Tax amnesty A period allowed by tax authorities during which taxpayers who are outside the tax net, but should be registered for tax purposes, can register for tax without incurring penalties.

Tax avoidance When individuals or businesses legitimately use provisions in the tax law to reduce their tax liability.

Tax base The aggregate value of income, sales or transactions on which particular taxes are levied.

Tax evasion The deliberate attempt or scheme to reduce, postpone or evade taxation that would normally be payable

Tax gap A measure of tax evasion that emerges from comparing the tax liability or tax base declared to the tax authorities with the tax liability or tax base calculated from other sources.

Tax incentives Specific provisions in the tax code that provide favourable tax treatment to individuals and businesses to encourage specific behaviour or activities.

Tax incidence The final distribution of the burden of tax. Statutory incidence defines where the law requires a tax to be levied. Economic incidence refers to those who experience a decrease in real income as a result of the imposition of a tax.

Tax loopholes Unintended weakness in the legal provisions in the tax system used by taxpayers to avoid paying tax liability.

Tax year (referred to as year of assessment) This year is the same period as the financial year of a company or corporation. An individual's tax year will always end on the last day of February. The 2007 tax year means the year ended in 2007; therefore it would be the period from 1 March 2006 to 28 February 2007.

Tax-to-GDP ratio For public finance comparison purposes, a country's tax burden, or tax-to-GDP ratio, is computed by taking the total tax payments for a particular fiscal year as a fraction or percentage of the GDP for that year.

Terms of trade The weighted average price of a country's exports relative to its imports.

Tertiary sector The part of the economy concerned with the provision of services.

Testatrix A woman who makes or has made a legally valid testament or will before her death

Total factor productivity (TFP) An index used to measure the efficiency of all inputs that contribute to the production process. Increases in TFP are usually attributable to technological improvements.

Trade balance The monetary record of a country's net imports and exports of physical merchandise. See also current account.

Trade regime The system of tariffs, quotas and quantitative restrictions applied to protect domestic industries, together with subsidies and incentives used to promote international trade.

Trade The term "trade" refers to any active income-generating venture, interpreted in a fairly wide sense.  In terms of Section 1, a trade includes "every profession, trade, business, employment, calling, occupation or venture, including the letting of any property and the use of or the grant of permission to use any patent as defined in the Patents Act, 1978 (Act No. 57 of 1978), or any design as defined in the Designs Act, 1993 (Act No. 195 of 1993), or any trade mark as defined in the Trade Marks Act, 1993 (Act No. 194 of 1993), or any copyright as defined in the Copyright Act, 1978 (Act No. 98 of 1978), or any other property which is of a similar nature.  Although the earning of interest income is not specifically included in the definition of "trade" the courts have held that earning interest does in fact constitute a trade, and any expenses incurred directly in the production of the taxable portion of such interest income would qualify for deduction against such income.  For example, if you manage to borrow money at 4% and invest it at 8% (ignoring the interest exemption for individuals), the interest paid can be claimed as a deduction against the interest earned.

Trademark A legal right pointing distinctly to the origin or ownership of merchandise to which it is applied and legally reserved for the exclusive use of the owner as maker or seller.

Trade-weighted rand The value of the rand pegged to or expressed relative to a market basket of selected foreign currencies.

Transfer duty The duty leviable under the Transfer Duty Act, 1949 (Act No. 40 of 1949). Transfer duty is levied on the value of any property acquired by you by way of a transaction or in any other manner, or on the amount by which the value of any property is enhanced by the renunciation of an interest in or restriction upon the use or disposal of that property.

Transfer pricing Transfer pricing is an anti-avoidance rule designed to try and stop multinational groups from realising their profits in a lower tax jurisdiction. The rules say you are required to transact with foreign related parties at arms length pricing.  Since South Africa is a relatively high tax jurisdiction the rules prevent a South African based multinational making all its profits in a lower tax jurisdiction. For example, the South African based multinational could sell goods or services at artificially lower prices to a lower tax jurisdiction and then sell it to the market at market prices.

Travel allowance Compensation for the business use of your private vehicle paid to you by your employer

Treasury committee The Cabinet committee that evaluates all requests for additional funds for unavoidable and unforeseen expenditure during a financial year.

Trend GDP growth The theoretical level of GDP growth determined by the full utilisation of all factors of production (land, labour and capital). Growth above the trend rate results in macroeconomic imbalances such as rising inflation or a weakening of the current account. Increases in trend GDP growth are achieved through capital formation, growth in employment and/or technological development.

Trust A trust is an arrangement for the holding and administration of property under which property or legal rights are vested by the owner (the Settlor) in someone else (the Trustee). The Trustee in turn accepts the duty to hold the property or exercise the rights for another person (the Beneficiary).

Turnover The total selling price of items of inventory sold or services rendered during the financial period.