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Abuse of legal personality to avoid tax : piercing the corporate veil as remedy in case of the abuse of legal personality for tax purposes
Thesis (LLD)--Stellenbosch University, 2019.
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| Format: | Thesis |
| Language: | en_ZA |
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Stellenbosch : Stellenbosch University
2019
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| _version_ | 1867613974862757888 |
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| access_status_str | Open Access |
| author | Marais, Albertus Johannes |
| author2 | Van Wyk, Andreas |
| author_browse | Marais, Albertus Johannes Van Wyk, Andreas |
| author_facet | Van Wyk, Andreas Marais, Albertus Johannes |
| author_sort | Marais, Albertus Johannes |
| collection | Thesis |
| dc_rights_str_mv | Stellenbosch University |
| description | Thesis (LLD)--Stellenbosch University, 2019. |
| format | Thesis |
| id | oai:scholar.sun.ac.za:10019.1/106096 |
| institution | Stellenbosch University (South Africa) |
| language | en_ZA |
| last_indexed | 2026-06-10T12:44:39.798Z |
| license_str | Other — see source repository |
| provenance_str_mv | Harvested via OAI-PMH from SUNScholar — Stellenbosch University Repository |
| publishDate | 2019 |
| publishDateRange | 2019 |
| publishDateSort | 2019 |
| publisher | Stellenbosch : Stellenbosch University |
| publisherStr | Stellenbosch : Stellenbosch University |
| record_format | dspace |
| source_str | SUNScholar — Stellenbosch University Repository |
| spelling | oai:scholar.sun.ac.za:10019.1/106096 Abuse of legal personality to avoid tax : piercing the corporate veil as remedy in case of the abuse of legal personality for tax purposes Marais, Albertus Johannes Van Wyk, Andreas Du Plessis, Izelle Stellenbosch University. Faculty of Law. Dept. of Mercantile Law. Tax evasion -- South Africa Corporate veil -- South Africa South Africa -- Close Corporations Act, 1984 Corporations -- Taxation -- South Africa South Africa -- Companies Act, 2008 Unconscionable abuse South Africa -- Income Tax Act, 1962 UCTD Thesis (LLD)--Stellenbosch University, 2019. ENGLISH ABSTRACT : Companies are legal persons and as much part of commercial traffic as the natural persons owning and controlling them. Compared to one another, companies and natural persons nevertheless have very different legal abilities and characteristics. It is therefore not unexpected that they are treated differently for purposes of the law of taxation. As a result it may often be more beneficial to have the profits generated by a business enterprise taxed in a company rather than in the hands of a natural person, especially in instances where a shareholder would be commercially indifferent to whether those profits are generated in a company or not. By using the separate legal personality of a company shareholders may often perpetrate an abuse of that separate legal personality. Such abuse of legal personality can also take place when legal personality is employed primarily for tax reasons. While a limited form of abuse of the corporate veil is tolerated, whether the use of separate legal personality for tax reasons amounts to an abuse thereof beyond what is permitted in South Africa can be determined in terms of three tests. These tests are the traditional “piercing of the corporate veil” judgments forming part of the common law, section 20(9) of the Companies Act 71 of 2008 and the General Anti-Avoidance Rules (“GAARs”) (and other specific provisions) in the Income Tax Act 58 of 1962. This dissertation considers when any of these various tests will dictate that the separate personality of a company be ignored (or “pierced”) for purposes of taxes levied in terms of the Income Tax Act. Through critical analysis of both the South African rules on piercing as applied for tax purposes as well as the circumstances under which selected other jurisdictions provide for piercing for tax reasons the dissertation formulates what best practice and desired policy for piercing for tax reasons are. AFRIKAANSE OPSOMMING : Geen Afrikaanse opsomming geskikbaar nie Doctoral 2019-02-14T14:18:39Z 2019-04-17T08:28:23Z 2019-02-14T14:18:39Z 2019-04-17T08:28:23Z 2019-04 Thesis http://hdl.handle.net/10019.1/106096 en_ZA Stellenbosch University xii, 300 pages application/pdf Stellenbosch : Stellenbosch University |
| spellingShingle | Tax evasion -- South Africa Corporate veil -- South Africa South Africa -- Close Corporations Act, 1984 Corporations -- Taxation -- South Africa South Africa -- Companies Act, 2008 Unconscionable abuse South Africa -- Income Tax Act, 1962 UCTD Marais, Albertus Johannes Abuse of legal personality to avoid tax : piercing the corporate veil as remedy in case of the abuse of legal personality for tax purposes |
| title | Abuse of legal personality to avoid tax : piercing the corporate veil as remedy in case of the abuse of legal personality for tax purposes |
| title_full | Abuse of legal personality to avoid tax : piercing the corporate veil as remedy in case of the abuse of legal personality for tax purposes |
| title_fullStr | Abuse of legal personality to avoid tax : piercing the corporate veil as remedy in case of the abuse of legal personality for tax purposes |
| title_full_unstemmed | Abuse of legal personality to avoid tax : piercing the corporate veil as remedy in case of the abuse of legal personality for tax purposes |
| title_short | Abuse of legal personality to avoid tax : piercing the corporate veil as remedy in case of the abuse of legal personality for tax purposes |
| title_sort | abuse of legal personality to avoid tax piercing the corporate veil as remedy in case of the abuse of legal personality for tax purposes |
| topic | Tax evasion -- South Africa Corporate veil -- South Africa South Africa -- Close Corporations Act, 1984 Corporations -- Taxation -- South Africa South Africa -- Companies Act, 2008 Unconscionable abuse South Africa -- Income Tax Act, 1962 UCTD |
| url | http://hdl.handle.net/10019.1/106096 |
| work_keys_str_mv | AT maraisalbertusjohannes abuseoflegalpersonalitytoavoidtaxpiercingthecorporateveilasremedyincaseoftheabuseoflegalpersonalityfortaxpurposes |