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First 2018 Provisional Tax Payments - August 2017

All August Provisional Tax (1st of 2018 tax year) calculations have been emailed, posted and uploaded on your CIS profile.
Please ignore this notice if you are not a Provisional Taxpayer or have already paid your provisional tax for August 2017.
If you had a payment or payments to make please ensure that you do so well before 31 August 2017. Late payment results in an automatic penalty.
Please ensure you use the correct reference numbers listed next to each payment on your letter.
If you have a Nil payment and you agree with our calculation there is nothing further you need to do.
Please remember to email us confirmation of payment.
Many Thanks
WHITFIELD FINTAX
31 July, 2017
ATTENTION EMPLOYERS : KNOW YOUR OBLIGATIONS AS AN EMPLOYER TO ENSURE COMPLIANCE
The labour department is making a concerted effort to improve their systems and we have noted a vast increase in onsite inspections as well as improved control regarding UIF claims.
They have instituted the mandatory submission of the UI19 forms monthly as opposed to only requiring these when there were any changes to employees and or their remuneration (new appointments, resignations, increases etc).
Should an employee lodge a claim for uif for any reason (maternity, ill health, termination of contract etc) you as the employer will also be required to complete a work schedule for the last 5 years or for the time they were in your employ (if less than 5 years). Our office can unfortunately not complete these forms on your behalf.
We need to stress the importance of ensuring that you remain compliant regarding your obligations as an employer to avoid serious consequences and penalties and interest being raised by the various statutory bodies for non disclosure and/or under declaration of payroll taxes.
For further information on your obligations as an employer, please visit the labour website www.labour.gov.za or consult a labour broker.
19 May, 2017
ATTENTION EMPLOYERS – WORKMENS COMPENSATION
It is once again that time of the year when employers are required to submit a return
of earnings (RoE) either directly to the Labour department or via Rand Mutual Admin services Pty Ltd (RMA) or the Federated Employers Mutual Assurance Company Pty Ltd (FEM) dependent on which industry classification your business falls under.
If you are a relatively new enterprise it is important to note that if you requested our legal department to register your business for Workmen’s compensation we would have attended to this and provided you with the reference number.
A further online registration is then required in order to submit the annual return of earnings. This should be attended to by the person responsible for the submission of the returns due to the security procedures during the registration process.
Generally the majority of businesses are registered with the labour department and those few cases that are registered with RMA or FEM are generally officially notified of such by these two offices by mail and informed that they have the mandate to collect on behalf of the labour department.
The letter will also guide you regarding the portal on which you would need to register in order to submit returns.
Please note that return of earnings cannot be submitted manually and the labour department no longer posts hard copy returns for completion.
An annual return must be submitted on line and it is the employer’s responsibility to ensure that this is attended to timeously, no reminders are sent by the labour department
In order to register on line for submission of return of earnings (RoE) directly to the labour department please go to https://roe.labour.gov.za/DolRegistrationWeb/landing.html and follow the registration process.
Kind Regards
WHITFIELD FINTAX
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18 April, 2017
EMP501 ANNUAL RECONCILIATIONS FEBRUARY 2017
The SARS filing season for the 201702 EMP501 reconciliations opens on the 18th April 2017 with the deadline date of 31 May 2017. It is imperative that you submit your recon as early as possible and not wait for the last few days and risk having difficulty in submitting online.
There are certain mandatory fields and you will not be able to complete and submit your reconciliation without accurate and complete information on each employee. These mandatory fields are:
- Full names of employee
- Identity Number or passport number
- Physical residential address
- Dates of employment in the current financial year
- Complete breakdown of salary/wages received for the year
- Income tax reference number for each employee
- Bank account details. If the employee does not have a bank account in their name they
may use a joint or third party account, but this must be specified as such.
If an employer fails to disclose the above information as part of its PAYE reconciliation process, SARS will reject the PAYE reconciliation. SARS may impose a potential penalty on the employer, equal to 10% of the total amount of employee’s tax deducted from the remuneration of employees during the tax year for non-submission of the reconciliation form
SARS have indicated that they will impose stiff penalties and interest for late or incomplete reconciliations.
Kind Regards
WHITFIELD FINTAX
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31 March, 2017
Independent Trustee Appointments - Master Directive
There has been some uncertainty surrounding the appointment of independent trustees on trust deeds over the past several years. No one was entirely sure as to who would qualify as an independent trustee, or whether all types of trusts needed to appoint one?
To address these issues the Chief Master of the High Court has issued a Directive on 6 March 2017 (Chief Master Directive 2 of 2017). The following are extracts from the directive and the implementation of these decisions emanated from the decision reached in Land and Agricultural Bank of South Africa V Parker and Others 2005 (2) SA 77 (SCA):
Appointing an independent trustee
The Master must consider appointing an independent trustee where the trust is registered for the first time with the Master and it emerges from the trust deed that the trust is a "family business trust".
For the purpose of this directive a family business trust is a trust with the following combined characteristics:
a) The trustees have the power to contract with independent third parties, thereby creating trust creditors; and
b) The trustees are all beneficiaries; and
c) The beneficiaries are all related to one another.
An independent trustee:
a) Must be an independent outsider with proper realisation of the responsibilities of trusteeship, and who accepts office in order to ensure that the trust functions properly and that the provisions of the trust deed are observed. Such independent outsider but does not have to be a professional person such as an attorney or accountant.
b) May be a professional accountant, admitted attorney, an advocate who is affiliated to the relevant professional body or association, trust companies, boards of executors or fiduciary practitioners who are members of FISA and may even be chosen from the ranks of business associates;
c) Has no family relation or connection, blood or other, to any of the existing or proposed trustees, beneficiaries or founder of the trust;
d) Must be competent to scrutinise and check the conduct of the other appointed trustees who lack a sufficiently independent interest in the observance of substantive and procedural requirements arising from the trust instrument
e) Has no reason for concluding or approving transactions that may prove to be invalid, because he or she would be knowledgeable about the law of trusts;
f) Would not have any interest in the trust property as a beneficiary;
g) Is not disqualified by the Trust Property Control cipro meaning of easter Act, 1988 from acting as a trustee; and
h) Has knowledge and experience of the business field in which the trust operates.
i) Should be a person who will not accept office without being aware that failure to observe the duties of independent trustee may risk action for breach of trust.
The Master may in certain circumstances dispense with the appointment of an independent trustee and make use of one of the following alternatives:
a) Decide to forego the appointment of the independent trustee after receiving representations from the founder showing good cause to dispense with the appointment of an independent trustee;
b) Request security; or
c) Request that financial statements be audited annually and that the auditor be instructed to inform the Master when potential harm to creditors is likely.
Nomination of the independent trustee (also aimed at existing trust deeds)
Should the trust instrument not make provision for the appointment of an independent trustee, and the Master deems it necessary to appoint such trustee in terms of section 7(2) of the Trust Property Control Act, the following persons must be consulted to obtain nominations for an independent trustee:
a) The founder;
b) The existing trustees;
c) Beneficiaries with a vested right in the trust assets.
The Master is not bound by the nomination and may appoint a suitable person other than those nominated. This should however be done only in exceptional circumstances.
Should you have any queries with regards to the above, or would like more information, or would like to appoint an independent trustee to your trust, please contact Charmaine at our office via email.
Kind Regards
WHITFIELD FINTAX /CL
Where Relationships Count
29 March, 2017
Workmen’s Compensation Return of Earnings
We have confirmation that the 2016 (1 March 2016 – 28 Feb 2017) return of earnings (RoE) filing season will open on Friday the 1 April 2017 and close on 31 May 2017.
It is advisable to submit your return well before the deadline date
15 March, 2017
2017 TAX YEAR END REMINDERS
Finally the end of the TAX YEAR has nearly arrived (2017) with most deadlines for 2016 submissions met and 2ND provisional returns for 2017 submitted.
These 2nd Provisional Tax returns have become so important because of the automatic penalties SARS system raises if you are not within the required 80/90% accuracy.
As you can appreciate February is an extremely busy and stressful period for us and we thank you for your patience and cooperation during this period.
We list below (again) our normal TAX YEAR END reminders for 2017.
Record the closing KM on Tuesday (the 28th February 2017) for all PRIVATE cars that are used for BUSINESS travel. Those using CIS go log in the OD meter today.
See that you have a DETAILED LOG BOOK for each PRIVATE car used for BUSINESS (e.g. on our website www.whitfieldfintax.co.za). If you do not have a conforming detailed log book NO CLAIM WILL BE ALLOWED BY SARS.
Those clients that have their own business that have TRADING stock on hand must do a stock take of all trading stock on the 28 February 2017 (as per normal).
If you have a Company, INC or Close Corporation please make sure ALL cash at bank is in the entities hands as at 28 February 2017 (i.e. if you have moved surplus funds into an access bond or a private savings account during the year move it back into the companies name before the 28 of February 2017.) In addition if you have a large retained earnings surplus you may also consider declaring a dividend. If you do declare a dividend, please confirm with us as Dividend Tax and a return needs to be paid and submitted.
For those few clients that have still not yet handed in their 2016 (1/3/2015 to 28/2/2016 i.e. last year) accounting and/or tax information to us, OR WHO OWE US OUTSTANDING INFORMATION, we suggest you do so ASAP as SARS has started raising LARGE MONTHLY PENALTIES.
Kind Regards
WHITFIELD FINTAX
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24 February, 2017
Second Provisional Tax Payments - February 2017
All February 2017 Provisional Tax (2nd of 2017 tax year) calculations have been emailed, posted and uploaded on your CIS profile.
Please ignore this notice if you are not a Provisional Taxpayer or have already paid your provisional tax for February 2017.
We have now efiled all the 2017 Provisional Tax returns with SARS as per the letters we have sent out.
If you had a payment or payments to make please ensure that you do so well before Tuesday the 28th next week. Late payment results in an automatic penalty.
Please ensure you use the correct reference numbers listed next to each payment on your letter.
If you have a Nil payment and you agree with our calculation there is nothing further you need to do.
Please remember to email us confirmation of payment.
Many Thanks
WHITFIELD FINTAX
20 February, 2017
Provisional Tax February 2017 (2nd return)
We have calculated your February 2017 provisional tax estimates and will be emailing and posting out letters shortly.
However the letters are already available on your CIS profile. As you all should be aware by now our CIS system has been up and running for some time. It’s truly unique and a wonderful tool for you to take advantage of and it’s FREE to all our registered clients.
For those provisional tax clients that have registered and have access to their personal profile via CIS you will already be able to access our preliminary provisional tax calculations for each of the taxpayers in your group for the upcoming February 2017 payment. Remember these are only our provisional calculations (Not Final) and may still change before we send out the final letters later this week. If one of your entities reflect the numbers -9,999,999 this means we don’t have any prior years taxable income to base our calculations at this stage and are awaiting information from SARS or yourself.
These preliminary calculations are available by clicking on the yellow box file on the home page of your CIS profile once logged in and then clicking on the yellow provisional tax subfolder and the scroll down to Prov Tax Feb 2017 2nd Payment.
You can also go to each taxpayer in your group and click on 2017 year and 2nd payment for details of any employees tax taken into account at this stage etc. If this has changed please let us know.
Remember the importance of this (second) return for 2017 and how important it is that your payment is 80% accurate to your final tax liability for 2017 if you have a taxable income that exceeds R1million.
For a full explanation as to how provisional tax works and what it is all about please visit our website and click on Helpful Guides and download the 3 articles – PROVISIONAL TAX HOW IT WORKS –PART1,2 AND 3
Kind Regards
Whitfield Fintax
20 January, 2017
YEAR END CLOSURE
Please note that our office will be closed from 4:45pm Thursday, 22 December 2016 and will re-open on Monday, 09 January 2017.
We wish all our clients and their families a wonderful time over the festive season and a happy and prosperous New Year.
15 December, 2016
RE: NATIONAL CREDIT ACT AWARENESS
The National Credit Act affects anyone who deals with credit in the form of credit agreements, instalment purchase agreements of goods/services, as well as the extension of credit in the form of money ie. loans, credit from banks, and includes mortgages, overdrafts, credit cards, vehicle finance, and personal loans; furniture finance, clothing accounts and any other types of credit from retailers; micro-loans and pawn transactions; all other types of credit or loans provided to consumers (be careful of staff loans and share schemes which are interest bearing).
We would like extend a reminder to our clients, who are credit providers, that they have until 11 November 2016 to register with the National Credit Regulatory as a credit provider should they enter into an agreement whereby they charge interest.
Prior to the amendment of the National Credit Act, a credit provider only had to register if he or she entered into more than 100 credit agreements or has a book value exceeding R500 000. Earlier this year, the Minister reduced the threshold to R 0. Thus, the only way to avoid registration now is to ensure that the agreement does not fall within the definition of a ‘credit agreement’ (ie. by not charging interest).
Any person/entity who provides any credit of any value must comply with the National Credit Act, and those who are not exempt must register with the National Credit Regulator as a credit provider before giving or granting the credit.
The following transactions are exempt from registering:
1. Incidental credit agreement (i.e. interest charged on default e.g. doctors account/failure to pay 30/60/90 day statement).
2. Agreements where the credit provider and the customer are related (ie. husband lends to wife, trustee loans to trust, trust loans to trustee/beneficiary, etc)
3. Member of a stokvel borrows money from the stokvel
4. Director of a company lends money to his company
5. Government institution lends or borrows money from any source.
Failure to register as a credit provider, when required to do so, shall not only render the agreement void, and also expose the lender to donations tax.
For more information about registering or the application process/ fees, please contact the National Credit Regulatory on toll share 0860 627 627 or by email, alternatively visit the website on www.ncr.org.za.
Kind Regards
Charmaine Lцtter
WHITFIELD FINTAX
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14 November, 2016
New Amendments to the Big Changes Proposed as Regards Trust and Interest Free or low Interest Loans.
The Draft Taxation Laws Amendment Bill of 2016 that will be promulgated later this year may have far-reaching proposals relating to the tax treatment of low interest or interest free loans to trusts. (These will be contained in a new section 7C of the Income Tax Act).
The proposed wording (that’s has seen significant changes from the first proposals) if enacted may result in the following:
1. The difference between the interest actually charged on the loan and interest at the “official rate”, would be treated as an on-going and annual donation made by the lender on the last day of the year of assessment of the lender (previously this was going to be a deemed income).
2. The scope of the proposed Section 7C will be narrowed and apply to loans made to a Trust by either a natural person or, at the natural persons instance by a company in which that person together with connected persons in relation to that natural person hold an interest of at least 20 per cent.
3. It is also now proposed that there will be some loans that will be specifically excluded from the proposed section 7C. These include the following:
Special Trusts that are established solely for the benefit of persons with disabilities as defined in the Act.
Section 30 defined PBO Trusts.
Vesting Trusts (where vesting rights are clearly established.
Loans used to finance a primary residence as contemplated in paragraph 44 of the Eighth schedule.
A loan that constitutes an affected transaction and is subject to the provisions of section 32 (transfer pricing.
Loans provided to the trust in terms of a sharia compliant financing arrangement.
A loan that is subject to the provisions of section 64E(4) of the Act (deemed dividend).
4. The new proposals indicate that a rule will clarify the interaction between the current transfer pricing rules in section 31 of the Act and the proposed section 7C as regards loans to foreign trust. In this respect, only transfer pricing rules in section 31 of the Act will apply. For the purposes of the proposed section 7C, no donation will be deemed in respect of a loan arrangement that is subject to section 31 of the Act.
The proposed section &C should come into operation on 1 March 2017 and would apply in respect of tax years commencing on or after that date.
The response document from National Treasury now makes it clear that the proposal is intended to apply to ALL LOANS including those in existence BEFORE 1 March 2017.
Now What?
If implemented this new Section 7C will have far reaching implications for all taxpayers who have credit loans with their Trusts (i.e. who have made interest or low interest loans to their Trusts). Unfortunately this does happen often.
As such we will start planning for affected clients in this regard immediately (i.e. from this year 2016) so we can gauge the impact that it may or may not have as soon as possible and then if need be engage in some restructuring.
WHITFIELD FINTAX
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29 September, 2016
FINANCIAL INTLLIGENCE CENTRE ACT (FICA) AWARENESS

We herewith wish remind you that all businesses, accountable institutions and reportable institutionshave a duty to report irregular activities, in order to prevent money laundering and terror funding. It is in your best interest to ensure that you establish a proper business relationship when transacting with customers/clients, suppliers or NGO’s, so not to form party to any money laundering schemes. Report any irregularities, suspicions activities, or cash transactions exceeding R25 000,to the fraud hotline 0800 203 1558.
In this article, we would like to draw your attention to accountable & reportable institutions specifically, as these entities are required by law to register with the Financial Intelligence Centre (failure could lead to a fine being imposed of R10million):
Accountable institutions:
1. Attorneys
2. Estate Agents
3. Banks and Mutual Banks
4. Long term insurance businesses
5. Business dealing with foreign exchange
6. Person registered with FSB
7. Approved investment managers
8. A board of executors or a trust company or any other person that invests, keeps in safe custody, controls or administers trust property within the meaning of the Trust Property Control Act, 1988 (Act 57 of 1988) (includes trustees of a trust where they are part of important decisions around funds being kept on behalf of a bene).
9. A person who carries on a business in respect of which a gambling license is required to be issued by a provincial licensing authority
10. Postbank
11. A person who carries on the business of a money remitter.
12. A person who carries on the business of lending money against the security of securities.
13. A member of a stock exchange licensed under the Stock ExchangesControl Act
14. The Ithala Development Finance Corporation Limited.
Reportable institutions:
1. Dealers in motor vehicles
2. Dealers in Kruger Rands
In summary, the duties of an accountable & reportable institution are:
• To register with FIC
• Customer due diligence (determine identity of clients & beneficiary owners, understand nature of business, and source of funds).
• Keep records of business relationships and transactions
• Formulation or implementation of internal rules
• Train employees on the Act and rules
• Appoint Compliance officer
With the new Financial Intelligence Centre Bill 2015 tabled in June 2016 (but not promulgated yet) regulators will impose heavier fines on financial institutions for failure to comply with the Act. Such non-compliance could result in South Africa being listed on the global black-list which can damage the reputation of the country and its financial system. This could explain why financial institutions are continuously requesting FICA supporting documentation (ie. ID documents, proof of address, etc) when entering into transactions with them.
Should you need more information about registering with the Financial Intelligence Centre, we suggest you contact them directly on 0860 222 200, or visit their website on www.fic.gov.za. Alternatively chat to your Supervisory Body to which you belong for assistance in this regard, ie. IRBA for Auditors, local Law Society, Estate Agents Board, Financial Services Board, National Gambling Board, etc), or drop Charmaine from our office an email on for assistance.
Kind Regards
Charmaine Lцtter
WHITFIELD FINTAX
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6 September, 2016
EMP501 BI- ANNUAL RECONCILIATIONS AUGUST 2016
A reminder that the filing season for the submission of the bi-annual PAYE reconciliation for 201608 will open on the 1 September 2016 with the final deadline being the 31 October 2016.
There are certain mandatory fields and you will not be able to complete and submit your reconciliation without accurate and complete information on each employee. These mandatory fields are:
- Full names of employee
- Identity Number or passport number
- Physical residential address
- Dates of employment in the current financial year
- Complete breakdown of salary/wages received for the year
- Income tax reference number for each employee
- Bank account details. If the employee does not have a bank account in their name they
may use a joint or third party account, but this must be specified as such.
If an employer fails to disclose the above information as part of its PAYE reconciliation process, SARS will reject the PAYE reconciliation. SARS may impose a potential penalty on the employer, equal to 10% of the total amount of employee’s tax deducted from the remuneration of employees during the tax year for non-submission of the reconciliation form.
SARS have indicated that they will impose stiff penalties and interest for late or incomplete reconciliations.
31 August, 2016
Big Changes Proposed as Regards Trust and Interest Free or low Interest Loans.

