RRLLB81
ASSIGNMENT 2 2026
5 TOPICS: 1 APRIL 2026
SEMESTER 1 2026
, THE GENERAL ANTI-AVOIDANCE RULE: STRIKING THE BALANCE BETWEEN
LEGITIMATE TAX PLANNING AND IMPERMISSIBLE TX AVOIDANCE IN SOUTH
AFRICAN LAW
By
[YOUR FULL NAMES AND SURNAME]
[YOUR STUDENT NUMBER]
Submitted in partial fulfilment of the requirements for the degree
BACHELOR OF LAWS
in the
DEPARTMENT OF MERCANTILE LAW
SCHOOL OF LAW
UNIVERSITY OF SOUTH AFRICA
SUPERVISOR: PROF MM MONYAKANE
RRLLB81 ASSESSMENT 2
[Due Date]
1
,ACADEMIC HONESTY DECLARATION
1. I understand what academic dishonesty entails and am aware of Unisa's policies in
this regard.
2. I declare that this assignment is my own, original work. Where I have used someone
else's work, I have indicated this by using the prescribed style of referencing. Every
contribution to, and quotation in, this assignment from the work or works of other
people has been referenced according to the prescribed style.
3. I have not allowed, and will not allow, anyone to copy my work with the intention of
passing it off as his or her own work.
4. I did not make use of another student's work and submit it as my own.
5. I declare that I am aware of and accept the requirement that my work must be
submitted successfully through Turnitin for it to qualify to be marked. I accept that a
mark of 0% may be awarded if there is no Turnitin report for my submission.
6. I confirm that I am aware that Assessment 2 and Assessment 3 must be submitted in
a searchable PDF file format and that it must not be scanned as this will disable
Turnitin. I accept that a mark of 0% may be awarded for failure to submit either of
these assessments in the correct file format if it results in Turnitin not being able to
generate a similarity report.
FULL NAMES: [Your Full Names]
STUDENT NUMBER: [Your Student Number]
MODULE CODE: RRLLB81
DATE: [Due Date]
2
, ABSTRACT
Taxpayers are entitled to arrange their financial affairs in a manner that minimises their
tax liability.¹ However, when such arrangements cross the threshold into impermissible
tax avoidance, the general anti-avoidance rule (GAAR) contained in sections 80A to 80L
of the Income Tax Act 58 of 1962 becomes applicable.² This research report examines
the legal distinction between legitimate tax planning and impermissible tax avoidance in
South African law. It analyses the constitutional and statutory framework governing tax
avoidance, the elements of the GAAR, and the practical challenges in applying these
provisions.³ The report argues that while the GAAR is a necessary tool to combat
abusive tax practices, its application must be balanced against taxpayers' rights to
arrange their affairs lawfully.⁴ Through an analysis of case law and academic
commentary, this report concludes that the current GAAR framework, though imperfect,
provides sufficient guidance for distinguishing between permissible and impermissible
tax arrangements, but requires consistent judicial interpretation to ensure legal
certainty.⁵
¹ Van Heerden L and others, Silke: South African Income Tax (LexisNexis 2025) 23.
² Income Tax Act 58 of 1962, ss 80A-80L.
³ Kujinga BT, 'Analysis of Misuse and Abuse in Terms of the South African General Anti-avoidance Rule:
Lessons from Canada' (2012) 45 CILSA 42, 45.
⁴ Nkoane P, 'A Taxing Assessment: Evaluating South African Mechanisms that Curtail Tax Fraud in Cases of
Impeachable Transactions' (2019) 26(1) Journal of Financial Crime 293, 295.
⁵ Kujinga (2012) 48.
3
ASSIGNMENT 2 2026
5 TOPICS: 1 APRIL 2026
SEMESTER 1 2026
, THE GENERAL ANTI-AVOIDANCE RULE: STRIKING THE BALANCE BETWEEN
LEGITIMATE TAX PLANNING AND IMPERMISSIBLE TX AVOIDANCE IN SOUTH
AFRICAN LAW
By
[YOUR FULL NAMES AND SURNAME]
[YOUR STUDENT NUMBER]
Submitted in partial fulfilment of the requirements for the degree
BACHELOR OF LAWS
in the
DEPARTMENT OF MERCANTILE LAW
SCHOOL OF LAW
UNIVERSITY OF SOUTH AFRICA
SUPERVISOR: PROF MM MONYAKANE
RRLLB81 ASSESSMENT 2
[Due Date]
1
,ACADEMIC HONESTY DECLARATION
1. I understand what academic dishonesty entails and am aware of Unisa's policies in
this regard.
2. I declare that this assignment is my own, original work. Where I have used someone
else's work, I have indicated this by using the prescribed style of referencing. Every
contribution to, and quotation in, this assignment from the work or works of other
people has been referenced according to the prescribed style.
3. I have not allowed, and will not allow, anyone to copy my work with the intention of
passing it off as his or her own work.
4. I did not make use of another student's work and submit it as my own.
5. I declare that I am aware of and accept the requirement that my work must be
submitted successfully through Turnitin for it to qualify to be marked. I accept that a
mark of 0% may be awarded if there is no Turnitin report for my submission.
6. I confirm that I am aware that Assessment 2 and Assessment 3 must be submitted in
a searchable PDF file format and that it must not be scanned as this will disable
Turnitin. I accept that a mark of 0% may be awarded for failure to submit either of
these assessments in the correct file format if it results in Turnitin not being able to
generate a similarity report.
FULL NAMES: [Your Full Names]
STUDENT NUMBER: [Your Student Number]
MODULE CODE: RRLLB81
DATE: [Due Date]
2
, ABSTRACT
Taxpayers are entitled to arrange their financial affairs in a manner that minimises their
tax liability.¹ However, when such arrangements cross the threshold into impermissible
tax avoidance, the general anti-avoidance rule (GAAR) contained in sections 80A to 80L
of the Income Tax Act 58 of 1962 becomes applicable.² This research report examines
the legal distinction between legitimate tax planning and impermissible tax avoidance in
South African law. It analyses the constitutional and statutory framework governing tax
avoidance, the elements of the GAAR, and the practical challenges in applying these
provisions.³ The report argues that while the GAAR is a necessary tool to combat
abusive tax practices, its application must be balanced against taxpayers' rights to
arrange their affairs lawfully.⁴ Through an analysis of case law and academic
commentary, this report concludes that the current GAAR framework, though imperfect,
provides sufficient guidance for distinguishing between permissible and impermissible
tax arrangements, but requires consistent judicial interpretation to ensure legal
certainty.⁵
¹ Van Heerden L and others, Silke: South African Income Tax (LexisNexis 2025) 23.
² Income Tax Act 58 of 1962, ss 80A-80L.
³ Kujinga BT, 'Analysis of Misuse and Abuse in Terms of the South African General Anti-avoidance Rule:
Lessons from Canada' (2012) 45 CILSA 42, 45.
⁴ Nkoane P, 'A Taxing Assessment: Evaluating South African Mechanisms that Curtail Tax Fraud in Cases of
Impeachable Transactions' (2019) 26(1) Journal of Financial Crime 293, 295.
⁵ Kujinga (2012) 48.
3
