Abstract
Like other countries in transitional democracies, South Africa is experiencing high levels of crime since its first democratic election in 1994. About 83 percent of South Africans believe that the South African Police Service is corrupt and citizens are losing faith in the government to protect them as promised in the Constitution. As a result citizens are paying a large portion of their disposable income on security expenses to protect themselves and their property. Currently no tax relief is available for non-trade related security expenditure, as stated by the South African Revenue Services in 2008 after a public outcry to allow private security expenses as a deduction. This paper urges government to revisit its decision made in 2008. Private security expenses have become a necessity in the daily lives of South Africans. This was demonstrated by surveying four of the largest private security companies in an area of Tshwane Metropolitan Municipality (previously called Pretoria), South Africa. The paper ends by proposing three possible ways of providing tax relief for private security expenses.
Highlights
I n South Africa crime might be one of the most talked about topics of discussion (Durington, 2009, p. 73), albeit in the National Budget Speech, at work, in grocery shops or at informal get-togethers like barbeques
The Pistorius family distanced themselves from this controversial statement, it again hi-lighted the crime situation in South Africa, the lack of confidence in the South African Police Service (SAPS) and the means to which South Africans resort in order to feel safe
Private security expenses have become a necessity in the daily lives of South Africans
Summary
I n South Africa crime might be one of the most talked about topics of discussion (Durington, 2009, p. 73), albeit in the National Budget Speech, at work, in grocery shops or at informal get-togethers like barbeques. South Africans spend a large portion of their disposable income on security expenses. These include fees to security companies providing armed-response services, alarm systems, tracking devices for their vehicles, and structural changes to their properties, such as palisade, defensive walls, electrical fencing, and 24-hour monitoring systems 1) (SARS) issued Interpretation Note 45 on 30 June 2008 after a public outcry to allow private security expenses as a deduction It confirmed that “the cost of securing an Copyright by author(s); CC-BY. This paper revisits the question of whether South Africans should receive tax relief for the costs associated with private security. The paper concludes with proposals for obtaining tax relief for individuals incurring private security costs
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