The Draft Taxation Laws Amendment Bill of 2016 that will be promulgated later this year may have far-reaching proposals relating to the income tax treatment of low interest or interest free loans to trusts. (These will be contained in a new section 7C of the Income Tax Act).
The proposed wording if enacted may result in the following:
1. The difference between the interest actually charged on the loan and interest at the “official rate”, would be included in the income of a natural person or a company that is a “connected person” in relation to the natural person.
2. The amount included in the income of the lender is not deemed to be interest and the tax exemption relating to interest would not be allowed.
3. The trust will not receive a corresponding deduction of the “deemed interest” against taxable income.
4. The income tax payable by the natural person as a result of this section must be recovered by that person from the trust within three years after the end of the year of assessment. If not, the amount will be treated as a donation by that person to the trust and possibly subject to donations tax.
5. The normal R100 000 per annum tax exemption will not qualify in these situations.
6. No deduction, loss or allowance will be available to a lender as a result of the failure of the trust to repay a loan if subject to this section.
The proposed section should come into operation on 1 March 2017 and would apply in respect of tax years commencing on or after that date. There is no clarity at this stage whether this will apply to all existing loans with effect from 1 March 2017 or only new loans after 1 March 2017.
It appears as if this will apply to both local and offshore loans to Trusts.
Now What?
If implemented this new Section 7C will have far reaching implications for all taxpayers who have credit loans with their Trusts (i.e. who have made interest or low interest loans to their Trusts). Unfortunately this does happen often.
As such we will start planning for affected clients in this regard immediately (i.e. from this year 2016) so we can guage the impact that it may or may not have as soon as possible and then if need be engage in some restructuring.
WHITFIELD FINTAX
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29 July, 2016
EMP501 RECONCILIATION FILING SEASON
We have confirmation that the 201602 annual EMP501 reconciliation filing season will officially open on Monday the 18th April 2016 and close on 31 May 2016.
However we have been successfully submitting reconciliations for a few weeks now so there is no need to delay.
It is advisable to submit your reconciliation well before the deadline date.
6 April, 2016
Workmen’s Compensation Return of Earnings

We have confirmation that the 2015 (1 March 2015 – 28 Feb 2016) return of earnings (RoE) filing season will open on Friday the 1 April 2016 and close on 31 May 2016.
It is advisable to submit your return well before the deadline date.
29 March, 2016
EMP501 ANNUAL RECONCILIATIONS FEBRUARY 2016
We have been unable to confirm the filing season dates for the 201602 EMP501 reconciliations as yet, but will advise you as soon as we have confirmation. We have already commenced with submissions on easy file and these cases are been processed by SARS so there is no reason to delay. It is imperative that you submit your recon as early as possible and not wait for the last few days and risk having difficulty in submitting online.
There are certain mandatory fields and you will not be able to complete and submit your reconciliation without accurate and complete information on each employee. These mandatory fields are:
- Full names of employee
- Identity Number or passport number
- Physical residential address
- Dates of employment in the current financial year
- Complete breakdown of salary/wages received for the year
- Income tax reference number for each employee
- Bank account details. If the employee does not have a bank account in their name they
may use a joint or third party account, but this must be specified as such.
If an employer fails to disclose the above information as part of its PAYE reconciliation process, SARS will reject the PAYE reconciliation. SARS may impose a potential penalty on the employer, equal to 10% of the total amount of employee’s tax deducted from the remuneration of employees during the tax year for non-submission of the reconciliation form
SARS have indicated that they will impose stiff penalties and interest for late or incomplete reconciliations.
WHITFIELD FINTAX
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11 March, 2016
DIESEL REFUND RECORD KEEPING SARS BRIEF 1 MARCH 2016
It is the vendor’s responsibility to prove compliance in the required format.
All documents presented for audit to SARS are to be presented in a reasonable format with
co-operation from vendors.
It is important to note that Diesel refunds are NOT administered by the VAT department, but rather by the customs and excise department. Diesel refunds are a PROVISIONAL refund that could take up to 2 years to finalise. Therefore when submitting a diesel refund amount on a VAT201 return, the vendor is acknowledging that all records are up to date and ready for inspection immediately should there be an audit. Vendors cannot buy time to “recreate” their records after that fact.
SARS officials also advised that Section 75(1A) (a)-(b), Section 75(1C) (a)-(d) must be read in conjunction with schedule 6 of the customs and excise Act. Section 75 states that the refunds are provisional as mentioned before and that SARS has the right to disallow if the supporting documents are not sufficient. This section also states that you cannot claim invoices that are older than two years.
Schedule 6 - provides definition, requirements and losses of non -eligible and eligible usage – which must be split if you have more than 1 operation. All fuel usage whether private and for farming activities must be declared as this is taken into account for SARS to determine if you qualify. You cannot only supply records of eligible usage.
- Section 4 (4) (AC) – states that SARS may come to the premises, request any documents and also interview any employees at their discretion.
- Whilst the logbook currently in use on the SARS website records storage, dispensing and usage of diesel on one worksheet, it is advisable to rather keep two seperate worksheets to avoid confusion and to keep the size of the worksheet manageable. SARS will be tabling a request to further split logbooks between industries as follows:
- Mining
- Underground Mining
- Forestry and farming Commercial Fishing, Coasting Vessels, Offshore Mining, Offshore Vessels and harbour vessels
- Rail
- Electricity generation
Important qualifying factors
Dispensing – Diesel must be delivered to the vendors premises and a valid compliant
Invoices received from supplier/wholesaler.
The vendor can deliver to himself if he purchase and fetches the diesel himself
However the vendor has to then have storage tanks/canisters which are
marked /numbered for control and inspection purposes. A formal tax invoice
must be obtained from the garage as the usual garage fuel slips are not
sufficient.
Once on the vendors premises they need to apply dispensing rules re the
activity usage etc.
Claims – Vendor can only claim on actual usage of diesel in the VAT period – not what is
purchases and still in storage, so vehicles/implements tanks should be measured on
the 1st day and last day of said Vat period.
When completing activity of vehicle/implement for usage it should be very detailed such as :
Tractor no 3 ploughed west side field. SARS feel that farmers should have some work plan of sorts that they follow which should also be made available as supporting documents to substantiate that on 3 Aug 2015 Tractor no 3 ploughed the west side field and was actively ploughing for 6 hours and the drivers (employee) name. Sars may also check payroll records to verify that the driver was paid for 6 hours on that day.
It is advisable to keep records of periods of exceptional circumstances such as drought, flooding etc as this would further explain why certain activities are performed out of the norm, for eg a field was ploughed twice in two months because a crop was lost due to drought.
Also note that trips to fetch and drop off staff are not eligible usage for refund claim
Trips on formal roads that are/can be used by the general public are not eligible unless you can prove it was for the purpose of the main activity of the farm. If a livestock farmer goes to town to buy feed, the trip there is non –eligible but the trip back transporting the feed will be eligible.
To read more on the legislation go to SARS website
Home
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Primary legislation
Schedule to customs and excise act,1964
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11 March, 2016
Workmen’s Compensation Return of Earnings
The filing season has not as yet opened for the submission of the annual return of earnings to Workmen’s Compensation, we are checking daily and will advise as soon
as possible.
For those that fall in the sector now administered by Rand Mutual Assurance (RMA), upon enquiry with their office we have been advised that their office will automatically issue an invoice for the period 1 March 2016 – 28 February 2017 based on an estimate figures determined by their office from previous returns submitted. Once this invoice has been issued, you have 30 days in which to either pay the invoice or submit your own estimate based on projected figures for the new tax year TOGETHER with your actual figures for the year just passed (1 March 2015 – 28 February 2016). Once these figures have been captured, either an second invoice will be issued to you for the additional amount due or a credit note (whichever is applicable) based on the figures submitted. You have 30 days from date of invoice in which to make payment, failing which interest will accrue.
Our office will not automatically attend to these returns on your behalf, we require direct instruction as well as the necessary information from your office.
If our office attends to your monthly bookkeeping, your bookkeeper will be in touch to confirm that you require us to attend to the return on your behalf.
NB: It is compulsory for all employers to be registered for Workmen’s Compensation which covers employees in the event of an injury/death on duty. Heavy penalties are imposed for non compliance and on-site inspections are on the increase.
If your business is not registered and should be, please contact our legal department for assistance in this regard
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11 March, 2016
2016 TAX YEAR END REMINDERS
Finally the end of the TAX YEAR has nearly arrived (2016) with most deadlines for 2015 submissions met and 2ND provisional returns for 2016 submitted. These 2nd Provisional Tax returns have become so important because of the automatic penalties SARS system raises if you are not within the required 80/90% accuracy.
We list below (again) our normal TAX YEAR END reminders for 2016.
Record the closing KM on Monday (the 29th February 2016) for all PRIVATE cars that are used for business travel. Those using CIS go log in the OD meter today.
See that you have a DETAILED LOG BOOK for each PRIVATE car used for business (e.g. on our website www.whitfieldfintax.co.za). No conforming detailed log book no claim will be allowed.
Those clients that have their own business that have TRADING stock on hand must do a stock take of all trading stock on the 29 February 2016 (as per normal).
If you have a Company, INC or Close Corporation please make sure ALL cash at bank is in the entities hands as at 29 February 2016 (i.e. if you have moved surplus funds into an access bond or a private savings account during the year move it back into the companies name before the 29 of February 2016.) In addition if you have a large retained earnings surplus you may also consider declaring a dividend. If you do declare a dividend, please confirm with us as Dividend Tax and a return needs to be paid and submitted.
For those few clients that have still not yet handed in their 2015 (1/3/2014 to 28/2/2015 i.e. last year) accounting and/or tax information to us, OR WHO OWE US OUTSTANDING INFORMATION, we suggest you do so ASAP as SARS has started raising LARGE MONTHLY PENALTIES.
Kind Regards
WHITFIELD FINTAX
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25 February, 2016
2016 Budget Brief
You can download a detailed summary of the tax aspects of the 2016 budget from the SARS website www.sars.gov.za. You can even download the full budget speech from the SARS website. However, we thought we would make it easy for you and give you just the tax snippets and trust that you will find this useful.
• The primary rebate has been increased from R13 257 to R13 500 per year for all individuals.
• The secondary rebate, which applies to individuals aged 65 years and over, remains the same at R7 407 per year.
• The third rebate, which applies to individuals aged 75 years and over, remains the same at R2 466 per year.
• The threshold below which individuals are not liable for personal income tax is thus increased to R75 000 of taxable income per year, R116 150 per year for those aged 65 to 74, and R129 850 for age 75 and over.
• The maximum marginal tax rate has remained the same at 41% and kicks in at a taxable income of R701 301 per annum (same as last year) for natural persons and special trusts.
• The flat rate for Trust has remained the same at 41%.
• The flat rate applicable to companies remains the same at 28%.
• The tax rates applicable to qualifying small business corporations remain the same.
• Monthly medical scheme contribution tax credits will be increased from R270 to R286 a month for the first two beneficiaries and from R181 to R192 a month for each additional beneficiary, with effect from March 1 2016.
• Capital gains tax inclusion rate for individuals, special trusts and insurers’ individual policyholder funds increases from 33.3% to 40%, and for other taxpayers (Trusts and Companies) from 66.6% to 80%.
• The annual exclusion for capital gains tax has increased to R40 000.
• The tables used to calculate the deduction allowed against Travelling Allowances has been changed slightly.
• The rate used to calculate reimbursement business travel for travel less than 8000km has increased from R318 to R329 per km travelled.
• Transfer Duties on the sale of property above R10 million will be increased from 11% to 13%.
• Subsistence allowance rates (tax free) payable to employees who are obliged to spend at least one night from his usual place of residence in SA have been increased from R353 to R372 and from R 109 to R115.
• Assets transferred through a loan to a trust are to be included in the estate of the founder at death and interest-free loans to trusts are to be treated as donations.
• No changes in the VAT rate.
• No adjustments to tax tables of retirement lump-sum payments.
• A Sugar-Sweetened beverages tax will be introduced on 1 April 2017.
• Fuel Levy to rise by 30c/l on 6 April 2016.
• From 1 April 2016 the plastic bag levy is to increase from 6 cents to 8 cents per bag and the incandescent globe tax will Increase from R4 to R6 per globe.
• From 1 April 2016 the plastic bag levy is to increase from 6 cents to8 cents per bag and the incandescent globe tax will Increase from R4 to R6 per globe.
• Excise duties on alcoholic beverages increase by between 6.7% and 8.5%.
Royden Whitfield
WHITFIELD FINTAX
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24 February, 2016
February 2016 Provisional Tax

All February 2016 Provisional Tax (2nd of 2016 tax year) calculations have been emailed, posted and uploaded on your CIS profile.
We have now started to efiled your returns as set out in the above letter.
If you have a Nil payment and you agree with our calculation there is nothing further you need to do.
If you have a payment make sure you pay as per the instructions clearly set out in our letter with the correct reference well before the end of February. If you don’t pay or pay late or short SARS will impose a penalty.
Please send us confirmation of payment so we can update your records on our system, this is very important as we can’t cross check if SARS has allocated your payment properly for you if you don’t.
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11 February, 2016
REMINDER TO ALL EMPLOYERS
With the end of February a matter of weeks away, the annual EMP501(PAYE)reconciliations and Workmen’s Compensation returns will shortly be due for submission to the respective authorities.
We will notify you in due course of these deadline dates.
This is a reminder to ensure that your payroll records are up to date and ready before filing season opens.
It is important that employers are fully aware of their obligations in respect of the administrative and legal requirements. With reference to retrenchments, it’s crucial that these are calculated correctly and that the compulsory tax directive is obtained from SARS before the final payment is made to the employee. It is advisable to contact a labour consultant for assistance in this regard.
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8 February, 2016
Provisional Tax February 2016 estimates now available using our unique CIS System
As you all should be aware by now our CIS system has been up and running for some time.
It’s truly unique and a wonderful tool for you to take advantage of and it’s FREE to all our registered clients.
For those provisional tax clients that have registered and have access to their personal profile via CIS you will already be able to access our preliminary provisional tax calculations for each of the taxpayers in your group for the upcoming February 2016 payment.
Remember these are only our provisional calculations (Not Final) and may still change before we send out the final letters towards the end of January. If one of your entities reflect the numbers -9,999,999 this means we don’t have any prior years taxable income to base our calculations at this stage and are awaiting information from SARS.
These preliminary calculations are available by clicking on the yellow box file on the home page of your CIS profile once logged in and then clicking on the yellow provisional tax subfolder and the scroll down to Prov Tax Feb 2016 2nd Payment. You can also go to each taxpayer in your group and click on 2015 year and 1st payment for details of any employees tax taken into account at this stage etc.
Kind Regards
Royden Whitfield
Whitfield Fintax
8 January, 2016
2015 Almost Done
2015 is almost at its end and most of you are probably getting ready to wind down and take a much deserved break.
It has in many ways been a challenging year especially when dealing with some of SARS administration functions. Unfortunately there has not been much improvement and it is still not possible for taxpayers to make a set appointment at a SARS office and their queues just seem to be getting longer. However we continue to engage regularly with SARS and are working with the local office via stakeholder forums and our professional institutes to seek solutions for the benefit of all taxpayers.
Income tax refunds are still a problem and we are told by SARS that refunds can take anything between 3 months to a year! While this is the reasons SARS are giving when we follow up we do find that it rarely takes that long but it is not an instant process when a refund is flagged for review. As you can appreciate things don’t always go smoothly when dealing with SARS so please be patient when this applies to you.
For those of you that have still not sent in your 2015 Tax and Accounting information please do so URGENTLY as time is fast running out.
Please note that our office will close on the 22 December 2015 and reopen on the 4th January 2016.
We look forward to 2016 and remind you again of our very informative free website www.whitfieldfintax.co.za and our Client Information System (CIS).
Try visit our helpful guides section if you have some time over the festive period as we continually post articles specifically aimed to help you better understand tax, accounting, estate and financial planning that can help you and save you a lot of frustration time and money.
We would like to thank you for your continued support during the year and hope you have a wonderful festive season and all the best for the new year.
WHITFIELD FINTAX
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10 December, 2015
EMP501 BI- ANNUAL RECONCILIATIONS AUGUST 2015

A reminder that the filing season for the submission of the annual PAYE reconciliation will open on the 1 September 2015 with the final deadline being the 30 October 2015.
There are certain mandatory fields and you will not be able to complete and submit your reconciliation without accurate and complete information on each employee. These mandatory fields are:
- Full names of employee
- Identity Number or passport number
- Physical residential address
- Dates of employment in the current financial year
- Complete breakdown of salary/wages received for the year
- Income tax reference number for each employee
- Bank account details. If the employee does not have a bank account in their name they
may use a joint or third party account, but this must be specified as such.
If an employer fails to disclose the above information as part of its PAYE reconciliation process, SARS will reject the PAYE reconciliation. SARS may impose a potential penalty on the employer, equal to 10% of the total amount of employee’s tax deducted from the remuneration of employees during the tax year for non-submission of the reconciliation form.
SARS have indicated that they will impose stiff penalties and interest for late or incomplete reconciliations.
Kind Regards
WHITFIELD FINTAX
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17 August, 2015
August 2015(1st 2016) Provisional tax Letters

