The Davis Tax Committee (DTC) published their report on the possible introduction of further wealth taxes in South Africa. In the report, resulting from substantial research and public participation by, amongst others, FISA, the DTC alludes to the substantial complexity that needs to be dealt with to ensure that any additional wealth taxes are fair and simple to administer at the same time.
FISA made written submissions to the DTC last year and was invited to do a live presentation to the DTC last year, the presentation of which was reported on in the FISA Focus Weekly.
Click here for the FISA submission.
The DTC found that a national land tax and an annual nett wealth tax both present substantial obstacles to the introduction of a fair and simple wealth tax regime, due to the complexities involved in the fair and equitable valuation of both land and nett wealth on a continuous basis.
The need for further wealth taxes is stated to be the result of the limited yield from the existing wealth taxes, i.e. estate duty, donations tax, and transfer duty. The DTC refers back to its recommendations to enhance the former two of these, as set out in its final report on estate duty.
Read the complete report here.