2019
DOI: 10.17159/2411-9717/61-132-1/2019
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Mining companies attain relief through deductions on infrastructure relating to Social and Labour Plans: a case of the cart before the horse?

Abstract: A recent amendment to Section 36(11)(e) of the Income Tax Act, 53 of 1968 (Tax Act) now extends the allowable deduction of 'capital expenditure' incurred by mining companies pursuant to the Mineral and Petroleum Resources Development Act 28 of 2002 (MPRDA). In terms of the Taxation Laws Amendment Bill 2016 (TLAB 2016), the allowable deduction has been extended to include expenditure incurred on infrastructure in terms of Social and Labour Plan (SLP) requirements as per the MPRDA. Interestingly, what necessitat… Show more

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Cited by 3 publications
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“…Despite the South African government's efforts to regulate some of these social obligations, mines have continued to view SLP implementation as an added administrative and tax burden (Centre for Applied Legal Studies 2018). Being a predominantly capital-intensive industry with high start-up costs, mines are constantly challenged to balance profit margins with the sustainable integration of SLPs into their core business strategy (Thambi 2019). Furthermore, legislation has put corporate social responsibility and sustainable development issues in the hands of the mining industry at a national policy level.…”
Section: Barriers and Challenges To Incorporating Social Closure Crit...mentioning
confidence: 99%
“…Despite the South African government's efforts to regulate some of these social obligations, mines have continued to view SLP implementation as an added administrative and tax burden (Centre for Applied Legal Studies 2018). Being a predominantly capital-intensive industry with high start-up costs, mines are constantly challenged to balance profit margins with the sustainable integration of SLPs into their core business strategy (Thambi 2019). Furthermore, legislation has put corporate social responsibility and sustainable development issues in the hands of the mining industry at a national policy level.…”
Section: Barriers and Challenges To Incorporating Social Closure Crit...mentioning
confidence: 99%
“…SLPs are developed in consultation with affected communities. Since it contains commitments to the DMRE, upon granting of the mining right, these plans/programmes are binding conditions (Thambi, 2019). However, the basis of the SLP system is very much a 'carrot and stick approach' (Centre for Applied Legal Studies, 2016).…”
Section: Social and Labour Plans (Slps)mentioning
confidence: 99%
“…The historical tension between mining companies and the communities in which they operate stems from the inequities of the apartheid and migrant labour systems (Hamann, 2003). As such, the legacy of this industry is fraught with controversy and imbalances between mineworkers, communities, and mining companies (Thambi, 2019).…”
Section: Introductionmentioning
confidence: 99%