MASTER S DEGREE (MCom) SOUTH AFRICAN AND INTERNATIONAL TAXATION

Faculty of Economic and Financial Sciences Department of Accountancy MASTER S DEGREE (MCom) SOUTH AFRICAN AND INTERNATIONAL TAXATION INFORMATION BROCHURE & APPLICATION FORM 2013 / 2014 CONTENTS 1 PAGE 1. Introduction 2 2. Programme Details 2 3. Module Details 3 4. Programme Material and Lectures 7 5. MCom Degree Coordination 8 6. Admission Requirements 8 7. Application Requirements 9 8. A Final Thought 10 9. Departmental Application Form 13

1. Introduction The MCom in South African and International Taxation is a two-year programme that starts every second year in February (next enrolment is in 2013). The programme has two main goals: To assist students in understanding and applying complicated domestic and international tax principles To equip people who are closely involved with taxation and financial issues in identifying the taxation consequences of transactions and becoming aware of the integration of, and arbitrage between, the different taxes To fulfil these goals, the programme combines: a study of relevant tax case law and principles; exposure to seasoned practitioners in a wide variety of subject areas; a high level of supporting academic lectures; your own research; and interface with fellow students. Active participation in class sessions and discussions as well as the completion of assignments result in the forging of close ties and the building of networks that are of immense importance in the life of future rounded tax thinkers. 2. Programme Details The course will be presented in four modules over 2 years. Purpose and Outcome The student should develop applied specialised competencies in the mastering, interpretation, understanding, analysis and application of taxation principles in the taxation field. Through four papers, a research methodology course and the limited scope dissertation, a qualifying student should show evidence of independent and original scientific work The course has proved in the past that students who did not approach it in a serious manner and who were not serious in their endeavour to obtain a master s degree with its associated levels of knowledge and understanding dropped out of the course within the first three months. Students are required to invest substantial levels of time and effort and it is essential that all students commit up front to such an investment and ensure that sufficient time is available for the course. 2

Curriculum MODULE NAME MODULE CODE NQF CREDITS Gross Income SAB01X8 27 Capital Gains Tax SAB02X8 27 International Taxation SAB04X8 27 Tax Treaties SAB05X8 27 Research Methodology SAB02N8 12 Limited Scope Dissertation SAB06N8 and SAB07N8 60 3. Module details The final promotion mark required to pass each module is 50%. All modules in this module must be passed to obtain the master s degree. The purpose, outline, learning outcomes and assessment criteria for each module in this programme is highlighted below. 3.1 Gross Income Tax Principles (year 1 semester 1) Purpose and Learning outcomes: To define and reflect on the basic concepts involved in taxation with specific reference to inter alia Gross Income source, Residence and capital versus income with the purpose of applying case law principles to practical situations. Learning outcome The learner will be competent if: 1.1 he is able to assess whether a receipt or accrual can be regarded as an amount due to it having a monetary value. 1.2 he is able to access whether a taxpayer is beneficially entitled to outstanding amounts and whether a taxpayer is beneficially entitled to amounts actually received; 1.3 he is able to integrate knowledge of the nature of receipts and accruals 1.4 he is able to differentiate between South African residents and non-residents; 1.5 he is able to evaluate the rules applicable to deductibility of expenditure and losses for income tax purposes Assessment Method Summative: written/oral exam. (In addition to the written exam, learners are continually assessed via practical group and class discussions as well as formal modular assessments in a written mode. They also do independent research that leads to scientific assignments. In addition, learners assess themselves as well as the work of each other and reflect on the dynamics of this process.) 3