Provisional tax letters reflecting the 31 August 2015 payments have been emailed and posted. Please be on the lookout for our email. Remember to always check your “spam or Junk” box as your server my send our mail their rather than your in box.
For details about how provisional tax works and who is liable simply click on the “Helpful Guides” button on the left of our webpage and download the relevant article.
Whitfield Fintax
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23 July, 2015
Davis Tax Committee (DTC) report on Estate Duty
The Davis Committee’s first interim report on Estate Duty was released this week.
Its an extensive report of over 70 pages covering Estate Duty, Trusts, Donations Tax, Capital Gains Tax, Wealth Tax, Capital Transfer Tax, Inter Spouse bequests, Estate Duty and Donations Tax Avoidance and Retirement funds.
It appears to me to be very well researched and thorough. Its final recommendations seem fair and pragmatic in the South African context.
Trusts have been singled out for some significant changes as regards the way their income and capital gains will be taxed. The Davis Tax Committee (DTC) believes these will go a far way to serve as a deterrent for traditional Estate Duty saving techniques. These recommendations, if implemented, will also help to curb the gross abuse that some schemes are enjoying involving trusts and also help to increase income tax collections. These recommendations involve the removal of the conduit and attribution principle where trusts are able to allocate taxable income and taxable gains towards a host of beneficiaries thereby reducing or avoiding income tax altogether. This amendment has been on the table for a long time and comes as no surprise and was again suggested as recently as the 2013/4 budget speech.
In a nutshell it is the DTC recommendation that all trust taxable income be taxed in the trusts hands (and not in the beneficiaries hands) at the current flat rate of 41% with capital gains taxed at the current inclusion rate of 66,6% resulting in all capital gains being taxed at 26,64% as apposed to 13.32% or lower for individuals. The DTC believes this will go a long way to address the deficiencies of the current estate duty system by discouraging individuals to use trusts to own assets and to bring those assets back into the individuals estate duty net. The DTC recommends that taxpayers who peruse the postponement of estate duty through the use of trusts should remain at liberty to do so. But upon the sale of the asset of a trust a higher rate of tax will be imposed via the higher inclusion rate for CGT, thus compensating for the estate duty loss.
Judging by the tone of the report and its importance to the overall recommendation I think this proposal will finally come into fruition possibly as early as the 2016 budget proposal in February next year or more likely the following year. While the proposals as regards the taxation of trusts may appear to be a little harsh for legitimate trust structures, I think it is inevitable and in the context of ALL the recommendations are fair. However, the DTC clearly states that taxpayers must still be allowed to use trusts when it makes sound sense to do so, in the pursuit of a commercial benefit, rather than just to avoid taxes.
As such, Trusts will continue to be an invaluable tool for legitimate estate structures, perpetual succession and asset protection.
Below is a summary of the other more important points of the Davis Committees report:
The Committee considered other forms of taxation to replace estate duty, such as capital transfer tax and wealth tax but concluded that the current system of Estate Duty and Donations tax be retained but modified.
The flat rate of 20% estate duty and donations tax should be retained.
The estate duty rebate should be increased from R3.5 million to R6 million per person.
The spousal rollover should be maintained and even improved to be portable between the first or last dying spouse – resulting in a tax-free estate of R12million between spouses.
The DTC recommends that donations between spouses should remain tax-free, however the donation of fixed property and shares in companies should not enjoy the spousal exemption.
The annual exemption allowing natural persons to donate R100,000.00 per year free of donations tax should be maintained (R10 000 for companies).
The exemption for the bona fide maintenance of a person should be retained.
No transfer pricing rules should be imposed on interest-free loans to South African trusts.
The exemption of a “donation mortis causa” (being a donation made in contemplation of death) should no longer be exempt.
The exemptions from donations tax for assets (or the subsequent proceeds thereof) inherited from a non-South African tax resident and subsequently donated should be deleted. In addition the current ability to donate those assets free of donations tax (or the subsequent proceeds thereof) owned by a person before he or she became a South African tax resident should be deleted. This has far reaching estate duty implication for SA residents who have inherited foreign assets from non residents and as such affected residents should revisit this aspect of their estate planning immediately before the proposed changes take affect.
All distributions from foreign trusts to SA residents should be taxed as income irrespective whether it is income or capital.
The DTC recommends further reporting requirements for SA residents having an interest in foreign trusts and also recommends that a criminal offense provisions be introduced into the Tax Administration Act of 2011 for taxpayers who fail to disclose their direct or indirect interest in foreign trust structures.
The DTC recommends that retirement fund contributions which did not qualify for an income tax deduction should form part of a deceased dutiable estate. This is a tax-avoidance measure meant to address specific estate duty reduction mechanisms employed in the past.
A copy of the full report is a available on www.taxcom.org.za
Kind Regards
Royden Whitfield
WHITFIELD FINTAX
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18 July, 2015
PAIA Manual
This serves as a reminder that, according to the Promotion of Access to Information Act, all public and private bodies must have a PAIA Manual (also known as a Section 51 Manual). This means all businesses need to have one (ie. any entity that trades or receives rental income, whether it be a trust, sole proprietor or Company/Close Corporation).
The aim of this Act is to allow members of the public to know who they are dealing with when transacting with a business.
Extension has been granted until December 2015 in which to prepare and submit a manual with SAHRC (South African Human Rights Commission). Those who fail to comply timeously will face penalties.
If you need assistance with the above, please give Charmaine or Tasmin a call on 041-3743201 or email or. We are able to draft and submit manuals at a cost of R 424.00 (plus vat).
Charmaine Lцtter
Legal Department
12/06/2015
12 June, 2015
Happy New Tax Year!!
As you are aware, the 2015 tax year came to an end on 28 February 2015 and we will soon be requiring all your relevant information to complete and submit your 2015 - IT12/IT14 income tax returns.
SARS has significantly changed the goal posts this year as regards EXTENSIONS and PENALTIES for late returns. Severe penalties will now be levied by SARS that will accumulate for every month your returns are late. Starting at R250 this will increase by R250 per month for each return that is late. Please note the higher your income the higher the penalties (R250 is their starting point).
Revenue has indicated that no further extension will be granted after the 20th of November for individual taxpayers and trusts and only in select instances will additional extensions be granted for Close Corporations and Companies until after the end of December 2015.
It is VITAL that your financial information is submitted to us in sufficient time to enable us to finalize your tax and accounting affairs WELL BEFORE the final due dates. Accordingly we require ALL your information by no later that 30 May this year. Information submitted later will result in us being unable to finalize your financials and tax returns on time. Please note we have to adopt a first in first out policy as regards work received. Clients that deliver information LATE or INCOMPLETE must accept that we will be meeting our obligations to those clients that have delivered on time and complete – FIRST.
Please note the onus for submission of returns to the South African Revenue Services rests with you the taxpayer and please remember that each Trust, Company or Close Corporation is a SEPARATE TAXPAYER AND SEPARATE RETURNS NEED TO BE SUBMITTED.
Please bear in mind that should your net taxable income exceed R50 000 for the year, a third topping up provisional payment is required before the end of September 2015.
Finally, it is no use letting us have incomplete information as this only delays our ability to complete your financials on time and can add unnecessarily to our fee, as a result of wasted time. With this in mind we list below a brief indication of the type of information we will be requiring which must serve only as a guide to assist you. Please ignore details that do not affect you.
GUIDE OF INFORMATION REQUIRED
1. Cash Book or computer printout or CD of TRIAL BALANCE and DETAILED
LEDGER.
2. IRP5 Certificates and Investment Certificates, IT3 Certificated, CGT Certificates.
3. Retirement Annuity Certificates and Section 18 (A) Donation Certificates.
4. Medical aid tax certificate of your contributions and detailed list of any additional expenses paid by you.
5. Details of the bank account of each taxpayer within your group.
6. LOG BOOK for each PRIVATE OWNED vehicle used for business (This must reflect opening and Closing KM, Cost Price of the Vehicle and it’s Registration number)- see our example under publications – www.whitfieldfintax.co.za
7. VAT 201 Returns and working papers.
8. Bank Statements, cheques / deposit books for the year ended 28 February 2015.
9. List of Stock on hand as at 28 February 2015.
10. List of Debtors and Creditors as at 28 February 2015 and list of bad debts.
11. Cash on hand as at 28 February 2015.
12. Copies of annual payroll schedules and Monthly Employees tax returns.
13. Copies of new lease, rental and Instalment Sale Agreements with finance houses.(i.e. Stannic, Wesbank etc)
14. Fixed asset schedules for your business and a list of your personal Assets and Liabilities as at 28 February 2015.
15. Building Society / Bank / Bond statements for the year ended 28 February 2015.
16. Learnership or Apprenticeships contracts with new and existing staff.
17. CGT MATTERS. Details of all capital assets disposed of during the year that may
have Capital Gains Tax implications.
18. Details of all new assets or Investments that you may have purchased personally or for your business (e.g. Cars, Houses, Flats, Shares, Unit Trusts).
19. Minutes authorizing Trustee/s (or Members/directors) to sign financials – see
Example on our website (www.whitfieldfintax.co.za).
18 March, 2015
EMP501 ANNUAL RECONCILIATIONS FEBRUARY 2015
A reminder that the filing season for the submission of the annual PAYE reconciliation will open on the 1 April 2015 with the final deadline being the 29 May 2015.
There are certain mandatory fields and you will not be able to complete and submit your reconciliation without accurate and complete information on each employee. These mandatory fields are:
- Full names of employee
- Identity Number or passport number
- Physical residential address
- Dates of employment in the current financial year
- Complete breakdown of salary/wages received for the year
- Income tax reference number for each employee
- Bank account details. If the employee does not have a bank account in their name they
may use a joint or third party account, but this must be specified as such.
If an employer fails to disclose the above information as part of its PAYE reconciliation process, SARS will reject the PAYE reconciliation. SARS may impose a potential penalty on the employer, equal to 10% of the total amount of employee’s tax deducted from the remuneration of employees during the tax year for non-submission of the reconciliation form
SARS have indicated that they will impose stiff penalties and interest for late or incomplete reconciliations.
Kind Regards
WHITFIELD FINTAX
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9 March, 2015
2015 Budget Brief
Please click on budget brief button on the left to get a brief update on the major taxation implication of the 2015 Budget
25 February, 2015
TAX YEAR END REMINDERS
Finally the end of the tax year has nearly arrived (2015) with most deadlines for 2014 submissions met and 2ND provisional returns for 2015 submitted, what a mad rush February has become!!.
Thanks to all our fantastic clients who followed our requests and got your information to us early and on time. This really does help make us meet these increasingly more difficult deadlines set by SARS. For the few clients who didn’t PLEASE try this year!!
We list below (again) our normal TAX YEAR END reminders for 2015.
- Record the closing KM on Saturday (the 28th February 2015) for all PRIVATE cars that are used for business travel. Those using CIS go log in the OD meter today.
- See that you have a DETAILED LOG BOOK for each PRIVATE car used for business (e.g. on our website www.whitfieldfintax.co.za). No conforming detailed log book no claim will be allowed.
- Those clients that have their own business that have TRADING stock on hand must do a stock take of all trading stock on the 28 February 2015 (as per normal).
- If you plan to make use of the donations tax exemption - a cash transfer of UP TO R100 000 must be made to your Trust by the end of the month (28 Feb 2015). Remember both spouses may donate up to R100 000 each to their Trusts.
-If you have a Company, INC or Close Corporation please make sure ALL cash at bank is in the entities hands as at 28 February 2015 (i.e. if you have moved surplus funds into an access bond or a private savings account during the year move it back into the companies name before the 28 of February 2015.) In addition if you have a large retained earnings surplus you may also consider declaring a dividend. If you do declare a dividend, please confirm with us as Dividend Tax and a return needs to be paid and submitted.
For those few clients that have still not yet handed in their 2014 (1/3/2013 to 28/2/2014 i.e. last year) accounting and/or tax information to us, OR WHO OWE US OUTSTANDING INFORMATION, we suggest you do so ASAP as SARS has started raising LARGE MONTHLY PENALTIES.
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18 February, 2015
February 2015 Provisional Tax
All February 2015 Provisional Tax calculations have been emailed, posted and uploaded on your CIS profile.
If you have a Nil payment and you agree with our calculation there is nothing further you need to do.
If you have a payment make sure you pay as per the instructions clearly set out in our letter with the correct reference well before the end of February. If you pay late or short SARS will impose a penalty.
Please send us confirmation of payment so we can update your records on our system, this is very important as we cant ensure SARS has allocated your payment properly if you dont.
We will start efiling your returns next week.
Whitfield Fintax
Where Relationships Counts
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13 February, 2015
2nd 2015 Provisional tax Letters
Provisional tax letters reflecting the 28 February 2015 payments have been emailed and posted.Please be on the lookout for our email. Remember to always check your “spam or Junk” box as your server my send our mail their rather than your in box.
For details about how provisional tax works and who is liable simply click on the “Helpful Guides” button on the left of our webpage and download the relevant article.
Whitfield Fintax
29 January, 2015
2014 The year that was.
The challenges dealing with SARS are indeed growing. The good news is that they are really developing a word class eFiling and fully integrated computerized system.
Unfortunately the pace of change, complexities and implementation are bringing new challenges. Some SARS staff are trying but are very often unaware of new developments or systems as they are introduced nearly on a daily basis. This in turn makes it very difficult for tax practitioners as we (and sometimes SARS) very often have to discover these changes, upgrades or improvements by chance adding to the challenge. In addition it takes time before new system work well and SARS staff and practitioners have been able to work out what is actually required, again adding to the challenges.
The light at the end of the tunnel is that once complete and if it works it is going to help improve matters significantly. The eFiling of tax returns has been around for a good few years and works extremely well and we hope that SARS build on that solid foundation. Bottom line is it appears to us that SARS are shifting all responsibility and processing requirements to the taxpayer (and in turn the Tax Practitioner) via digital and computer media elimination any need for interaction with them on a personal level. Great concept as long as all goes well. It’s when something does not go well or fit into the "box" that the problems develop and unfortunately even small problems then become HUGE problems and at the moment no one seems to be able or willing to resolve or even deal with them.
These challenges of course put us under enormous pressure as we are always called upon to help and this can impact on our normal delivery responsibilities. As such we have had to make a few changes and will now have a fully functional eFiling department with a team of filing clerks and a Client and SARS relationship managers who will be interacting on a daily basis with SARS to try and assist and resolve any problems that clients may experience from vat and general registrations to TCC applications, assessment queries/ reviews, refund delays and account maintenance etc. All email correspondence from us via this section will be via a dedicated email address.
Please note that we will still not be able to deal with outstanding tax payments (arrear tax) as if you owe any tax to SARS only you can deal with that.
We are also told that income tax refunds can take anything between 3 months to a year now! While this is absurd it’s the reasons SARS are giving when we follow up why refunds have not been paid. As you can appreciate things dont always go smoothly when dealing with SARS so please be patient when this applies to you.
We look forward to 2015 and remind you again of our very informative free website www.whitfieldfintax.co.za and our Client Information System (CIS). Try visit our helpful guides section if you have some time over the festive period as we continually post articles specifically aimed to help you better understand tax, accounting, estate and financial planning that can help you and save you a lot of frustration time and money.
We hope you have a wonderful festive season and all the best for the new year.
WHITFIELD FINTAX
Where Relationships Counts
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17 December, 2014
YEAR END CLOSURE
Please note that our office will be closed from 1 pm on Friday the 19 December 2014 and will re-open on Monday 5 January 2015.
17 December, 2014
Labour Department
The labour department seem to be making a concerted effort to update their records and improve their systems as we have noted an increase in UI8 forms being sent to employers for completion.
The UI8 form is merely to verify employer information on the labour department’s data base and affords employers the opportunity to ensure their details are recorded correctly and/or advise on changes that may have taken place since registration with the department.
Should you receive one of these forms, please take a minute to complete the form and return it to the labour department, keeping a copy on file for your records.
As on-site inspections by labour official have been steadily increasing for some time now, this serves as a reminder of the importance of knowing what your obligations as an employer are. Visit the labour website on www.labour.gov.za or consult a labour broker from time to time to keep abreast of changes and requirements.
Should you be contacted by a labour official wanting to conduct an inspection it is important to know your rights. A labour official may not demand access to your place of business or your records before they have notified you in writing, on an official department letterhead of their intention to inspect, supplied you with a list of what documents you should make available and set up a time that is convenient to both parties.
There are many reports of scamsters gaining access to premises and/or confidential records as employers are not familiar with what procedures should be followed, please ensure you view their official departmental proof of identity before allowing access to your records.
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Where Relationships Counts
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10 November, 2014
Employment Equity Annual Reports
In terms of section 21 of the Employment Equity Act any business who employs more than 50 employees or who exceeds a certain threshold MUST submit an Employment Equity Report annually with the Department of Labour.
The Deadlines dates are 30 September (Manually) and 15 January (online) for the 2014 period.
To view the thresholds, please vist helful guides on our website.
For further assistance in submitting the report, please contact our office on 041-3743201 or via email on
or.
Alternatively you may contact the
Department of Labour on 0860101018 or visit them on www.labour.gov.za.
Charmaine Lotter (LLB)
Whitfield Fintax
22 September, 2014
Are you claiming against the SARS EMPLOYMENT TAX INCENTIVE (ETI)?
As the bi annual EMP501 (PAYE) reconciliation period is once again in full swing with the filing season having opened on the 1st September 2014 and closing on the 31 October 2014, we would like to remind you of a few important points.
An employer cannot claim the ETI (i.e. reduce their PAYE (Employees’ Tax liability)) if on the last day of the month, the employer-
• Has failed to submit any return/declaration (all taxes apply)
• Has any tax debt outstanding, excluding a tax debt:
o where an agreement has been made for a deferral payment
o that has been suspended pending an objection or appeal or
o where the tax debt is less than R100.
What are the consequences if you select Yes under the Employment Tax Incentive (ETI) section on the Monthly Employer Declaration (EMP201), and have outstanding returns and/or debt?
• If an employer continues to claim the ETI even though it is not available to them in term of section 8 of the ETI Act, the employer would have a short fall on the payment of Pay-As-You-Earn (PAYE) resulting in interest and penalty for late payment in that month.
When completing the monthly EMP201 and annual and bi annual EMP501reconciliation, if you have claimed ETI you will be required to tick a disclaimer acknowledging that the entity for which you are completing the reconciliation has no outstanding tax returns (all taxes) or tax debt (as explained above).
Please be very sure of the entities situation in this regard and do not claim ETI if there are outstanding returns and/or payments on any taxes. To do so would be a criminal offence and there could be serious repercussions for making a false statement.
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22 September, 2014
Vehicle Log Books - Another Reminder
If you use your car for business you MUST keep an accurate log book of each business trip.
If you dont you will not be allowed to claim any vehicle expenses.
If you receive a car allowance either as an employee or as a self employed business person or professional you must keep a log book.
If you are a self employed business person or professional who runs a business or practice in your own name you must keep a log book.
If you earn commission income or independent contractor income you must keep a log book.
In addition, if you have the use of a company car and want to claim a deduction (reduce your tax bill) you must keep a log book.
Bottom line is if you use your car for any business trips and want to claim a tax deduction for your car expenses you must keep a log book - NO EXCEPTIONS. If your spouse works for you and uses their car for business trips they must also keep a log book.
If you dont provide us with a detailed and compliant log book at year end we are not allowed to claim any car expenses for you. For an example of a compliant vehicle log book visit our website to download a XL template or log onto your CIS profile for a free electronic log book or visit SARS WEBSITE and download their example.
Your log book must be compliant and provide full details of each BUSINESS trip taken every day reflecting the kilometers travelled with a short single line description regarding the trip i.e called at bank to deposit funds. You must also record OD meter readings during the year especially at the beginning of each tax year (1 March) and when you buy or sell a car and when the car goes in for a service. Please note that travelling DIRECTLY from your house to your NORMAL place of business and back is considered a PRIVATE trip. However if you travel from home to a client, the bank or any business related trip then go to your normal place of business then that trip is regarded as a BUSINESS trip. Same applies on a home bound trip.
Your will find that many of your business trips are repetitive in nature making a log book a lot easier and less time consuming to keep than you may think. Examples of typical business trips are as follows:-
1. Calling on client/customer Mr..... or a prospective customer/client
2. Visit bank for banking transactions.
3. Calling at Accountants/ bookkeepers/lawyers/
4. Visit a company supplier
5. Purchase company stationery and periodicals.
6. Call at Post Office
7. Attending training/ workshop/CPD seminar
8. Calling between various branches or business units
9. Attending company promotion activity or entertaining client
10. Attending any business related meeting or conference
11. Attending to any staff related matter
12. Purchase company stock or any business consumables
13. Any after hours business related trips.
Keeping a log book for your car that is used for business trips is VITAL. If you dont you will be taxed on the perks tax value of that car every year until the car is replaced or sold even if the business is no longer receiving any tax deductions on that car as its been paid up or written off.
The perks tax value is calculated at 3,5% times the car purchase price per month. For example if your car was purchased 10 years ago for R500 000 you will pay tax on a perks tax value of R 17 500 per month, thats R210 000 per year and thats even though the business is most likely no longer getting any deduction on the car because as the car was most likely written off and paid up after year 5!!!!
THERE IS NO EXCEPTION TO THE RULE - THIS APPLIES TO ALL TAXPAYERS USING THEIR CARS FOR BUSINESS - no log book no deduction or be prepared to pay a whole lot more tax than you should be.
WHITFIELD FINTAX
Where Relationships Counts
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21 September, 2014
2014 Tax Year End Final Reminder
If you have already dropped off, emailed or uploaded via CIS your 2014 ( 1March 2013 to 28February2014) tax and accounting information - PLEASE IGNORE THIS NOTICE as it will not apply to you.
The 2014 tax year ended on 28 February 2014 and many of you have already sent us your tax and financial data, thanks very much. For those that have not please note that you must do so ASAP. The deadline date of the end of the year is fast approaching and to avoid stringent penalties you need to get it to us well before the end of the year in order for us to be able to complete and efile on time.
If you are not sure what you need to send us simply click on year end guide button on the left.
Obviously ignore those items that are not applicable to you.
Kind Regards
Whitfield Fintax
21 September, 2014
Labour Department Inspections
Please be advised that labour department officials are paying business unannounced visits to inspect the following
records:
-UIF registration number & proof of payments
-Workmens Compensation (COIDA) registration number & proof of payments
-Attendance registers
-Pay slips of employees
-Copies of employment contracts
-Copies of applicable Labour legislation
-Legal wall charts
By law you must have these records on file.
The wall charts (legal charts) must be displayed on your premises where it can be viewed by all employees in order
to create awareness of legislation (ie canteen or staff room).
The following are compulsory charts:
1.Basic Conditions of Employment Act
2.Employment Equity
3.The Occupational Health and Safety Act
Note that, depending on your type of business, you may be required to obtain further charts that are applicable to
your specific industry.
For more information about other charts that may be applicable, please contact your
labour broker. Those employers who dont comply with the above mentioned prescriptions may be penalized
by the Department of Labour in the event of inspection.
For more information in keeping your business in line with legislation, please visit our website under useful guides
the article on Business Guide Legal Obligations.
Yours faithfully
Charmaine Lotter (LLB) GTP (SA)
WHITFIELD FINTAX
19 September, 2014
Provisional Tax Payment reminder

