When SARS have requested documentation from taxpayers who do not use eFiling, the taxpayers have had to take these documents into a SARS Branch. Now SARS have launched on online form that taxpayers can complete and upload with the documentation requested by SARS. The online form can take ten documents which need to be 5MB […]
26
May
May
5 June – Monthly PAYE submissions and payments 25 June – VAT manual submissions and payments 28 June – Excise Duty payments 30 June – VAT electronic submissions and payments 30 June – CIT Provisional Tax Payments where applicable. Disclaimer: The information provided herein should not be used or relied on as professional advice. No […]
06
May
May
At the start of this year, I wrote an article, Starting an SME isn’t easy which introduces the topic of the challenges faced by SMEs (Small and Medium Businesses). Little did I know at the time, what life had in store for the world in 2020. On 30 January 2020 the World Health Organisation declared […]
29
Apr
Apr
There are significant obligations placed on directors by the Companies Act and personal and criminal liabilities if they fail to meet these obligations. As a director you will no doubt be focusing on critical issues like keeping your business afloat and solvent (the CIPC has waived its right to intervene when a company becomes temporarily […]
29
Apr
Apr
In this brave new world of COVID-19, many people are working from home. Even after there is a cure for the virus, this trend will likely continue. Researchers at Harvard University have come up with some good ways to ensure you get maximum productivity and loyalty from your employees working remotely. Key points Both managers […]
29
Apr
Apr
“Prediction is very difficult, especially if it’s about the future” (Niels Bohr) Pandemics kill more people than wars – the introduction of the Black Death plague led to 14th Century Europe losing 40% of its population within two years. What will our world look like when normal life begins to return? Predicting the future can […]
29
Apr
Apr
We read about Eskom staff having to undergo lifestyle audits so that corruption can be identified and stamped out. SARS have been conducting lifestyle audits since 2007. These audits are conducted when SARS suspects that the taxpayer is not declaring all his or her income and thus is underpaying tax due. SARS have access to […]
29
Apr
Apr
7 May – Monthly PAYE submissions and payments 25 May – VAT manual submissions and payments 28 May – Excise Duty payments 29 May – VAT electronic submissions and payments 29 May – CIT Provisional Tax Payments where applicable 31 May – End of Employer Annual Reconciliation. Disclaimer: The information provided herein should not be […]
30
Mar
Mar
The President, telling the nation that “We will prioritise the lives and livelihoods of our people above all else, and will use all of the measures that are within our power to protect them from the economic consequences of this pandemic”, has announced a variety of initiatives to assist SMMEs (Small, Medium and Micro-Enterprises) that […]
30
Mar
Mar
“Never let a good crisis go to waste” (Winston Churchill) Globally, the COVID-19 coronavirus has spread panic amongst societies and markets. Businesses are suffering their most challenging times since the 2008 Global Financial Crisis. This is the time for urgently reviewing how events have affected your business and how you can respond to the seeming […]
30
Mar
Mar
Consider these facts: Over 80% of hacking is password related. In the first world the average cost of fixing a successful hack is $3.9 million. The average person spends 11 hours a year changing or resetting his or her passwords. For a company with approximately 15,000 employees, the cost of this is $5.2 million per […]
30
Mar
Mar
UK Revenue officials recently released some entertaining excuses from taxpayers: One taxpayer claimed their mother-in law was a witch and had cursed them. Some said that hamsters and dogs had eaten the post. A taxpayer was up a mountain and without internet access. Some strange expense claims were received, such as pet food for a […]
30
Mar
Mar
7 April – Monthly PAYE submissions and payments 24 April – VAT manual submissions and payments 29 April – Excise Duty payments 30 April – VAT electronic submissions and payments 30 April – CIT Provisional Tax Payments where applicable Disclaimer: The information provided herein should not be used or relied on as professional advice. No […]
02
Mar
Mar
Taxpayers were preparing for once again being squeezed in 2020, but we have been pleasantly surprised as we have been given a myriad of tax concessions in this budget. In fact, the average taxpayer will be over 5% better off than in 2019/2020. The Finance Minister has decided that taxpayers have borne the brunt of austerity […]
