only trust jurisdiction where the joint-action rule applies and where mechanisms have been developed to address the difficulties experienced with this rule. Comparing the position in South Africa to that in England, Scotland and Canada (including Québec), a remarkable degree of similarity between South Africa, on the one hand, and the other jurisdictions, on the other, as far as the basic application of the joint-action rule is concerned, can be noted. However, there are a number of differences as well. In many of the other jurisdictions legislation generally plays a much bigger role than in South Africa and it may provide a rich source of ideas for the development of this area of South African trust law.
  • Thumbnail Image
    Item
    Deductibility of royalties: a recent case that ruffled feathers [Discussion of the judgment of Waglay J in case number 11454 in the tax court]
    (Juta Law Publishing, 2006-01) Du Plessis, I.
    INTRODUCTION: The Tax Court, sitting in Cape Town, recently had occasion to consider the deductibility of royalty payments.1 In general it may be said that royalties are payments for the use of another’s intellectual property, such as patents or trade marks. As such, royalty payments are made on a daily basis in the commercial world. It has always been widely accepted that royalty payments are deductible from income in terms of the general deduction formula2 and taxpayers have for years claimed this deduction without objection from the South African Revenue Service. In the case under discussion, the Commissioner for the South African Revenue Service (the ‘‘Commissioner’’) successfully challenged this accepted view regarding the deductibility of royalties, the court finding that the payments were of a capital nature and therefore not deductible.
  • Thumbnail Image
    Item
    Effect of chronological age of beef steers of different maturity types on their growth and carcass characteristics when finished on natural pastures in the arid sub-tropics of South Africa
    (South African Society for Animal Science, 2004) Du Plessis, I.; Hoffman, L. C.
    In the arid sweetveld regions of South Africa producers are marketing beef steers increasingly as long weaners (ca. 12 months of age) or finishing them on the natural grazing to a ready-to-slaughter stage at between 18 and 30 months of age. Limited production norms in this regard are available since most growth and carcass studies have been conducted in the sourveld regions of the country. In this study steers from four different beef maturity types which differ in body frame size were used, viz. Simmentaler crosses (large, >500 kg mature weight), Bonsmara crosses (large-medium, 450-500 kg mature weight), the Afrikaner (small-medium, 400-450 kg mature weight) and the Nguni (small, <400 kg mature weight). After weaning the steers in each type were randomly allocated to three groups, viz. groups slaughtered at 18, 24 or 30 months of age after raising them on natural sweetveld pasture. Live weight, cold carcass weight, carcass fat classification code and number of visible incisors were recorded. Growth rates from weaning to 24 months of age were similar for the different maturity types, though the Afrikaner steers gained significantly less than the Bonsmara crossbreds. Periods where high growth rates occurred (at 12 to 18 months of age and 24 to 30 months of age) coincided with the rainy season. Relatively low dressing percentages were noted and could be attributed to the fact that all internal organs and fat were removed at slaughtering, as well as a possible high level of gut fill. Due to genetic variation within maturity types it was not possible to predict the market readiness of a particular individual from its live weight. The carcass weights were heavier for steers slaughtered at 24 months of age than those at 18 months of age, but had a lower fat classification code. This seems to be due to the fact that these steers were slaughtered at the end of the winter period when the quality of the grazing was at its lowest. The carcasses of all maturity types had the highest fat classification codes at 30 months of age. However, the carcasses of 77.8% of the Simmentaler crossbreds were graded 1 (lean) in the fat classification. Furthermore, at 30 months of age 23.8% of all steers had more than two permanent incisors. This increases their carcass age classification, which lowers their carcass grading according to the South African grading standards, and thus their price per kg relative to the younger ages. The results of this investigation indicated that steers of all frame sizes would have to be fed additional energy to ensure that they finish with a fat classification code of at least 2 before the age of 30 months to ensure optimal financial returns.
  • Thumbnail Image
    Item
    The incorporation of double taxation agreements into South African domestic law
    (2015) Du Plessis, I.
    There are different opinions as to the process whereby double taxation agreements (DTAs) are incorporated into South African law. This contribution aims to discuss some of the existing opinions and to offer a further perspective on the matter. At the heart of the debate lies the interpretation of two provisions, namely section 231 of the Constitution of the Republic of South Africa and section 108 of the Income Tax Act and the interaction between the two. This contribution argues that South Africa's DTAs are not self-executing (a term referred to in section 231(4) of the Constitution) and should therefore be enacted into law by national legislation. It is furthermore argued that section 108(2) of the Income Tax Act enables a DTA to be incorporated into South African domestic law, by means of publication in the Government Gazette. An analysis of the case law supports this argument. Whether or not DTAs are regarded as self-executing, the status of a DTA in relation to the Income Tax Act still has to be determined. In other words, once the DTA forms part of South African domestic law, does it rank higher, lower or on a par with the Income Tax Act? It is submitted that the status of DTAs in South Africa is determined by the Constitution. It is furthermore submitted that South Africa's DTAs do not attain a status on the same level as the Constitution and that the Constitution allows for the possibility that South Africa's DTAs may be overridden by subsequent legislation (for example, by amendments to the Income Tax Act). Whether or not an override will take place in a specific case should, it is submitted, be determined by the application of the principles of statutory interpretation which apply in the case of conflict. Although this latter submission finds support in the minority judgement in Glenister, both the AM Moolla and Tradehold decisions express contrary views. The hope is expressed that the South African courts will provide clarity on this matter in due course.
