Simplification lessons from New Zealand: Can they be relevant to South Africa?

Abstract

This paper describes the concept of tax simplification and outlines the need for tax simplification in South Africa (SA). In order to provide potential guidance, the paper provides an overview of what New Zealand (NZ) has undertaken, in terms of both rewriting legislation and tax policy development, and why it took this approach, including its successes and shortcomings. The paper then turns its focus to the SA situation, examining the areas in greatest needs of simplification, along with a review of what has occurred so far. From the principles and lessons established from the NZ analysis, the paper evaluates those principles with a view to determine their relevance for SA going forward.