South African property investment vehicles consist of collective investment schemes in property (CISPs), also known as property unit trusts (PUTs) and property loan stock (PLS) companies. The application of sections 25B(1), 11(s), 10(1)(k)(i)(aa) and 64B(5)(b) of the Income Tax Act 58 of 1962 (“the Act”) and paragraph 67A(1) of the Eighth Schedule to the Act result in these property investment vehicles being taxed based on their legal form, that of a trust versus a company, rather than on their common purpose. The South African Revenue Service recognised these inconsistencies in the 2007/8 budget tax proposals and proposed that it be reviewed. In December 2007, National Treasury released a discussion paper on the reform of the listed property investment sector in South Africa. The discussion paper is aimed at adopting a real estate investment trust (REIT) regime in South Africa to make South African property investment vehicles more attractive to foreign investors as well as to address the current tax inconsistencies and fragmented regulation of the South African listed real estate sector. In this study, the current inconsistent tax treatment of these property investment vehicles is reviewed, both as to how they apply to the property investment vehicle and to their respective investors. This study further reviews how REITs in selected other countries are regulated and taxed and National Treasury’s proposals as to how REITs applicable in South Africa should be regulated and taxed. Copyright
Dissertation (MCom)--University of Pretoria, 2010.
Boshoff, Douw G.B.; Cloete, C.E. (Christiaan Ernst)(Department of Economics, University of Pretoria, 2012)
The listed property sector in South Africa has grown to a size which could be considered to be a good representation of the income producing property market in general. Stock market listed property investment funds offer ...
The rise of globalisation has led to more and more companies expanding beyond their borders. Gray (2002) sees this rise as a direct result of technology. He feels that technology has been the main factor leading to ...
Rutto, Hilary Kiplimo; Focke, Walter Wilhelm(Carl Hanser Verlag, 2010)
Urea is a low cost material with thermal and mechanical properties suitable for use in investment
casting pattern molding compounds. Conventional compounds are made by a “cooking” process
wherein the urea is added to and ...