3.2 Capital Gains Tax (year 1, semester 2) Purpose and outline: To define and reflect on the basic concepts involved in capital gains tax with the purpose of these principles to practical situations. Selected income tax topics, for example, taxation of mining tax and retirement benefits will also be discussed. Learning outcomes: The learner will be competent if: 1.1 he is able to assess whether an asset was disposed of for proceeds which exceed the asset s base cost 1.2 he is able to access the capital gains tax consequences for deceased and insolvent estates, partnerships, trusts and companies; 1.3 he is able to integrate knowledge of the Capital Gains Tax treatment of specific assets for example, usufructs, loans, livestock and restraint of trade payments. 1.4 he is able to differentiate between taxable and exempt disposals. 1.5 he is able to evaluate the rules applicable to the conversion of foreign amounts subject to capital gains tax.he is able to critically examine the substantive and procedural fairness requirements of the Capital Gains Tax Anti- Avoidance Rules. 1.6 he is able to evaluate the income tax rules applicable to the taxation of income derived from mining 1.7 he is able to evaluate the income tax rules applicable to the taxation of retirement benefits Assessment method: Summative: written/oral exam. (In addition to the written exam, learners are continually assessed via practical group and class discussions as well as formal modular assessments in a written mode. They also do independent research that leads to scientific assignments. In addition, learners assess themselves as well as the work of each other and reflect on the dynamics of this process.) 3.3 Research Methodology (year 1) Purpose and Outline: The purpose of this module is to develop research skills through research training. The training is focused on understanding the research process, methodologies and paradigms, finding and evaluating information sources and referencing and writing research products and a research proposal. Learning Outcomes: On completion of the module students should be able to apply the steps in the research process, select and apply research methodologies and paradigms, find and evaluate information sources, apply correct referencing techniques and understand the process of writing research products and research proposals. 4

Assessment: The assessment opportunity consists of several written assignments on different research aspects and the completion of a research proposal. Students will be assessed as competent if all aspects of the research processes and methodologies are correctly selected an applied. 3.4 International Taxation (year 2, semester 1) Purpose and outline: The purpose of this module is to define and reflect on the cross border application of South African domestic law provisions. Emphasis will be placed on the taxation of foreign dividends, transfer pricing, thin capitalisation, unilateral relief, tax havens, intermediate companies, tax avoidance and withholding taxes. Learning outcomes: The learner will be competent if: 1.1 he is able to understand the whether an arm s length price was charged for goods and services and if not, the transfer pricing implications; 1.2 he is able to identify whether a foreign company is a controlled foreign company and the attribution of the net income of a controlled foreign company to South African residents 1.3 he is able to assess the tax implications of been regarded as a South African resident. 1.4 he is able to evaluate the rules applicable to the conversion of foreign amounts subject to income tax; 1.5 he is able to critically examine the applicability of domestic anti-avoidance rules to cross-order transactions Assessment Method Summative: written/oral examination. (In addition to the written exam, learners are continually assessed via practical group and class discussions as well as formal modular assessments in a written mode. They also do independent research that leads to scientific assignments. In addition, learners assess themselves as well as the work of each other and reflect on the dynamics of this process.) 3.5 Tax treaties (year 2, semester 2) Purpose and outline: To define and reflect on the interaction between provisions in tax treaties and South African domestic law provisions. Learning outcomes: The learner will be competent if: 5

1.1 he is able to evaluate the relevance of the OECD and UN Model tax conventions; 1.2 he can identify the interrelationship between domestic law and treaty law 1.3 he can identify the relevant distributive rule in a tax treaty and apply it to the different types of income; 1.4 he understands the rules applicable to the interpretation of tax treaties; 1.5 he can identify the scope of a tax treaty and entitlement to treaty benefit; 1.6 he can evaluate when a taxpayer will be entitled to relief from double taxation either under domestic law or under a treaty; 1.7 he will be in the position to identify and apply the rules in a treaty regulating the sharing of information between Contracting States and the recovery of outstanding taxes in the Other Contracting State; he can critically evaluate whether a national of the other Contracting State had been discriminating against. Assessment Method Summative: written/oral exam exam.(in addition to the written exam, learners are continually assessed via practical group and class discussions as well as formal modular assessments in a written mode. They also do independent research that leads to scientific assignments. In addition, learners assess themselves as well as the work of each other and reflect on the dynamics of this process.) 3.6 Limited Scope Dissertation (year 2) Purpose and Outline: The purpose of this module is to equip students with specialised research knowledge through the supervision process during which they should demonstrate proficiency in research methods and the ability to work independently. Learning Outcomes: On completion of this module students should be able to complete a final acceptable limited scope dissertation. Assessment: Students will be regarded competent if a final limited scope dissertation is accepted by all the assessors and the Faculty Higher Degree Committee. As stated before, based on the limited scope dissertation a publishable research article must also be presented. 6

