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The poor performance of learners in the 2017 National Senior Certificate accounting paper has raised concern. One way to improve the results in accounting over time is to ensure that the first introduction of accounting as financial literacy in the senior phase is done properly. The training of Grade 8 and/or 9 financial literacy teachers was therefore the main focus of this study. We investigated whether an intervention (a 2-day workshop aimed to improve teachers' understanding of financial literacy) could be an effective tool to improve the financial literacy of Grade 8 and/or 9 economic and management sciences teachers in the Western Cape. One hundred and two participants volunteered to write a pre-test (Test A or B) before the commencement of the workshop and 93 participants volunteered to write a post-test (a different but corresponding test to the pre-test) after the completion of the workshop. Only Grade 8 and/or 9 financial literacy teachers who attended the workshop and who completed the consent form were eligible to be part of the study. Mixed model analysis of variance (ANOVA) tests were performed on quantitative data. A generalised estimating equation model (GEE) was used for the interpretation of individual content questions and the Spearman test was performed on Likert-scale answers to evaluate correlations. The results reveal that the participants performed significantly better in the post-test. The results also show that participants were capable of defining basic accounting concepts but struggled to determine cost of sales. Future workshops based on financial literacy teachers' abilities are encouraged. Teachers with more experience could benefit from learning new teaching methodologies, while teachers with less experience will definitely benefit from a workshop where content is taught in detail.

Motivation: Numerous international studies have been conducted to determine the effect of board composition on tax aggressiveness, and ultimately the effective tax rate (ETR) of firms, but to the best of the author's knowledge, no similar research from a South African perspective has been conducted.Purpose: This study explores the association between board composition and the ETR of South African Johannesburg Stock Exchange (JSE)-listed firms for the period 2012 to 2021 to obtain an understanding of how corporate governance attributes affect the ETR of firms.Design and methodology: A sample of 40 firms is purposively selected from the top 200 JSE-listed firms based on market capitalisation on 31 December 2021. The study employs a quantitative approach by applying the panel data multivariate regression model.Main findings: The study shows that board size, as a corporate governance attribute, is a determinant of the ETR of South African JSE-listed firms. Additionally, other board composition-related corporate governance attributes such as independence, gender diversity, and director shareholding showed no substantial association with the ETR.Practical implications: The results of this study indicate that the board of directors – specifically its composition – is successful in its role of ensuring that the firm is, and is seen to be, a responsible corporate citizen by paying its fair share of taxes.Novelty: This study is the first to offer empirical evidence linking board composition to South African JSE-listed firms’ ETRs. The result of the study therefore fills a research gap and has the potential to guide board governance committees and increase directors’ awareness of their tax-related roles. [ABSTRACT FROM AUTHOR]

A recent development in the financial service industry is the introduction of the fractional share right that allows a retail investor to invest in a fraction of a listed equity share. Fractional share right is not defined in the Income Tax Act No. 58 of 1962 ('the Act'), nor has it been subject to scrutiny in South African courts. Uncertainty exists regarding the normal tax implications of fractional share rights in South Africa. This article investigated the possible normal tax implications of a fractional share right for a retail investor. The research followed a qualitative approach through the analysis of primary and secondary sources. The article established that a fractional share right is essentially a contract for difference, with a fraction of a listed equity share serving as the reference instrument. It was ascertained, based on a combination of the integration and bifurcation approaches, that a contract for difference in respect of a fractional share right constitutes a financial instrument for purposes of the Act. Due to the absence of specific provisions in the Act dealing with the normal taxation of financial instruments for retail investors, it was ascertained that the amounts stemming from the contract for difference in respect of a fractional share right may be taxed according to the general provisions of the Act – sections 1(1) and 11(a) of the Act. [ABSTRACT FROM AUTHOR]

Gap cover policies cover the shortfall between medical scheme benefits and the rates the service providers charge and are therefore used by individuals in South Africa to supplement payments of medical expenditure not covered by private medical schemes. Little information is available about the tax consequences of gap cover. The objective of this study is to provide a critical analysis of the issues in the normal tax treatment of gap cover for individual taxpayers in South Africa, and to make recommendations to the South African Revenue Service to mitigate these issues or practical problems. A non-empirical study based on existing literature was performed which includes a critical evaluation and analysis of gap cover policies and existing tax legislation. It is found that gap cover refunds should be subtracted from the qualifying medical expenditure used in the medical tax credit under section 6B of the Income Tax Act No. 58 of 1962. Various factors may lead to incorrect information being reported on the income tax return, this may lead to a section 6B tax credit to which the taxpayer is not entitled, or which is in excess of what the taxpayer is entitled to. It is found that gap cover contributions are not deductible and that not allowing gap cover contributions as a deduction or as a tax credit detracts from the principles of taxation. [ABSTRACT FROM AUTHOR]

The corporate effective tax rates (ETRs) of South African firms listed on the Johannesburg Stock Exchange (JSE) were examined for the period 2009 to 2017 to determine if there were any changes over this period. The study further investigated the determinants of the corporate ETRs at firm level for the same firms. Determinants which could possibly affect the ETR were identified based on theories established as well as firm characteristics, such as size, leverage, capital and inventory intensity, and profitability. Panel data of 38 firms (342 firm-years) were obtained from the IRESS database in respect of these variables. The data were then analysed using the random effect model. Empirical results indicate that the corporate ETRs of South African JSE-listed firms do not differ considerably from the corporate statutory tax rate. Although the findings show that more profitable and capital-intensive firms engage in tax strategies that result in lower ETRs, only a small portion of the variance in ETRs can be explained. In general, it can be concluded that the levying of corporate income tax in South Africa appears to be fairly neutral and tax incentives are not significantly influential on the corporate ETR. [ABSTRACT FROM AUTHOR]

Background: The use of bitcoin in South Africa is fairly new, but has increased as several online retailers now accept bitcoin as a means of payment. The South African Revenue Service has released a media statement regarding the normal tax treatment of cryptocurrencies (such as bitcoin), but policy regarding the value-added tax (VAT) treatment of cryptocurrencies is still pending. Aim: The objective of the study is to determine the output tax consequences for a South African VAT vendor who receives bitcoins in exchange for the supply of goods or services that are subject to VAT, and when the same South African VAT vendor exchanges the bitcoins for South African rand at a local exchange platform. Setting: This article examines existing literature in a South African VAT environment. Method: A non-empirical study based on existing literature is performed. Results: It is found that when interpreting the (current) VAT Act No. 89 of 1991, the receiving of bitcoin in exchange for the supply of goods or services, as well as the exchange of bitcoin for South African rand, is subject to output tax at the standard rate of 14%, which will lead to 'double taxation'. Conclusion: It was shown through this study that the proposed treatment as explained in the previous section would impose 'double taxation'. Keywords: Bitcoin; Output tax; VAT; VAT Act No. 89 of 1991; South Africa. [ABSTRACT FROM AUTHOR]