History of Submitting Tax Returns by Female Spouses: Income of Married Women
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A brief look at the history of tax returns submitted by married women is useful because it shows how far tax legislation has evolved and provides context for understanding the current position.
Income tax turns 100
Income tax in the Union of South Africa was first introduced in 1914. Numerous amendments followed, including changes in 1917, and thereafter Parliament reviewed tax legislation on an ongoing basis. Some commentators even suggest that South African income tax, in the form we broadly recognise today, was “born” in 1914. . To celebrate reaching the grand old age of 100, the University of Cape Town hosted a centenary conference in 2014 — effectively throwing a birthday party for tax (although with considerably fewer balloons, cakes and candles). Two years after the conference concluded, UCT published a 500-page book titled Income Tax in South Africa. The First 100 Years1. —a must-read publication.
Of course, not everyone shares the same enthusiasm for celebrating tax milestones. For many taxpayers, a tax birthday is probably less exciting If given the choice, most people would happily skip the candles, avoid singing “Happy Birthday”, and simply wish for a reduced assessment instead.
When a wife's income belonged to her husband
Under Chapter 2(11)2, the law provided that the income of a married woman — whether married in or out of community of property and not separated from her husband by court order or agreement — was deemed to have accrued to her husband and had to be included in his tax return.
It may seem difficult to imagine today, but there was a time when marriage could significantly alter how a woman was treated for income tax purposes.
The Constitutions changed the rules
However, in response to growing demands for gender equality, the human rights movement, and, most importantly, the adoption of the Constitution of the Republic of South Africa in 1996, the South African tax system was fundamentally reformed in its treatment of married couples.
The Constitution entrenched the right to equality before the law and prohibited unfair discrimination. Consequently, a tax system that imposed different tax consequences based on a person's gender or marital status could no longer be justified.
Under the previous tax system, a husband and wife generally submitted a single tax return, and the household's tax liability was determined on their combined income. This approach often resulted in a higher overall tax burden, particularly where one spouse's income was attributed to the other for tax purposes.
The reformed legislation introduced the principle of individual taxation. Each spouse is now required to submit a separate income tax return, and each person's tax liability is determined independently based on his or her own taxable income. This ensures that both spouses have equal access to the applicable tax rebates, deductions, and tax thresholds, thereby eliminating the historical bias that disadvantaged many female spouses. The same principles apply equally to spouses in same-sex marriages.
As part of these reforms, South Africa moved towards a unified income tax system for individuals, removing distinctions in the taxation of married and unmarried persons and aligning the tax regime with the constitutional principles of equality and non-discrimination. In line with the general international personal income tax reforms, the individual became the unit of taxation in 19953 in South Africa. Today South Africa’s personal income tax is gender neutral and a family or a household is no longer a unit of taxation.
Individuals born after March 1995 may find it surprising that tax was once assessed largely on a household or marital basis rather than on individuals as separate taxpayers. Over time, society and the law recognised that women do not necessarily depend financially on their spouses and should be treated as independent taxpayers.
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