4. Programme material and lecturers The course consists of the following elements: Speakers from practice with theoretical lecturing support from well-known lecturers Pre-reading and research will be reflected in active participation in class discussions Individual research essays and the publication thereof in an academic publication Two close book examinations per year The official language medium for the course is English while both Afrikaans and English may be used to ask and answer questions, to participate in class discussions and to complete assignments and examination papers. The various elements in more detail are as follows: Lectures Students attend lectures: one evening per week (class attendance is compulsory). The course director is Professor Lynette Olivier. Professor Olivier s vast theoretical and practical experience places her in a position to present the majority of lectures on the course. However, some topics will be covered by leading tax practitioners. These guest lectures will be drawn from experts in the field who will conduct their classes with the main objective of sharing their practical experiences that they gain on a continual basis. The challenge for the students is to utilise this opportunity fully to tap into these sources of knowledge and experience, and form a basic understanding of what may be expected from them on completion of the course. A detailed programme of the topics and the lectures will be presented at the beginning of each semester. Pre-reading, preparation and participation in class discussions Selected case law and/or articles will be forwarded to students as prescribed prior to the lectures. The prescribed case law and additional reading represent the minimum course material and will be evaluated formally in the examinations. Provisional list of prescribed literature: Name Authors Publisher Juta s Income Tax Olivier Juta Relevant Case Law International Tax: A South African Perspective Olivier and Honiball SiberInk 7

We expect students to use the material provided to prepare comprehensively for each class and to demonstrate the level of knowledge acquired through participation in discussions during the lectures. The level of participation and mainly the quality of the input will be judged and form part of the final course grade. Please note that class attendance is compulsory. 5. MCom Degree Coordination Head of Master s Degrees MCom Programme Director (South African & International Taxation) MCom Programme Administrator Prof D. Coetsee Prof L. Olivier Mrs Rika Venter rikav@uj.ac.za All enquiries should be directed to Mrs Rika Venter 6. Admission Requirements Students who apply for the MCom must adhere to all the following admission requirements. 1. An honours qualification in Accounting or a Tax related honours degree on NQF level 7. Alternatively any other four-year qualification with honours status on NQF level 7 and related taxation experience which is considered relevant and sufficient by the Department of Accountancy. Preparatory study and an entrance examination may be required by the Department of Accountancy. 2. Related work experience which is considered relevant and sufficient by the Department of Accountancy will be considered. 3. A short research-orientated paper to assess your ability to write academically see details of requirements for paper (Appendix A). 4. Adequate English language proficiency 8

The Departmental selection process will be based on the following criteria: Your research-orientated paper (see Appendix A) Your motivation for entering the programme (see Appendix B) Your work experience Your previous academic history and marks obtained. 7. Application Requirements The following documentation must be submitted electronically to the course administrator Mrs Rika Venter rikav@uj.ac.za before 30 September 2012 (International students before 30 August). A Departmental Application form (Appendix B) An official University of Johannesburg Application form (see attachment) Research-orientated paper (Appendix A) Certified copies of the following documents below must accompany your application. 1. Degree certificate (honours or equivalent four-year university degree) 2. Official academic record 3. Certificate of conduct (obtained from the University where the honours or equivalent four year degree was completed) 4. ID (driver s licence won t be accepted) 5. A recent abridged CV Please review your student status below: New Applicants: Please complete both application forms (Departmental Application form as well as the UJ Application form and submit it with proof of payment of the UJ application fee. Payment must be made into the UJ bank account: ABSA Auckland Park Account number 3 2 4 0 1 4 1 0 1 8 (State your ID numbers as a reference number) Previous Students: Applicants who have studied previously at this institution is also required to complete both application forms stating your Student Number on the UJ 9

Application form. An official academic record and ID must be submitted even if you have studied at this university. You do not have to pay the UJ application fee as requested on the UJ application form. International Students: Applicants need to comply with additional requirements and therefore you must please contact the International Office (011 559 4517 or visit the UJ website). Before applying you must have your degree evaluated by SAQA. (Note that your application will not be considered before your degree has been evaluated by SAQA). IMPORTANT NOTICE No applications will be accepted unless all relevant documentation has been received with your application. Feedback on the outcome of your application will be announced after your application has been processed. 8. A final thought We hope that this course will address your requirements and that it will assist in forming a solid foundation for a future career in the field of financial accounting. Any concerns or issues should be addressed without hesitation to The Head of the MCom Programme Prof Coetsee via the course administrator Mrs Venter. The course is dynamic and will be adapted as and when necessary - we must never stop learning from each other! ---o0o-- 10

