August 7, 2018

UNDER WHAT CIRCUMSTANCES CAN A PRIVATE COMPANY AND/OR CLOSE CORPORATION BE DEREGISTERED?

During the registration of a company or close corporation that entity acquires a legal personality. This legal personality comes to an end when the directors and/or members decide to deregister the entity. A company or close corporation can be deregistered in one or more of the following ways: by means of a request from the directors and/or members of the company or close corporation or a similar request by a third party in instances where the entity is no longer trading, has no assets or liabilities and there is no reasonable likelihood that it will be liquidated; by means of […]
May 9, 2018

BUYING OUT SHAREHOLDERS

We are often approached by clients to advise on the most tax efficient manner in which a shareholder can sell an investment in a private company. Typically, the parties involve a majority shareholder of a company that is interested in buying out the minority shareholders in the company and which will ensure that that majority shareholder becomes the single remaining shareholder of that company. In essence, two options are available through which a shareholder may dispose of a share in a company to achieve the above goal: it could either sell its shares to the purchasing shareholder, or it could […]
April 23, 2018

HOEKOM DIT BELANGRIK IS OM TE WEET WAT DIE WAARDE VAN JOU BESIGHEID IS

’n Besigheidswaardasie wat behoorlik oorweeg is kan die eerste stap in vele noodsaaklike besigheidsprosesse en – aktiwiteite wees. Alhoewel daar baie voorbeelde is, kan dit byvoorbeeld die verkryging van ’n koop – en verkoopbeleid of fasilitering van ’n herstruktureringsproses insluit. Die inisiëring van onderhandelinge tydens ’n transaksie oor die verkoop van ’n besigheid bly egter waarskynlik die algemeenste stimulus vir die waardasie van ’n besigheid, en vir baie besigheidseienaars mag sodanige gebeurtenis die eerste en enigste keer wees dat die gedagte om ’n besigheidswaardasie uit te voer, opkom. Besigheidwaardasies word dus dikwels as die doel, eerder as die middel tot […]
November 22, 2017

LAAT JOU BESIGHEID AANHOU GROEI

Om ’n suksesvolle besigheid te hê, beteken om seker te maak dat dit aanhou groei. Sonder groei, sal jou besigheid uiteindelik droogloop en stagneer. Maar, met die bykomende verantwoordelikheid om jou besigheid te handhaaf en te sorg dat alles glad verloop, kan dit moeilik wees om te weet waar om besigheidsgroei te soek. Kyk uit vir kostebesparings Hierdie punt is veral waar wanneer jou besigheid probeer om ’n sukkelende ekonomie te oorleef. Om kostebesparende keuses te maak kan makliker of moeiliker word, afhangende van hoe jy jou inkomste/s en uitgawes bestuur. Probeer kostebesparings vind waar jy ook al kan. Watter […]
April 11, 2017

INTEREST FREE LOANS WITH COMPANIES

The latest annual nation budget presented in Parliament proposed the dividends tax rate to be increased with almost immediate effect from 15% to 20%. The increased rate brings into renewed focus what anti-avoidance measures exist in the Income Tax Act[1] that seeks to ensure that the dividends tax is not avoided. Most commonly, the dividends tax is levied on dividends paid by a company to individuals or trusts that are shareholders of that company. To the extent that the shareholder is a South African tax resident company, no dividends tax is levied on payments to such shareholders.[2] In other words, […]
April 11, 2017

INTEREST FREE LOANS TO DIRECTORS

It is very often the case that a company extends an interest free or low interest loan to a director. This manifests either as a true incentive or benefit to that director (mostly the case in larger corporate environments) or in a small business environment in lieu of salaries paid. The latter is especially the case for example where a spouse or family trust would hold the shares in the company running the family business, but which business is conducted through the efforts of the individual to whom a loan is granted from time to time. In terms of the […]
January 12, 2017

ASSETS HELD AS SECURITY BY SARS WHEN A COMPANY IS BEING LIQUIDATED

The KwaZulu-Natal High Court previously granted an application brought by Van der Merwe and others (acting as liquidators) requiring the Commissioner for the South African Revenue Service to release certain assets held by him under his control in a customs warehouse. The assets in question were being held by the Commissioner as security for payment of outstanding Value-Added Tax and customs duty liabilities owed by the insolvent taxpayer involved. After losing in the KwaZulu-Natal High Court, the Commissioner took the matter on appeal to the Supreme Court of Appeal. This judgment is reported as CSARS v Van der Merwe NO […]
May 11, 2016

THRESHOLD REGISTRATION REQUIREMENT FOR THE SKILLS DEVELOPMENT LEVY

We have recently become aware of an increased level of audits being conducted by the South African Revenue Service in relation to taxpayers’ obligations in terms of the Skills Development Levies Act, 9 of 1999 (SDL Act). The focus appears to be specifically on non-compliant taxpayers who fail to register as required in terms of section 5 of the SDL Act, and thus for these employers to pay the requisite levy over to SARS. The problem is perhaps amplified thereby that the skills development levy is often considered an ‘unimportant’ tax by taxpayers (primarily due to it being less costly […]
January 29, 2016

So u wil ‘n besigheid begin? Kyk eers na die volgende faktore

Mense sê dikwels hunkerend: “Ek wens ek het my eie besigheid gehad”. Sommige neem dit verder en besluit watter soort produk of diens hul wil lewer. ‘n Paar gaan selfs so ver om pen op papier te sit en beplanning en berekenings te doen. Op hierdie stadium is dit raadsaam om die faktore wat hier gelys word, te oorweeg. Hierdie is nie ‘n volledige lys nie, maar wel ‘n goeie beginpunt. Voordat u tyd en energie aan die oprigting van ‘n besigheid spandeer, moet u seker maak dat u ‘n redelike kans op sukses het. Sommige faktore wat u kan […]