n Business Tax and Company Law Quarterly - Determining corporate residence - The concept of 'place of effective management' in a shifting domestic and international fiscal landscape

Volume 6, Issue 2
  • ISSN : 2219-1585


Determining corporate residence is critical to revenue collection in a jurisdiction that operates on the residence basis of taxation. This paper charts the evolution of the South African Revenue Service's ('SARS') interpretation of one of the domestic tests for corporate residence, namely the 'place of effective management' ('POEM'), within the context of apposite international commentaries and case law, as well as domestic case law. In particular, it considers the arguments for and against day-to-day operational management as opposed to strategic management as the overriding criteria; given that the interpretation of the POEM tie breaker in cases of dual residence, as expounded internationally, determines corporate residence with reference to top level, strategic management.

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