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Annexure - 1

Questionnaire 2 Business Owner Survey

Part 1 - General questions


1. What is the size of your enterprise?
MicroEnterprise

Smallenterprise

Medium-sizedenterprise

2. What is the legal form of your enterprise?


Sole trader

General partnership

Limited partnership

Corporation Others

3. Has tax action been in previous years an important factor in your


decision to distribute earnings?
YES

NO

6. Has taxation been in previous years an important factor in your decision to retain
earnings?
YES

NO

7. Dot ax consultants or account ants play a significant role in your decision to


retain or distribute earnings?
YES NO
8. If yes, what was the recommendation in the past few years?
(checkoneboxperyearorN/Aifyoucannotrecall)

Year

Distributionof

Distributionof

Distributionof

Retentionof100%

100%ofannual

morethan50%

lessthan50%

ofannualearnings

earnings

ofannual

ofannual

earnings

earnings

2008
2009
2010
2011
2012

9.Do you consider the current taxation structure to bean obstacle to there tension or
distribution of earnings?
Yes, obstacle to there tention
Yes, obstacle to the
distribution No, it is neutral

Part 2 Retained vs. distributed earnings and payment of wages


1.Taking only taxes into consideration, is it more advantageous for you as business
owner to retain or to distribute earnings?

Retain earnings
Distribute earnings
No,it is neutral

2.Do you believe that there is a tax advantage to earnings being directly distributed
to you through dividend rather than being retained and then realize dascapital
gain when you sell your share sory our business?
Tax advantage to distribution
Tax advantage to retain in order to generate capital gain at later stage
No,tax is neutral
3.Do yo use your salary or your annual bonus as a way of distributing earnings?
YES
NO
4.Doyouconsiderataxplanningissuethecombineddeterminationofyoursalary,
yourannualbonus,thelevelofretainedandthatofdistributedearnings?
YES
NO
5.WouldyouconsiderborrowingfromyourUndertakingforyourprivateshort-term
financeneedsratherthandistributingearnings?
YES
NO
6.Doyoubelievethattaxincentivesexisttopromotetheretentionofearnings?(
YES
NO
7.Doyoubelievethattaxdisincentivesexisttodetertheretentionofearnings?
YES
NO
8.Doesthecurrenttaxtreatmentofretainedearningsanddistributionof
profitsdirectlyinfluencesyourdecisionontheretentionordistribution/
withdrawalofprofits?
Yes,
Importantinfavourofretention
Importantinfavourofdistribution/withdrawal
No

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