A critical analysis of the income tax implications of loan account funding in the small and medium-sized enterprises (SMEs) environment

The global economy is still recovering from the effects of the sub-prime crisis. The economic downturn has created international tax policies that seem to encourage debt funding. Some commentators are of the view that debt and equity should have a uniform tax treatment. South Africa has not escaped the aftermath of the economic meltdown and had three credit downgrades since the second half of 2009. The first objective of this treatise was to determine whether loan funding still has a role to play in a SME environment. This was considered in the context of interest-free or low-interest rate loans advanced by companies to shareholders or other connected persons and interest-bearing loans due by companies that in substance clearly have equity features. The primary enquiry pertaining to debit loans is whether the debt arose by virtue of any share held in the company. It is submitted that a causal connection is required between any share in that company and the advance made. Where a company parts with funds for no quid pro quo a deemed dividend in specie is triggered. Conversely, where a loan was made on commercial grounds the company will not be in breach, even if the loan is interest-free. A loan that lacks a reasonable redemption period is more akin to equity and to this extent a deemed dividend will be triggered where a loan owing by a company to a shareholder or other connected person is not redeemable within 30 years. There is ambiguity with regards to the inception of the 30-year period for pre-existing loan agreements. Taking the contra fiscum rule into account, it is submitted that the 30-year period should only commence from the effective date due to the impracticalities involved and because the concept of an ‘instrument’ did not previously exist. It is submitted that shareholder and other connected person loans are not by default equity, to the extent that the transaction is on commercial grounds and in substance a loan. It is further submitted that loan funding still has a role to play in a SME environment and that South Africa has no need for uniform tax rules pertaining to debt and equity, due to the anti-avoidance provisions highlighted above. The poor state of the local economy prompted Treasury to introduce new debt relief rules to assist distressed debtors. The second objective of this treatise was to analyse whether the new rules will provide tangible relief to distressed debtors as this was one of the short comings of the previous system. It is submitted that the new ordering rules delay the incurrence of an immediate tax as trading stock held and not disposed of, the base cost of an asset or the balance of an assessed capital loss is first reduced compared to the old rules where it instantly triggered a recoupment or a deemed disposal for CGT purposes. Tangible relief is provided to distressed debtors as a tax debt reduced has no normal tax consequences. This provides an opportunity for companies under business rescue because SARS rank on par with concurrent creditors. As a result, the tax debt reduced is likely to be higher under business rescue than liquidation

Six-year observations of aerosol optical properties at a southern African grassland savannah site

Atmospheric aerosols have a significant effect on earth's radiative budget, particularly on regional scales. This paper presents a similar to 6 year, in situ, ground level aerosol scattering and absorption dataset, measured at a background site strategically positioned to enable differentiation of the effect of anthropogenic, population density and open biomass burning activities on a regional scale. Relatively well-defined seasonal and diurnal patterns were observed for all the aerosol optical properties, i.e. scattering coefficient (sigma(SP)), absorption coefficient (sigma(AP)), single scattering albedo (omega(0)) and Angstrom exponent of scattering (sigma(SP)). These patterns were explained by considering southern African specific sources and metrological conditions. Using a receptor modelling method (auto-generated source maps) it was found that air masses that had higher sigma(SP), sigma(AP) and omega(0), and lower alpha(SP), if compared with the relatively clean background, passed over source regions with significant industrial or other anthropogenic activities, higher population density, re-circulation of polluted air masses and higher open biomass burning frequency. To quantify differences, four source regions were defined, i.e. Karoo, Kalahari, anti-cyclonic recirculation pattern and the industrial hub of South Africa. Air masses that had passed over the Karoo source region represented the cleanest regional background conditions, while air masses that had passed either over the industrial hub and/or the anti-cyclonic recirculation pattern represented the most significant anthropogenically impacted, as indicated by the aerosol optical properties. The omega(0) medians of air masses that had passed over the Karoo (0.80-0.86) were 9, 12 and 7% lower than in air masses that had passed over source regions with the highest omega(0) median, in the warmest/wettest, coldest, and driest, peak open biomass burning periods, respectively.Peer reviewe

