Theft: Can you claim an tax deduction and/or a loss?

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Liability insurance

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Tax disputes

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Court cases through new light on tax avoidance

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Software piracy could be devastating for your business and for directors.

In 2010, 35% of software used in South Africa was 'pirated' - either it is downloaded illegally or a counterfeit copy of the software is purchased.
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Directors and shareholders: Can you meet via skype?

The Companies Act of 2008 ('the Act') requires that directors live in an era of transparency and accountability, and they can face severe consequences if they cannot show they have applied their minds when situations go awry.
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B-BBEE: Two things worth knowing

B-BBEE )Broad Based Black Economic Empowerment) has ben with us for quite some time. The process of including the previously disadvantaged into the economy has been without contrroversy but the reality is that it will not be going away any time soon.
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THE NEW TAX OMBUDSMAN: WILL YOU BENEFIT?

The Tax Administration Act became effective on October 1 2012. Included in this Act is the appointment of a "Tax Ombudsman".
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TIME IS RUNNING OUT IF YOUR RESIDENCE IS IN A TRUST, A COMPANY OR A CLOSE CORPORATION

Did you purchase your residence in one of the above entities? Now do you find yourself wondering how you can extricate yourself from this without incurring transfer duty, capital gains tax (CGT), and dividends tax (DT)?
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SPREADSHEETS – A TICKING TIME BOMB

It has become customary to use spreadsheets to enable decision making in business. They are easy to use and are a fast and powerful tool in many areas of business. Yet how much do we question the accuracy and integrity of the spreadsheets we have come to rely on?
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DIRECTORS' LIABILITIES: NO ROOM FOR DELINQUENT DIRECTORS IN THE NEW COMPANIES ACT

In previous issues, we have spoken about the increased liabilities placed on directors by the new Companies Act (the Act). The Act is a balancing piece of legislation and allows increased directors' powers compared to the 1973 Companies Act. With this increased power there comes an increase in responsibility and a consequent increase in liabilities for directors.
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TAX CLEARANCE CERTIFICATES – A VICTORY FOR THE TAXPAYER

Many of us have experienced the frustration of applying for a tax clearance certificate only for SARS to inform us, for example, that there is a missing VAT return from 2001 or that the PAYE reconciliation (the EMP501) for 2006 does not balance.
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DUTIES OF AN EMPLOYER AS PRESCRIBED IN THE VARIOUS ACTS

The South African Revenue Services ("SARS") are focusing on the compliance of employers and their duties as prescribed in the various Acts. All employers must be registered for PAYE, SDL, UIF at SARS and UIF and WCA at the Department of Labour, refer to annexure 1.
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MINIMISE TAX AND ADMINISTRATION

A good deal of publicity is dedicated to the global annual survey of the world's most valuable brands.
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YOUR BRANDING: IS IT YOUR MOST VALUABLE ASSET?

A good deal of publicity is dedicated to the global annual survey of the world's most valuable brands.
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NEW: Online Newsletter

All the relevant industry news can be found on our new online newsletter
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Newsletter 3 of 2011

HL: KING III AND THE SME
In contrast to the King I and II codes, King III effective from 1 March 2010 applies to all entities regardless of the
manner and form of incorporation or establishment and whether in the public, private or non-profit sectors. The
principles have been drafted so that every entity can apply them and, in doing so, achieve good governance. In
South Africa, all companies listed on the JSE have to comply with King III. There is no legal requirement for SMEs
to comply with King III and as such, many prefer not to do so. King III is an “apply or explain” approach to
corporate governance rather than an “apply or else” approach. This lenient stance has not encouraged SMEs to
openly embrace King III. They see it as an unnecessary cost and burden on the business, an area that does not
add to the bottom line. A number of the sections in King III are rather onerous for an SME, however there are also
sections that can benefit all businesses, irrespective of the size.

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Newsletter 2 of 2011

HL: Sometimes it seems easier to just do it yourself
Most of us would have said to ourselves: "It would have been easier if I had done it myself".
Communication is a difficult process. It is easy to forget to tell someone a key piece of information when passing on information or giving them instructions. Consequently, people may not do exactly as you expect. So is this a reason to stop trying? No - I believe it is a reason to get better at communi-cating. Both parties should learn something.

I remember an incident very early in my career. I was asked to do an accounting task. Apparently I did not do it correctly. The manager concerned redid the task, without telling me. I found out from somebody else. The manager was angry. I was angry too because I had not had the opportunity to learn. I was also upset that I had made mistakes. I did not want to do that either. It was a no-win situation. I should have asked for more guidance. The manager should have had better controls in place. We both should have learnt from the experience.

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Newsletter 1 of 2011

HL: News beginnings
Best-selling American novelist Louis L' Amour wrote: "There will come a time when you believe everything is finished. That will be the beginning." These words resonate well with South Africa's new Companies Act, 2008, which came into effect on 1 May 2011.

Despite every effort to ensure that the legislation is characterised by plain language, simplicity, transparency, flexibility and regulatory certainty, many of the questions that clients are asking are very difficult to answer and are open to interpretation.