02
Mar
Mar
“Baby, baby, baby you’re out of time” (The Rolling Stones) Over the past several years South Africa’s debt position has worsened considerably to the point where of the major ratings agencies only Moody’s has not downgraded us to junk status. They have made it clear that they are seriously considering such a move and will […]
02
Mar
Mar
“An investment in knowledge pays the best interest” (Benjamin Franklin) The Companies Act 2008 places onerous duties on directors and if you do not meet these obligations, you risk personal liability for any damages flowing from these actions. “Knowing” in the company law context A director gets “knowing” (actual knowledge) of the company by remaining […]
02
Mar
Mar
How long will you work for the taxman today? Input your salary into the 2020 Tax Clock calculator and find out how many hours you will spend today working for the taxman, and at what time precisely you will finally start working for yourself (warning – it’s not pretty!). How will your income tax change? Put your […]
02
Mar
Mar
6 March – Monthly PAYE submissions and payments 25 March – VAT manual submissions and payments 30 March – Excise Duty payments 31 March – VAT electronic submissions and payments 31 March – CIT Provisional Tax Payments where applicable Disclaimer: The information provided herein should not be used or relied on as professional advice. No […]
06
Feb
Feb
Starting an SME sounds attractive but is not easy. The start of a New Year (although we are now a month in) is always an interesting time of reflection which may be accompanied by hopes, plans and goals for the future but inevitably reflections of the past year. Some of the self-criticism we bestow upon […]
29
Jan
Jan
“There are two systems of taxation in our country: one for the informed and one for the uninformed” (U.S. Judge Learned Hand) Small and medium-sized enterprises (SMEs) have limited access to capital markets. As SMEs are considered to be the cheapest and most cost-effective sector in creating jobs, the Revenue authorities sought to address this […]
29
Jan
Jan
“Why do approximately 70% – 80% of small businesses fail within five years? Why are certain entrepreneurs more successful than others?” (Extract from UWC article below) Recent research by the University of the Western Cape on the rate of failure of small businesses makes for interesting reading and provides insights that we all really need […]
29
Jan
Jan
The past few years have seen scandals emerging in both the private and public sectors. Steinhoff, State Capture, Eskom, the Guptas and Bosasa, to name a few, have revealed how endemic corruption has become in South Africa. The National Prosecuting Authority (NPA) is now beginning to charge those who have been involved in these scandals. […]
29
Jan
Jan
An issue that has been around for a while has been employees misrepresenting their qualifications to their employer. This has adverse consequences for the employer as the employee often proves incapable of doing the required job – this leads to wasted time in disciplinary hearings, dismissal and then a new recruiting cycle begins. That’s in […]
29
Jan
Jan
On 26 February 2020 the Minister of Finance, Tito Mboweni, will be making his annual budget speech. Traditionally, the Minister asks the public what they would like to see in the budget and a “Budget Tips” portal on the National Treasury website is open. Citizens are encouraged to submit their tips to the Minister either […]
29
Jan
Jan
7 February – Monthly PAYE submissions and payments 25 February – VAT manual submissions and payments 27 February – Excise Duty payments 28 February – VAT electronic submissions and payments 28 February – CIT Provisional Tax Payments where applicable 28 February – PIT Provisional Tax Payments Disclaimer: The information provided herein should not be used […]
06
Jan
Jan
“If we can win the Rugby World Cup three times, surely it is not asking too much of this country to take the High Road twice when its future is on the line? When push comes to shove, ordinary South Africans can do extraordinary things!” (Clem Sunter) The major global trends that have recently emerged […]
06
Jan
Jan
“The hardest thing in the world to understand is the income tax” (Albert Einstein) Provisional taxpayers using eFiling need to have completed and submitted their 2019 income tax return on or by 31 January. Make sure you are prepared for this and don’t underestimate the time needed to put the return together. As a starting […]
06
Jan
Jan
