The Consumer Protection Act has been around since 2008, but has only been implemented since 2010. It is designed to do exactly as its name suggests: protect the consumer. There are fundamental areas within the Act that call for significant changes to be made to various business processes and software, such as bookkeeping programs, in order for a business to be considered compliant.
Johannesburg, 9 December 2019 – The CIPC Compliance Checklist will be implemented by the CIPC from 1 January 2020.
The Compliance Checklist is applicable to all companies, including state-owned companies, non-profit companies, private companies, personal liability companies and public companies. The checklist currently does not apply to close corporations.
SARS intends on reducing as much as possible of the R16.6 billion debt owed to them by taxpayers by the 28 February 2019 through the use of the 8 debt collection agencies appointed to assist them in recovering the amount owed, this was announced in a media statement released on Friday, 9 March 2018.
The purpose of this alert is make taxpayers aware of their rights when receiving calls from such debt collectors.
Author: Ayanda Masina (Shepstone & Wylie Attorneys)
The rand fell drastically at the end of last year with the firing of the South African Finance Minister, Nhlanhla Nene. South Africans started to wonder how this would affect them when the new Finance Minister, Pravin Gordhan delivers the 2016 budget speech. This was, however, not the first indicator that the country would be facing tax increases in 2016/2017. President Zuma’s agreement not to raise university fees on the back of the university student protests in October 2015 already had experts predicting significant tax implications for 2016/2017 e.g.: speculation that VAT will be increased – this was supported by the Davis Tax Committee in their interim report on VAT in July last year. The committee stated that raising VAT would be a more efficient way of boosting revenue than increasing direct taxes.
If you are involved in a business, you will need to keep records that will enable you to prepare complete and accurate tax
returns for the business as required by legislation. These records must clearly reflect all income and expenditure. This
means that, in addition to permanent books of account or records, all other information that may be required to support
the entries in the records and tax returns must be maintained.
Paid accounts, cancelled cheques and other source documents that support entries in the records should be filed in an orderly manner and stored in a safe place. For small businesses, the business cheque book or internet banking transaction history is the prime source for entries in the business records.
Every year, you need to fill in an Income Tax Return for Companies (ITR14) for your business, giving SARS details of all your business INCOME and EXPENSES. In certain circumstances, e.g. if you are a sole proprietor, you will be required to complete and submit an Income Tax Return for Individuals (ITR12) to SARS.
For your own convenience, get into the habit of keeping accurate records of everything your business OWNS, the INCOME you have made and your DEBTORS (a person, company, or other organisation that owes money to your business) and CREDITORS (a person, company, or other organisation that is owed money by your business).
There are many different ways to keep your records – find one that suits your type of business.
1 July 2015 is the start of the 2015 Tax Season for Individuals.
During Tax Season, you need to submit an ITR12 (which is your Income Tax Return) so we can calculate your tax on your income and the tax-deductible expenses for the assessment year (1 March 2014 - 28 February 2015), which may, in some cases, result in a refund.
You took that GIANT step and have started your own business. For months, or in some cases years, you have been thinking about it and now you finally did it! You are willing to risk it all to do what you love. All your doubts and fears have been overcome and today you are known as, what the rest of population describe as a “lucky few”, a business owner.
Now you are a business owner and with it comes much more responsibility than to deliver, excellent products and services to clients. Delivering those top class products and services is a big responsibility on its own and now, on top of it all you need to think like a business person as you have bills to pay and also need to survive financially. Everyone will agree that living expenses are high and therefore business owners should grab every opportunity to save money. By managing your business finances better, this is possible.
Last time, we spoke about how you can reduce your business taxable income when calculating tax. We discussed that the lower your business taxable income is, the less tax the business will have to pay to SARS. The question now is, “at what % does your business get taxed?” To answer to this question, we first need to answer another question, which is, “as what kind of business entity does your business operate?”
I have decided to start my own company where do I start?