Resumen

VAN DER WESTHUYZEN, Susanna M.  y  NEL, Rudie. Statutory complexity of provisions in the South African Income Tax Act relating to dividends and interest. S. Afr. j. econ. manag. sci. [online]. 2026, vol.29, n.1, pp.1-12. ISSN 2222-3436.  https://doi.org/10.4102/sajems.v29i1.6620.

BACKGROUND: Dividends tax was introduced in South Africa in 2012 to simplify the corporate tax system, to promote international alignment and to encourage foreign investment. The statutory complexity of the resulting legislative amendments, however, remains unexplored. AIM: This study investigated whether the statutory complexity of Income Tax Act provisions relating to dividends and interest increased since 2012. SETTING: Three indicators of statutory complexity (length, readability and tax disputes) were investigated in respect of the tax provisions and the South African Revenue Service (SARS) Interpretation Notes relating to dividends and interest in South Africa. METHOD: This study was quantitative in nature and pursued three objectives: (1) compared the length and readability of tax provisions during 2024 with 2014; (2) analysed the readability of current Interpretation Notes compared to tax provisions, as well as the trend in publication and revision frequency of SARS Interpretation Notes from 2000 to 2024; and (3) observed the trends in tax disputes from 2000 to 2024. RESULTS: Tax provisions on dividends and interest have become longer and less readable over the past decade. The substantial length and comparable readability of Interpretation Notes may further increase overall statutory complexity. Tax disputes relating to dividends and interest have also increased since 2012, indicating practical challenges in applying the relevant tax provisions. CONCLUSION: The trends identified across all three complexity indicators suggest an increase in statutory complexity since 2012. CONTRIBUTION: The simplification of tax provisions relating to dividends and interest is recommended, including tax legislation drafting, and further explanatory research on how increased statutory complexity affects foreign investments.

Palabras clave : dividends; interest; tax complexity; readability; statutory complexity; legal complexity; tax disputes.

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