South African Journal of Economic and Management Sciences
On-line version ISSN 2222-3436
Print version ISSN 1015-8812
Regulatory developments are often presented as being in the public interest but recent studies on corporate governance have suggested otherwise. In some cases, regulatory change is driven more by the self-interest of the political elite than by the need for substantive reform. This paper adds to this debate by considering whether capital gains tax (CGT) in South Africa is an example of a genuine attempt to improve the perceived fairness of the tax system or whether perceptions of fairness are being used simply to further political agendas. The paper concludes that the latter may be the case. South Africa is used as a case study because of the fairly recent introduction of CGT, as an example of a material amendment to tax policy, and because of the country's fairly recent transition to democracy.
Keywords : black economic empowerment (BEE) schemes; capital gains tax (CGT); correspondence analysis; fairness; pubic benefit organisations (PBO); public interest; recreational clubs; regulatory reform; small businesses; South African tax system.