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. […]
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 â this leads to wasted time in disciplinary hearings, dismissal and then a new recruiting cycle begins. That’s in […]
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 […]
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 […]
âIf 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!â (Clem Sunter) The major global trends that have recently emerged […]
âThe hardest thing in the world to understand is the income taxâ (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 donât underestimate the time needed to put the return together. As a starting […]
âIf it sounds too good to be true, it probably isâ (wise old adage) In the USA, $40 billion is lost every year to scammers. When you consider statistics suggesting that 65% of scam victims donât report their losses (usually they are too embarrassed to admit they have been conned), as much as $120 billion […]
It is now widely expected that sometime in the next year or so Moodyâs will downgrade South Africaâs 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 […]
 January â Monthly PAYE submissions and payments 24 January â VAT manual submissions and payments 30 January â Excise Duty payments 31 January â VAT electronic submissions and payments 31 January â CIT Provisional Tax Payments where applicable 31 January â 2019 Income Tax submission due for provisional taxpayers using eFiling. Disclaimer: The information provided […]
âWhen the best leaderâs work is done the people sayâWe did it ourselvesââ (Lao Tzu) Management is probably more of an art than a science â 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 […]
âIf you fail to plan, you are planning to fail!â (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 […]
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 […]
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 […]
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 â Monthly PAYE submissions and payments 24 December – VAT manual submissions and payments 30 December – Excise Duty payments 31 December – VAT electronic submissions […]
âThere 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.â (Shakespeare) […]
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 donât want to end up leaving your business worse off. A few tips Communicate effectively. Cost […]
Electricity has become a bane in our lives â 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 […]
âHow can I be so stupid?â (John Cleese recalling when he pitched the BBC to start the Monty Pythonâs 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 […]
Deadlines this month are â 7 November â 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 […]
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 â 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 […]
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 […]
âSustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needsâ (Gro Harlem Brundtland) The word sustainability is seemingly on everyoneâs lips. What does it mean and what can you and I do about it? Deconstructing sustainability The above quote encapsulates what it […]
âPrediction is very difficult, especially if it’s about the futureâ (Niels Bohr, theoretical physicist and Nobel Prize winner) After shrinking sharply in the first quarter, the economy rebounded to show ârecordâ 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 […]
Deadlines this month are â 7 October â 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 â Tax Season 2019 Branch filing closes for Individuals […]
âForewarned is forearmedâ (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 […]
âThe CEO who misleads others in public may eventually mislead himself in privateâ (Warren Buffett) Companies that are sustainable in the long term are honest with themselves and with all the businessesâ stakeholders. The starting point is candour If you are open and honest in your dealings with people you will gain their trust and […]
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 shareholdersâ agreement, […]
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 […]
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. Donât forget that making this third payment will save you penalties and interest. Other deadlines this […]
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 â in a year it will go cash positive. One of the shareholders is killed (or disabled) in an accident, leaving the spouse and children […]
âReal stupidity beats artificial intelligence every timeâ (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 âIâm a user music to reach an audienceâ and, another example, â — working with […]
âOur 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 findingsâ (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 […]
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 […]
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 â 1 August – Tax Season 2019 […]
âDeath and taxes may be inevitable but they shouldnât be relatedâ (J.C. Watts Jr)â 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 SARSâ administrative systems. This year […]
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. Whatâs […]
âTax 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 dayâ (Free Market Foundation) In the current year it will take the average South African 137 days to pay off his taxes and only […]
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 âyouthsâ (between the ages of 18 to 29) for 1 to 2 years. Incentives for employers to make use of […]
There are only run-of-the-mill deadlines for July â 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 […]
Few things are as devastating to a businessâ reputation as internal fraud â 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 â donât think your business is immune. Build […]
ââAlternate directorâ 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 companyâ (Companies Act) Situations can arise where a director becomes ill and takes a leave of absence or travels frequently and […]
ââBurnoutâ, n. âPhysical or mental collapse caused by overwork or stressââ (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 […]
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 […]
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 […]
“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 donât forget that SARS offers two types of favourable tax treatments for small entities: Turnover Tax […]
âI approach every problem with optimismâ (Nelson Mandela) The mood of optimism that pervaded a year ago is rapidly fading â the Business Confidence Index is on a steady decline. Every 1% rise in business confidence results in 0.5% growth in the economy â as President Ramaphosa recognises, growth in investment creates economic activity and […]
The Companies Act gives directors wide powers to manage the organisation â the Act states âThe business and affairs of a company must be managed by or under the direction of its boardâ. In a recent case a furniture company ran into economic difficulties and resolved that it needed to cut costs by reducing staff […]
âIf only there was some kind of an infinite power source that was free to use all day every dayâŠâ (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 […]
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 […]
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 […]
âA fine is a tax for doing wrong. A tax is a fine for doing well.â (Ecard humour) (Note: If you arenât yourself an expatriate, please think of passing this on to someone who is â forward planning is important here!) Legislation has been passed that will partially remove the current tax exemption available to […]
âSo much of what we call management consists in making it difficult for people to workâ (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 […]
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 […]
“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 […]
There are only run-of-the-mill tax deadlines in April, but some interesting information emerged from the recently-released 2018 edition of SARSâ 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 […]
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 â the so called âbracket creepâ which means you pay higher taxes as salary increases will put you into higher tax brackets. âSinâ taxes have […]
âPeople who complain about taxes can be divided into two classes: men and womenâ (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 […]
âIt 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 […]
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 â think âout of the boxâ Usually a risk assessment is done via […]
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 […]
There are no major tax deadlines for March but SARS is again warning taxpayers to â Only use registered Tax Practitioners, Ask for the practitionerâs 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 […]