February 9, 2021

Voluntary disclose: What it is and how to make use of it

Recently there has been a very positive uptick in activity at the Voluntary Disclosure Unit (VDP) of the South African Revenue Service (SARS). While public perception was previously that taxpayer’s matters were not attended to, practitioners have seen a welcome improvement in efficiency, turnaround time, and interaction with the VDP unit. Although SARS aims for a 201-day turnaround time, some recent applications have been settled in as few as 30 days. What is a VDP? The purpose of the VDP is to enhance voluntary compliance in the interest of good management of the tax system and the best use of SARS resources. The VDP aims to encourage taxpayers to come forward voluntarily to regularise their tax affairs with SARS […]
February 9, 2021

Capital gains tax – When does it come into play?

The distinction between amounts received of a capital nature as opposed to a revenue (or income) nature is essential for income tax purposes. Non-capital amounts received, such as from the disposal of trading stock, are subject to tax at a higher effective rate compared to capital profits. The primary intention with which an asset is acquired is generally conclusive as to the nature of the receipt arising from the realisation of a capital asset unless other factors intervene which show that it was sold in pursuance of a profit-making scheme. It is not uncommon though, that a person’s intention in […]
February 9, 2021

Wysheid vir besluite in die belastingseisoen

Die 2021 belastingseisoen lê voor die deur en ons het wysheid nodig om reg te kies in dié tyd. Een van die moeilike keuses waarmee belastingbetalers gekonfronteer word, is die besluit oor hoeveel hulle onderskeidelik tot ‘n uittree-annuïteit (UA) en tot ‘n belastingvrye spaarbelegging (TFSA) moet bydra. Vir lesers wie minder bekend is met die begrippe eers net kortliks die volgende – wat is ‘n uittree-annuïteit (UA)? Dit is eenvoudig gestel ‘n finansiële instrument waardeur jy met voorbelaste geld vir jou oudag voorsiening kan maak. Dan kan ‘n mens ook die vraag vra waarom dit belangrik is om by te […]
January 19, 2021

Insuring your tax position

In addition to tax liabilities (tax capital amounts), taxpayers are also subject to an array of penalties and interests in respect of late payments, understatements, specific punitive penalties, and compliance-related penalties in terms of various tax Acts, such as the Income Tax Act, and the Value-Added Tax Act. This is often the case when there are uncertain tax positions, where taxpayers had to take a view on specific interpretations on a tax Act, or where assessments have not been finalised and there is a potential threat of penalties. These uncertainties are often an impediment to the conclusion of transactions and deals, and one often finds in agreements that an […]
January 19, 2021

How your business can lead your industry with R&D

Google, Tesla, Apple … These are all companies that we associate with innovation and technological advancement. Of course, we know that the developments that they make in the world of business come down to tons of research and development (R&D). With all the resources at their disposal, they have the groundwork to make innovation a breeze. Since many small business owners are focused on their day-to-day survival in a competitive marketplace, many do not believe that R&D is possible for them, or, that even if they were to invest in research, the advances that they make would not be significant enough to achieve […]
January 19, 2021

Smart accounting, the smart way

The last several years have seen an increase in “smart accounting systems” that have online capabilities and that can integrate with various other business solutions. These smart accounting systems have revolutionised traditional accounting, and there can be no question that many businesses run a more organised and financially sound operation as a result of the availabilities of these programs and applications. While the benefits of using these systems speak for themselves, businesses should ensure that the data processing and back-end of these systems (which is often based overseas) are compliant with local value-added tax (VAT) legislation. A prevalent example is […]
January 19, 2021

What happens when debt is waived?

Many natural persons or trust shareholders in companies are confronted with the unintended tax consequences of owing an amount on a loan account to the company in which they hold those shares. These tax consequences specifically relate to the “deemed dividend” which arises on interest-free loans (related to so-called “debit loans” in companies). In many cases, there is no intention to ever repay the loan account, and shareholders and companies often consider simply waiving these loan accounts. The issue typically arises when the shareholder is not immediately subject to any of the adverse debt waiver provisions of the Income Tax Act. The shareholder often opts to absorb any tax recoupments or base cost adjustments as a result of the debt benefit […]
December 11, 2020

2021

Nog ‘n jaar is verby en met die laaste nuusbrief van 2020 wil ons al ons kliënte bedank vir hulle ondersteuning en ‘n baie geseënde feestyd en voorspoedige 2021 toewens. Aan al ons personeel, baie dankie vir die harde werk en suksesvolle 2020. Mag elkeen van julle die feestyd en ruskans geniet en kom veilig terug. Hierdie artikel is ʼn algemene inligtingsblad en moet nie as professionele advies beskou word nie. Geen verantwoordelikheid word aanvaar vir enige foute, verlies of skade wat ondervind word as gevolg  van die gebruik van enige inligting vervat in hierdie artikel nie. Kontak altyd ʼn […]
December 11, 2020

5 Tips to digitally expand your business’s professional network

The importance of networking – especially during COVID-19 – should not be overlooked. While many business owners have been struggling to stay afloat in the economic downturn that has resulted from the events of 2020, they may have been neglecting one of their key resources in maintaining their success. Good networking skills are one of the most valuable business assets that any business owner can possess. How you connect to others in your field of work (and this includes your competitors) can have a marked effect on your ability to make the right decisions at the right time with the right resources at your […]