The Taxation of Black Economic Empowernment (BEE) Transactions

Taxation and BEE Emerging from a past of racial segregation and economic inequality, South Africa's democratic government introduced a series of policies aimed at redressing the imbalances of the past. One such policy intervention is Black Economic Empowerment; also commonly known as BEE. The paper outlines the rationale for BEE and highlights the significant costs which arise from the misalignment of social policy objectives and the tax code in South Africa. It also makes high level recommendations for policy making in this area.