“If it sounds too good to be true, it probably is” (wise old adage) In the USA, $40 billion is lost every year to scammers. When you consider statistics suggesting that 65% of scam victims don’t report their losses (usually they are too embarrassed to admit they have been conned), as much as $120 billion […]
06
Jan
Jan
It is now widely expected that sometime in the next year or so Moody’s will downgrade South Africa’s debt to junk status. Many see this as the beginning of the process to rehabilitate ourselves. True, initially we will go through a difficult period as ±R150 billion of our debt will be sold as many offshore […]
06
Jan
Jan
January – Monthly PAYE submissions and payments 24 January – VAT manual submissions and payments 30 January – Excise Duty payments 31 January – VAT electronic submissions and payments 31 January – CIT Provisional Tax Payments where applicable 31 January – 2019 Income Tax submission due for provisional taxpayers using eFiling. Disclaimer: The information provided […]
27
Nov
Nov
“When the best leader’s work is done the people say‘We did it ourselves’” (Lao Tzu) Management is probably more of an art than a science – sometimes you need to get actively involved in an issue and other times you need to stand aside and let your staff get on with it. Significantly, if you […]
27
Nov
Nov
“If you fail to plan, you are planning to fail!” (Benjamin Franklin) Previously we discussed why a business plan is so important, this month we look at the mechanics of compiling it. There are many templates available (most banks have pretty good ones), and by using one you can ensure you cover all the relevant topics involved – Plan […]
27
Nov
Nov
The Companies and Intellectual Property Commission (CIPC) has announced new requirements for companies and close corporations when completing their Annual Returns. From 1 January 2020 it will be mandatory to complete a compliance questionnaire when submitting the Annual Return. The rationale for the questionnaire The CIPC will use this questionnaire to assess areas of non-compliance with the […]
27
Nov
Nov
In his recent State of the Nation Addresses, President Ramaphosa vowed to speed up economic growth. He has set several key milestones to measure how effectively he is putting South Africa back on a positive economic path, such as attracting R1.2 trillion in investment in five years (in less than two years well over half […]
27
Nov
Nov
4 December – Tax Season 2019 eFiling closes for Individuals (if you are a provisional taxpayer, you have until end January 2020 to submit your tax return) 6 December – Monthly PAYE submissions and payments 24 December – VAT manual submissions and payments 30 December – Excise Duty payments 31 December – VAT electronic submissions […]
31
Oct
Oct
“There is a tide in the affairs of men, Which taken at the flood, leads on to fortune. Omitted, all the voyage of their life is bound in shallows and in miseries. On such a full sea are we now afloat. And we must take the current when it serves, or lose our ventures.” (Shakespeare) […]
31
Oct
Oct
We all know times are tough and many companies are embarking on cost cutting exercises. Unfortunately, this is a necessary procedure but think of the impact on staff morale and the potential loss of productivity when undertaking cost reduction. You don’t want to end up leaving your business worse off. A few tips Communicate effectively. Cost […]
31
Oct
Oct
Electricity has become a bane in our lives – not only does it increase in price by double digits each year, but we also face the ongoing possibility (perhaps probability) of load shedding. But we can be proactive as there are many ways to cut costs and with some research and a good plan you […]
31
Oct
Oct
“How can I be so stupid?” (John Cleese recalling when he pitched the BBC to start the Monty Python’s Flying Circus show without a business plan) When setting out on a new venture or adding a new section to your business, it pays to have a strategy as to what you want to achieve and […]
31
Oct
Oct
Deadlines this month are – 7 November – Monthly PAYE submissions and payments 25 November – VAT manual submissions and payments 29 November – Excise Duty payments 29 November – VAT electronic submissions and payments 29 November – CIT Provisional Tax Payments where applicable. Disclaimer: The information provided herein should not be used or relied […]
30
Sep
Sep
Note: Even if you yourself are financially secure, please consider passing this article on to someone else who may be struggling with a debt burden – an employee perhaps, or a friend or relative. Owing high amounts of debt and not being able to pay it off is one of the most demoralising things a […]
30
Sep
Sep