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Newsletter 5 of 2010

Auditing your inner politician
Recent media attention has been focused on the spending habits of our politicians and public servants. Calls from the left for lifestyle audits on prominent members of the ruling elite prompted me to draw comparisons on the parallels between current events on a public level to the day-to-day financial lives of the individual citizen.

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Newsletter 4 of 2010

What is effective delegation?
Effective delegation is defined in this free article by Derek Stockley. The delegation of authority is a key team leader and management skill. Good delegation techniques and systems can help individuals and organisations to be more effective.

The importance of delegation
The importance of delegation should not be underestimated. Employees often crave trust and responsibility. Effective delegation meets these and other needs.

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Newsletter 3 of 2010

Estate Planning: 10 Reasons Not To Plan
In interviewing clients over the years about their plans for the future or what, if anything, they have done about their estate planning, I have received a number of replies.
Here are the most common:
• We are too busy to plan our lives.
• We are having enough trouble making ends meet now. We will worry about the future later.
• We have thought about writing a will, but we do not know a good estate planning attorney.
• I have life insurance, so my family will be okay.
• We cannot agree on who would raise our children if something happens to us, so we have done nothing.
• We have been unable to put money away for our children’s education, so we do not know how they will pay for college.
• I am planning to inherit from my parents, so I am not worried about my retirement.
• My spouse and I are having a few problems with communication, so there may not be a future for us.
• I cannot decide how to divide up my estate.
• We have been meaning to do something . . . . . .

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Newsletter 2 of 2010

INTERNET USAGE AND THE WORKPLACE
Internet usage at the workplace is regulated by the employer and must also be in compliance with the Regulation of Interception of Communications and Provision of Communication-related Information Act, 2002 (RICA). Upon entering the employer’s premises, the employee comes under the control and direction of the employer. The employee does not have an exclusive “right to privacy”, especially in terms of using the employer’s resources and equipment. The employer should make it a condition of employment, encapsulated in the employment contract that private use of the entity electronic communications facilities, including the internet, e-mail, fax and telephone, is prohibited. It should be further stated in the employment contract that should the employee breach this clause, disciplinary action will follow which may lead to dismissal.

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Newsletter 1 of 2010

PROVISIONAL TAX RETURN: 2 – 2010: NEW LEGISLATION
Legislation with regards to the estimation of taxable income has changed and heavy penalties will be imposed on assessment. SARS requires the estimate of taxable income be based on actual figures (including capital gain). It is therefore important that the taxpayer determines the current year’s taxable income accurately. If your estimated actual taxable income for the current year does not exceed R1 million, you may base your provisional tax return on your last year of assessment. If your estimated actual taxable income for the current year does exceed R1 million you must base your provisional tax return on the actual taxable income as estimated.

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Newsletter 4 of 2009

SARS TO APPLY STRICT NEW PENALTIES FOR OUTSTANDING TAX RETURNS
SARS will start to phase in their much publicized new Administrative Penalty System for all taxpayers. The implementation date was set for the 23 November 2009 for taxpayers with outstanding income tax returns. Initially the main focus of SARS will be repeat offenders with outstanding income tax returns. The penalty system, in terms of section 75B of the Income Tax Act (no 58 of 1962 as amended), provides for recurring penalties each month until compliance is achieved by the taxpayer. It is important to note that the penalties are levied per outstanding return.

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Newsletter 3 of 2009

A simple solution for non-public entities continued.
Last month’s article dealt with the need for developing a unique framework for such “micro” entities, the working group which was formed to address what the main criteria of a reporting framework aimed at “micro” businesses should be, and what those main criteria are. In this month’s article we look as some of the proposed simplifications from IFRS for such entities.

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Newsletter 2 of 2009

Can I move to Turnover Tax?
In the recent Budget speech, it has been announced that the VAT threshold will be increased to R2 million, and therefore a lot of companies would need to deregister VAT, and register for a new form of tax implemented by the South African Revenue Services, known as the Turnover Tax System. The new Turnover Tax System will combine all other taxes into one fixed rate, for those entities that qualify.

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Newsletter 1 of 2009

Investments for Dummies
It is rather frustrating opening every article these days for the last three months and reading: "due to the current economic state... blah blah blah". Unfortunately that is a fact. Having a few shares in a small business and then of course trying to invest the small remaining profit of a less established company can be tricky.

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Newsletter 6 of 2008

Easyfile for Tax Practioners
SARS eFiling is a secure electronic tax return and submission service offered by SARS that removes the risks and hassles of manual tax returns. Not only can you submit your returns via the Internet, but you can also make secure tax payments online.

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Newsletter 5 of 2008

To 'Trust' or 'Not to Trust'
Over the last number of years it has been a trend of businessmen to put property that they own into trusts. They therefore protect their property from possible future creditors and claim the tax benefit. Unfortunately the South African Revenue Services (SARS) have become wise to the scheme and changed the tax laws in such a way that it becomes less attractive to use trusts in this way.

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Newsletter 4 of 2008

Improve Office Morale
In today's tough times, we have to find ways to keep our staff happy and willing to come to work.

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Newsletter 3 of 2008

The Competent Director
In the last few years, there has been a move by the regulating authorities to make directors more accountable and by doing so hopefully avoid the collapse of companies that have marred the market place.

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