The taxation of financial derivative instruments in South Africa

The financial derivatives market is by its very nature extremely innovative and new financial instruments are constantly being developed. Financial derivatives, in particular poses a threefold challenge to taxation, i.e. the character of derivative income; the jurisdiction to tax derivatives; and when derivative income is taxed. As such, this dissertation is a discussion on the taxation of financial derivative instruments and seeks to answer the question whether or not the South African tax dispensation can adequately cater for the taxation of financial derivatives. Firstly, the reader is introduced to the most common types of derivative instruments as well as the transactions in which they are utilised. Practical examples are also provided so as to illustrate each derivative contract and/or transaction in question. Secondly the ordinary South African tax principles are discussed with a focus as to their applicability in the taxation of financial derivatives. Thirdly, and by having regard to the position in the United Kingdom, this dissertation answers the aforementioned question by identifying the weaknesses in the South African tax dispensation and providing proposals as to how such weaknesses, in relation to the taxation of financial instruments, can be remedied.

Grantor dc:publisher

University of Pretoria

Year dc:date.issued

2015

Advisor dc:contributor.advisor

• Keulder, Carika

• UCTD
• Taxation

Statement dc:rights

• © 2015 University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria.

Language dc:language.iso

en

Dc Identifier Other

S2015

OAI identifier oai:identifier

oai:repository.up.ac.za:2263/50649