Kapitaalwinsbelasting in 'n nuwe Suid-Afrika

M.Com.Capital Gains Tax is levied in many Western (developed) countries and internationally it has withstood the test of many tax reform initiatives during recent years. As far as the introduction of Capital Gains Tax in South Africa is concerned, we are at the crossroads. A decision needs to be taken on the question of broadening the tax base to include capital gains. Historically the inclusion of capital gains in the tax base was rejected on the basis that it would be detrimental to the economy as a whole. Capital is seen to be the "income producing machine II and to levy tax on capital would be equivalent to consuming the asset that produces the income, which is taxable .in any event. On this basis it is argued that Capital Gains Tax would have a negative impact on capital forming and entrepreneurship. Since the April 1994 election it has become apparent that the new political dispensation has brought along a new vision or school of thought with regards to Capital Gains Tax. One of the objectives of the new government is to implement a tax system that would be seen by the masses to be fair and equitable. Besides the fact that additional income will have to be found {by way of increased or additional taxes} to fund the backlog in housing, medical services, education and training, etc, the whole issue of redistribution of wealth and wealth taxes may also have an impact on whether Capital Gains Tax is to be introduced in South Africa. Even though it is an undisputed fact that Capital Gains Tax should meet the above requirements, I am of the opinion that the real reason for the introduction of Capital Gains Tax in South Africa lies within the scope of an urgent need for the reformation of the South African tax system