Abstract:
The purpose of this study is to analyse low tax jurisdictions as a means of attracting direct foreign investment from a South African point of view. The phenomenon of low tax rates, tax havens and foreign investment have been inextricably linked over years but have gained notoriety since efforts by the Organisation for Economic co-operation and Development (OECD), to harmonise taxation and eliminate unfair tax competition between countries and specifically so with regard to countries classified as tax havens. These efforts have been given further momentum by the recent events known as the worldwide “financial crisis” which have at least partially been blamed on practices followed by tax havens. The phenomenon of low tax rates has been identified as one measure to increase foreign direct investment (FDI) and therefore stimulate the growth of local economies. Low tax rates have been very successfully exploited by countries labeled as tax havens resulting in high economic growth for such countries. It is recognised that South Africa is in need of foreign investment and specifically fixed investment to accelerate growth and solve specific problems like the high levels of unemployment. AFRIKAANS : Die doel van hierdie studie is om ‘n ontleding uit ‘n Suid-Afrikaanse oogpunt te doen van die aanvaarding van ‘n lae koers belastingstelsel soortgelyk aan diè soos gebruik in sogenaamde belastingtoevlugsoorde. Die verskynsel van lae belastingkoerse en buitelandse investering is ‘n bewese feit maar het berugtheid verwerf sedert die pogings van die Organisation for Economic Co-operation and Development (OECD), om belastingkoerse te harmoniseer en onbillike belastingwedywering uit te skakel tussen lande en met spesifieke verwysing na lande geklassifiseer as belastingtoevlugsoorde. Hierdie pogings het verdere momentum verwerf na aanleiding van die gebeure wat bekendheid verwerf het as die wêreldwye finansiële krisis wat ten minste gedeeltelik toegeskryf is aan praktyke gevolg deur belastingtoevlugsoorde. Die praktyk van lae belastingkoerse is geïdentifiseer as een metode om buitelandse investering te stimuleer en sodoende plaaslike ekonomiese goei aan te moedig. Verskeie sogenaamde belastingtoevlugsoorde het sukses behaal deur gebruik te maak van lae belastingkoerse ten einde hoë ekonomiese groeikoerse te bewerkstellig. Suid Afrika het ‘n behoefte aan buitelandse investering en spesifiek vaste investering ten einde plaaslike groei van die ekonomie aan te moedig en sodoende probleme soos hoë werkloosheidsvlakke aan te spreek.
