SUNConferences, 29th Annual Conference of SAIIE

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A SYSTEMS APPROACH TO SUSTAIN RSA SECTION 12L TAX INCENTIVE PROJECTS
Liam Coetzee, Walter Booysen, Johann van Rensburg

Last modified: 2018-10-09

Abstract


Section 12L of the South African Income Tax Act (12L) incentivises companies towards improved energy efficiency (EE). Research shows that two key issues generally prevent eligible EE projects from achieving maximum 12L benefits: 1) poor data integrity which affects application compliance and 2) savings are not sustained throughout the assessment period. A need therefore exists to make use of intelligent data driven analyses to effectively identify these issues in order to maximise 12L potential.
This paper presents the development of a performance tracking and reporting system. This system monitors and analyses project data to identify potential anomalies. Once an anomaly has been detected, it triggers a report to notify and inform the end-user of the specific issue. This detection increases the opportunities to sustain targeted savings and improve data integrity.
The functionality of the system is illustrated by using three case studies. These case studies test whether the system can correctly identify and report anomalies. The value of the system is further validated by assessing the potential increase in savings due to timely corrective action. The paper concludes with a discussion of the benefits, including a potential increase of R 63.9 million in 12L related value.


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