Until last year taxpayers had to accrue interest owed to them by SARS. This proved difficult for taxpayers as SARS can take a few years to refund the interest to you. This is exacerbated by the fact that SARS frequently adjusts the interest due to you, which can relate to a prior year. Thus, taxpayers […]
30
Sep
Sep
“Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs” (Gro Harlem Brundtland) The word sustainability is seemingly on everyone’s lips. What does it mean and what can you and I do about it? Deconstructing sustainability The above quote encapsulates what it […]
30
Sep
Sep
“Prediction is very difficult, especially if it’s about the future” (Niels Bohr, theoretical physicist and Nobel Prize winner) After shrinking sharply in the first quarter, the economy rebounded to show “record” 3.1% positive growth in the second quarter. Does this mean that quarter one was an aberration driven by load shedding or is there ongoing […]
30
Sep
Sep
Deadlines this month are – 7 October – Monthly PAYE submissions and payments 25 October – VAT manual submissions and payments 30 October – Excise Duty payments 31 October – VAT electronic submissions and payments 31 October – CIT Provisional Tax Payments where applicable 31 October – Tax Season 2019 Branch filing closes for Individuals […]
30
Aug
Aug
“Forewarned is forearmed” (Wise old saying) SARS is having trouble meeting its revenue targets and this is clearly putting enormous pressure on the South African economy. Further economic deterioration in the economy will probably result in a downgrade to junk status by Moodys. This will mean that all three of the major ratings agencies will […]
30
Aug
Aug
“The CEO who misleads others in public may eventually mislead himself in private” (Warren Buffett) Companies that are sustainable in the long term are honest with themselves and with all the businesses’ stakeholders. The starting point is candour If you are open and honest in your dealings with people you will gain their trust and […]
30
Aug
Aug
Shareholder agreements usually form the backbone of shareholder relationships as they govern, for example, how shareholders sell their shares, how shareholder disputes are settled and the type of authority required for certain transactions. The Companies Act makes it clear that: If there is any conflict between the MOI (Memorandum of Incorporation) and the shareholders’ agreement, […]
30
Aug
Aug
Note: As always, our employment laws being complex and the penalties for getting them wrong severe, take specific professional advice in any doubt! In a recent UK survey 72% of employees felt that their employers were eavesdropping on them. Gathering information on employees is now a multibillion dollar industry and is continuing to grow as […]
30
Aug
Aug
Your third provisional payment for the 2018/2019 tax year is due on or by 30 September 2019. This payment is voluntary, and you only need to make it if you have underestimated your tax liability for the 2018/2019 year. Don’t forget that making this third payment will save you penalties and interest. Other deadlines this […]
30
Jul
Jul
The greatest need in many small businesses is for cash flow. Picture this scenario: Three people start a business and after a few years it is beginning to make profit – in a year it will go cash positive. One of the shareholders is killed (or disabled) in an accident, leaving the spouse and children […]
30
Jul
Jul
“Real stupidity beats artificial intelligence every time” (Terry Pratchett) Artificial Intelligence (AI) is being rolled out in many guises throughout business. One instance of this is voicemail with some amusing results. One person recalls getting a voicemail message which said “I’m a user music to reach an audience” and, another example, “ — working with […]
30
Jul
Jul
“Our results indicate that the Big Mac Index is surprisingly accurate in tracking exchange rates over the long-term, which is consistent with previous PPP research findings” (ScienceDirect) For decades the Economist has been publishing its Big Mac Index to give an estimation of how under- or over-valued a currency is. This is done by comparing […]
30
Jul
Jul
This form is designed so that employers can easily reconcile their payroll taxes (PAYE, UIF and SDL). These taxes have proved difficult to reconcile and this redesigned form is intended to simplify this process. It is important to get this right to avoid paying penalties and interest. A significant step taken by SARS is that […]
30
Jul
Jul
Individual provisional taxpayers need to submit their first provisional form and payment by or on 30 August. Companies with year ends in either February or August need to file their first or second provisional returns and payments also by or on 30 August. Other deadlines this month are – 1 August – Tax Season 2019 […]