We have now efiled all 1st 2015 PROVISIONAL returns with SARS.
As such this is a final reminder for all provisional taxpayers to pay your provisional tax to SARS per our letter by Thursday to be safe. Remember due date is Friday this week.
If you have already paid and sent us confirmation of payment you dont need to do anything, for those who have not yet paid or sent us conformation of payment please do so urgently.
If you had a NIL payment then obviously just ignore this reminder.
Many Thanks
Whitfield Fintax
25 August, 2014
Provisional Tax August 2014 and using our unique CIS System
As you all should be aware by now our CIS system has been up and running for some time.
It’s truly unique and a wonderful tool for you to take advantage of and it’s FREE to all our registered clients.
For those provisional tax clients that have registered and have access to their personal profile via CIS you will already be able to access our preliminary provisional tax calculations for each of the taxpayers in your group for the upcoming August 2015 payment. Remember these are only our provisional calculations and may still change before we send out the final letters towards the end of July.
However these preliminary calculations are available so you can go view by clicking on the yellow box file on the home page of your CIS profile once logged in and then clicking on the yellow provisional tax subfolder and the scroll down to Prov Tax Feb 2015 1st Payment. You can also go to each taxpayer in your group and click on 2015 year and 1st payment for details of any employees tax taken into account at this stage etc.
The positive feedback that we have had abut CIS has been fantastic.
Top of the list is the fact that clients know that they have immediate access and can download all current and past SIGNED financial statements as well as copies of Trust Deeds, Company formation documents, Wills and other important documentation from anywhere in the world 24/7.
Second is that they are able to view all past correspondence (emails) from us, access copies of our tax assessment notices sent, as well as download copies of the actual tax assessments and tax returns and that way track the progress of their returns submitted to and assessments raised by SARS etc.
Also a big favourite is our user friendly electronic logbook that helps simplify the painful log book requirement for each business car used and the comfort of knowing that the data is automatically uploaded and saved on their personal profile under each car used and that the log book is then automatically created at year end when required by SARS.
Finally, we have found that the ability to simply upload year end data onto their profile with automated confirmations of receipt has been a great help for those techno savvy clients.
These are but a few of the CIS benefits identified by clients and there are many more.
If you have not already registered you are missing out on some really big advantages and being part of something very special and unique in our profession.
Simply visit www.whitfieldfintax.co.za/About.ASP for full details about CIS and how to register.
29 May, 2014
Workmen’s Compensation Annual Return of Earnings
We have been advised that the filing season for the submission of the annual return of earnings to Workmen’s Compensation will open on the 1st of April 2014 with the final date for submission being the 31st May 2014.
Returns are to be submitted on or before this date to avoid penalties and interest accruing.
Last year saw the implementation of the labour department’s electronic medium for the submission of these returns, which proved fairly successful with assessments being raised as soon as returns where submitted. The downside of the faster assessment period was offset by the department offering a discount for early payment. It remains to be seen if this will be the case once again this year.
Our office will not automatically attend to these returns on your behalf, we require direct instruction as well as the necessary information from your office.
If our office attends to your monthly bookkeeping, your bookkeeper will be in touch to confirm that you require us to attend to the return on your behalf.
NB: It is compulsory for all employers to be registered for Workmen’s Compensation which covers employees in the event of an injury/death on duty. Heavy penalties are imposed for non compliance and on-site inspections are on the increase. If your business is not registered and should be, contact our legal department for assistance in this regard.
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26 March, 2014
Workmen’s Compensation Return of Earnings
The filing season has not as yet opened for the submission of the annual return of earnings to Workmen’s Compensation as the labour department is experiencing some problems with their website.
Returns are normally due by the last working day of March each year, so if you submit your own return, we advise that you regularly check the labour department’s website to determine when the current years return is available for completion.
Last year saw the implementation of the labour department’s electronic medium for the submission of these returns, which proved fairly successful with assessments being raised as soon as returns where submitted. The downside of the faster assessment period was offset by the department offering a discount for early payment. It remains to be seen if this will be the case once again this year.
Our office will not automatically attend to these returns on your behalf, we require direct instruction as well as the necessary information from your office.
If our office attends to your monthly bookkeeping, your bookkeeper will be in touch to confirm that you require us to attend to the return on your behalf.
NB: It is compulsory for all employers to be registered for Workmen’s Compensation which covers employees in the event of an injury/death on duty. Heavy penalties are imposed for non compliance and on-site inspections are on the increase.
If your business is not registered and should be, contact our legal department for assistance in this regard.
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7 March, 2014
Important Notice for all Insurance Brokers
If you are an insurance broker running your OWN business you need to be aware of the procedure that needs to be followed AGAIN this year. It has a significant impact on the accounting affairs of your business so please take note.
As you are aware the Financial Services Board requires every registered insurance broker to submit Financial Statements to them within four months after the end of your financial year end.
As such we need you to get your 2014 (1 March 2013 to 28 Feb 2014) year end information to us ASAP (if you have not already done so). We will then start with the drafting process immediately.
Kindly ensure that you forward all the relevant information to us by no later than 31 March 2014 in order for us to assist you accordingly. Please visit our website (www.whitfieldfintax.co.za) and click on “Year End Guide” for a detailed list of information required.
Should you have any queries, please do not hesitate to contact our office.
WHITFIELD FINTAX
Where Relationships Count
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7 March, 2014
Employment Tax Incentive (ETI)
It is definitely worth taking a few moments to understand the new tax incentive which came into effect from the 1stof January 2014 to ascertain if your business qualifies.
This tax incentive is aimed at encouraging employers to hire young unemployed and inexperienced work seekers in order that they may gain the necessary skills and experience to drive the economy forward.This has the much needed added benefit of decreasing our high youth unemployment rate.
The incentive is currently scheduled to end on 31 December 2016 but its effectiveness will be reviewed to determine whether it should be continued.
The benefits and qualifying requirements in a nutshell:
BENEFITS:
It will reduce the employers cost of hiring young people through a cost-sharing mechanism with government, by allowing you to reduce the amount of Pay-As-You-Earn (PAYE) you pay while leaving the wage received by the employee unaffected.
o For example, employers who are registered for PAYE, and who employ a person for the full month of February 2014 and earns R2000, will get R1 000 off their monthly PAYE liability (provided that the employee is a qualifying employee based on all the other remaining requirements
Employers will be able to claim the incentive for a 24 month period for all employees who qualify.
The incentive amount differs based on the salary paid to each qualifying employee and whether the qualifying employee was employed during the first 12 months or second 12 months of the ETI programme.
Importantly the ETI does not affect learner ship allowances (grants) which continue as usual.
DOES YOUR BUSINESS QUALIFY?
The employer is eligible to claim the ETI if the employer:
o Is registered for Employees’ Tax (PAYE)
o Is not in the national, provincial or local sphere of government
o Is not a public entity listed in Schedule 2 or 3 of the Public Finance Management Act (other than those public entities designated by the Minister of Finance by Notice in the Gazette)
o Is not a municipality
o The minimum prescribed wage for the relevant sector is paid or a minimum of R2000,where no minimum wage is prescribed.
Is not disqualified by the Minister of Finance due to the displacement of an employee or by not meeting the conditions as may be prescribed by the Minister by regulation (more on this later).qualify:
WHICH EMPLOYEE’S QUALIFY?
The employee must meet the requirements of the Act to qualify:
• Has a valid South African ID
• Is 18 to 29 years old (please note that the age limit is not applicable if the employee renders services inside a special economic zone (SEZ) to an employer that is operating inside the SEZ, or if the employee is employed by an employer that operates in an industry designated by the Minister of Finance). The age of an employee must be determined at the end of each month for which the ETI claim is being completed.Therefore an employee will start to qualify in the month that they turn 18 and will end in the month they turn 30.
The age limit is not applicable to the SEZ’s and industries designated by the Minister of Finance
• Is not a domestic worker
• Is not a “connected person” to the employer
• Was employed on or after the 1st October 2013.
Seasonal workers and/or fixed term contract employees are not excluded from the programme as long as they meet the same requirements. Commission only earners do not qualify. Where an employee earns a basic wage and commission, the employer may claim the ETI on the basic wage only.
The special economic zone (SEZs)designation hasn’t taken place as yet andwill be designated by notice in the Gazette by the Minister of Finance.
HOW IT WILL BE CLAIMED FROM SARS
Once you have determined what your claim should be it will be completed in a new section on the monthly PAYE (EMP201) return which will reduce your liability to SARS for that specific period. Should you have no paye due for a specific period, the claim should still be recorded, as while there is presently no refund mechanism in place for this, SARS have indicated that credits (refunds) will be allowed to be rolled over to the next month.
The Minister of Finance will announce a date from which employers will become entitled to reimbursements, if applicable.
AN EMPLOYER WILL NOT BE PERMITTED TO CLAIM THE ETI IN A SPECIFIC MONTH WHEN:
An employer can’t claim the ETI (i.e. reduce their PAYE (Employees’ Tax liability) if on the last day of the month, the employer-
• Has failed to submit any return/declaration (all taxes apply)
• Has any tax debt outstanding, excluding a tax debt:
o Where an agreement has been made for a deferral payment
o That has been suspended pending an objection or appeal or
o Where the tax debt is less than R100.
In closing it is important to reiterate that this incentive is intended to encourage job opportunities for the unemployed youth and penalties will be imposed if:
• An employer claims the ETI for an employee who qualifies and earns less than the minimum wage (or less than R2 000 where a minimum wage is not applicable). A penalty equal to 100% of the ETI claimed will be imposed. This will lead to an under-payment of Employee’s Tax and possible interest and penalties in terms of the Tax Administration Act.
• An employer is believed to have displaced an employee in order to employ an employee who qualifies. A penalty of R30 000 will be levied, for each employee displaced.
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6 March, 2014
Important Notice for all Estate Agents running their own business
If you are an estate agent running your OWN business you need to be aware of the procedure that needs to be followed AGAIN this year. It has a significant impact on the accounting affairs of your business so please take note.
As you are aware the Estate Agency Affairs Board requires every registered estate agent to submit an annual return to the EAB known as the “Form of Report by an Independent Auditor”.
The EAAB is now also enforcing Section 29 of the Act. In addition to auditing the trust account the independent auditor is also expected to audit:
1) The financial statements of the business of the Estate Agent.
2) The assets and liabilities statement of the business owners.
Previously the report only made reference to the Trust account.
In summary the EAB requires that your business books and your personal assets and liabilities also be audited by an Independent Auditor no matter how you trade (Sole Prop, CC, and Company) or no matter how active your business is.
The Independent Auditor is therefore unable to sign of this new report unless he has performed an audit of your business as well!!!
What this means is not only must we have compiled your financial statements for your business but they also need to be audited by the Independent Auditor before the due date of the report to the EAB. The due date is 30 June 2014.
As such we need you to get your 2014 (1 March 2013 to 28 Feb 2014) year end information to us ASAP (if you have not already done so). We will then start with the drafting process immediately and then hand over for the audit procedure once complete. It will NOT be impossible for the audit procedure to be complete by the 30 June if we don’t have your information by the latest 15 April 2014.
In the past HDP INC has been the Independent Auditor who has performed the audit function of your Estate Agents Trust Account and they have agreed to assist in this audit requirement as well. They will give you full details of costs involved and timeframes before they proceed. Remember that you have no obligation to use them and can appoint any Independent Auditor you so wish.
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4 March, 2014
Happy (?) new tax year!!

To kick off the new tax year we have again put together some important aspects as regards your tax affairs that you WILL find useful.
Budget Brief
Last weeks budget, as regards tax changes, was not as bad as expected. We did send out our budget brief just after the budget speech but if you did not save it go to our website www.whitfieldfintax.co.za and click on Budget Brief for a copy.
Year End Guide
We will soon be sending you our normal year end guide for 2014 with a guide of information we will be requiring together with delivery dates etc. Its already available on our website, why not simply click on Year End Guide and download it now.
SARS - Frustrations!!!!
Dealing with SARS has become our single biggest challenge at the moment. SARS and their systems are not as efficient as they like us to believe. While their efiling system does work fantastically its when you have to engage with them when the problems begin. Some pointers you must be aware of:-
1. Log Books.
If you use your car for business (self employed) or receive a travelling allowance your LOG BOOK must be PERFECT. SARS now check every log book and are simply disallowing claims if you do not keep an accurate and detailed log book of all your business trips. A good example of a log book can be found on our website. Bottom line if you do not provide a detailed log book we cannot claim car expenses.
2. Tax Refunds.
SARS are taking much longer than they initially indicated to repay tax refunds. This is partly because they require all supporting documentation regarding your tax returns BEFORE they will refund. In addition it is not an automated process so their staff constrains effect the time process. We have been told by SARS staff refunds can take anything between 1 months to a year to finalize!!! Once we have uploaded the supporting documents (we do that immediately once notified) please understand that’s it’s completely out of our hands.
3. Supporting documentation verification.
This is not an audit but SARS requesting all the supporting documentation to your tax return (like Log Books, RA certificates etc). Prior to efiling we had to attach all that supporting paperwork to the tax return before we could submit. Since the introduction of efiling we now have to capture all the information on the e-return and cannot upload the supporting documents with the return. The problem now is that nearly 80% of all tax assessments at present are requiring an upload of supporting document by SARS. Not a problem if they would have a reliable system notifying us via email or letter, however there seems to be glitch in SARS correspondence systems and we are now having to manually go check every assessment in case they have requested the information. Obviously we would far prefer to simply upload everything when we efile but their system does not allow this. Sometimes SARS phone taxpayers direct (even though this should not be happening) for this information and that’s because we have not been notified and if that happens simpler refer them to us and ask for a call REFERANCE and please notify us of the call and reference.
4. Verification of Bank details and a visit to SARS.
This has become a nightmare for taxpayers. SARS now require taxpayers to PERSONALLY (you cannot appoint anyone as your nominee) go visit their office and verify their bank account. This is not a pleasant experience and can take up to 3 hours standing in long lines. We have been told by SARS this is only required if the bank details of a taxpayer change. However we have numerous cases where there has been no change in bank details yet SARS still require taxpayers to visit their office or they simply refuse to refund any monies due. Joint accounts seem to be a major problem. I have taken this up at the highest level at SARS local office and they will not budge on this. They also refuse to implement a system where a taxpayer can make an appointment at a specific time and day. We understand that fraud is a major problem in this country and these types of checks and balances are becoming unavoidable but why can’t an appointment system be implemented. We have now taken this matter up at national level via our professional bodies and hope that sense will eventually prevail!!
Helpful Guides
We have added a few more useful guides on our website www.whitfieldfintax.co.za that are very easy to read guides for clients that run their own business or practice. The guide Wills and Administration of Estates is one of the new additions and is well worth a read.
WHITFIELD FINTAX
Where Relationships Count
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3 March, 2014
2014 Budget Brief

26 February 2014
You can download a detailed summary of the tax aspects of the 2014 budget from the SARS website www.sars.gov.za. You can even download the full budget speech from the SARS website. However, we thought we would make it easy for you and give you just the tax snippets and trust that you will find this useful.
• The primary rebate has been increased to R12 726 per year for all individuals.
• The secondary rebate, which applies to individuals aged 65 years and over, is increased to R7 110 per year.
• The third rebate, which applies to individuals aged 75 years and over, is increased to R2 367 per year.
• The threshold below which individuals are not liable for personal income tax is thus increased to R70 700 of taxable income per year, R110 200 per year for those aged 65 to 74, and R123 350 for age 75 and over.
• Monthly medical scheme contribution tax credits will be increased from R242 to R257 a month for the first two beneficiaries, and from R162 to R172 a month for each additional beneficiary, with effect from March 1 2014.
• Marginal tax rate remains at 40% and kicks in at a taxable income of R673 101 per annum.
• Fringe benefits on company cars will be calculated on the retail price of the vehicle.
• The tables used to calculate the deduction allowed against Travelling Allowances has been changed slightly.
• Subsistence allowance rates (tax free) payable to employees who are obliged to spend at least one night from his usual place of residence in SA have been increased from R319 to R335 and from R 98 to R103.
• Tax regime for SMEs to be reviewed and simplified.
• No changes in the VAT rate or any other major changes to the tax regime.
• Adjustments to tax tables of retirement lump-sum payments.
• Excise duties on alcohol and tobacco to increase by between 6.2% and 12%:, 340ml beer and cider: +9c (+8%), Unfortified wine: +17c/l (+6,2%), Fortified wine: +83c/l (+7,5%), Spirits: +R4.80/750ml (+12%), Cigarettes: +68c/packet of 20s (+6,2%), Cigars: +R5.11/23g (+9%)
• Fuel Levy to rise by 12c/l. (This is less than last year). The Road Accident Fund levy will increase by 8c/l.
Royden Whitfield
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26 February, 2014
Second Provisional Tax Payments - February 2014
Please ignore this notice if you are not a Provisional Taxpayer or have already paid your provisional tax for February 2014.
We have now efiled all the 2014 Provisional Tax returns as per the letters we have sent out. If you had a payment or payments to make please ensure that you do so well before Friday the 28th next week. Late payment results in an automatic penalty.
Please remember to email confirmation of payment.
Please remember that SARS no longer allows us to set up your payment as a debit order, you will have to make an internet payment yourself. Please ensure you use the correct reference numbers listed next to each payment on your letter.
Many Thanks
WHITFIELD FINTAX
RBW/19/2/2014
19 February, 2014
2ND PROVISIONL TAX PAYMENT 2014
We will soon (1st week of February) be emailing you your 2nd provisional tax letters for February 2014.
As you know the second provisional tax return has become one of the most important returns you file each year. If you get it wrong the penalties can be severe. Because of the way the Act is worded it’s possible to be levied a penalty for underpayment of provisional tax even if you get a refund on assessment clearly indicating that sufficient provisional tax was paid. Absurd, but true. As such we want to again explain how this works. Provisional taxpayers are divided between those with a TAXABLE income above R1 million and those below R1 million.
If your taxable income is above R1 million your estimated taxable income on your provisional tax return must be within 80% of your final actual taxable income on assessment. You cant rely on using your last year’s assessed income as a base, it’s irrelevant if you are over R1 million. As such you have to apply your mind properly to this calculation using accurate up to date financial information for the current year. Granted this can be very difficult as you are expected to work on figures for the year that has not even ended but those are the rules set by SARS and you have to do the best you can. If you dont get within the 80% SARS WILL raise a penalty that is very rarely waived. If your income will exceed R1 million you should send us a current trial balance or details of your income ASAP.
If your taxable income is below R1 million its a bit easier as you can then rely on your prior years taxable income increased by 8%. The taxable figures that we send you in our letters are in most instances calculated this way so if you stick to the estimates we send you (provided your income does not exceed R1 million) SARS cant penalize you so DO NOT REDUCE these figure unless you are absolutely sure as you then open the door for potential penalties.
Its also important to pay your provisional tax on time, as paying even 1 day late, WILL in addition to being charged interest, result in a 20% penalty that will be IN ADDITION to the penalty referred to above.
In our letter (please read it carefully) we will list the estimated taxable income we have used to calculate the provisional tax amount payable.
If you do not agree with this figure please ensure that you respond to my email immediately with full details of any changes required.
WHITFIELD FINTAX
26/2/2014
26 January, 2014
Whitfield Fintax Update
We have finally finished most of our renovations and upgrades at our office and moved into the entire building. We had previously shared and sublet part of the building, but due to our wonderful growth now occupy the entire building. We have still retained the building behind us and are using that building for our training centre, overflow and storage.
As a result of our growth we have been able to invest substantial capital back into our practice with the upgrading of our offices, installation of state of the art IT Technology, Tax and Accounting Systems, an upgraded secure encrypted IT server and training centre. We have also used our 28 years in the Tax and Accounting Profession and teamed up with likeminded Software Engineers who are leaders in their field to develop the ITAS computer system.
ITAS is a first of its kind in South Africa being a completely Integrated Tax and Accounting System (ITAS) that allows us to be on top of our game in servicing you and keeping you compliant with SARS (Income Tax Act), CIPC (company’s house), Master of the High Court, the Financial Reporting Standards Council, Trust Property Control Act and the Companies Act to mention a few. ITAS is copyrighted and we are the sole owners of the intellectual property.
Regulation in South Africa, the laws regarding the retention of records and the preparation and retention of adequate working papers and the consequences of non compliance and SARS audits and reviews have simply become so severe that the only way forward was to develop ITAS. Non compliance as regards tax returns and the preparation of adequate annual financial statements in accordance with the Companies Act and Income Tax Act is now a criminal offence.
Part of ITAS is our unique CIS (Client Information System) that allows each client to have full free access via our secure and encrypted server to their personal profile enabling not only full transparency of the work we do for our client but also affords each client the ability to access ALL their information by the click of a button from anywhere in the world (like internet banking). Visit www.whitfieldfintax.co.za/About.ASP for more details about CIS.
We have also updated our website www.whitfieldfintax.co.za with some interesting sections and we especially suggest that you frequently visit our “HELPFUL GUIDES” and “ANNOUNCMENTS” sections. The guides and comments are free to download. Also visit our facebook page at www.facebook.com/WhitfieldFintax to find out more about what we get up to and to get an update of our office renovations.
A big thank you to all of our clients for your patience during the renovations but I think you will all agree it’s been worth it. Also thanks to all of you for your wonderful comments and encouragement during this time.
Royden Whitfield
Whitfield Fintax
17 October, 2013
EMP501 BI–ANNUAL RECONCILIATIONS - AUGUST 2013
A reminder that the filing season for the submission of the bi-annual PAYE reconciliation opened on the 1 September 2013 with the final deadline being the 31 October 2013.
The following should be noted:
The IRP5 and IT3 certificates issued for the period March – August 2013 will be submitted to SARS only. These certificates are not to be issued to employees.
There are certain mandatory fields and you will not be able to complete and submit your reconciliation without accurate and complete information on each employee. These mandatory fields are:
- Full names of employee
- Identity Number or passport number
- Physical residential address
- Dates of employment in the current financial year
- Complete breakdown of salary/wages received for the year
- Income tax reference number for each employee
- Bank account details. If the employee does not have a bank account in their name they
may use a joint or third party account, but this must be specified as such.
If an employer fails to disclose the above information as part of its PAYE reconciliation process, SARS will reject the PAYE reconciliation. SARS may impose a potential penalty on the employer, equal to 10% of the total amount of employee’s tax deducted from the remuneration of employees during the tax year for non-submission of the reconciliation form
SARS have indicated that they will impose stiff penalties and interest for late or incomplete reconciliations
Kind Regards
WHITFIELD FINTAX
7 October, 2013
URGENT NOTICE IN RESPECT OF PAYMENTS TO SARS - AFFECTING ALL TAXPAYER
SARS issued notification on Wednesday via their website and other media of the discontinuation of their DEBIT PULL payment facility most commonly used in order to make payments of statutory returns such as Provisional and Assessed Tax as well as VAT and PAYE/SDL/UIF on E-filing. This facility will be phased out over a month commencing on the 4th September 2013.
Whilst a taxpayer’s appointed tax practitioner can still complete, submit and set payment for the relevant returns, PAYMENT will no longer be debited to your account without authorisation of such via your internet banking BY YOU.
In short you will now need to log onto your internet banking facility and make the payment.
Should a pending payment fail to be made/ authorized by you, it will not be paid by your bank and will not reach SARS. This will result in Revenue imposing penalties, and interest will accrue until payment is made in full of both the tax due and the penalty amount.
These changes will prove challenging to taxpayers and professional’s alike.
SARS call center officials themselves seem to be at a loss on how to answer certain queries we have raised and can’t give any reasons or explanation for the sudden change of procedure.
It will now become crucial that all taxpayers have access to internet banking in some form, whether via their computer or cellphone/IPad/IPhone. If you do not currently utilise this service, I urge you to contact your bank and set the wheels in motion a.s.a.p.
It is important to remember that these are changes implemented by SARS and NOT our office.
Whilst we are going to challenge SARS on this change at the next SARS Stakeholders meeting, it is unfortunately highly unlikely that they will change this ruling/approach.
Whitfield Fintax
6/09/2013
6 September, 2013
Provisional Tax Payments
If you have a provisional tax payment and choose to make payment via an internet transfer as apposed to a SARS debit pull please make sure you correctly reflect the payment reference that was indicated next to the payment amount on our recent letter.
DO NOT use your last payment reference to SARS as their reference numbers chance every time. If you do not use the payment reference we have indicated your payment will not be recorded correctly and your liability to SARS will reflect as UNPAID.
Please remember to send us confirmation of payment in order that we can ensure you get the relevant credit on assessment.
WHITFIELD FINTAX
4 August, 2013
August 2013 PROVISIONAL TAX