Statistical analysis of factors driving surface ozone variability over continental South Africa

Statistical relationships between surface ozone (O-3) concentration, precursor species and meteorological conditions in continental South Africa were examined from data obtained from measurement stations in north-eastern South Africa. Three multivariate statistical methods were applied in the investigation, i.e. multiple linear regression (MLR), principal component analysis (PCA) and -regression (PCR), and generalised additive model (GAM) analysis. The daily maximum 8-h moving average O-3 concentrations were considered in these statistical models (dependent variable). MLR models indicated that meteorology and precursor species concentrations are able to explain similar to 50% of the variability in daily maximum O-3 levels. MLR analysis revealed that atmospheric carbon monoxide (CO), temperature and relative humidity were the strongest factors affecting the daily O-3 variability. In summer, daily O-3 variances were mostly associated with relative humidity, while winter O-3 levels were mostly linked to temperature and CO. PCA indicated that CO, temperature and relative humidity were not strongly collinear. GAM also identified CO, temperature and relative humidity as the strongest factors affecting the daily variation of O-3. Partial residual plots found that temperature, radiation and nitrogen oxides most likely have a non-linear relationship with O-3,while the relationship with relative humidity and CO is probably linear. An inter-comparison between O-3 levels modelled with the three statistical models compared to measured O-3 concentrations showed that the GAM model offered a slight improvement over the MLR model. These findings emphasise the critical role of regional-scale O-3 precursors coupled with meteorological conditions in daily variances of O-3 levels in continental South Africa.Peer reviewe

Seasonal influences on surface ozone variability in continental South Africa and implications for air quality

Although elevated surface ozone (O-3) concentrations are observed in many areas within southern Africa, few studies have investigated the regional atmospheric chemistry and dominant atmospheric processes driving surface O-3 formation in this region. Therefore, an assessment of comprehensive continuous surfaceO(3) measurements performed at four sites in continental South Africa was conducted. The regional O-3 problem was evident, with O-3 concentrations regularly exceeding the South African air quality standard limit, while O-3 levels were higher compared to other background sites in the Southern Hemisphere. The temporal O-3 patterns observed at the four sites resembled typical trends for O-3 in continental South Africa, with O-3 concentrations peaking in late winter and early spring. Increased O-3 concentrations in winter were indicative of increased emissions of O-3 precursors from household combustion and other low-level sources, while a spring maximum observed at all the sites was attributed to increased regional biomass burning. Source area maps of O-3 and CO indicated significantly higher O-3 and CO concentrations associated with air masses passing over a region with increased seasonal open biomass burning, which indicated CO associated with open biomass burning as a major source of O-3 in continental South Africa. A strong correlation between O-3 on CO was observed, while O-3 levels remained relatively constant or decreased with increasing NOx, which supports a VOC-limited regime. The instantaneous production rate of O-3 calculated at Welgegund indicated that similar to 40 % of O-3 production occurred in the VOC- limited regime. The relationship between O-3 and precursor species suggests that continental South Africa can be considered VOC limited, which can be attributed to high anthropogenic emissions of NOx in the interior of South Africa. The study indicated that the most effective emission control strategy to reduce 03 levels in continental South Africa should be CO and VOC reduction, mainly associated with household combustion and regional open biomass burning.Peer reviewe

Spatial, temporal and source contribution assessments of black carbon over the northern interior of South Africa