  • Thumbnail Image
    Item
    Influence of reproduction traits and pre-weaning growth rate on herd efficiency of different beef breed types in an arid sub-tropical environment
    (South African Society for Animal Science, 2006) Du Plessis, I.; Hoffman, L. C.; Calitz, F. J.
    ABSTRACT: The efficiency of Simmentaler cross (SX), Bonsmara cross (BX), Afrikaner (AF) and Nguni (NG) cowherds to produce weaner calves under natural sweetveld conditions was investigated. The respective cowherds were selected to differ with regard to frame size (SX > BX > AF > NG). The AF cows, young (13 to 15 months old) heifers and herd had significantly lower pregnancy rates than the SX, BX and NG cows, young heifers and herds. The weaning rate for NG was significantly higher (15%) than SX, and although not significant, it was still 5 and 8% respectively higher than BX and AF. Weaning weight and pre-weaning growth parameters differed significantly between breed types (SX > BX > AF > NG). Cow efficiency was significantly lower for the AF cows than for the SX, BX and NG cows. The NG herd was more efficient than the other three herds, while the AF herd was the least efficient. Differences in herd efficiency were mainly due to differences in the reproduction rates of the respective herds. The reproduction and calf survival rates were the most important production traits that affected herd efficiency. Management practices should be adapted to maximize the reproduction rate of the females, including the young heifers, to maximise herd efficiency.
  • Thumbnail Image
    Item
    The interpretation of double taxation agreements : a comparative evaluation of recent South African case law
    (Juta Law, 2016-10) Du Plessis, I.
    Vogel and Rust describe the act of interpretation as unfolding a text, to bring it to be understood. The South African courts have recently had a number of opportunities to interpret double taxation agreements entered into by South Africa. For example, in May 2015 the tax court in Johannesburg delivered judgment in a case dealing with the double taxation agreement between South Africa and the United States of America. In August 2015, the supreme court of appeal considered the double taxation agreement between South Africa and Australia. Besides the relevant findings on the merits of the cases, both these judgments contain a number of interesting points regarding the interpretation of double taxation agreements. It is these points regarding interpretation that this contribution aims to examine.
  • Thumbnail Image
    Item
    A South African perspective on some critical issues regarding the OECD model tax convention on income and on capital, with special emphasis on its application to trusts
    (Stellenbosch : Stellenbosch University, 2014-12) Du Plessis, I.; De Waal, M. J.; Du Toit, C. P.; Stellenbosch University. Faculty of Law. Dept. of Private Law.
    ENGLISH ABSTRACT: Trusts are used for a variety of purposes, both in South Africa and abroad. Like so many other entities, trusts often do not function only in one jurisdiction and may therefore be exposed to international double taxation. South Africa, like most other states, enters into bi-lateral double taxation treaties, to limit the effects of international double taxation. Most of these treaties are based on the OECD Model Tax Convention on Income and on Capital (the OECD MTC). The South African trust is a unique creature. It is not based on the dual ownership concept on which most common law trusts are based, yet, it is not a juristic person either. The question that this research aims to address is how South Africa will interpret and apply certain provisions of the OECD MTC to trusts. Although the South African position is investigated, it is compared to the positions of the United Kingdom, Canada and the Netherlands. The dissertation starts with an analysis of the trust law in each of the relevant states, followed by an overview of the taxation regime governing trusts (and the parties thereto) in each state. The status of double taxation treaties and their interpretation are examined before certain critical provisions of the OECD MTC are analysed to determine how South Africa will apply these provisions to trusts. Hence it is explored whether a trust will be regarded as a person, whether it may be a resident and a beneficial owner for purposes of the OECD MTC. Furthermore, possible solutions for conflicts of attribution in the application of double tax conventions to trusts are investigated. The dissertation concludes that South Africa will regard a trust as a person for purposes of the OECD MTC. Moreover, some types of trusts may be viewed as residents and as beneficial owners for purposes of the OECD MTC. The solution proposed in the OECD’s Partnership Report should be applied to resolve conflicts of attribution involving trusts.