28
Jun
Jun
“Death and taxes may be inevitable but they shouldn’t be related” (J.C. Watts Jr)” Tax season 2019 begins on 1 August (1 July for taxpayers who are registered for eFiling or have access to the MobiApp) and SARS has taken further steps to reduce the burden on both taxpayers and SARS’ administrative systems. This year […]
28
Jun
Jun
The business rescue provisions in the Companies Act are regarded as progressive and world class and there is evidence that it has worked well. Yet a 2016 survey showed that more distressed businesses opted for an informal approach and appear to be more successful than those opting for the remedies of the Companies Act. What’s […]
28
Jun
Jun
“Tax Freedom Day is calculated by dividing general government revenue by GDP at market prices, then multiplying the result by the number of days in a year, and finally adding a day” (Free Market Foundation) In the current year it will take the average South African 137 days to pay off his taxes and only […]
28
Jun
Jun
There is chronic unemployment in the country and it is especially felt by the youth where up to 50% cannot find a job. The Employment Tax Incentive (ETI) is designed to encourage companies to employ “youths” (between the ages of 18 to 29) for 1 to 2 years. Incentives for employers to make use of […]
28
Jun
Jun
There are only run-of-the-mill deadlines for July – 5 July – PAYE submissions and payments 25 July – VAT manual submissions and payments 30 July – Excise Duty payments 31 July – VAT electronic submissions and payments 31 July – CIT Provisional Tax Payments where applicable. Disclaimer: The information provided herein should not be used […]
30
May
May
Few things are as devastating to a business’ reputation as internal fraud – it undermines staff morale and creates a new uncertain relationship with stakeholders such as suppliers, investors and compliance authorities. News bulletins and newspapers all talk of the massive corruption being unearthed in South Africa – don’t think your business is immune. Build […]
30
May
May
“‘Alternate director’ means a person elected or appointed to serve, as the occasion requires, as a member of the board of a company in substitution for a particular elected or appointed director of that company” (Companies Act) Situations can arise where a director becomes ill and takes a leave of absence or travels frequently and […]
30
May
May
“‘Burnout’, n. ‘Physical or mental collapse caused by overwork or stress’” (Oxford Dictionaries) Two issues have come to the fore in terms of staff experiencing burnout – bosses who work too many hours, and conflicts in terms of duties performed. This can result in burnout and high healthcare costs (estimated at $120 billion annually in […]
30
May
May
Small business has limited resources and optimising these resources is a balancing act. Part of this balancing act includes the role of compliance. These requirements have increased as new laws are rolled out along with other regulations, such as BEE and FICA, which also need to be considered. One needs to carefully weigh up the […]
30
May
May
Firstly, there are no major deadlines in June but tax season opens in July, so make sure you have all your documentation ready for your 2018/2019 Income Tax Return. SARS and Tax Ombud Sign Cooperation Agreement to Improve Service Then there is some good news – a Memorandum of Understanding (MOU) has been entered into […]
30
Apr
Apr
“There are two systems of taxation in our country: one for the informed and one for the uninformed.” (U.S. Judge Learned Hand) Whether you have recently started a new venture or have had a small business for a while don’t forget that SARS offers two types of favourable tax treatments for small entities: Turnover Tax […]
30
Apr
Apr
“I approach every problem with optimism” (Nelson Mandela) The mood of optimism that pervaded a year ago is rapidly fading – the Business Confidence Index is on a steady decline. Every 1% rise in business confidence results in 0.5% growth in the economy – as President Ramaphosa recognises, growth in investment creates economic activity and […]
30
Apr
Apr
The Companies Act gives directors wide powers to manage the organisation – the Act states “The business and affairs of a company must be managed by or under the direction of its board”. In a recent case a furniture company ran into economic difficulties and resolved that it needed to cut costs by reducing staff […]
30
Apr
Apr
