CGF Research Institute (Pty) Ltd

Governance of Income Tax


Fiscal evasion is both an undesirable and a criminal practice. There is more ambiguity however, over the meaning of tax avoidance and tax mitigation. The confusion extends to what is ‘impermissible’ tax avoidance and legitimate mitigation through tax planning. This reflects the very dynamic and changing nature of tax regulations. As a consequence, companies need to ensure that the process of managing their fiscal affairs is adequately governed.


Globalization, deregulation and technological advances have led to increasingly sophisticated and aggressive impermissible tax avoidance schemes. In addition, the inherent ‘discontinuities’ in any tax system, together with complex new financial instruments have made it clear that specific anti-avoidance legislation is insufficient on its own to solve the problem. This has highlighted the need in South Africa for a stronger General Anti-Avoidance Rule (GAAR) found in section 103 of the Income Tax Act, 1962 (58 of 1962).


CGF’s report on “Governance of Income Tax” is endorsed by the Institute of Directors (IoD) and showcases the editorial contribution and peer review of Professor Barry Spitz - Doctor of International Law and one of the world’s foremost authorities in the field of International Law and Tax Planning. The report covers:

  • Governance of Income Tax
    • What is tax?
    • The dilemma surrounding tax evasion & avoidance
      • The General Anti-Avoidance Rule (GAAR)
      • Forms of non-compliance & impacts
      • Characteristics & goals
    • Section 103
      • Elements of avoidance schemes
      • Weaknesses of section 103
      • Proposed amendments to section 103 (covering section 80)
      • Concerns pertaining proposed changes
    • The do's & don'ts
    • Acronyms, references & further reading


This newsletter has been supplied courtesy of CGF Research Institute (Pty) Ltd, a strategic partner of Proudly South African.


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