Based on the extract below, two questions are presented: Exit tax’ to hit South Africans looking to emigrate from 2022 When ceasing their South African tax residency, taxpayers are subject to an ‘exit tax’ which forms part of the emigration process. However, the National Treasury has proposed a further tax on those who intend to permanently leave South African shores, say tax experts at specialist advisory firm Tax Consulting SA. “In the National Treasury’s latest published Draft Tax Bills, which incorporates the tax proposals made in the 2021 budget, the amendment proposes to tax retirement fund interests of individuals when they cease South African tax residency,” the firm said. 1.1 If enforced, the above proposed “Exit tax” will impact which of the following national totals when South Africans migrate as opposed to there being no exit tax? a) Gross domestic product b) Gross national product c) Net domestic product d) The budget 1.2 Suppose that currently, the South African economy is in an expansionary phase. The proposed “Exit tax” by the National Treasury would resemble which of the following macroeconomic schools of thought? a) Keynesian theory b) Classical theorists c) Marxist economics d) Monetarist economics

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
icon
Related questions
Question
100%

Based on the extract below, two questions are presented:

Exit tax’ to hit South Africans looking to emigrate from 2022
When ceasing their South African tax residency, taxpayers are subject to an ‘exit tax’ which forms part of the emigration process.
However, the National Treasury has proposed a further tax on those who intend to permanently leave South African shores, say tax experts at specialist advisory firm Tax Consulting SA.
“In the National Treasury’s latest published Draft Tax Bills, which incorporates the tax proposals made in the 2021 budget, the amendment proposes to tax retirement fund interests of individuals when they cease South African tax residency,” the firm said.

1.1   If enforced, the above proposed “Exit tax” will impact which of the following national totals when South Africans migrate as opposed to there being no exit tax?

a) Gross domestic product
b) Gross national product
c) Net domestic product
d) The budget

1.2  Suppose that currently, the South African economy is in an expansionary phase. The proposed “Exit tax” by the National Treasury would resemble which of the following macroeconomic schools of thought?

a) Keynesian theory
b) Classical theorists
c) Marxist economics
d) Monetarist economics

 

Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Assets
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:
9780190931919
Author:
NEWNAN
Publisher:
Oxford University Press
Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education