Original Research

Die inkomstebelastinghantering van aanvangsfranchisefooie betaalbaar in die Suid-Afrikaanse petroleumbedryf

Leonard C. Willemse
Journal of Economic and Financial Sciences | Vol 4, No 2 | a328 | DOI: https://doi.org/10.4102/jef.v4i2.328 | © 2018 Leonard C. Willemse | This work is licensed under CC Attribution 4.0
Submitted: 29 June 2018 | Published: 31 October 2011

About the author(s)

Leonard C. Willemse, Accounting Department, University of Stellenbosch, South Africa

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A wholesaler of petroleum products is prohibited in terms of section 12(2)(c) of Regulation 287 of the Petroleum Products Act, No. 120 of 1977, to own a retail licence for purposes other than that of training. As a result, petroleum companies make use of franchises to sell their products. The concept of a franchise is based on the principle that a franchisee obtains the franchise of an existing, often prosperous, business from a franchisor, and then operates the business under the banner of this franchise. The franchisee pays the franchisor franchise fees as consideration for certain items or privileges obtained. This article investigates the deductibility of franchise fees in terms of the current South African Income Tax Act, No. 58 of 1962 and includes an evaluation of Australian Income Tax Act sections that might offer deduction possibilities for franchise fees if applied within a South African context.


aanvangsfranchisefooi; franchise-ooreenkoms; franchisegewer; franchisehouer; herhalende franchisefooi; SAID; Inkomstebelastingwet, nr. 58 van 1962 (soos gewysig)


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