Policy implementation : the case of capital gains tax in South Africa

Abstract

New policies are developed and implemented by governments. South Africa has enacted many laws since 1994 after the new democratic government came into power. Capital Gains Tax policy was implemented from 1st October 2001 . This is a case study that focused on the implementation of Capital Gains Tax policy in South Africa. This study examined firstly, what policy is and how it is implemented. Secondly, what Capital Gains Tax is and how it is being implemented and thirdly, how Capital Gains Tax is being implemented in South Africa. The main objectives of the study relate to the determination of the nature and scope of Capital Gains Tax and its implementation using already available literature. The study also focused on the analysis of the reasons for the introduction of Capital Gains Tax in South Africa and the implementation of Capital Gains Tax by the South African Revenue Services. In addition to using literature, interviews and questionnaires were administered to participants to gather relevant data for the study. The data were analysed and results interpreted. The findings of the study are directed to and are envisaged to be useful for revenue officials, finance ministry officials, lawmakers, tax experts, researchers and policy implementers. Any new taxation introduced should comply with simplicity, equity, ability to pay, efficiency and certainty principles. In implementing policy, certain aspects are considered essential which include: the availability of trained personnel; administrative arrangements; the client or customer education; material resources as well as the benefits of the policy being implemented. This mini-dissertation is am attempt to study policy being implementation using the case of Capital Gains Tax in South Africa.