“If only there was some kind of an infinite power source that was free to use all day every day…” (Anon) In a recent binding ruling, SARS confirmed it will allow the cost of solar power units. The capital costs that may be deducted are: Photovoltaic solar panels; AC inverters; DC combiner boxes; Racking; and […]
30
Apr
Apr
This has been causing waves since SARS stated its intentions of making electronic services subject to VAT last year. Now the final regulations have been published and are effective from 1 April 2019. Of significance is the change in the definition of electronic services – in the original draft regulations e-services were specifically listed but […]
30
Apr
Apr
Your Employer Annual Reconciliation Declaration (EMP501) for the period 1 March 2018 to 28 February 2019 is due on or before 31 May. This relates to your monthly EMP201 declarations and IRP5s, IT3(a)s etc generated. Secondly the Department of Labour has extended the date for the submission of your 2018 Return of Earnings to the […]
27
Mar
Mar
“A fine is a tax for doing wrong. A tax is a fine for doing well.” (Ecard humour) (Note: If you aren’t yourself an expatriate, please think of passing this on to someone who is – forward planning is important here!) Legislation has been passed that will partially remove the current tax exemption available to […]
27
Mar
Mar
“So much of what we call management consists in making it difficult for people to work” (Peter Drucker) In a recent interview of a prosecutor, he expressed surprise that most of the people charged with commercial crime were normal and honest. Yet in a recent survey of a company, 41% of the staff had observed […]
27
Mar
Mar
The Companies and Intellectual Property Commission (CIPC) has often been viewed as just an administrator and recorder of decisions made by companies. In February however, the CIPC issued a Compliance Notice to the Public Investment Corporation (PIC) instructing it to recover a R4.3 billion investment in AYO Technology Solutions. What is going on and what […]
27
Mar
Mar
“If governments tax products like sugary drinks, they can reduce suffering and save lives. They can also cut healthcare costs and increase revenues to invest in health services” (World Health Organisation) The Sugar Tax was introduced last April and has met with a mixed response. The Sugar Industry The sugar industry has been struggling with […]
27
Mar
Mar
There are only run-of-the-mill tax deadlines in April, but some interesting information emerged from the recently-released 2018 edition of SARS’ Tax Statistics – For the first time since the Global Financial Crisis the increase in tax revenue collected lagged behind GDP growth. This reflects that (a) the days of tax collections rising at a fast […]
13
Mar
Mar
The following proposed tax changes were announced Income tax rates are left unchanged. The primary rebate was marginally increased but the overall effect of this is that individuals will pay R12.8 billion more in tax – the so called “bracket creep” which means you pay higher taxes as salary increases will put you into higher tax brackets. “Sin” taxes have […]
13
Mar
Mar
“People who complain about taxes can be divided into two classes: men and women” (Anon) How long will you work for the taxman today? Input your salary into the 2019 Tax Clock calculator and find out how many hours you will spend today working for the taxman, and at what time precisely you will finally start working for […]
13
Mar
Mar
“It is not the critic who counts; not the man who points out how the strong man stumbles, or where the doer of deeds could have done them better. The credit belongs to the man who is actually in the arena, whose face is marred by dust and sweat and blood; who strives valiantly; who […]
13
Mar
Mar
Risk management has become increasingly popular in the past twenty years. It is also a corner stone of good governance. Despite this increased focus, businesses are still being blindsided by events which result in high costs being incurred. Potential problems and unpredictability – think “out of the box” Usually a risk assessment is done via […]
13
Mar
Mar
There has been an anomaly in VAT law which new legislation has now largely resolved. The problem with the old position It has always been simple to correct calculable errors in tax invoices, such as price. A VAT debit or credit note would fix such mistakes. However, other errors such as an incorrect name or […]
13
Mar
Mar
There are no major tax deadlines for March but SARS is again warning taxpayers to – Only use registered Tax Practitioners, Ask for the practitioner’s registration number, and Verify the number online here. Disclaimer: The information provided herein should not be used or relied on as professional advice. No liability can be accepted for any errors […]