Die evaluasie van eindvoorraad vir belastingdoeleindes vir die druif-tot-wyn proses
Van Zyl, Johannes Hermanus Albertus
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There is a growing trend in South Africa for wine grape producers to become involved in total value chain management due to economic reasons. The management of this value chain involves a number of activities that are not normally associated with taxpayers who earn income from farming activities. Although the Income Tax Act, in its current format, appears to offer favorable tax concessions to taxpayers who practice 'farming', it is uncertain whether the same concessions exist for taxpayers involved in farming and manufacturing simultaneously. As a result, there is currently uncertainty in practice regarding the handling of a product at year-end, which is part of a manufacturing process and farming. The purpose of this research was to critically examine the theoretical tax law of South Africa and compare it with relevant case law to determine whether the Income Tax Act in its current format provides a solution with regard to the handling of stock at year-end for the broader farming community, which is increasingly involved outside the boundaries of 'farming'. It has been found that the formulation of a theory, which contains a comprehensive set of rules and principles, is considered complex and there seems to be no general rule that can be rigidly applied to each case. As a result, it is recommended that the legislative authority support the wine industry, which is already under severe financial pressure, with innovative and proactive actions.