Title page for ETD etd-06152009-150607

Document Type Master's Dissertation
Author Van Zuydam, Henk Johan
Email henk@sdkca.co.za
URN etd-06152009-150607
Document Title The alluvial diamond industry : a critical analysis of the capital cost allowances
Degree MCom
Department Taxation
Advisor Name Title
Ms D Pieterse Supervisor
  • capital cost
  • diamond industry
  • taxpayers
  • South Africa
  • SARS
  • South Africa Income Tax Act
Date 2009-04-20
Availability unrestricted

The purpose of the study was to critically analyse sections 15 and 36 of the South African Income Tax Act which deals with capital allowances for mining taxpayers from an alluvial diamond miners’ perspective. The South African analysis was also compared to that of Canada and Namibia. In the analysis it was found that the ring fencing provisos in section 36 is unfair towards the alluvial diamond mine due to the potential loss of capital cost allowances and that there are grey areas in this proviso that may lead to disputes between SARS and the taxpayer. It was also found that the cross over from prospecting to mining activities in relation to alluvial diamond mining presents a grey area which might lead to disputes between the tax payer and SARS. It was also found that there is no case law, SARS interpretation notes or practise notes on the application of these sections to provide certainty as to the tax payers’ position. It was recommended that SARS and treasury evaluate and address the identified grey areas and short comings in the current legislation and practises to ensure a fair and equitable tax dispensation for the alluvial diamond miners.

Copyright © 2008, 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

Please cite as follows:

Van Zuydam, HJ 2008, The alluvial diamond industry : a critical analysis of the capital cost allowances, MCom dissertation, University of Pretoria, Pretoria, viewed yymmdd < http://upetd.up.ac.za/thesis/available/etd-06182009-150607/ >

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