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June 2017

INTRODUCTION

The Gupta email sage continues by involving the audit and accounting firm KPMG who vigorously deny any wrong doing relating to their former professional relationship with the brothers’ firms and in particular the alleged money laundering that occurred in connection with the infamous wedding. Be that as it may, the IRBA has stated publicly that they intend to launch an investigation into the matter. Whilst this may not be serious enough to make a profound impact upon the economy, it seems that the new Public Protector’s pronouncements have impacted the currency.

DEADLINES

Annual Duty – one calendar month to the day after the incorporation date

Promotion of Access to Information Act manual – 31 December 2021 extended yet again!

Special Voluntary Disclosure Programme – 1 October 2016 to 31 August 2017

ITR12 returns;

Channel                                                     Deadline                       Taxpayer type

Manual by post or at SARS drop boxes      22 September 2017        Non-provisional

eFiling or electronic filing at a SARS branch  24 November 2017       Non-provisional

eFiling                                                           31 January 2018            Provisional

IT14 returns                                                  12 months after the applicable year end

Tax returns

Tax 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. Clients should be accumulating their tax paperwork now in order to facilitate early submission once. The following should be provided to us:

Proof of income such as:

IRP5/IT3(a) from your employer or pension fund

Tax certificates for investment income IT3(b)

Tax Free Investments certificate(s) IT3(s)

Financial statements (e.g. for business income, which includes the rental of property), etc.

Proof of deductions such as:

Medical scheme contributions certificates and receipts

Completed confirmation of diagnosis of disability form (ITR-DD) if you want to claim any disability expenses

Retirement annuity fund contributions certificates

Travel logbook (if you receive a travel allowance or use a company car), etc

The following changes have been made to the ITR12 forms and submission requirements:

·   Fields for policy number and the insurers name in respect of retirement annuity contributions

·   The medical contribution section will be pre-populated by SARS from information provided by the scheme. You will need to check the accuracy of this information and advise your scheme of any errors so that they can re-issue your data to SARS

·    In the total contribution field you must insert the sum of contributions made by your employer and yourself

·    If you are liable for the family care and support of a family member and have solely paid the contributions towards a registered medical scheme for that financial dependant, the information on the medical tax certificate (i.e. medical scheme name, membership number, number of dependants, contributions paid, claims not recovered from the scheme) must be declared separately in the new section added to the return.

·     Qualifying medical expenses actually paid and not claimed from the medical scheme must be declared next to source code 4034 on your return.

·    Qualifying physical impairment expenses paid must be declared next to source code 4022.

·    Qualifying disability expenses paid must be declared next to source code 4023. If you, your spouse or qualifying child(ren) have been diagnosed with a disability by a duly registered medical practitioner and you want to claim deductions, you have to provide the following information:

o   the date of birth of the qualifying person(s)

o   the severity of the disability as per the ITR-DD

o   the date when the most recent Confirmation of Diagnosis of Disability (ITR-DD) certificate was completed by a medical practitioner

o   the practice number of the registered medical practitioner who completed the ITR-DD.

·         South African Residency status

Taxpayers will have to indicate, where applicable, on which date during the relevant year of assessment (e.g. 1 March 2016 to 28 February 2017) they ceased to be a resident of the Republic of South Africa.

·         Employment status

Taxpayers who were unemployed for the full year of assessment (e.g. 1 March 2016 to 28 February 2017), and received no form of income (including no capital gains/loss) will need to indicate this on the ITR12.  Taxpayers who were unemployed for any period during the relevant year of assessment will also have to indicate the period(s) of unemployment in the specific container provided on the ITR12.   

·          Income derived from trusts

Beneficiaries of trusts must provide details of each trust and, for each of them, the amount of local and foreign income derived from them

TAXATION

BUSINESS

Email management

Email and the way that you handle it can lead to a lack of productivity and to stress. Here are a few tips to manage your email more efficiently:

  • Invest in a spam filter. Do not open spam emails. As soon as you do, the sender is notified that your email address is valid. Therefore, you may continue to receive spam from that source. If available, click on the unsubscribe button or unsubscribe line at the foot of the mail,
  • Make less use of the carbon copy (cc) field. Unless there is a real need to know, you are wasting recipients’ time and your own.
  • Carelessly composed emails can result in misunderstandings. Be careful with your writing.
  • Avoid short messages in the subject line. Use that field for the subject and compose your message in the space provided to enlarge on the subject matter.
  • Reduce interruptions by:

§    Turning off intrusive alerts that tempt recipient to check their email

§    Setting email program to display only the first few line thereby allowing the recipient to decide whether immediate response is needed

§    Schedule specific times each day to read and respond to mail

Conversation recording

In general, conversations may not be recording without the consent of the parties. However, where one of the parties to the conversation is doing the recording and is not a law enforcement officer, face to face conversations may be recorded without the consent of the other party. This provision of RICA( Regulation of Interception of Communication and Provision of Communication-Related Information Act) also applies to telephone conversations or other electronic means.

ECONOMY

The recent disagreement between the SARB and the Public Protector has to some extent resulted in the weakening of the rand. No doubt the lack of unity in the ruling party as seen at the ANC policy conference, over the weekend, will also have an impact.

However, Lindiwe Sisulu’s statement that parties proved to be guilty of involvement with the Guptas should be expelled from the party may well have a settling effect. It is hoped that the ANC and parliament acts expeditiously by reacting to the report by Gwede Mantashe regarding the divisions within the party by laying the blame firmly at the feet of Jacob Zuma. Action, as suggested by Ms Sisulu, could remove him from power and result in an immediate strengthening of our currency.

Despite the recession, the Commissioner for Inland Revenue has stated that he is confident that SARS will reach the higher tax collection target set in the budget. If those funds are used correctly, without being misappropriated, higher economic growth could follow.

Recently, former finance minister and now acting director of Wits Business School, Nhlanhla Nene stated that there must be a few things in place for the country to keep its head above economic waters. He stated, “There needs to be sound economic and social policies, effective and efficient public administration and good political leadership. In the absence of good leadership there will be no sound economic and social policies”.

It is hoped that the ruling party takes heed of this warning and that voiced by Ms Sisulu.

TAILPIECE 

If you just give me six months to be a dictator, things will be straight. Right now, to make a decision you need a resolution, decision, collective, petition. Yoh! It’s a lot of work." - Jacob Zuma