EUROMONEY TAX HANDBOOK 2013

How is South Africa responding to growing concerns about base erosion?rnSouth Africa, influenced by international tax developments, has proposed new measures that seek to address perceived base erosion problems, whilst at the same time it tries to position itself as a `Gateway to Africa`. From a tax policy perspective, base erosion becomes a concern for national tax authorities when gaps in the interaction of different tax systems, or the application of bilateral tax treaties, allow for income from cross-border activities to result in either non-taxation or unduly low taxation. The term `base erosion` includes tax evasion, tax avoidance, tax underestimation and population flight.