To tax or not to tax? Questioning customer loyalty programmes
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Date
Authors
Swanepoel, Sumarie
Pidduck, Teresa Michelle
Journal Title
Journal ISSN
Volume Title
Publisher
Juta Law Journals
Abstract
South Africa, like many other countries, needs additional sources of tax revenues. Recent debate indicates that one potential source of revenue is the taxation of customer loyalty rewards in the hands of customers. The arguments for the taxation of these rewards have been put forward from a principled perspective and not from a legal basis. We argue that while the taxation of these rewards would increase tax revenue, legislative reform is required as there are strong arguments that the rewards are actually not taxable. We suggest tax reforms that attempt to provide certainty and equity in the treatment of such rewards as a whole in order to provide additional revenue for the fiscus.
Description
Keywords
Tax revenues, Taxation, Customer loyalty
Sustainable Development Goals
Citation
Swanepoel, S. & Pidduck, T. 2020, 'To tax or not to tax? Questioning customer loyalty programmes', SA Mercantile Law Journal / SA Tydskrif vir Handelsreg, vol. 32, no. 1, pp. 75-98.