The International Tax Environment and Simplification of South African Tax Legislation: A Double-Edged Sword

51 Pages Posted: 5 Nov 2018

See all articles by Jinyan Li

Jinyan Li

York University - Osgoode Hall Law School

Teresa Pidduck

University of Pretoria

Date Written: 2019

Abstract

In this paper, we examine the relationship between the international tax environment and legislative complexity in South Africa’s international tax system. We suggest that the international tax environment is a double-edged sword. It causes complexity in South Africa’s tax legislation as it largely responds to the needs of OECD countries and produces tax rules to deal with ‘sophisticated’ tax problems and taxpayers (such as multinational enterprises). When such rules are transplanted into South Africa, they are typically more complex than local rules dealing with local taxpayers. On the other hand, the international tax environment offers ideas for ‘scientific’ drafting of South Africa’s tax legislation, which may lead to simplification and enhanced effectiveness in tax compliance and administration. We contribute to the literature on tax simplification by focusing on legislative complexity and distinguishing between intrinsic complexity and drafting-led complexity. We recommend ways of legislative simplification by drawing on the international tax environment.

Keywords: Tax law, tax legislation, international tax law, South Africa, tax problems, taxpayers

Suggested Citation

Li, Jinyan and Pidduck, Teresa, The International Tax Environment and Simplification of South African Tax Legislation: A Double-Edged Sword (2019). Available at SSRN: https://ssrn.com/abstract=3273094 or http://dx.doi.org/10.2139/ssrn.3273094

Jinyan Li (Contact Author)

York University - Osgoode Hall Law School ( email )

4700 Keele Street
Toronto, Ontario M3J 1P3
Canada
416-736-5025 (Phone)

Teresa Pidduck

University of Pretoria ( email )

Elandspoort 357-Jr
Pretoria, 0002
South Africa

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