Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/161597
Authors: 
Van der Zwan, Pieter
Schutte, Danie
Krugell, Waldo
Seshabela, Joel
Reynolds, Hayley
Khoza, Londiwe
Year of Publication: 
2017
Series/Report no.: 
WIDER Working Paper 2017/35
Abstract: 
This paper aims to describe funding structures of companies liable for tax in South Africa and how this relates to other characteristics, including ownership, of the companies. The research that the paper reports on was performed as descriptive analyses. While no clear indication of a preference for debt could be identified, the results showed that the mean net interest coverage ratio for certain foreign-owned entities differed significantly from that of domestically owned entities. This may be evidence of profit-shifting activities. The results highlight trends in interest coverages ratios that may be of relevance for future legislative developments.
Subjects: 
interest deduction limitation
interest coverage ratio
profit shifting
South Africa
JEL: 
H20
H25
H26
ISBN: 
978-92-9256-259-5
Document Type: 
Working Paper

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