We have emailed your (1st 2014) provisional tax estimates for the tax year ended 2014 earlier today. The letter should already be in your in box. If it is not that’s because you either are NOT A PROVISIONAL TAXPAYER or we do not have a private email address for you.
If you have registered on our CIS system you can get a copy of the letter by simply logging onto your CIS profile and click on the yellow folder on the first page and then on Provisional Tax, scroll down to your latest provisional tax letter. You will notice the last few year’s letters are also saved in that folder. The advantage of using CIS is that preliminary estimates are available about two months in advance if you want to get an estimate before we send the final calculations.
If you have not registered with our CIS system please click on the button on the left - ABOUT CIS - for details of what CIS is all about.
If you make an under payment or a LATE payment of provisional tax SARS will levy ADDITIONAL PENALTIES.
Therefore please study our letter carefully and if you do not agree with the figures we send you please email or contact us IMMEDIATELY. All relevant due dates and information will be clearly set out in our letter. Please do not wait until the last week of August to contact us as it will then be too late!!
WHITFIELD FINTAX
3 August, 2013
SARS - Know your Rights if they call you.
SARS have intensified their drive towards tax compliance and are conducting more and more tax audits and reviews. Most of these are dealt with by us, as and when received, and we are able to supply SARS with the required information and supporting documents without clients having to get involved.
However, we have noticed an increase in SARS auditors contacting taxpayers directly and requesting a meeting and or information without arranging it via our office. Please note that you are fully within your rights to refuse to discuss the matter and/or arrange a meeting with them and refer them to us as your registered tax practitioners. We will then determine exactly what SARS require and should it still be necessary for them to meet with you personally we will arrange that meeting and be involved.
Kind Regards
Whitfield Fintax
22 July, 2013
August 2013 PROVISIONAL TAX

We will be posting and emailing, within the next 14 days, the final (1st 2014) provisional tax estimates for the tax year ended 2014.
If you make an under payment or a LATE payment of provisional tax SARS will levy ADDITIONAL PENALTIES.
Therefore please study our letter carefully and if you do not agree with the figures we send you please email or contact us IMMEDIATELY. All relevant due dates and information will be clearly set out in our letter. Please do not wait until the last week of August to contact us as it will then be too late!!
20 July, 2013
IT3 Recons Now required for Attorneys and Estate Agents
A new regulation, that has recently been introduced, that very few affected parties are even aware of, is one that compels Attorneys, Estate Agents and anyone else who pays to or receives on behalf of third parties any investment, interest or rental income from property to submit twice-yearly IT3 returns containing the names, identity numbers and physical and postal addresses, among other things, of certain third parties they do business with.
Even if affected taxpayers are aware of the deadline, it is debatable whether they are ready for this additional administrative burden and whether they are adequately staffed to be able to attend to this by the due date.
The date for the first filing was to have been 31 May 2013 - less than two months after the new regulations were published in the Government Gazette of 5 April 2013. However, SARS has clearly realized that deadline is not going to be met and postponed it to 28 June 2013. We are all hoping this will be postponed even further.
Whitield Fintax
14/June 2013
14 June, 2013
Workmen’s Compensation – Annual Return of earnings- Amnesty
If you have not yet submitted your annual return of earnings for Workmen’s Compensation the due date for electronic submissions is the 30 June 2013.
According to the Compensation fund (department of labour) should you have any outstanding returns you are able to submit the last 4 years returns also by the end of June online and avoid interest and penalties.
We strongly suggest that you take advantage of this amnesty should your Workmen’s Compensation affairs not be in order.
WHITFIELD FINTAX
31 May, 2013
EMP501 PAYE RECONCILIATIONS
The 28th February brought the 2013 tax year to a close and with it came the usual deadlines from SARS for the submission of the EMP501 (PAYE) reconciliation and IRP5/IT3 certificates BY BUSINESSES WHO EMPLOY STAFF AND DEDUCT PAYE.
The EMP501 Reconciliation must be submitted to SARS by the END of MAY 2013.
If you do not run a business or do but have no EMPLOYEES and as such are not registered to deduct employees tax - IGNORE THIS EMAIL IT DOES NOT APPLY TO YOU.
If you require our office to attend to this reconciliation on your behalf, we should have already received your info, if not please ensure the information reaches us by no later than the 10 May 2013. It is crucial that the information supplied is accurate, complete and is presented in an orderly manner.
There are certain mandatory information that we need. We will not be able to complete and submit your reconciliation without accurate and complete information on each employee. We need the below information for each of your employees:
- Full names of employee
- Identity Number or passport number
- Physical residential address
- Dates of employment in the current financial year
- Complete breakdown of salary/wages received for the year
- Income tax reference – please refer to below for further information on this.
- Bank account details. If the employee does not have a bank account in their name they may use a joint or third party account, but this must be specified as such.
If an employer fails to disclose the above information as part of its PAYE reconciliation process, SARS will reject the PAYE reconciliation. SARS may impose a penalty on the employer, equal to 10% of the total amount of employees tax deducted from the remuneration of employees during the tax year for non-submission of the reconciliation form.
Please do not include the information with your 2013 YEAR END tax information WHEN YOU DROP THAT OFF as this is handled by a different department and we will assume that you do not require our assistance in completing the EMP501 reconciliation and relevant certificates.
We require direct instruction to do this and all information delivered must be clearly marked with your relevant details (as follows: MR X ETC - PAYE RECON 2013)
WHITFIELD FINTAX
RBW30/04/2013
30 April, 2013
RE: WORKMENS COMPENSATION
This serves as a reminder that the deadline for the submission of the Workmens Compensation Return of Earnings is 30 April 2013 BY BUSINESSES WHO EMPLOY STAFF AND ARE REGISTERED FOR WORKMENS COMPENSATION.
If you do not run a business and are not registered for Workmens Compensation -IGNORE THIS EMAIL IT DOES NOT APPLY TO YOU.
We recommend that you submit your return of earnings online on www.roe.labour.gov.za before 30 April 2013, as discounts will then also apply for assessments settled timeously.
An amnesty is also in place for Employers, who have not submitted Return of Earnings for the last 4 years.
WHITFIELD FINTAX
MN/23/04/2013
23 April, 2013
Important Notice for all Estate Agents running their own business

If you are an estate agent running your OWN business you need to be aware of the procedure that needs to be followed AGAIN this year. It has a significant impact on the accounting affairs of your business so please take note.
As you are aware the Estate Agency Affairs Board requires every registered estate agent to submit an annual return to the EAB known as the “Form of Report by an Independent Auditor”.
The EAAB is now also enforcing Section 29 of the Act. In addition to auditing the trust account the independent auditor is also expected to audit:
1) The financial statements of the business of the Estate Agent.
2) The assets and liabilities statement of the business owners.
Previously the report only made reference to the Trust account.
In summary the EAB requires that your business books and your personal assets and liabilities also be audited by an Independent Auditor no matter how you trade (Sole Prop, CC, and Company) or no matter how active your business is.
The Independent Auditor is therefore unable to sign of this new report unless he has performed an audit of your business as well!!!
What this means is not only must we have compiled your financial statements for your business but they also need to be audited by the Independent Auditor before the due date of the report to the EAB. The due date is 30 June 2013.
As such we need you to get your 2013 (1 March 2012 to 28 Feb 2013) year end information to us ASAP (if you have not already done so). We will then start with the drafting process immediately and then hand over for the audit procedure once complete. It will NOT be impossible for the audit procedure to be complete by the 30 June if we don’t have your information by the latest 15 April 2013.
In the past HDP INC has been the Independent Auditor who has performed the audit function of your Estate Agents Trust Account and they have agreed to assist in this audit requirement as well. They will give you full details of costs involved and timeframes before they proceed. Remember that you have no obligation to use them and can appoint any Independent Auditor you so wish.
Royden Whitfield
WHITFIELD FINTAX
3 April, 2013
2012 Tax Returns

