SUNConferences, 29th Annual Conference of SAIIE

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DEVELOPMENT OF AN ASSURANCE FRAMEWORK FOR SOUTH AFRICAN CARBON TAX
Andries Gustav Stephanus Gous, Walter Booysen, Edward Henry Mathews

Last modified: 2018-10-09

Abstract


The Carbon Tax on greenhouse gas (GHG) emissions, set to help transition South Africa towards a low-carbon economy, induces several uncertainties. Liable parties, as well as national bodies (e.g. the South African Revenue Service, SARS), are at risk due to the lack of published guidance. Such uncertainties and risks can be managed or mitigated by introducing assurance mechanisms focused on the different key structures within the process. 
This paper presents an assurance-centered reporting framework developed to document and support all decisions affecting the values submitted to SARS. The framework merges several international and national best practice auditing assurance standards together with the technical and legal requirements of carbon tax. Assurance is thereby provided by a transparent and traceable process presented in such a manner that it can be easily audited by independent parties.
The developed framework assures the (1) dataset constructed and used in (2) GHG quantification methods to (3) report the results for industrial case studies. Several practical assurance mechanisms are identified and applied within each structure to address the associated uncertainties. Aggregating these mechanisms ultimately provides holistic assured results that are likely to pass all levels of scrutiny.


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