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The impact of IFRS 17 transition mechanisms legislated by tax authorities on the GloBE effective tax rate of South Africa headquartered insurers
During 2021 the Organization for Economic and Cooperative Development (‘OECD') released the Global Anti-Base Erosion Rules (‘GloBE Rules') as part of a two-pillar solution to address the challenges identified regarding the digitization of the economy. This significant development was preceded by the...
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| Format: | Thesis |
| Language: | English English |
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Department of Finance and Tax
2025
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| _version_ | 1867613231626846208 |
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| access_status_str | Open Access |
| author | Modise, Keletso |
| author2 | Futter, Alison |
| author_browse | Futter, Alison Modise, Keletso |
| author_facet | Futter, Alison Modise, Keletso |
| author_sort | Modise, Keletso |
| collection | Thesis |
| description | During 2021 the Organization for Economic and Cooperative Development (‘OECD') released the Global Anti-Base Erosion Rules (‘GloBE Rules') as part of a two-pillar solution to address the challenges identified regarding the digitization of the economy. This significant development was preceded by the release of IFRS 17 Insurance Contracts in the same year and is issued by the International Accounting Standards Board. IFRS 17 is the culmination of a multi-year two phase project aimed at developing what is considered the first truly international insurance contract standard. The combination of the implementation of these two key developments and the practical impact of them on long-term insurers has not yet been fully ascertained. The research conducted seeks to determine the extent to which the transition mechanism legislated by tax authorities in response to and in preparation for the transition to IFRS 17 may impact the effective tax rate computed under the GloBE Rules. In addressing the research problem a two-pronged approach was taken, the first being a comparative analysis between the transition mechanisms opted for by tax authorities in South Africa and the United Kingdom, and the second being a case study using Discovery Limited, a South Africa headquartered MNE Group as the subject to illustrate the potential impact of the former, on the effective tax rate in the jurisdictions it operates in. The research indicated that the tax transition approach may have a significant impact on the effective tax rate of long-term insurers headquartered in South Africa resulting in the liability for top-up taxes. |
| format | Thesis |
| id | oai:open.uct.ac.za:11427/42480 |
| institution | University of Cape Town (South Africa) |
| language | English eng |
| last_indexed | 2026-06-10T12:32:51.499Z |
| license_str | Not specified — see source repository |
| provenance_str_mv | Harvested via OAI-PMH from UCTD — University of Cape Town Open Access Repository |
| publishDate | 2025 |
| publishDateRange | 2025 |
| publishDateSort | 2025 |
| publisher | Department of Finance and Tax |
| publisherStr | Department of Finance and Tax |
| record_format | dspace |
| source_str | UCTD — University of Cape Town Open Access Repository |
| spelling | oai:open.uct.ac.za:11427/42480 The impact of IFRS 17 transition mechanisms legislated by tax authorities on the GloBE effective tax rate of South Africa headquartered insurers Modise, Keletso Futter, Alison finance During 2021 the Organization for Economic and Cooperative Development (‘OECD') released the Global Anti-Base Erosion Rules (‘GloBE Rules') as part of a two-pillar solution to address the challenges identified regarding the digitization of the economy. This significant development was preceded by the release of IFRS 17 Insurance Contracts in the same year and is issued by the International Accounting Standards Board. IFRS 17 is the culmination of a multi-year two phase project aimed at developing what is considered the first truly international insurance contract standard. The combination of the implementation of these two key developments and the practical impact of them on long-term insurers has not yet been fully ascertained. The research conducted seeks to determine the extent to which the transition mechanism legislated by tax authorities in response to and in preparation for the transition to IFRS 17 may impact the effective tax rate computed under the GloBE Rules. In addressing the research problem a two-pronged approach was taken, the first being a comparative analysis between the transition mechanisms opted for by tax authorities in South Africa and the United Kingdom, and the second being a case study using Discovery Limited, a South Africa headquartered MNE Group as the subject to illustrate the potential impact of the former, on the effective tax rate in the jurisdictions it operates in. The research indicated that the tax transition approach may have a significant impact on the effective tax rate of long-term insurers headquartered in South Africa resulting in the liability for top-up taxes. 2025-12-23T07:38:06Z 2025-12-23T07:38:06Z 2025 2025-12-23T07:36:30Z Thesis / Dissertation Masters MCom http://hdl.handle.net/11427/42480 en eng application/pdf Department of Finance and Tax Faculty of Commerce University of Cape Town |
| spellingShingle | finance Modise, Keletso The impact of IFRS 17 transition mechanisms legislated by tax authorities on the GloBE effective tax rate of South Africa headquartered insurers |
| thesis_degree_str | Master's |
| title | The impact of IFRS 17 transition mechanisms legislated by tax authorities on the GloBE effective tax rate of South Africa headquartered insurers |
| title_full | The impact of IFRS 17 transition mechanisms legislated by tax authorities on the GloBE effective tax rate of South Africa headquartered insurers |
| title_fullStr | The impact of IFRS 17 transition mechanisms legislated by tax authorities on the GloBE effective tax rate of South Africa headquartered insurers |
| title_full_unstemmed | The impact of IFRS 17 transition mechanisms legislated by tax authorities on the GloBE effective tax rate of South Africa headquartered insurers |
| title_short | The impact of IFRS 17 transition mechanisms legislated by tax authorities on the GloBE effective tax rate of South Africa headquartered insurers |
| title_sort | impact of ifrs 17 transition mechanisms legislated by tax authorities on the globe effective tax rate of south africa headquartered insurers |
| topic | finance |
| url | http://hdl.handle.net/11427/42480 |
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