This is a final reminder as regards your 2012 tax returns. 2012 is for the tax year that runs from 1 March 2011 to 28 February 2012.
These returns are now late and SARS have started to impose penalties that accumulate every month for each tax return that is outstanding. These penalties start at R250 per month and increase to as much as R4000 (and even higher) per month depending on your taxable income.
If you have not sent in your relevant information to us as yet I strongly suggest that you do so immediately and we will do our best to get your returns in ASAP.
WHITFIELD FINTAX
Where Relationships Count
8 March, 2013
Happy new tax year!!
To kick off the new tax year we have put together some important aspects as regards your tax affairs that you WILL find useful.
Budget Brief
Last weeks budget, as regards tax changes, was not as bad as expected with even a few nice surprises for small businesses. We did send out our budget brief just after the budget speech but if you did not save it go to our website www.whitfieldfintax.co.za and click on Budget Brief for a copy.
Year End Guide
We will soon be sending you our normal year end guide with a guide of information we will be requiring together with delivery dates etc. Its already available on our website, why not simply click on Year End Guide and download it now.
Useful Guides
Also on our updated website www.whitfieldfintax.co.za is a new section called Useful Guides that has some very easy to read guides for clients that run their own business or practice. The guide Business Obligations Check List (Taxation Vat etc) is one of the new additions all worth reading.
Royden Whitfield
WHITFIELD FINTAX
Where Relationships Count.
4 March, 2013
Provisional Tax February 2013
We will now start filing your provisional returns for Feb 2013 with SARS. If you have not yet paid the required amount at SARS please make sure you do so by the 27th of February 2013 to be safe and ensure it is reflected on time. Remember late payment results in a 20% penalty.
Please make sure you have sent us confirmation of the provisional tax payments you have made. It is VERY IMPORTANT that you tell us what payments you have made so we can record it on your profile on our system to ensure you get the relevant tax credit (deduction) on assessment. If you don’t confirm payment with us we won’t be able to reconcile you payment on assessment and ensure it has been allocated correctly to you by SARS. If you had nothing to pay or have already emailed us details as regards payment simply ignore this email - it’s a final reminder sent to all our provisional taxpayers.
Royden Whitfield
WHITFIELD FINTAX
18 February, 2013
TAX YEAR END REMINDERS
Finally the end of the tax year has nearly arrived (2013) with most deadlines for 2012 submissions met and 2ND provisional returns submitted, what a mad rush February has become!!.
Thanks to all our fantastic clients who followed our requests and got your information to us early and on time. This really does help make us meet these increasingly more difficult deadlines set by SARS. For the few clients who didn’t PLEASE try this year!!
I list below (again) my normal TAX YEAR END reminders for 2013.
- Record the closing KM on Thursday (the 28th February 2013) for all PRIVATE cars that are used for business travel. Those using CIS go log in the OD meter today.
- See that you have a DETAILED LOG BOOK for each PRIVATE car used for business (e.g. on our website www.whitfieldfintax.co.za). No conforming detailed log book no claim will be allowed.
- Those clients that have their own business that have TRADING stock on hand must do a stock take of all trading stock on the 28 February 2013 (as per normal).
- If you plan to make use of the donations tax exemption - a cash transfer of UP TO R100 000 must be made to your Trust by the end of the month (28 Feb 2013). Remember both spouses may donate up to R100 000 each to their Trusts.
-If you have a Company, INC or Close Corporation please make sure ALL cash at bank is in the entities hands as at 28 February 2013 (i.e. if you have moved surplus funds into an access bond or a private savings account during the year move it back into the companies name before the 28 of February 2013.) In addition if you have a large retained earnings surplus you may also consider declaring a dividend. If you do declare a dividend, please confirm with us as Dividend Tax and a return needs to be paid and submitted.
For those few clients that have still not yet handed in their 2012 (1/3/2011 to 28/2/2012 i.e. last year) accounting and/or tax information to us, OR WHO OWE US OUTSTANDING INFORMATION, we suggest you do so ASAP as SARS has started raising LARGE MONTHLY PENALTIES.
Royden Whitfield
WHITFIELD FINTAX
13 February, 2013
2nd Provisional Tax February
As you know the second provisional tax return has become one of the most important returns you file each year. If you get it wrong the penalties can be severe. Because of the way the Act is worded it’s possible to be levied a penalty for underpayment of provisional tax even if you get a refund on assessment clearly indicating that sufficient prov tax was paid. Absurd, but true. As such I want to again explain how this works. Provisional taxpayers are divided between those with a TAXABLE income above R1 million and those below R1 million.
If your taxable income is above R1 million your estimated taxable income on your provisional tax return must be within 80% of your final actual taxable income on assessment. You cant rely on using your last year’s assessed income as a base, it’s irrelevant if you are over R1 million. As such you have to apply your mind properly to this calculation using accurate up to date financial information for the current year. Granted this can be very difficult as you are expected to work on figures for the year that has not even ended but those are the rules set by SARS and you have to do the best you can. If you dont get within the 80% SARS WILL raise a penalty that is very rarely waived. If your income will exceed R1 million you should send us a current trial balance or details of your income ASAP.
If your taxable income is below R1 million its a bit easier as you can then rely on your prior years taxable income increased by 8%. The taxable figures that we send you in our letters are in most instances calculated this way so if you stick to the estimates we send you (provided your income does not exceed R1 million) SARS cant penalize you so DO NOT REDUCE these figure unless you are absolutely sure as you then open the door for potential penalties.
Its also important to pay your provisional tax on time, as paying even 1 day late, WILL in addition to being charged interest, result in a 20% penalty that will be IN ADDITION to the penalty referred to above.
Royden Whitfield
WHITFIELD FINTAX
13 January, 2013
INTRODUCING OUR CLIENT INFORMATION SYTEM (CIS)
I am very pleased to announce the launch of our Client Information System (CIS). If not a first for our profession in South Africa, certainly for Port Elizabeth, this system is groundbreaking in our profession.
In the making for over five years we are finally at the stage where we will be making this system available to our clients over the forthcoming year.
So what is CIS?
CIS is an electronic filing system of all your important documentation that we have on our data base that you will be able to log into and access via our secure encrypted server. Your user name and password will be unique to you and you will have access (and be able to download) certain of your files on our system.
An example of these files are as follows:-
Signed annual financial statements for all your entities/taxpayers within your group for each financial/tax year.
Copies of income tax assessments for all your entities/taxpayers within your group for each tax year.
Details of all provisional tax calculations and payments for all your entities/taxpayers within your group for each financial/tax year.
Status of tax assessments progress with SARS
Confirmation that tax returns have been submitted by us to SARS and dates submitted.
Confirmation of all tax payments you make for all your entities/taxpayers within your group for each financial/tax year.
Copy of BEE exemption certificates.
Trial balances of current processing of your books if we attend to your monthly accounting function.
Important documents like your Will, Trust Deeds company formation documents, FICA, ID book, Passport, Policy documents,Investment Schedules and any other important documents you would like to file in your electronic file.
A simple to use car digital LOG BOOK that will automatically save details of your business trips under your profile on our system and produce a digital log book at year end for as many cars as you use.
You can also automatically update your personal information on our data file like change of email address, phone numbers, postal and physical addresses etc.
All appointments made at Fintax with dates and times can also be viewed via CIS whether past or in the future. So you can simply log on and check if you are not sure of the time of an upcoming appointment.
You are also able to send a SECURE message directly to the partner responsible for your affairs without having to send an email (not so secure) and the message and any response will remain saved until you or the partner deletes it.
One of CIS’s really nice features is that you are able to upload directly onto your profile on our data base any information that we may require like year end documents and files. You will also get an email confirmation that we have received it. You may also view these files so you can use the system to upload any other personal documents that you may want to save securely and view using our CIS system.
Basically, CIS is a secure electronic filing cabinet that you will be able to access from any location in the world 24 hours a day using any computer /laptop/iPad/ tablet/smart phone etc. No need to keep ADDITIONAL paper copies of important documents at home any longer – simply use CIS as your electronic filing cabinet!!!!
Best of all there is no additional charge for enrolling on CIS or for using it and to what extent you use or benefit from it is up to you.
We will provide more details and log on information when we get together during the year. However, should you want to have access now simply email us and I will get you connect so long.
Kind Regards
Royden Whitfield
Whitfield Fintax
RBW 13/2/2013
10 January, 2013
2nd Provisional Tax February 2013
As you know the second provisional tax return has become one of the most important returns you file each year. If you
get it wrong the penalties can be severe.
Because of the way the Act is worded its possible to be levied a penalty for
underpayment of provisional tax even if you get a refund on assessment clearly indicating that sufficient prov tax was
paid. Absurd, but true.
As such I want to again explain how this works. Provisional taxpayers are divided between those with a TAXABLE income above R1 million and those below R1 million.
If your taxable income is above R1 million your estimated taxable income on your provisional tax return must be within
80% of your final actual taxable income on assessment.
You cant rely on using your last years assessed income as a base, its irrelevant if you are over R1 million. As such you have to apply your mind properly to this calculation using accurate up to date financial information for the current year. Granted this can be very difficult as you are expected to work on figures for the year that has not even ended but those are the rules set by SARS and you have to do the best you can.
If you dont get within the 80% SARS WILL raise a penalty that is very rarely waived. If your income will exceed R1 million you should send us a current trial balance or details of your income ASAP.
If your taxable income is below R1 million its a bit easier as you can then rely on your prior years taxable income
increased by 8%. The taxable figures that we send you in our letters are in most instances calculated this way so if
you stick to the estimates we send you (provided your income does not exceed R1 million) SARS cant penalize you
so DO NOT REDUCE these figure unless you are absolutely sure as you then open the door for potential penalties.
Its also important to pay your provisional tax on time, as paying even 1 day late, WILL in addition to being charged
interest, result in a 20% penalty that will be IN ADDITION to the penalty referred to above.
We will be sending your 2nd provisional tax letters out in January so please read, apply your minds to them properly as regards to the amounts reflected and revert back to us WITHIN the time frames we clearly set out or we wont be able to assist you.
Royden Whitfield
Whitfield Fintax
14 December, 2012
Tax Clearance Certificates (TCC)
Obtaining a tax clearance certificate from SARS has become one of the most frustrating and challenging functions of our profession. SARS systems and staff training are not at the levels that we are led to believe. Very often the first time a taxpayer becomes aware that a return or tax payment is outstanding is when he needs to apply for a TCC. Very often this is for a period as far back as 8 years. SARS system suddenly reflects that some return or payment from 2005 is outstanding and then they simply will not issue the TCC until it’s submitted or settled. Understandably clients get extremely annoyed as they dont keep record for more than 5 years and simply cant prove that all was submitted and paid resulting in them having to pay it again if they want the TCC. The question is always asked but why has SARS not tried to recover this before? or but last year my TCC was issued and I did not owe it then? Unfortunately SARS cant answer those questions and are not able to give much assistance. We are told SARS are upgrading their systems and are now following up on these old outstanding liabilities.
Very often taxpayers pay an amount late and SARS raise a penalty and you are not aware that you owe the penalty because SARS do not send a statement of account or follow up and it goes unpaid until it’s discovered when a TCC is requested. These problems dont end here and we have had TCC being declined because trading names are spelt incorrectly or dont balance to their systems. Once declined the entire process needs to start from scratch again only to be told that now they have discovered another return or payment that was not paid.
From this you can see that obtaining a TCC is no easy task and many of our colleagues now simply dont assist their clients with TCC applications due to clients assuming delays are due to the practitioner not being efficient rather than their own or SARS. Costs also can run into thousands of rands in billable time that has to be recovered by the practitioner.
While we have not followed the route of many of our colleagues and still assist clients with TCC applications we need you to understand these problems and that this is not always a simple process and it can take some time. As such we strongly suggest that if you or your business are going to need a TCC for any reason, and you do your own monthly accounting, you call SARS call centre on 0800007277 and request an update on all the tax types ( tax, vat, paye etc) that you are registered for to determine if any returns or tax payments are outstanding. By doing this beforehand and sorting out any outstanding matters will help with obtaining the TCC quicker. Finally SARS has also indicated that their turnaround time for a TCC is 21 days, once all the taxpayers’ affairs are in order so its not a quick process.
Please note this is a general mail sent to all my clients as part of my program of keeping you informed of recent developments and a copy will be saved in your letters folder on our CIS system for you to access at anytime.
Kind Regards
Royden Whitfield
WHITFIELD FINTAX
13 November, 2012
UIF limit Increased
With effect from 1 October the earnings limit for UIF has been increased to R14,872 per month (R178,464 per year). As such the UIF maximum payment threshold will change to R147.82.
Remember to update your payroll systems and EMP 201 returns.
Royden Whitfield
FINTAX PE TRUST
30 October, 2012
Foreign Investment now easier
If you want to invest money overseas or lend money to a family member you are now able to do so without obtaining the time consuming, costly and sometimes complicated Tax Clearance Certificate. You are now able to use your annual discretionary allowance of R1 million for this. All you need to do is call your bank and they will be able to assist you. This should be able to be done the same day. Remember this applies per taxpayer ( husband and wife both qualify) per year.
Royden Whitfield
25 October, 2012
Important Notice for all Estate Agents running their own business
If you are an estate agent running your OWN business you need to be aware of a procedure that needs to be followed this year. It has a significant impact on the accounting affairs of your business so please take note.
As you are aware the Estate Agency Affairs Board requires every registered estate agent to submit an annual return to the EAB known as the “Form of Report by an Independent Auditor”.
In September 2011 the Estate Agency Affairs Board (EAAB) released its revised audit report applicable from the 2012 year. The report was devised in conjunction with the Independent Regulatory Board of Auditors (IRBA).
There are considerably more reporting requirements than in previous years and the report has now grown from a one page document to a detailed SIX page report with many new requirements to be followed.
The EAAB is now also enforcing Section 29 of the Act. In addition to auditing the trust account the independent auditor is also expected to audit:
1) The financial statements of the business of the Estate Agent.
2) The assets and liabilities statement of the business owners.
Previously the report only made reference to the Trust account.
In summary the EAB requires that your business books and your personal assets and liabilities also be audited by an Independent Auditor no matter how you trade (Sole Prop, CC, and Company) or no matter how active your business is.
The Independent Auditor is therefore unable to sign of this new report unless he has performed an audit of your business as well!!!
It appears as if all the recent highly published cases involving fraud by Estate Agents and their Trust accounts has resulted in the Estate Agents Affairs Board increasing its compliance procedures significantly.
What this means is not only must we have compiled your financial statements for your business but they also need to be audited by the Independent Auditor before the due date of the report to the EAB. The due date is 30 June 2012.
As such we need you to get your year end information to us ASAP (if you have not already done so). We will then start with the drafting process immediately and then hand over for the audit procedure once complete. It will be impossible for the audit procedure to be complete by the 30 June so we are hoping that the EAB will grant an extension this year. However, it does appear that you will still be liable for the late return penalty even if they grant an extension.
The other bad news is that there is a significant cost attached to an Independent Audit of your business financials.
In the past HDP INC has been the Independent Auditor who has performed the audit function of your Estate Agents Trust Account and they have agreed to assist in this audit requirement as well. They will give you full details of costs involved and timeframes before they proceed. Remember that you have no obligation to use them and can appoint any Independent Auditor you so wish.
RBW/FINTAX
31 May, 2012
EMP501 PAYE RECONCILIATIONS
The 29th February brought the 2012 tax year to a close and with it came the usual deadlines from SARS for the submission of the EMP501 (PAYE) reconciliation and IRP5/IT3 certificates BY BUSINESSES WHO EMPLOY STAFF AND DEDUCT PAYE.
The EMP501 Reconciliation must be submitted to SARS by the END of MAY 2012.
If you do not run a business or do but have no EMPLOYEES and as such are not registered to deduct employees tax - IGNORE THIS EMAIL IT DOES NOT APPLY TO YOU.
If you require our office to attend to this reconciliation on your behalf, we request that you ensure the information reach us by no later than the 15 April 2012. It is crucial that the information supplied is accurate, complete and is presented in an orderly manner.
There are certain mandatory information that we need. We will not be able to complete and submit your reconciliation without accurate and complete information on each employee. We need the below information for each of your employees:
- Full names of employee
- Identity Number or passport number
- Physical residential address
- Dates of employment in the current financial year
- Complete breakdown of salary/wages received for the year
- Income tax reference – please refer to below for further information on this.
- Bank account details. If the employee does not have a bank account in their name they may use a joint or third party account, but this must be specified as such.
If an employer fails to disclose the above information as part of its PAYE reconciliation process, SARS will reject the PAYE reconciliation. SARS may impose a penalty on the employer, equal to 10% of the total amount of employees tax deducted from the remuneration of employees during the tax year for non-submission of the reconciliation form.
Please do not include the information with your 2012 YEAR END tax information WHEN YOU DROP THAT OFF as this is handled by a different department and we will assume that you do not require our assistance in completing the EMP501 reconciliation and relevant certificates.
We require direct instruction to do this and all information delivered must be clearly marked with your relevant details (as follows: MR X ETC - PAYE RECON 2012)
FINTAX PE TRUST
RBW29/03/2012
29 March, 2012
INCREASE IN DIVIDENDS TAX
Please note that the nominal rate of dividend tax is increasing on 1 April 2012 from 10% to 15%. This increase was unexpectedly announced by the Minister of Finance on 22 February 2012. The effective increase in the tax is 65% due to the withholding nature of the new tax.
As such if your company/INC/CC has a large retained earnings (accumulated profits/surplus) you must consider declaring a dividend before the introduction of the new dividends tax on 1 April 2012 and save at least 5%.
If you do not have accumulated profits/retained earnings you can’t declare a dividend.
In order to pay at the lower 10% you MUST declare a dividend before the end of March 2012 (THIS MONTH), complete and submit the SARS IT56 return and pay the STC before the end of March 2012.
Kind Regards
FINTAX PE TRUST
12 March, 2012
2012 TAX YEAR REMINDER
Dear Client 1 March 2012
As you are aware, the 2012 tax year came to an end on 29 February 2012 and we will soon be requiring all your relevant information to complete and submit your 2012 - IT12/IT14 income tax returns.
SARS has significantly changed the goal posts this year as regards EXTENSIONS and PENALTIES for late returns. Severe penalties will now be levied by SARS that will accumulate for every month your returns are late. Starting at R250 this will increase by R250 per month for each return that is late. Please note the higher your income the higher the penalties (R250 is their starting point).
Revenue has indicated that no further extension will be granted after the 20th of November for individual taxpayers and trusts and only in select instances will additional extensions be granted for Close Corporations and Companies until after the end of December 2012.
It is VITAL that your financial information is submitted to us in sufficient time to enable us to finalize your tax and accounting affairs WELL BEFORE the final due dates. Accordingly we require ALL your information by no later that 30 May this year. Information submitted later will result in us being unable to finalize your financials and tax returns on time. Please note we have to adopt a first in first out policy as regards work received. Clients that deliver information LATE or INCOMPLETE must accept that we will be meeting our obligations to those clients that have delivered on time and complete – FIRST.
Please note the onus for submission of returns to the South African Revenue Services rests with you the taxpayer and please remember that each Trust, Company or Close Corporation is a SEPARATE TAXPAYER AND SEPARATE RETURNS NEED TO BE SUBMITTED.
Please bear in mind that should your net taxable income exceed R50 000 for the year, a third topping up provisional payment is required before the end of September 2012.
Finally, it is no use letting us have incomplete information as this only delays our ability to complete your financials on time and can add unnecessarily to our fee, as a result of wasted time. With this in mind we list below a brief indication of the type of information we will be requiring which must serve only as a guide to assist you. Please ignore details that do not affect you.
GUIDE OF INFORMATION REQUIRED
1. Cash Book or computer printout or CD of TRIAL BALANCE and DETAILED
LEDGER.
2. IRP5 Certificates and Investment Certificates, IT3 Certificated, CGT Certificates.
3. Retirement Annuity Certificates and Section 18 (A) Donation Certificates.
4. Medical aid tax certificate of your contributions and detailed list of any additional expenses paid by you.
5. Details of the bank account of each taxpayer within your group.
6. LOG BOOK for each PRIVATE OWNED vehicle used for business (This must reflect opening and Closing KM, Cost Price of the Vehicle and it’s Registration number)- see our example under publications – www.fintaxpetrust.co.za
7. VAT 201 Returns and working papers.
8. Bank Statements, cheques / deposit books for the year ended 28 February 2012.
9. List of Stock on hand as at 28 February 2012.
10. List of Debtors and Creditors as at 28 February 2012 and list of bad debts.
11. Cash on hand as at 28 February 2012.
12. Copies of annual payroll schedules and Monthly Employees tax returns.
13. Copies of new lease, rental and Instalment Sale Agreements with finance houses.(i.e. Stannic, Wesbank etc)
14. Fixed asset schedules for your business and a list of your personal Assets and Liabilities as at 28 February 2012.
15. Building Society / Bank / Bond statements for the year ended 28 February 2012.
16. Learnership or Apprenticeships contracts with new and existing staff.
17. CGT MATTERS. Details of all capital assets disposed of during the year that may
have Capital Gains Tax implications.
18. Details of all new assets or Investments that you may have purchased personally or for your business (e.g. Cars, Houses, Flats, Shares, Unit Trusts).
19. Minutes authorizing Trustee/s (or Members/directors) to sign financials – see
Example on our website (www.fintaxpetrust.co.za).
8 March, 2012
TAX YEAR END REMINDERS
Finally the end of the tax year has nearly arrived (2012) with most deadlines for 2011 submissions met and 2ND provisional returns submitted, what a mad rush February has become with everything happening at the same time!!.
Thanks to all our fantastic clients who followed our requests and got your information to us early and on time. This really does help make us meet these increasingly more difficult deadlines set by SARS. For the few clients who didn’t PLEASE try this year!!
I list below (again) my normal TAX YEAR END reminders for 2012.
- Record the closing KM on WEDNESDAY (the 29th) for all PRIVATE cars that are used for business travel.
- See that you have an accurate logbook for each PRIVATE car used for business (e.g. on our website www.fintaxpetrust.co.za).
- Those clients that have their own business that have TRADING stock on hand must do a stock take of all trading stock on the 29 February 2012 (as per normal)
- If you plan to make use of the donations tax exemption - a cash transfer of UP TO R100 000 must be made to your Trust by the end of the month (29 Feb 2012). Remember both spouses may donate up to R100 000 each to their Trusts.
-If you have a Company, INC or Close Corporation please make sure all cash at bank is in the entities hands as at 29 February 2012 (i.e. if you have moved surplus funds into an access bond or a private savings account during the year move it back into the companies name before the 29 of February 2012.) In addition if you have a large retained earnings surplus you may also consider declaring a dividend before the introduction of the new dividends tax on 1 April 2012 and save 5%.
For those few clients that have still not yet handed in their 2011 (1/3/2010 to 28/2/2011 i.e. last year) accounting and/or tax information to us, OR WHO OWE US OUTSTANDING INFORMATION, we suggest you do so ASAP as SARS has started raising LARGE MONTHLY PENALTIES.
Kind Regards
FINTAX PE TRUST
Rbw24/02/2012
24 February, 2012
2012 TAX BUDGET BRIEF
You can download a detailed summary of the tax aspects of the 2012 budget from the SARS website www.sars.gov.za. You can even download the full budget speech from the SARS website. However, we thought we would make it easy for you and give you just the tax snippets and trust that you will find this useful.
• The primary rebate has been increased to R11 440 per year for all individuals.
• The secondary rebate, which applies to individuals aged 65 years and over, is increased to R6 390 per year.
• The third rebate, which applies to individuals aged 75 years and over, is increased to R2 130 per year.
• The threshold below which individuals are not liable for personal income tax is thus increased to R63 556 of taxable income per year for those below the age of 65, R99 056 per year for those aged 65 to 74, and R110 889 for age 75 and over.
• Secondary tax on companies (STC) would be terminated on the 31st March, and a withholding tax on dividends implemented on 1st of April. The dividend tax would be introduced at 15 percent up from 10 percent currently for STC increasing the effective corporate tax in SA by nearly 4% at the top level.
• The CGT inclusion rate for individuals and special trusts would be increased, with effect from 1st March, from 25 percent to 33.3 percent; and for companies and other trusts, from 50 percent to 66.6 percent. The various exclusion thresholds have been increased.
• The tax-free threshold for small business companies (SBC) was increased to R63 556; the 10 percent tax rate reduced to seven percent; and the threshold up to which this rate applied increased to R350 000. For taxable income above R350 000, the normal 28 percent corporate rate applies.
• With effect from next month, qualifying micro-businesses (within the R1 million turnover limit) would be able to pay turnover tax, VAT and employees tax twice a year. This means the number of returns and payments a year would be reduced from about 18 to just two.
• To encourage voluntary savings, consideration was being given to introducing tax-exempt short- and medium-term savings products. "The proposal is that individuals should be permitted to save up to R30,000 a year, with a lifetime limit of R500,000, in registered savings or investment products that would be free of tax on interest, dividends, or capital gains." The current tax-free interest income thresholds would be reviewed and possibly phased out as part of this reform.
Kind Regards
FINTAX PE TRUST
22 February, 2012
YEAR END CLOSURE
Please note that our office will be closed from 1pm on Wednesday the 23 December and will re-open on Monday 9 January 2011. However there will be certain staff back on the 3 Jan 2011 due to the 2011 SARS deadlines for Tax returns.
We would like to take this opportunity to thank all our clients for your loyal support and wish you and your families well over the festive season and hope that everybody takes the opportunity to relax and spend time with family and friends.
This is a general email sent via our website so please do not click on reply to sender as it will not reach us.
Kind Regards
FINTAX PE TRUST
14 December 2011
14 December, 2011
NB!! PAIA Manual required
For any queries, regarding the email which follows, please contact Charmaine Lцtter at Fintax.
PROMOTION OF ACCESS TO INFORMATION ACT
We wish to inform you that with effect from 31 December 2011, a PAIA manual is required in terms of section 51 of the Promotion of Access to Information Act (PAIA), which requires all public and private bodies to prepare, lodge and publish a PAIA manual. This includes posting it on your website (should you have a website). Note that new entities must submit this manual within the first 6 months of formation (this applies only if the entity is formed after 31 December 2011 – all other companies must submit a manual by no later than 31 December 2011).
Private bodies include Sole Proprietors, Partnerships, Close Corporations, Companies and trading Trust’s (no matter how small – used for trade &/or rental).
It is vital that you have a PAIA manual. Non-compliance with the Act will lead to penalties being imposed.
We can assist with the preparation of this manual and lodge on your behalf (once signed) with the Human Rights Commission. Our fee for a standard basic manual will be R650 plus Vat. Should you require our assistance in this regard, please complete the information form attached and e-mail to Charmaine Lцtter on or fax her on 041-3743282. On receipt of your instruction and the below details we will contact you for signature and submission with the Commission.
For further information please visit website www.sahrc.org.za or contact the Human Rights Commission on Tel 011-877 3600 should you wish to compile your own manual.
Yours faithfully
FINTAX PE TRUST
NB! Complete for each entity which trades and return to our office to draft and submit.
INSTRUCTION TO PREPARE MANUAL IN TERMS OF SECTION 51 OF THE PROMOTION OF ACCESS TO INFORMATION ACT
ATT: CHARMAINE LцTTER AT FINTAX PE TRUST
FAX: 0866200574 OR 041-3743282
1. Entity name (CC/Pty/Inc registered name):
………………………………………………………………………………………………….
2. The name of the person who will handle all matters in this regard (the member or director of the business) – Full names:
………………………………………………………………………………………………….
3. A short description of your business activities:
………………………………………………………………………………………………….
4. Physical address of your business (not postal):
………………………………………………………………………………………………….
………………………………………………………………………………………………….
5. Confirm your
a) Telephone number ……………………………………………….
b) Fax number ……………………………………………….
c) E-mail address ……………………………………………….
LETTER OF CONSENT
In terms of the Personal Information Bill, I _________________________________________(NAME) ______________________________________ (ID NUMBER) herewith give FINTAX PE TRUST and its staff members explicit consent to use and distribute my personal/group information for the purposes of dealing with SA Revenue Services, Cipro, Banks, Financial Institutions and other governmental bodies or any other entity or person as required by me, during the execution of their services in handling my accounting and tax affairs via telephone, call centre recordings, web-based sources, application forms, electronic communication, fax and any other means, including contact, request and obtain information from any credit provider (or potential credit provider) or registered credit bureau relevant to an assessment of the behaviour, profile, payment patterns, indebtedness, whereabouts, and creditworthiness and to furnish information concerning the behaviour, profile, payment patterns, indebtedness, whereabouts, and creditworthiness to any registered credit bureau or to any credit provider (or potential credit provider) seeking a trade reference regarding my/my entities dealings with FINTAX PE TRUST.
_____________________ _____________________ DATE SIGNATURE
Personally & my group
29 November, 2011
Salaried Tax Return Deadline - 25 November 2011