After carbon dioxide (CO2) aerosol black carbon (BC) is considered to be the second most important contributor to global warming. This paper presents equivalent black carbon (eBC) (derived from an optical absorption method) data collected from three sites in the interior of South Africa where continuous measurements were conducted, i.e. Elandsfontein, Welgegund and Marikana, as well elemental carbon (EC) (determined by evolved carbon method) data at five sites where samples were collected once a month on a filter and analysed offline, i.e. Louis Trichardt, Skukuza, Vaal Triangle, Amersfoort and Botsalano. Analyses of eBC and EC spatial mass concentration patterns across the eight sites indicate that the mass concentrations in the South African interior are in general higher than what has been reported for the developed world and that different sources are likely to influence different sites. The mean eBC or EC mass concentrations for the background sites (Welgegund, Louis Trichardt, Skukuza, Botsalano) and sites influenced by industrial activities and/or nearby settlements (Elandsfontein, Marikana, Vaal Triangle and Amersfoort) ranged between 0.7 and 1.1, and 1.3 and 1.4 ae gm 3, respectively. Similar seasonal patterns were observed at all three sites where continuous measurement data were collected (Elandsfontein, Marikana and Welgegund), with the highest eBC mass concentrations measured from June to October, indicating contributions from household combustion in the cold winter months (June-August), as well as savannah and grassland fires during the dry season (May to mid-October). Diurnal patterns of eBC at Elandsfontein, Marikana and Welgegund indicated maximum concentrations in the early mornings and late evenings, and minima during daytime. From the patterns it could be deduced that for Marikana and Welgegund, household combustion, as well as savannah and grassland fires, were the most significant sources, respectively. Possible contributing sources were explored in greater detail for Elandsfontein, with five main sources being identified as coal-fired power stations, pyrometallurgical smelters, traffic, household combustion, as well as savannah and grassland fires. Industries on the Mpumalanga Highveld are often blamed for all forms of pollution, due to the NO2 hotspot over this area that is attributed to NOx emissions from industries and vehicle emissions from the Johannesburg-Pretoria megacity. However, a comparison of source strengths indicated that household combustion as well as savannah and grassland fires were the most significant sources of eBC, par-ticularly during winter and spring months, while coal-fired power stations, pyrometallurgical smelters and traffic contribute to eBC mass concentration levels year round.Peer reviewe

An overview of the first decade of PollyNET: An emerging network of automated Raman-polarization lidars for continuous aerosol profiling

A global vertically resolved aerosol data set covering more than 10 years of observations at more than 20 measurement sites distributed from 63° N to 52° S and 72° W to 124° E has been achieved within the Raman and polarization lidar network PollyNET. This network consists of portable, remote-controlled multiwavelength-polarization-Raman lidars (Polly) for automated and continuous 24/7 observations of clouds and aerosols. PollyNET is an independent, voluntary, and scientific network. All Polly lidars feature a standardized instrument design with different capabilities ranging from single wavelength to multiwavelength systems, and now apply unified calibration, quality control, and data analysis. The observations are processed in near-real time without manual intervention, and are presented online at http://polly.tropos.de/. The paper gives an overview of the observations on four continents and two research vessels obtained with eight Polly systems. The specific aerosol types at these locations (mineral dust, smoke, dust-smoke and other dusty mixtures, urban haze, and volcanic ash) are identified by their Ångström exponent, lidar ratio, and depolarization ratio. The vertical aerosol distribution at the PollyNET locations is discussed on the basis of more than 55 000 automatically retrieved 30 min particle backscatter coefficient profiles at 532 nm as this operating wavelength is available for all Polly lidar systems. A seasonal analysis of measurements at selected sites revealed typical and extraordinary aerosol conditions as well as seasonal differences. These studies show the potential of PollyNET to support the establishment of a global aerosol climatology that covers the entire troposphere

Seasonality of the particle number concentration and size distribution : a global analysis retrieved from the network of Global Atmosphere Watch (GAW) near-surface observatories

