belated welcome to 2017. We hope that this year will be a marked
improvement on 2016. It is till to early to judge what impact, if
any, the new American administration will have on our economy.
Duty – one calendar month to the day after the incorporation
of Access to Information Act manual – 31
December 2021 extended
Voluntary Disclosure Programme
– 1 October 2016 to 31 August 2017
clients should note that unless we receive all the relevant
data and documentation at least fourteen days before the
applicable submission deadline we cannot be held responsible for
any punitive action taken against them by SARS.
you are using a spreadsheet that requires the insertion of the
date and time for each row, you could use the NOW function which
gives the current date and time or the TODAY function that returns
the current date. The problem with this is that every time a value
changes on the sheet, these functions update. If you want to enter
these as constants, press CTRL+; for the date and CRTL+Shift+; for
your motivating factor in making a donation is to obtain a tax
deduction, you should ensure that the beneficiary of your
generosity is a Public Benefit Organisation (PBO). PBOs are
charitable entities that are registered with SARS and not all such
entities are. Before making your donation, ask for evidence
confirming such registration and, after making the payment, ensure
that the receipt bears a PBO number that is specifically described
as such. SARS will not allow you a deduction if you cannot produce
such a receipt.
Non-Executive Director (NED), according to the King III report, is
provide objective judgment independent of the management of a
not be involved in the management of a company; and
independent of the management on issues such as, amongst others,
strategy, performance, resources, diversity, etc.
Binding General Ruling 40, which deals with the tax consequences
of income earned by a NED, interprets to mean that a NED is a
director who is not involved in the daily management or operations
of a company but simply attends, provide objective judgment and
votes at board meetings.
ruling accepts that a NED is not a common law employee and that no
control of supervision is exercised over the manner in which he or
she performs his or her duties or the hours that the NED works.
income earned in respect of those duties cannot be regarded as
remuneration and subjected to PAYE in terms of the Fourth
Schedule. Further, whereas an employee’s right to claim expenses
against his or her remuneration, a NED is not subjected to this
question arises whether or not these earning should attract VAT.
As a NED cannot be regarded as an employee, Binding General Ruling
41 deems the NED to be an independent contractor. As such, if
directors fees paid to the NED in any12 month period exceed R 1
million, the NED will be required to register for VAT. He or she
may also apply for voluntary registration.
VAT registered NED will be required to comply with all the
provisions of the VAT Act that apply to other vendors including
the issuing tax invoices for the services. If the company to which
those services are rendered is also a VAT vendor, the VAT raised
by the NED will be claimable as input tax by the company.
recent survey of tax practitioners, 40% of those who participated
indicated that more than half of their clients reported delays of
in excess of 60 days in the refund of VAT claims. Some perceive
these delays as being deliberate attempts to delay legitimate
according to SARS statistics, the average turnaround time in the
2016/17 year for VAT refunds was 32.85 working days compared to
33.11 working days in
the preceding year. SARS further claims that 60% of refunds were
processed in 14 days. Where a legitimate refunds is not paid
within 21 business days interest accrues on the outstanding
statistics exclude cases where the claim was subjected to audit or
a verification process. In these cases, interest will only start
to accrue 21 working days after the conclusion of the audit or a
verification process. As regulations do not specify a conclusion
timeframe for these processes, it is essential that the vendor
requests regular updates and promptly meet all requests for
amendment to the sectional title legislation states that auditing
of body corporate can only be carried out by members of the
auditing professions. Particularly in the case of the smaller
developments, this will have a significant impact on
administration costs and hence levies charged to unit holders.
smaller units were allowed to engage an accounting officer to
perform this function and, as a result, incurred lower costs.
readers are encouraged to raise this issue with their local MP and
insist upon a reversal of this amendment.
a business name
business names do not help to promote growth of the operation.
Here are some tips put forward by the National Small Business
a list of words that describe what your business does and what
values it ascribes to, e.g. prompt service, care for customers’
needs, the go to a sight such as www.businessnamegenerator.com
to obtain a list of names that fit your requirements. Bear in mind
that CIPC may well reject your prime choice.
it short and easy to spell and not offensive in any language or
settling on a prime choice, test it on family and friends.
Consider setting up Facebook pages for each name and see which
gets the most likes.
a name that does not limit the future growth potential of the
business. For example, John’s Plumbing will be regarded as a
plumbing concern only and diversification into other fields will
be hampered by that perception.
your own business
decision to start your own business should not be taken lightly. A
lot of planning and forethought should precede the decision.
Probably, the most important step is to decide the type of
business you wish to start. In making that decision, the first
consideration should be whether you have an adequate knowledge of
the skills required to be successful.
and before making a firm commitment, you should consider the
demand in your
proposed area of operations for the product or services that you
intend to offer and the extent of competitors’ penetration. You
should also consider whether you can offer customers a better
product and service than that offered by competitors.
these factors favour your decision to start the business and
before making any financial commitments, you can then proceed to
draft your business plan and budget. This process should make you
give further serious thought to every aspect of the operation and
should be conducted objectively with a completely open minded view
of the possible success or failure of the business.
the impact that the Trump Administration has on the world economy
is still to be felt to a pronounced degree, the rand has weakened
by 34c against the dollar since 20 January 2017, Inauguration Day.
At the same time, it has strengthened by 47c against the pound.
our currency strengthens, sectors that are reliant upon imports
are presented with opportunities to expand and to improve their
trading results. Conversely, sectors that rely upon exports are
going to be adversely effected and competition from countries with
stronger currencies. However, businesses that attract overseas
visitors will enjoy increased demand.
some industries will lose and others will gain. The impact on the
overall economy will depend upon how big a share of the domestic
economy the impacted sectors have. This statement is true
regardless of who is in power in the countries that are in our
list of major trading partners.
whether the Republic, Democrats, Conservatives or Labour rule, the
success of our economy depends upon our local entrepreneurs and
business management and in their ability to capitalize on the
opportunities presented by prevailing market conditions.
you can't make them see the light, make them feel the heat.”
– Ronald Reagan