An analysis of current tax revolt factors in South Africa. Issue 3 (18th November 2019)

• Record Type: Journal Article
• Authors: Du Preez, Hanneke; Stoman, Jacqueline
• Is Part Of: Meditari accountancy research. Volume 28:Issue 3(2020)
• Page Start: 455
• Page End: 483
• Publication Date: 2019-11-18
• Subjects: Taxation -- South Africa -- Unemployment -- Twitter -- Economic factors -- Tax revolts; Accounting -- Periodicals; Finance -- Periodicals; 657.05
• DOI: 10.1108/MEDAR-04-2018-0327
• Languages: English
• ISSNs: 2049-372X

Abstract

Abstract : Purpose: The purpose of this study is to determine whether the factors once identified through literature and compared to the current situation in South Africa could predict the possibility of a tax revolt in South Africa. South Africans are experiencing frequent increases in taxes on already overburdened taxpayers, corruption, a lack of service delivery by the government and high unemployment rates. South Africa has seen an increased amount of protests relating to taxes, corruption and a lack of basic services. Design/methodology/approach: In total, 12, 000 Twitter feeds were collected from 14 February 2017 to 1 March 2017, the period before, during and after the South African National Budget Speech on 22 February 2017. The feeds were analysed using a thematic analysis. The emerging themes were identified as factors present in South Africa that may predict a possible tax revolt. Findings: The factors found to be present in South Africa are: F1-failure of government to address the imminent collapse, F2-significant number of people with substantial debt, F3-onerous tax systems, including many different types of taxes, F4-high number of unemployed people, F5-education frustration, F6-increase in tax rates on citizens already overburdened by current taxes, F7-poor quality of governors, and performance of the country's leaders and administration, including fraud and F8-wastefulness. Originality/value: The value of the study is, first to contribute to the existing academic literature examining the factors that are likely to indicate a tax revolts. Second, the study uses an innovative data source, namely, tweets, to examine the climate for a possible tax revolt in South Africa.