seems that every month we have something negative to report
regarding the possibility of the country's sovereign credit rating
being downgraded to junk. The latest bad news that will less than
impress the credit bureaus is the student unrest and in particular
the destruction of the amenities at our institutes of higher
learning. On top of that, the people responsible are among those
who are tomorrow's leaders and, presumably, some of the best
brains in our country
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 March 2017
by non-provisional taxpayers at a SARS office – 25 November 2016
by non-provisional taxpayers – 25 November 2016
taxpayers by Efiling – 31 January 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.
of Excel may experience a degree of frustration at their ability
to see all or most of the worksheets in the tab above the Status
Bar. This is caused by the space used by the horizontal scroll
bar. The problem may be resolved by changing the size of the
horizontal scroll bar. To do this, place the cursor over the two
vertical lines to the left of the horizontal scroll bar’s left
arrow. Two vertical lines with an arrow on the left and right of
the vertical lines will appear. Click and hold down the mouse
button whilst moving the mouse in the desired direction to either
increase (left) or decrease (right) the horizontal scroll bar.
are a number of legal structures available to an individual
contemplating going into business. Each has its unique advantages
and disadvantages. The following is brief overview of these
relates to a business that is owned and operated by one individual
in his/her personal capacity. It is the riskier type of entity in
that, in the event that the business is unable to meet its debts,
creditors are able to attach the personal assets of the owner. In
addition, there can be no continuity. In other words, when the
owner dies so does the business. It cannot be bequeathed in a
will. The assets of business will have to be sold by the executor;
either piecemeal or as an entirety.
is limited to twenty and the partnership will dissolve upon the
death or insolvency of one of them. As with the sole
proprietorship, a partner’s personal assets may be attached upon
the insolvency of the partnership. The partners are jointly and
severally liable for the partnership’s debts. This means that a
creditor may seek to recover outstanding amounts from any or all
of the partners collectively.
is no maximum number of people who can be shareholders in a
private company. As a company is a legal entity, it is taxed in
its own name and in accordance with different rates and conditions
to an individual. It will continue to exist after the death of one
or all of its shareholders. Further, bequeathing shares can ensure
continued family participation. This entity offers a far more
flexible tax regime than that available to individuals. The
disparity between tax rates applicable to individuals and
companies may be used to structure financial matters in a way that
minimizes the exposure to taxation.
assets of a business trust vests in the trustees in their
fiduciary capacity. Tax rates applicable to trust are those in the
top bracket for individuals. Due to the ongoing review of the
taxation and use of trusts by the Davis Committee, it is difficult
to predict how financial matters may be structured through trusts
to minimize exposure to capital gains tax donations tax, income
tax and estate duty. In addition, most of the law relating to
these entities is to be found in court judgments and not in
issue that may regularly tax an employer when considering the
appropriate action to take against an employee is whether the
employee’s transgression occurred as a result of incapacity or
misconduct. Dismissal resulting from a misdiagnosis of the cause
of the transgression may lead to dire consequences including
re-instatement and/or damages.
Labour Relations Act (LRA) states that valid reasons for dismissal
are those connected to:
employer’s operational requirement. These are not due to any act
or omission on the part of the employee but to the needs of the
9 of the LRA provides guidelines to be followed before dismissing
an employee for misconduct, ill health, poor performance and
it is important to distinguish between incapacity and misconduct.
Misconduct will arise where the employee is able to comply with an
employer’s rule but does not do so and is thus at fault. Intent
or neglect must be present in the failure to comply. Examples of
to obey a reasonable instruction
are classified as intentional misconduct and would justify
dismissal. Unintentional misconduct usually arises as a result of
failing to take reasonable precautions, forgetfulness or
the other hand, incapacity arises where the employee is willing to
follow the instructions given but is unable to do so because of
lack of skill, training or ability.
can be seen that distinguishing between incapacity or misconduct
can be onerous. Therefore, it is advisable to carry out an
extensive review of the circumstances of a case before
disciplinary action is taken.
is interesting to read the diverse opinions of some economic
commentators. Whilst one major assurance house spokesman stated
that the municipal election results would have little, if any,
impact on investors another commentator was of the opinion that
the results could well influence Luthuli House to rethink its
economic policies thereby influencing future decisions by
investors. There has been no signs of the latter happening unless
the pegging of tuition fee increases to 8% is seen as a shift in
the country's sovereign debt rating which affects all borrowers
may well be impacted negatively by recent events.
Certainly, the destruction and mayhem at our tertiary
institutions can only serve to add to the negative impression of
our country's political leaders and their leadership abilities.
of the repairs and replacement will have to be obtained from
somewhere and at a price. That price will be dictated by interest
rates and those will be influenced by the country's credit rating.
A downgrade may even make it nigh impossible to obtain these loans
without the lender exacting absorbent terms.
turn, that scenario will hamper further necessary development of
our country's infrastructure and the government's ability to meet
its objectives particularly the upliftment of the under-privileged
majority. Hopefully, that will not lead to further insurrection.
the funds must be found from somewhere and it is becoming
increasingly likely that they will be sourced through the tax
system. It is for this reason that we anxiously await the Medium
Term Budget speech toward the end of October.
fool and his money are soon elected.”
- Will Rogers