Please note that all taxpayers whose only source of income is a salary from an employer your deadline to submit a tax return is the 25 of November 2011 (18 days time).
This is only applicable to salaried taxpayers NOT taxpayers that are self employed (i.e. run their own businesses) or are directors of their own Companies/Close Corporations or who have “other” investment income such as rental from letting property. These taxpayers have until end of January 2012.
Therefore all clients that are salaried taxpayers who still require our assistance to efile their returns please ensure that we get your 2011 tax details before Friday 11 November if we are going to have any chance of getting the return efiled by the 25 November 2011.
Kind Regards
FINTAX PE TRUST
RBW/7November 2011
7 November, 2011
EMP501 BI –ANNUAL RECONCILIATIONS for AUGUST 2011
SARS have announced that the filing season for the submission of the bi-annual PAYE reconciliation will open on the 1 September 2011 with the final deadline being the 31 October 2011.
The following should be noted:
The IRP5 and IT3 certificates issued for the period March – August 2011 will be submitted to SARS only. These certificates are not to be issued to employees.
There are certain mandatory fields and you will not be able to complete and submit your reconciliation without accurate and complete information on each employee. These mandatory fields are:
- Full names of employee
- Identity Number or passport number
- Physical residential address
- Dates of employment in the current financial year
- Complete breakdown of salary/wages received for the year
- Income tax reference – please refer to below for further information on this.
- Bank account details. If the employee does not have a bank account in their name they may use a joint or third party account, but this must be specified as such.
If an employer fails to disclose the above information as part of its PAYE reconciliation process, SARS will reject the PAYE reconciliation. SARS may impose a potential penalty on the employer, equal to 10% of the total amount of employees tax deducted from the remuneration of employees during the tax year for non-submission of the reconciliation form
Should you require our office to attend to this bi-annual recon on your behalf, please ensure that the information is delivered to our office no later than the 10th September 2011. Please ensure that the information is complete and in the format required as SARS have indicated that they will impose stiff penalties and interest for late or incomplete reconciliations
Kind Regards
FINTAX PE TRUST
22/08/2011
22 August, 2011
NEW COMPANIES ACT
The new Companies Act was signed into law by the President on 1 May 2011. This Act has resulted in significant changes to the existing Company law. There are many changes introduced by the new Act and we STRONGLY suggest that all company directors and members of close corporations make sure they are up to speed with how these changes affect them and their companies or CC’s. Some of the more important changes are as follows:
1. From the 1 May 2011 it is no longer possible to form Close Corporations.
2. The liability and responsibilities of Directors has been extended considerably under the new Act.
3. On the 1 May your Articles of Association and Memorandum are “ converted” to a single document known as the Memorandum of Incorporation (MOI)
4. You will have 2 years to update (lodge) your new MOI but certain of your existing Articles will be void while others will become void after 2 years so this must be done within the next 2 years.
5. All companies and existing CC’s will have to continue submitting annual returns (the old CIPRO returns) to the newly formed Company and Intellectual Property Commission (CIPC) but with substantially more information.
6. There have been some significant changes as regards the audit requirements of companies with many now exempt from the audit requirement and some now needing an independent review as opposed to an audit. Others will need to be independently complied by and Independent Accounting Professional (IAP).
7. However ALL companies and Close corporations will have to comply with the new financial reporting standards requirements from 1 May 2011 and companies that do not may (together with their directors) incur civil and criminal liability in terms of section 214 and 218 of the new Act.
8. The Public Interest Score (PIS) of each company will determine its obligations as regards an Audit or Independent review etc.
9. The public interest score (PIS) is determined on a points system that allocates 1 point for every employee, 1 point for every shareholder/member, 1 point for each million rand in turnover and 1 point for each million rand in unsecured debt.
10. Those companies that will still require an audit (being all those with a PIS over 350) from 2012 will now be subject to a “listed company” type of audit and auditors for these companies may not perform any additional services to the company. In addition these companies will have to ensure auditor rotation, appointment of a company secretary, appointment of an audit committee, disclose all payments of whatever kind made to directors and apply the highest form of independence as required for public benefit entities.
11. Companies with February 2011 year ends will still require an audit (as it falls into the old Act) for this year but depending on their public interest score (PIS) they will most likely be exempt from an audit from 2012.
12. Companies with June 2011 year ends could fall outside the audit requirement from this year (2011).
13. Professional Incorporations (INC’s) will, in nearly all cases, not require an audit or independent review form 2012.
So what do you do next if you have a company or close corporation?
1. We have 2 years to do the paperwork as regard the new MOI for all existing companies or INC’s and we will be in contact with all our company clients over the next year to assist in this regard.
2. Those clients with close corporations should consider converting them to companies but should discuss this matter with us first.
3. All clients with large trading companies or CC (turnover of over R100 million) should determine their public interest score (PIS) immediately or contact us to assist in this regard. This is important to determine if an audit is still applicable so that they can ensure that the new audit requirements are implemented ASAP.
Kind Regards
FINTAX PE TRUST
RBW 3/06/2011
3 June, 2011
YEAR END GUIDE FOR 2011 -IMPORTANT NOTE: READ CAREFULLY
As you are aware, the 2011 tax year came to an end on 28 February 2011 and we will soon be requiring all your relevant information to complete and submit your 2011 - IT12/IT14 income tax returns.
SARS has significantly changed the goal posts this year as regards EXTENSIONS and PENALTIES for late returns. Severe penalties will now be levied by SARS that will accumulate for every month your returns are late. Starting at R250 this will increase by R250 per month for each return that is late. Please note the higher your income the higher the penalties (R250 is their starting point).
Revenue has indicated that no further extension will be granted after the 20th of November for individual taxpayers and trusts and only in select instances will additional extensions be granted for Close Corporations and Companies until after the end of December 2011.
It is VITAL that your financial information is submitted to us in sufficient time to enable us to finalize your tax and accounting affairs WELL BEFORE the final due dates. Accordingly we require ALL your information by no later that 30 May this year. Information submitted later will result in us being unable to finalize your financials and tax returns on time. Please note we have to adopt a first in first out policy as regards work received. Clients that deliver information LATE or INCOMPLETE must accept that we will be meeting our obligations to those clients that have delivered on time and complete – FIRST.
Please note the onus for submission of returns to the South African Revenue Services rests with you the taxpayer and please remember that each Trust, Company or Close Corporation is a SEPARATE TAXPAYER AND SEPARATE RETURNS NEED TO BE SUBMITTED.
Please bear in mind that should your net taxable income exceed R50 000 for the year, a third topping up provisional payment is required before the end of September 2011.
Finally, it is no use letting us have incomplete information as this only delays our ability to complete your financials on time and can add unnecessarily to our fee, as a result of wasted time. With this in mind we list below a brief indication of the type of information we will be requiring which must serve only as a guide to assist you. Please ignore details that do not affect you.
GUIDE OF INFORMATION REQUIRED
1. Cash Book or computer printout or CD of TRIAL BALANCE and DETAILED
LEDGER.
2. IRP5 Certificates and Investment Certificates, IT3 Certificated, CGT Certificates.
3. Retirement Annuity Certificates and Section 18 (A) Donation Certificates.
4. Medical aid tax certificate of your contributions and detailed list of any additional expenses paid by you.
5. Details of the bank account of each taxpayer within your group.
6. LOG BOOK for each PRIVATE OWNED vehicle used for business (This must reflect opening and Closing KM, Cost Price of the Vehicle and it’s Registration number)- see our example under publications – www.fintaxpetrust.co.za
7. VAT 201 Returns and working papers.
8. Bank Statements, cheques / deposit books for the year ended 28 February 2011.
9. List of Stock on hand as at 28 February 2011.
10. List of Debtors and Creditors as at 28 February 2011 and list of bad debts.
11. Cash on hand as at 28 February 2011.
12. Copies of annual payroll schedules and Monthly Employees tax returns.
13. Copies of new lease, rental and Instalment Sale Agreements with finance houses.(i.e. Stannic, Wesbank etc)
14. Fixed asset schedules for your business and a list of your personal Assets and Liabilities as at 28 February 2011.
15. Building Society / Bank / Bond statements for the year ended 28 February 2011.
16. Learnership or Apprenticeships contracts with new and existing staff.
17. CGT MATTERS. Details of all capital assets disposed of during the year that may
have Capital Gains Tax implications.
18. Details of all new assets or Investments that you may have purchased personally or for your business (e.g. Cars, Houses, Flats, Shares, Unit Trusts).
19. Minutes authorizing Trustee/s (or Members/directors) to sign financials – see
Example on our website (www.fintaxpetrust.co.za).
FINTAX PE TRUST
3 April, 2011
EMP 501 RECONCILIATIONS AND IRP 5 CERTIFICATES 2011
The 28th February brought the 2011 tax year to a close and with it came the usual deadlines from Sars for the submission of the EMP501 (PAYE) reconciliation and IRP5/IT3 certificates.
Whilst SARS have not yet announced the start of the filing season, once it opens it will be full steam ahead to get these reconciliations completed and submitted to SARS on time.
If you require our office to attend to these on your behalf, we request that you ensure the information reach us no later than the 31 March 2011. It is crucial that the information supplied is accurate, complete and is presented in an orderly manner.
Please do not include the information with your 2011 YEAR END tax information WHEN YOU DROP THAT OFF as this is handled by a different department and we will assume that you do not require our assistance in completing the EMP501 reconciliation and relevant certificates.
We require direct instruction to do this and all information delivered must be clearly marked with your relevant details as follows please: MR X ETC - PAYE RECON 2011
Kind regards
FINTAX PE TRUST
RBW
12 March, 2011
WORKMENS COMPENSATION
We wish to remind all business’ who employ staff that it is a legal requirement to be registered for Workmen’s Compensation with the labour department. Failure to register for workmen’s compensation may lead to substantial fines and employers being liable for all medical costs for staff injured on duty (IOD)
Kind regards
FINTAX PE TRUST
RBW 12/3/2011
12 March, 2011
THE ESTATE AGENTS AFFAIRS BOARD ANNUAL AUDIT REPORT 2011
If you run your own Estate Agency business, the annual audit report for the estate agents affairs board needs to be completed for your business for the 2011 tax year.
Should you require our office to assist you in this regard, kindly forward the necessary bank statements from the 1 March 2010 – 28 February 2011 for your CLIENT TRUST ACCOUNT in order for our office to arrange for this to be done. Even if there has been no activity on the Trust bank account other than bank charges, we still require the statements for the full period please. If you have received the official audit report in the mail from the board, kindly include this when delivering the documentation to our office.
Please ensure that we receive the requested information no later then the 2 May 2011, in order to ensure that it is completed and submitted timeously to the board. Please remember that the board charges penalties for late submission of these reports.
Please do not include this documentation with your year end information as it handled by a different department and we will not assume that you want this attended to. Please deliver the documentation in a separate envelope marked clearly for the attention of Jillian Frost.
Kind regards
FINTAX PE TRUST
RBW 12/03/2011
12 March, 2011
URGENT REMINDER: WORKMEN’S COMPENSATION RETURN DUE 31 MARCH 2011
The Workmen’s Compensation return of earnings for the period March 2010 to February 2011 is due to be submitted for your business by no later than the 31st March 2011. Failure to do so by the due date will result in penalties and interest being raised.
As in past years, the Department of Labour has once again failed to mail the original returns out timeously to employers and the department has advised that the return is no longer available for download from their website and the utilisation of duplicate (photocopy) returns is no longer permitted as the forms are now bar coded.
It is therefore imperative that you attend to and submit this return immediately on receipt.
Please remember that this form must reach the labour department no later then the 31st March 2010 to avoid additional costs.
9 March, 2011
TAX YEAR END REMINDERS
Finally the end of the tax year has arrived (2011) with most deadlines for 2010 submissions met and 2ND provisional returns submitted, what a mad rush February has become with everything happening at the same time!!.
Thanks to all our fantastic clients who followed our requests and got your information to us early and on time. This really does help make us meet these increasingly more difficult deadlines set by SARS. For the few clients who didn’t PLEASE try this year!!
I list below (again) my normal reminders for 2011.
- Record the closing KM reading TODAY (the 28th) for all PRIVATE cars that are used for business travel.
- See that you have an accurate logbook for each PRIVATE car used for business (e.g. under publications on our website www.fintaxpetrust.co.za).
- Those clients that have their own business that have TRADING stock on hand must do a stock take of all trading stock on the 28 February 2011 (as per normal)
- If you plan to make use of the donations tax exemption - a cash transfer of UP TO R100 000 must be made to your Trust by the end of the month (28 Feb 2011). Remember both spouses may donate up to R100 000 each to their Trusts.
For those few clients that have still not yet handed in their 2010 (1/3/2009 to 28/2/2010 i.e. last year) accounting and/or tax information to us, OR WHO OWE US OUTSTANDING INFORMATION, we suggest you do so ASAP as SARS will start issuing LARGE MONTHLY PENALTIES.
Many Thanks
FINTAX PE TRUST
Rbw28/02/2011
28 February, 2011
2011 TAX BUDGET BRIEF
You can download a detailed summary of the tax aspects of the 2011 budget from the SARS website www.sars.gov.za. You can even download the full budget speech from the SARS website. However we thought we would make it easy for you and give you just the tax snippets and trust that you will find this useful.
• Transfer duty exemption threshold now R600 000.
• Proposed third rebate of R2000 a year for taxpayers over 75 or older.
• Tax-free retirement lump-sum upped to R315 000.
• Transfer duty exemption threshold now R600 000.
• From 1 March 2011 the monthly caps for deductible medical scheme contributions will increase from R670 to R720 for the first two beneficiaries and from R410 to R440 for each additional beneficiary.
• Monthly deductions for contributions to medical schemes and for qualifying out-of-pocket medical expenses will be converted into tax credits effective 1 March 2012.
• CGT natural persons annual exemption up to R20 000 per annum.
• CGT exemption on death up to R200 000.
• An employer’s contribution to a RA or pension fund on behalf of an employee will be deemed a taxable fringe benefit.
• Currently living annuities may only be provided by long-term insurers, it is proposed that other product providers also be allowed to provide it.
• STC to be replaced by dividend tax at shareholder level - 1 March 2012.
• Income tax "voluntary disclosure programme" (VDP), with no penalties still open.
• Micro businesses that register for VAT will no longer be barred from registering for turnover tax.
• New Companies Act effective once regulations are published.
• Payroll, VAT, tax surcharge eyed for NHI or rather Universal Coverage.
• Vehicle excise duty up 25% from 20%.
Kind Regards
Royden Whitfield
FINTAX PE TRUST
24 February, 2011
SARS TAX CLEARANCE CERTIFICATES
Please be aware of the fact that it can become very difficult dealing with SARS as regards obtaining a Tax Clearance certificate. SARS will decline the certificate in the following circumstances.
1. Any tax return is outstanding ( This includes income tax year end returns, Vat returns, PAYE returns).
2. Any tax payment is outstanding (This includes Tax, Vat, PAYE, or any outstanding interest or penalty).
Very often taxpayers are not even aware that the returns or tax is outstanding and very often the returns have been submitted by the taxpayer but for some reason are not being reflected on their system. Sometimes this can go back many years. In addition payments are sometimes misallocated by SARS or paid into the incorrect tax type account by taxpayers resulting in payments being reflected as outstanding.
It’s important for you to understand that these issues are beyond our control and sometimes we are unable to assist to rectify these issues due to the fact that we were not responsible for the submission of the outstanding returns or payments made. We will advise you immediately on determining what is causing the Tax Clearance to be rejected and assist as far as possible WHERE WE ARE ABLE TO. However this could end up taking a lot of time and could end up costly and still not resulting in the Tax Clearance Certificate being issued. As such it is not possible for us to guarantee the time it may take or the costs involved in obtaining a Tax Clearance Certificate from SARS or even it is possible at all.
Kind Regards
Royden Whitfield
8 February, 2011
FEBRUARY 2011 PROVISIONAL TAX

We will be posting and emailing, within the next 10 days, the final (2nd 2011) provisional tax estimates for the tax year ended 2011.
For PROVISIONAL taxpayers who’s taxable income is likely to exceed R1million it is VERY IMPORTANT to remember that your ACTUAL TAXABLE INCOME (for 2011) for each taxpayer in your group must not end up being less than 80% of the figure that we will list on our letter as ESTIMATED TAXABLE INCOME. Therefore it is VERY IMPORTANT that the figure we have listed as your ESTIMATED TAXABLE INCOME on our letter is at least 80% of what your final taxable income is going to be for the tax year ended 28 February 2011.
If it is UNDERESTIMATED and you make an under payment of provisional tax SARS will levy ADDITIONAL PENALTIES of 20%.
Therefore study our letter carefully especially if you or any entity (CC, company or Trust) is likely to have a taxable income greater than R1million.
If you do not agree with the figures we send you please email or contact us IMMEDIATELY. Please do not wait until the last week of February to contact us!!
This is a general email sent via our website so please do not click on reply to sender as it will not reach us.
Kind Regards
Royden Whitfield
FINTAXPE TRUST
28/01/2011
28 January, 2011
OFFICE CLOSED TILL 10 JANUARY 2011
Yet another year comes to an end and I think we are all looking forward to the festive season.
Please note that our office will be closed from 12pm on Wednesday the 15 December and will re-open on Monday 10 January 2011.
Kind Regards
Royden Whitfield
FINTAX PE TRUST
10 December 2010
10 December, 2010
Voluntary Disclosure Programme (Another Tax Amnesty)
Individuals and corporate entities who have defaulted on their tax affairs now have ANOTHER opportunity to regularize their tax affairs. In addition individuals and corporate entities who took funds offshore illegally also have ANOTHER opportunity to regularize their affairs.
The Minister of Finance announced the Voluntary Disclosure Programme (VDP) in his Budget Speech on 17 February 2010 and confirmed that it would begin this month (November 2010) in his Medium Term Budget Policy Speech (MTBPS) on 27 October 2010.
Tax VDP
Under the tax component of the VDP administered by SARS, successful applicants who meet the requirements will benefit from interest, penalty and additional tax relief (excluding administrative penalties for the late submission of returns and late payments of tax) and criminal prosecution will not be initiated against them by SARS regarding the disclosed defaults.
However, the initial tax amount must still be paid in full.
In addition, the Tax VDP allows for prospective applicants to make an initial “no-name” disclosure in order to obtain a non-binding opinion from SARS as to whether the applicant would qualify for relief and the extent of any relief.
Excon VDP
In terms of the exchange control VDP (Excon VDP), which will be administered by the SARB’s Financial Surveillance Division (FinSurv), successful applicants who meet the requirements will benefit from administrative relief and no further action will be taken or initiated against them by FinSurv, in respect of the full disclosures made pertaining to any exchange control contraventions.
General
Any person who defaulted on their tax affairs before 17 February 2010 may apply to SARS for relief under the Tax VDP.
Under the Excon VDP any person may apply to FinSurv (VDP Division) for contraventions before 28 February 2010.
A person who has only an exchange control contravention need only apply to FinSurv (VDP Division).
A person who has only a tax default need only apply to SARS.
A person who has an exchange control contravention and a tax default will need to apply to both SARS for relief regarding the tax default and to FinSurv (VDP Division) for relief regarding the exchange control contraventions.
Minimum requirements
The minimum requirements for relief under the Tax VDP are as follows:
• The disclosure is complete in all material respects and made in the prescribed form and manner before 31 October 2011
• SARS was not aware of the default, which must have occurred prior to 17 February 2010
• A penalty or additional tax would have been imposed had SARS discovered the default in the normal course of business
• It would not result in a refund to be paid by the SARS Commissioner.
The minimum requirements for relief under the Excon VDP are as follows:
• The applicant must have contravened the Exchange Control Regulations prior to 28 February 2010
• The disclosure is complete
• The applicant must submit an application form in the prescribed format, depicting all foreign assets and/or structures (of whatever nature, excluding bearer instruments) in which the applicant has and/or had any direct and/or indirect interest, which application must be submitted before 31 October 2011
• The application must include full details of the description, location of the assets, the market value of the assets and proof of valuation.
Applicants who are under audit or investigation by SARS or FinSurv will only qualify for relief under specific circumstances.
While this window of opportunity is being offered to all persons with tax defaults and exchange control contraventions we strongly urge all those who may need to apply for the VDP to contact us for more information or call the SARS Contact Centre on 0800 00 7277 or visit the SARS website www.sars.gov.za or SARB’s website www.reservebank.co.za.
11 November, 2010
EMP501 BI –ANNUAL RECONCILIATIONS for AUGUST 2010
SARS have announced that the filing season for the submission of the new bi-annual PAYE reconciliation will open on the 1 September 2010 with the final deadline being the 31 October 2010.
The following should be noted:
The IRP5 and IT3 certificates issued for the period March – August 2010 will be submitted to SARS only. These certificates are not to be issued to employees.
Certain mandatory fields that were relaxed somewhat on the Feb 2010 submissions will now be re-instated and you will not be able to complete and submit your reconciliation with out accurate and complete information on each employee. These mandatory fields are:
- Full names of employee
- Identity Number or passport number
- Physical residential address
- Dates of employment in the current financial year
- Complete breakdown of salary/wages received for the year
- Income tax reference – please refer to below for further information on this.
- Bank account details. If the employee does not have a bank account in their name they may use a joint or third party account, but this must be specified as such.
If an employer fails to disclose the above information as part of its PAYE reconciliation process, SARS will reject the PAYE reconciliation. SARS may impose a potential penalty on the employer, equal to 10% of the total amount of employees tax deducted from the remuneration of employees during the tax year for non-submission of the reconciliation form
SARS have advised that if a certificate for this first bi –annual reconciliation only, is issued without an employee’s tax reference number, they will verify the details on the IRP5/IT3 certificate to check if the individual is a registered taxpayer and automatically register individuals that are not on register. They will notify both the employee and the employer of the tax reference number accordingly.
Please note that this is a ONCE off bulk registration and any employees employed on or after the 1 September 2010 will have to supply the employer with their tax reference number or an ITREG application will need to be completed for each individual to facilitate tax registration.
Please refer to the SARS website www.sars.gov.za for the complete public release on this matter.
Should you require our office to attend to this bi-annual recon on your behalf, please ensure that the information is delivered to our office and clearly marked for the attention of Kim Engelbrecht, no later than the 10th September 2010. Please ensure that the information is complete and in the format required as SARS have indicated that they will impose stiff penalties and interest for late or incomplete reconciliations
Kind Regards
Royden Whitfield
FINTAX PE TRUST
6/08/2010
6 August, 2010
NEW DISCLOSURE REQUIREMENTS FOR PAYE RECONCILIATIONS
With effect from the 2011 tax year, all employers will be required to submit bi-annual PAYE reconciliations, with new disclosure requirements. The first reconciliation is expected to be due in August 2010 and the second will be due at the end of May 2011.
The new IRP5/IT3(a) disclosure requirements will place a significant compliance and administrative burden on employers.
It will be compulsory for all employers to disclose the following information on its employees IRP5/IT3(a) certificates:
• the employees income tax reference number (regardless of whether the employees income earned for the tax year falls above or below the tax threshold and regardless of whether the employee is in standard or non-standard employment);
• the employees banking details where the employee is paid directly via a bank transfer;
• the employees residential address;
• the employees identity number.
If an employer fails to disclose the above information as part of its PAYE reconciliation process, SARS will reject the PAYE reconciliation. SARS may impose a potential penalty on the employer, equal to 10% of the total amount of employees tax deducted from the remuneration of employees during the tax year for non-submission of the reconciliation form.
The requirement to provide SARS with all the employees income tax reference numbers is one of the immediate issues that employers need to deal with as they may not have this information readily available at present. This will be particularly so where the employer employs casual labour, part-time staff or contractors on a regular basis.
Where employees are not registered for income tax purposes and hence do not have a tax reference number, SARS plans to have introduced an online registration process to enable employers to register such employees.
Employers should already have started a process of collating the required information as this will prove to be an onerous and lengthy task and failure to comply will result in the abovementioned penalty.
29 June, 2010
WORKMENS COMPENSATION
We wish to remind all business’ who employ staff that it is a legal requirement to be registered for Workmen’s Compensation with the labour department. Failure to register for workmen’s compensation may lead to substantial fines and employers being liable for all medical costs for staff injured on duty (IOD)
Kind regards
FINTAX PE TRUST / Ref: cl
31 May 2010
31 May, 2010
Media statement released by Cipro on 25 May 2010
Media Statement
Companies and Intellectual Property Registration Office (CIPRO) CIPRO
Reaching out to the business community
Pretoria, Tuesday, 25 May 2010 CIPRO Acting Chief Executive Officer, Lungile Dukwana today said that CIPRO wants to assist the business community to submit annual returns for their companies and close corporations.
“CIPRO appreciates the impact deregistration of companies and close corporations will have on the economy of South Africa, and therefore has decided to give further extension to business entities in submitting annual returns until 15 July 2010. Deregistration processes will commence immediately thereafter”, said Dukwana.
Annual returns are not a new requirement for CIPRO, for public companies and external companies they were implemented in August 2003, whilst in September 2008 they were implemented for private companies and close corporations. Provision for submitting annual returns was made in terms of Section 173 of the Companies Act, Act 61 of 1973 as amended and Section 15A of the Close Corporations Act, Act 69 of 1984 as amended, as well as Section 16A of the Close Corporations Administrative Regulations.
Annual returns are therefore a statutory duty that is contained within the above Acts. The purpose of annual returns is also to confirm that the business entity’s information is up to date with CIPRO; and that the entity is still doing business. Annual returns are used in most countries across the globe to update information kept by an Office of the Registrar.
Annual returns must be lodged electronically on the CIPRO website within the anniversary month of the business entity’s incorporation. Penalty fees will be incurred within a month of non-compliance. Information about any possible outstanding annual return fees can be viewed on the CIPRO website. It is important that payment has to be made to CIPRO before the annual return lodgement process can be completed.
In addition to the extension of submitting annual returns, CIPRO is furthermore embarking on a roadshow during June and July 2010 to assist customers in submitting annual returns. All provinces will be visited and towns to be visited will be broadcasted on community radio stations and put on CIPRO website throughout June and July 2010.
Dukwana emphasised, “CIPRO will continue improving its services to our customers and businesses in South Africa as we realise the importance of the role CIPRO is playing in contributing to the economy of our country”.
Customers who require further information should visit the CIPRO website, www.cipro.gov.za or could email, or
Issued by : CIPRO Contact : Dr Elsabй Conradie Telephone : (012) 394 5467
Email :
31 May, 2010
UNEMPLOYMENT INSURANCE FUND (UIF)
Those clients who attend to their own payroll must please note that members, directors or trustees have to pay UIF on their salaries. This is limited to the amount of R124.78 per month.
Herewith a breakdown reminder below on all monthly requirements:
VAT (Valued Added Tax)- Should the income of the business exceed R1 million per annum, it is compulsory to register for VAT; below this threshold you may apply voluntarily, but SARS has the right to object to such registration.
PAYE (Pay as you earn) – Should you employ a staff member and s/he earns a salary in excess of R4750.00 p/m, registration for PAYE is compulsory. If you are a member of a CC or director of a Company, PAYE registration may be compulsory.
SDL (Skills Development Levy) - Should you employ staff and the total salaries per annum exceed R500 000.00, registration for SDL is compulsory.
UIF (Unemployment Insurance Fund) - Should the CC employs staff for more than 8 hours in a calendar week, registration for UIF is compulsory. UIF is limited to the amount R124.79 per month.
Workmen’s Compensation - Should you employ staff, registration for Workmen’s Compensation is compulsory and non-registration could lead to a fine being imposed by the labour department and employers being liable for all medical costs for staff injured on duty (IOD).
Should you need any assistance with regards to any of the above, please email. She will also be able to assist in registering your business for Workmen’s Compensation and any other compulsory registration that applies to you such as INCOME TAX, VAT, PAYE, UIF or SDL.
Kind regards
FINTAX PE TRUST / Ref: cl
31 May 2010
31 May, 2010
EMP501 RECONCILIATIONS AND IRP 5 CERTIFICATES FOR 2010

