"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. Source: https://businesstech co za/news/wealth/512238/exit-tax-to-hit-south-africans-looking-to-emigrate-from- 2022/ Accessed: 20/08/21 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 1.25 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
"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. Source: https://businesstech co za/news/wealth/512238/exit-tax-to-hit-south-africans-looking-to-emigrate-from- 2022/ Accessed: 20/08/21 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 1.25 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
Chapter1: Making Economics Decisions
Section: Chapter Questions
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Transcribed Image Text:1.24 Read the following and answer question 1.24-1.25.
"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.
Source: https://businesstech.co.za/news/wealth/512238/exit-tax-to-hit-south-africans-looking-to-emigrate-from-
2022/
Accessed: 20/08/21
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
1.25 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
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