Land reform without compensation in South Africa: a critical analysis of the taxation policy

Abstract

This thesis, brought about by the shift in the South African land redistribution programme to "expropriate land without compensation", primarily focusses on the taxation policy considerations given the current legislative framework; whether any changes to the framework should be envisaged and whether there are any tax relief measures that could be considered. Through literature review, as well as lessons learnt from countries where a similar approach was followed, relative to land reform programs, it considers a widespread impact, which includes a government perspective, an expropriated person's perspective and the beneficiaries' perspective. The research shows that the disposal or deemed disposal of property without compensation has a wider impact than just social and economic factors, and that wider legislative changes may be required than just the proposed changes to the constitution. Due consideration is given to Capital Gains Tax, Value Added Tax, Donations Tax, Transfer Duty and general Income Tax considerations.