Aerosol particles are a complex component of the atmospheric system which influence climate directly by interacting with solar radiation, and indirectly by contributing to cloud formation. The variety of their sources, as well as the multiple transformations they may undergo during their transport (including wet and dry deposition), result in significant spatial and temporal variability of their properties. Documenting this variability is essential to provide a proper representation of aerosols and cloud condensation nuclei (CCN) in climate models. Using measurements conducted in 2016 or 2017 at 62 ground-based stations around the world, this study provides the most up-to-date picture of the spatial distribution of particle number concentration (N-tot) and number size distribution (PNSD, from 39 sites). A sensitivity study was first performed to assess the impact of data availability on N-tot's annual and seasonal statistics, as well as on the analysis of its diel cycle. Thresholds of 50% and 60% were set at the seasonal and annual scale, respectively, for the study of the corresponding statistics, and a slightly higher coverage (75 %) was required to document the diel cycle. Although some observations are common to a majority of sites, the variety of environments characterizing these stations made it possible to highlight contrasting findings, which, among other factors, seem to be significantly related to the level of anthropogenic influence. The concentrations measured at polar sites are the lowest (similar to 10(2) cm(-3)) and show a clear seasonality, which is also visible in the shape of the PNSD, while diel cycles are in general less evident, due notably to the absence of a regular day-night cycle in some seasons. In contrast, the concentrations characteristic of urban environments are the highest (similar to 10(3)-10(4) cm(-3)) and do not show pronounced seasonal variations, whereas diel cycles tend to be very regular over the year at these stations. The remaining sites, including mountain and non-urban continental and coastal stations, do not exhibit as obvious common behaviour as polar and urban sites and display, on average, intermediate N-tot (similar to 10(2)-10(3) cm(-3)). Particle concentrations measured at mountain sites, however, are generally lower compared to nearby lowland sites, and tend to exhibit somewhat more pronounced seasonal variations as a likely result of the strong impact of the atmospheric boundary layer (ABL) influence in connection with the topography of the sites. ABL dynamics also likely contribute to the diel cycle of N-tot observed at these stations. Based on available PNSD measurements, CCN-sized particles (considered here as either >50 nm or >100 nm) can represent from a few percent to almost all of N-tot, corresponding to seasonal medians on the order of similar to 10 to 1000 cm(-3), with seasonal patterns and a hierarchy of the site types broadly similar to those observed for N-tot. Overall, this work illustrates the importance of in situ measurements, in particular for the study of aerosol physical properties, and thus strongly supports the development of a broad global network of near surface observatories to increase and homogenize the spatial coverage of the measurements, and guarantee as well data availability and quality. The results of this study also provide a valuable, freely available and easy to use support for model comparison and validation, with the ultimate goal of contributing to improvement of the representation of aerosol-cloud interactions in models, and, therefore, of the evaluation of the impact of aerosol particles on climate.Peer reviewe

Risk factors for Coronavirus disease 2019 (Covid-19) death in a population cohort study from the Western Cape province, South Africa

Risk factors for coronavirus disease 2019 (COVID-19) death in sub-Saharan Africa and the effects of human immunodeficiency virus (HIV) and tuberculosis on COVID-19 outcomes are unknown. We conducted a population cohort study using linked data from adults attending public-sector health facilities in the Western Cape, South Africa. We used Cox proportional hazards models, adjusted for age, sex, location, and comorbidities, to examine the associations between HIV, tuberculosis, and COVID-19 death from 1 March to 9 June 2020 among (1) public-sector “active patients” (≥1 visit in the 3 years before March 2020); (2) laboratory-diagnosed COVID-19 cases; and (3) hospitalized COVID-19 cases. We calculated the standardized mortality ratio (SMR) for COVID-19, comparing adults living with and without HIV using modeled population estimates.Among 3 460 932 patients (16% living with HIV), 22 308 were diagnosed with COVID-19, of whom 625 died. COVID19 death was associated with male sex, increasing age, diabetes, hypertension, and chronic kidney disease. HIV was associated with COVID-19 mortality (adjusted hazard ratio [aHR], 2.14; 95% confidence interval [CI], 1.70–2.70), with similar risks across strata of viral loads and immunosuppression. Current and previous diagnoses of tuberculosis were associated with COVID-19 death (aHR, 2.70 [95% CI, 1.81–4.04] and 1.51 [95% CI, 1.18–1.93], respectively). The SMR for COVID-19 death associated with HIV was 2.39 (95% CI, 1.96–2.86); population attributable fraction 8.5% (95% CI, 6.1–11.1)

