EXECUTIVE SUMMARY This report presents the results of applying the VAT gap estimation methodology of the Revenue Administration Gap Analysis Program (RA-GAP) to South Africa for the period 2007–12. The methodology employs a top-down approach for estimating the potential VAT base, using...

This report is designed to assist in the overall review of South Africa’s tax system. The Davis Tax Committee (DTC) was established by the Minister of Finance in 2013 to consider the appropriateness of the current mining tax regime. The DTC’s review takes place within the context of its...

This report provides a summary of the level of observance with the financial assessment task force recommendations and recommendations to strengthen observance. South Africa has developed a comprehensive legal structure to combat money laundering. The financial intelligence unit and other...

The Money and Banking Division of the Research Department of the South African Reserve Bank plans to conduct a review of its entire time series database following the implementation of new bank reporting structures in January 2001. This is a time-consuming process, and the release of a...

In March 2009, the Fund established a new Framework Administered Account to administer external financial resources for selected Fund activities (the "SFA Instrument"). The financing of activities under the terms of the SFA Instrument is implemented through the establishment and operation of a...

The external current account in South Africa has strengthened significantly in 1999, mainly owing to a large decline in imports. Compared with a deficit of about 1.5 percent of GDP in recent years, it is close to balance during the first three quarters of 1999. A resumption of investor...

How does the South African government react to changes in its debt position? In investigating the question, this paper estimates fiscal reaction functions using various methods (OLS, VAR, TAR, GMM, State-Space modelling and VECM). The paper finds that since 1946 the South African government has...

This paper describes the main elements of inflation targeting, reviews its pros and cons, and examines the experiences thus far in countries using this framework. It discusses the implications and relative merits of such a framework for South Africa, and concludes that it would be feasible and...

Over the past decade, South Africa has attracted relatively little foreign direct investment (FDI), but considerable amounts of portfolio inflows. In this context, the objective of the paper is twofold: to identify the determinants of the level and composition of capital flows to emerging...

South Africa’s 2005 Article IV Consultation reports that the short-term outlook is broadly favorable, with the main risks arising from a possible worsening of the external environment. The authorities plan to maintain a flexible exchange rate, and to intervene in the foreign exchange market...