Appendix A Short research-orientated paper The purpose As part of the application for this programme it is expected of the applicant to submit a short paper of 2500 words (Arial/ New Times Roman, font size 12, 1.5 line spacing). The short assignment assesses the applicant s level of academic writing abilities and his/her willingness to learn and use referencing techniques. This is a very important consideration keeping in mind that it is required of students on the M Com course to complete a limited scope dissertation as partial fulfilment towards attaining the degree. The purpose of the short paper, as part of the selection process for entry into the Masters programme, is to minimize the intake of students who will most likely fail to finish their limited scope dissertation within the required time of 3 years. The requirements In the short assignment it will be expected of the applicant to: Identify an issue or problem relevant to his/her field of application. In taxation it could be an evaluation of a relevant tax case, in accounting it might be an issue regarding a specific standard or a new development, and in computer auditing any auditing issue that involves the application of computers. Identify the method or structure that will be applied to resolve the issue. In this instance, it will consist of a literature (different reading material) review and the applicant s own arguments to resolve the issue. Discuss and resolve the identified issue in the content of the short assignment. Use appropriate referencing techniques for all material used. The following guidelines are applicable to referencing: In text referencing e.g. (Smith, 2009), where the information in the brackets includes information about the author and the year in which the document consulted was published, are used to reference where the thoughts of other authors have been used or for direct citations (instances in which the author quotes the work of others) directly. Direct quotes must be included in quotation marks. All references consulted need to be listed at the end of the assignment in the form of a reference list. The reference list should be in a consistent form based on the nature of the applicable source such as indicated below: 11

Reference list examples An article: Walton, P. (2006). Fair value and executory contracts: moving the borders in international financial reporting. Accounting and Business Research, 36(4): 337-343. A Book: Watts, R.L. & Zimmerman, J.L. (1986). Positive Accounting Theory. Englewood Cliffs: Prentice-Hall. A Standard: International Accounting Standards Board (IASB): IAS 39: Financial Instruments: Recognition and Measurement. London: IASB. Case law: Port Elizabeth Electric Tramway Co Ltd v CIR, 1936, CPD 241, 8 SATC 13. An internet Reference: Blake, N. (1999b). The promise of mobile technologies for education. Edulink, 3(2). Available from: http://www.joburg.ac.za/edtech/pubs/edulink/992/blake.html (Accessed 8 February 2001). The following link leads to an abridged version for Referencing Techniques on the university library website. Please take note that the Department of Accountancy uses the Harvard method: http://www.uj.ac.za/en/library/documents/reference%20techniques %202008%20Harvard%20Method%20and%20APA%20Style.pdf Plagiarism Each assignment will be submitted to an online anti-plagiarism programme that will monitor the prevalence of plagiarism (unrightfully portraying the work of another author as your own without due respect) in the document. The Department of Accountancy supports the university policy of zero tolerance towards plagiarism and holds the right to refuse any student access to the Masters programme in the event of discovering that the prospective student has committed plagiarism. 12

Appendix B COM SOUTH AFRICAN AND INTERNATIONAL TAXATION APPLICATION FOR ADMISSION 2013 Special note: All information on this application form will be treated as strictly confidential. PERSONAL PARTICULARS Surname Full names Telephone numbers @ Work @ Home Cell Email address (Please write clearly) Postal address Code: Work address Code: Higher education training (Please start with your highest qualification) Degree University Year started Year completed Professional qualification 13

Actual average obtained with your honours or four-year university degree: Between 55% and 59% Between 70% and 74% Between 60% and 64% 75% and above WORK EXPERIENCE Current Previous Previous Employer Position Number of years employed Years of experience SUBMIT ALL RELEVANT DOCUMENTS (see Application Requirements) WITH THE FOLLOWING CERTIFIED COPIES BEFORE 30 SEPTEMBER (INTERNATIONAL STUDENTS 30 AUGUST). 1. Degree certificate (your honours or four-year university degree) 2. An official academic record 3. Certificate of conduct (obtained from the university where you completed this degree it might be stated on your academic record) 4. Copy of your ID 5. A recent (abridged) CV Mrs Venter : rikav@uj.ac.za 14

Please write a motivation indicating why we should accept you on the MCom Programme 15

DECISION (FOR OFFICE USE ONLY) ACCEPTED FOR: MCom (SA & International Taxation) REJECTED: Reason: Signature Programme Director: Faculty member: Date: Notes: 16