Recovery of gold from spent matrices using supercritical carbon dioxide

Thesis (Ph.D. (Chemistry))--North-West University, Potchefstroom Campus, 2007.The feasibility of recovering gold preloaded onto activated carbon by supercritical carbon dioxide (sc-CO2) was investigated in view of the actuality of a more environmentally friendly process for the retrieval of gold from real-world matrices (ion-exchange resin, cellulose, activated carbon) than the harsh elution methods currently employed. Several complexes of gold(I) and gold(III) were synthesised and characterised (AA, uv/visible), and their solubility in sc-CO2 investigated, to identify a suitable compound for loading onto activated carbon and subsequent retrieval by sc-CO2. KAu(CN)2 was successfully loaded onto activated carbon. The mass percentage of gold relative to that of other elements on the carbon surface was monitored (SEM-EDS) before and after exposure to sc-CO2 using a laboratory-size supercritical extractor of the latest design. A decrease in ca. 3.6 % in the mass percentage of gold on the carbon surface, and the presence of gold in the resulting extracts (ICP-MS), confirmed that a small amount (< 1 %) of the loaded gold could be recovered. Since the same results were obtained regardless of whether sc- CO2 extraction was performed in static mode (to establish equilibrium conditions for solubility measurement) or dynamic mode (to warrant exhaustive extraction), it could be concluded that the limiting factor was not the solubility of the adsorbate in the fluid but the amount of removable gold in the outer layer(s) of the adsorbed material on the surface of the activated carbon. The extent of gold recovery was improved to ca. 10 % of the loaded gold by entraining sc-CO2 with tributyl phosphate (TBP) or TBP-HNO3 (a Lewis-acid-Lewis-base-adduct supposed to improve recovery by oxidising gold(I) to gold(III) species), but the results revealed, just as with pure sc-CO2, that there was a surface related limitation and not a TBP related limitation to the amount of recoverable gold. This conclusion could be substantiated by enlarging the surface either by larger samples of loaded carbon or by crushing samples of loaded carbon to very small particles, and in both cases correspondingly higher recoveries were obtained. The influence of different variables on the recovery of KAu(CN)2 from activated carbon by TBP-HNO3 entrained sc-CO2 was studied by surface response analysis based on a statistical design. The independence of density and thus solvent strength suggested that sc-CO2 was not the primary extractant, and a comparison between gold recovery in the absence and presence of sc-CO2 revealed that the supercritical fluid neither improved nor deteriorated the extent of recovery by TBP-HNO3. The slight positive effect of temperature allowed a small positive enthalpy of recovery to be calculated which could be interpreted in terms of physical desorption of gold from the carbon surface. The recoverable gold probably resided in the outer or secondary layer(s) attached to the primary monolayer on the carbon surface from where it could be desorbed by ion-dipole interaction between opposite charges (Au(CN)2- and positive end of polar TBP), explaining why the process was found to be surface-limited. The pore size distribution of the activated carbon was determined (mercury porosimetry) to find an explanation why gold was removed only from the surface. Although the activated carbon consisted for 95 % of micropores (8 - 100 A), the molecular diameter of Au(CN)2.pTBP was found to be ca. 20 A so that it could easily exit a micropore and thereby warranted that, in principle, gold could be removed from the inner pore structure as well. In the course of investigating the central hypothesis, valuable additions to existing knowledge were achieved. The spectral data acquired for a few gold complexes either confirmed existing literature data or represent new data published for the first time. The uv-visible spectra of the complexes were not only recorded but also interpreted in terms of different types of transitions (d-d, charge-transfer, ∏* <-- ∏, ∏* <-- n). The solubility in sc-CO2 of an organophosphorous compound (TBP) was determined with the available supercritical extractor using a self-invented procedure which prevented liquid samples from being swept away instantaneously by sc-CO2 on entering the extraction thimble. The solubility so obtained was inexcellent agreement with values reported in the literature for similar type compounds at comparable conditions. The proved solubility of 1.10-phenanthroline in sc-CO2 opened up the possibility of purifying a phenanthroline complex of gold(III) containing some unreacted ligand as an impurity by sc-CO2 instead of recrystallising the substance from solution. The investigation drew the attention to the decisive role played by activated carbon in limiting the recovery of gold regardless of which extractant (sc-CO2, TBP or TBP-HNO3) was used. This encourages investigation of alternative matrices (ionexchange resins, cellulose membranes) with weaker attractive forces in future if an efficient gold recovery process need to be developed.Doctora