The 28th February brought the 2010 tax year to a close and with it came the usual deadlines from Sars for the submission of the EMP501 (PAYE) reconciliation and IRP5/IT3 certificates.
The upgrade for the easy-file program will be available from the 1April 2010 and it will be full steam ahead to get these reconciliations completed and submitted to SARS on time.
There has been much media hype surrounding the changes to the reconciliation process itself and the mandatory fields on the certificates. Overall the completion of the reconciliation and certificates requires a significant amount of additional information and time.
If you require our office to attend to these on your behalf, we request that you ensure the information reach us no later than the 31 March 2010. It is crucial that the information supplied is accurate, complete and is presented in an orderly manner.
Please do not include the information with your 2010 tax information as this is handled by a different department and we will assume that you do not require our assistance in completing the EMP501 reconciliation and relevant certificates.
We require direct instruction to do this and all information delivered must be clearly marked as follows: PAYE RECONS 2010
KIND REGARDS
FINTAX PE TRUST
11 March, 2010
URGENT REMINDER: WORKMEN’S COMPENSATION RETURN DUE 31 MARCH 2010
The Workmen’s Compensation return of earnings for the period March 2009 to February 2010 is due to be submitted for your business by no later than the 31st March 2010. Failure to do so by the due date will result in penalties and interest being raised.
The Department of Labour has failed to mail the original returns out to employers on time and you will need to download this from their website (www.labour.gov.za). We note that the Department of labour has amended the forms somewhat and what used to be a two page form for completion has now become a four page detailed reconciliation of estimate salary figures submitted for this year as well as actual salaries paid out and estimates for next year.
Furthermore in addition to the usual list of company directors/members, their identity numbers and physical residential addresses, they now also require a detailed list of all existing and past employees for the financial year and their identity numbers.
As this is going to entail a significant amount of additional time and effort, we strongly advise you attend to this immediately.
Please remember that this form must reach the labour department no later then the 31st March 2010 to avoid additional costs.
11 March, 2010
Silly Season Finally Over
Finally the end of the tax year has arrived with most deadlines for 2009 submissions met and provisional returns submitted, what a mad rush February has become with everything happening at the same time!!.
Thanks to all our fantastic clients who followed our requests and got your information to us early and on time. This really does help make us meet these increasingly more difficult deadlines set by SARS. For the few clients who didn’t PLEASE try this year!!
I list below (again) my normal reminders for 2010.
Please take note of the following:
- Record the closing KM reading on SUNDAY (the 28th) for all PRIVATE cars that are used for business travel.
- See that you have an accurate logbook for each PRIVATE car used for business (e.g. under publications on our website www.fintaxpetrust.co.za).
- Those clients that have their own business that have TRADING stock on hand must do a stock take of all trading stock on the 28 February 2010 (as per normal)
- If you plan to make use of the donations tax exemption - a cash transfer of UP TO R100 000 must be made to your Trust by the end of the month (28 Feb 2010). Remember both spouses may donate up to R100 000 each to their Trusts.
For those few clients that have still not yet handed in their 2009 (1/3/2008 to 28/2/2009 i.e. last year) accounting and/or tax information to us, OR WHO OWE US OUTSTANDING INFORMATION, we suggest you do so ASAP as SARS will start issuing LARGE MONTHLY PENALTIES FROM MARCH.
Don’t forget that this is a general email sent via our website to all our clients so please do not click on reply to sender as it will not reach us.
Many Thanks
FINTAX PE TRUST
Rbw26/02/2010
26 February, 2010
2010 Budget Brief
Individuals
The tax threshold has been increased for individuals younger than 65 and will be R57 000 and for individuals 65 or older will be R88 528.
Increased exemption for interest and dividend income
• The annual exemption on interest earned for individuals younger than 65 years is raised from R21 000 to R22 300.
• The exemption for individuals 65 years and older increases from R30 000 to R32 000.
• The threshold for the tax-free portion of interest and dividends from foreign investment increases from R3 500 to R3 700.
Medical Expenses
From 1 March 2010 the tax deductible portion of monthly contributions to medical schemes is increased for each of the first two beneficiaries from R625 to R670 and for each additional beneficiary from R380 to R410.
Retrenchment Packages
The R30 000 exemption for termination of services has not been adjusted in many years. It is proposed that this exemption be merged into the retirement fund lump sum benefit system and that the qualifying lump sums be taxed by applying the tax table for retirement fund lump sum benefits. The aggregation principle will apply.
SITE is to be abolished from 1 March 2011.
The company car fringe benefit value is to be increased
Deferred compensation and employer-provided group life insurance will be taxed as fringe benefits
Company Tax
No change is proposed to corporate tax rates
Voluntary Disclosure Programme
It appears as if yet another amnesty type opportunity may be on its way in the following form:
In order for taxpayers to disclose their defaults (non-compliance) and regularise their tax affairs a voluntary disclosure programme will be implemented.
• The programme is to be effective during a window period from 1 November 2010 until
31 October 2011
• The full amount of tax remains due
• Relief with regard to interest and penalties will apply
• Relief is to be granted if–
- The disclosure is complete
- SARS was not aware of the default
- A penalty or additional tax would have been imposed had SARS discovered the default in the normal course of business
Other Very Interesting and Far Reaching Proposals
1. Interest Income
Annual tax-free interest income will be increased from R21 000 to R22 300 for individuals below 65 years, from R30 000 to R32 000 for individuals 65 years and over, and from R3 500 to R3 700 for foreign-interest income. These exemptions will be limited to savings through widely available interest-bearing instruments, such as bank deposits, government retail bonds and collective investment money market funds. The new limits will exclude tax planning aimed at shifting taxable income. Therefore it appears as if the exemption will no longer apply on interest earned from loan accounts!
In addition it appears as if SARS intends restricting the interest exemption for non-residents investing in financial instruments other than South African bonds, unit trusts or publicly available interest bearing instruments. Therefore it appears as if the exemption enjoyed by non resident individuals on interest earned in South Africa will no longer apply on interest earned from loan accounts as well!
2. Estate Duty
Estate duty and capital gains tax are both payable upon death. This is perceived as giving rise to double taxation. According to SARS estate duty raises very little revenue and is cumbersome to administer. Moreover, its efficacy is questionable as many wealthy individuals escape estate duty through the use of trusts and other means. Accordingly SARS will be reviewing taxes upon death.
3. Compliance
According to SARS the general level of tax compliance appears to have deteriorated during the recession. As a result, SARS is refocusing its enforcement and audit capacity, and modernising its systems.
The key areas for improved tax administration over the next three years are:
• Increased digitisation to enable self-service and voluntary compliance
• Further modernisation of personal income tax, pay-as-you-earn, corporate income tax and VAT systems
• Modernisation of customs systems
• Improved call centres, office operations and payment processes
• Increased system infrastructure to process administrative penalties
• Enhanced focus on large taxpayers and high net worth individuals.
Improved data analysis helps SARS to identify high-risk taxpayers for increased enforcement. This process will be enhanced by the improved collection of third-party data that allows for specific case identification.
General Proposals
It is proposed that ownership in liquidating/deregistering companies no longer be grounds for preventing micro and small business relief.
Last year, government announced a three-year window allowing residential property entities to liquidate without triggering additional tax. On further review, it has been determined that this window is insufficient. A new, more flexible window period is proposed so that these residential property entities can to be liquidated or dissolved with limited compliance and enforcement effort.
Consideration may also be given to adjusting the exemption to ensure that taxpayers with little or no provisional tax to pay, but who are currently considered to be provisional taxpayers (such as dormant companies), are exempted.
Several regulatory and enforcement agencies operate under the umbrella of the Minister of Finance. Each of these agencies is subject to secrecy provisions that limit their ability to disclose information to one another, hampering enforcement. It is proposed that the secrecy provisions of the various agencies be revised to allow for some exchange of information within a legislative framework.
Click on www.sars.gov.za/home.asp?pid=55410 to visit SARS website for more details.
FINTAX PE TRUST
RBW 20/02/2010
.
20 February, 2010
Cipro reminder – IMPORTANT NOTICE
We noticed that many clients have paid their Cipro fees, but failed to lodge the return. Note that you MUST PHYSICALLY SUBMIT the return. By purely making a payment to Cipro will not make the problem disappear.
Login with your Cipro details, go to annual returns on the home page, follow the links and submit the returns accordingly. Note that this must be submitted every year in the CC/Pty/Inc’s birth month
Failure to submit the return timeously, will result in Cipro assuming that the company does not trade and accordingly deregister it (terminate the company, which has a major impact on you if your company is in fact trading). Note that if you have a dormant company, and wish to keep it, i.e. for a future use, you must submit its Cipro return to avoid it from being removed from Cipro’s register.
For those clients who have not as yet attended to their Cipro returns, please follow the following process:
1. Visit www.cipro.co.za
2. Register as a customer
3. Only once registered, do you make a payment to them (your login name is your payment reference)
4. Once paid, go to the home page, annual returns, follow the links and submit your return
5. Diarize to submit every year in your CC/Pty/Inc’s birth month
Those of you who have already contacted and given an instruction to Charmaine at our office to submit the return on your behalf need not worry to register on the Cipro site, as she will register and submit your return on your behalf. However, those of you that have not made arrangements with our office, must please attend to the submissions timeously in order to avoid termination. If you are unsure as to whether you have given Charmaine instruction, please don’t assume we are doing it. Please call her to confirm.
If you would like more information on the above, please contact Cipro via telephone 0861843384 or email or contact Charmaine at our office on.
Legal Department
CL 17/02/2010
17 February, 2010
2010 Tax Year coming to an end
Please take note of the following:
- Record the closing KM reading on the 28th for all cars that are used for business travel.
- You have an accurate logbook for each car used for business (e.g. under publications on our website www.fintaxpetrust.co.za).
- Those clients that have their own business that have TRADING stock on hand must do a stock take of all trading stock on the 28 February 2010 (as per normal)
- If you plan to make use of the donations tax exemption - a cash transfer of UP TO R100 000 must be made to your Trust by the end of the month (28 Fen 2010). Remember both spouses may donate up to R100 000 each to their Trusts.
For those few clients that have still not yet handed in their 2009 (1/3/2008 to 28/2/2009 i.e. last year) accounting and/or tax information to us, OR WHO OWE US OUTSTANDING INFORMATION, we suggest you do so ASAP as SARS will start issuing LARGE MONTHLY PENALTIES FROM MARCH.
Don’t forget that this is a general email sent via our website to all our clients so please do not click on reply to sender as it will not reach us.
Many Thanks
FINTAX PE TRUST
Rbw6/02/2010
6 February, 2010
REMINDER ABOUT CIPRO - PLEASE READ
PLEASE READ the following as it will effect you if you have a Close Corporation, Pty, Ltd or Incorporated company.
We wish remind you again to submit your Cipro annual returns on the Cipro website. Cipro is the Companies House in Pretoria where all companies are registered and kept on file. Failure to submit the return timeously, will result in Cipro assuming that the company does not trade and accordingly deregister it (terminate the company, which has a major impact on you if your company is in fact trading). Note that if you have a dormant company, and wish to keep it, i.e. for a future use, you must submit its Cipro return to avoid it from being removed from Cipro’s register.
The process to follow is to FIRSTLY register as a customer on the Cipro website www.cipro.co.za (to be able to use the website). SECONDLY to pay them the prescribed fees using your login name as your payment reference (very important. If the ref is not used, Cipro will be unable to allocate your funds). THIRDLY once payment has been made you MUST log onto the Cipro website and submit the returns by going to “annual returns” and following the links to submit the return. By merely paying them, is not sufficient. You must SUBMIT the returns online after payment has been made.
Cipro fees are as follows:
Close Corporations:
Turnover less than R50mil – R100
Turnover R50mil and more – R4000
Penalty for late submission – R150
Pty/Ltd/Inc’s:
Turnover less than R10mil – R450
Turnover R10mill but less than R50mil – R2500
Turnover R50mil and more – R4000
Penalty for late submission – R150
Note that the return is due every year in the company’s birth month, i.e. if established in the month of March; you must submit the return every year in that month. If you are unsure as to your company’s birth month, please contact us to assist you. Cipro DOES NOT send any reminders as to when the return is due, so please diarize to submit annually on the company’s birth month.
Those of you who have already contacted and given an instruction to Charmaine at our office to submit the return on your behalf need not worry to register on the Cipro site, as she will register and submit your return on your behalf. However, those of you that have not made arrangements with our office, must please attend to the submissions timeously in order to avoid termination. If you are unsure as to whether you have given Charmaine instruction, please don’t assume we are doing it. Please call her to confirm.
If you would like more information on the above, please contact Cipro via telephone 0861843384 or email or contact Charmaine at our office on.
Legal Department
CL 9/12/2009
9 December, 2009
Cipro Annual Returns - NB NB NB
We refer to our previous emails and correspondence and again wish to REMIND you that CIPRO Annual Returns are payable for all Close Corporations & Companies. Cipro uses the annual returns to confirm whether a CC/Co is still active, as well as to update their records. Failure to pay and submit the Cipro return will result in your company being deregistered with Cipro (Companies house in Pretoria where your CC/Co was formed). The deregistration of a CC/Co results in the withdrawal of its juristic status and limited liability of directors; THE ASSETS THAT THE CC/CO MAY HAVE AT THE TIME OF DEREGISTRATION WILL BE FORFEITED TO THE STATE IN TERMS OF BONA VACANTIA.
Cipro has published a list of non-compliant companies and close corporations on their website www.cipro.co.za under News and Events/Information Library/CIPRO Publications. The list may be saved to your local machine and searched by using the “CTRL F” function.
Clients are advised to confirm the status of their companies or close corporations and if necessary, bring all outstanding annual returns up to date in order to avoid deregistration.
We suggest that you visit www.cipro.co.za in order to obtain the necessary information on how to submit your annual return on line or call them on 086 184 3384.
We are able to assist you and submit the returns on your behalf for a fee R171.00 for CC and R285.00 for a Company per submission (this fee excludes the Cipro fees which can be viewed on the Cipro website). You will however have to contact Charmaine at our office should you wish us to assist in this regard as we are unable to assume this responsibility without your instructions.
Charmaine’s email address is - or call her on 041-3743201.
Please note that this is a general email to all our clients. Those who have been submitting Cipro returns may ignore this notice.
Legal Services
Fintax PE Trust
CL 26/11/2009
26 November, 2009
Trust and Company owned residential property relief
The 2009 Taxation Laws Amendments allows individuals to transfer their domestic residence out of a company, close corporation OR TRUST, for a period of two years, tax-free.
The motivation for the proposal was to allow such entities to avoid the payment of annual duties. Trusts that own domestic residences have also now been included.
In order to qualify the property must have been owned by the company, close corporation or Trust since 11 February 2009 and must be –
- Used mainly as you or your spouses residential home.
- Used mainly for domestic purposes (this excludes buy to lets “investment properties” or holiday homes).
- Must not be more than 2 hectares in size.
In addition, for companies and close corporations, all of the shares or members interests in the entity have to be held by the person residing in the property, or that person’s spouse, during the period from 11 February 2009 until the date the residence is distributed out of the entity."
For Trusts, the person taking transfer must have donated the house to the Trust or financed its acquisition, improvements, maintenance and all bond payments.
The residence must also be distributed out of the entity and registered in the individuals name before 31st of December 2011.
The effect of the proposal is that the transfer will be free from Capital Gains Tax (CGT), Secondary Tax on Companies and Transfer Duty. The transferee will also be able to benefit from the R1, 5m "primary residence exclusion" from CGT if the residence is subsequently sold for a profit. The transfer will be treated as a roll-over, meaning that the transferee will step into the shoes of the transferring entity insofar as the history of the residence is concerned.
There are many other factors to be taken into account such as Estate Duty, Bond registration costs and whether you will qualify for a bond in your personal names, however we strongly encourage those taxpayers who do own their residential homes in a Trust, Company or Close Corporation to investigate the concession and suggest you contact the partner attending to you affairs for more input.
Remember this is a general email sent to all our clients do not click on “reply to sender” as we will not get it.
FINTAX PE TRUST
RBW-09/11/09
9 November, 2009
OUTSTANDING TAX RETURNS – VERY NB
Most of you would have either read in the papers or seen on TV SARS current campaign regarding outstanding tax returns. The purpose of this email is to warn you that SARS are VERY SERIOUS about their new penalty system for outstanding returns.
Now before we receive hundreds of queries from all our good clients enquiring why we are sending this email to you, it’s a general email that has been sent to ALL OUR CLIENTS. It also refers mainly to the 2008 tax returns that are still outstanding, this is for last year ( 1 March 2007 to 28 February 2008) NOT THE CURRENT YEAR. Now, most (over 90%) of our client 2008 returns are in, there are still a few clients who have not handed in their 2008 information. Please bear in mind that this should have been delivered to our office before the end of MAY 2008.
SARS have indicated that if all outstanding returns (2008 and prior years) are in by the end of November 2009 they will not levy penalties AND you will get extension for this year (2009) until the end of February 2010 provided you are a provisional taxpayer.
The new penalty system is extremely SEVRE with the minimum penalty calculated at R250 per return PER MONTH that you are late. The R250 increases to R16 000 per return per month for LARGE earning taxpayers. Assuming that your 2008 returns are still outstanding and you don’t get them in on time for a group consisting of 5 returns (Mr, Mrs a CC and two trusts) the penalty for the 2008 and now 2009 return could run at R 1250 per month back dated to November last year for the 2008 returns. If you only get these in, in March next year your penalty for the group will amount to R 26250 and that’s calculated on the minimum penalty!!!!!.
So if you have still not sent in your 2008 (1 March 2007 to 28 February 2008) information it must come in before FRIDAY 6 November for us to have any chance of helping you get them in by the end of November.
Please do not panic once you have read this EMAIL, for the majority of clients we have not only completed your 2008 year but also the 2009 year and this DOES NOT APPLY TO YOU. You only need to react to this email of you HAVE NOT YET SUBMITTED YOUR 2008 (OR PRIOR YEARS) INFORMATION OR ARE AWARE THAT YOUR 2008 (OR PRIOR YEARS) TAX RETURNS HAVE NOT BEEN SUBMITTED.
Remember this does not apply to the current year 2009 (1 March 2008 to 28 February 2009), so if we have not completed this year as yet, no need to worry as you have extension to the end of February 2010 as your 2008 returns are in (provided you are a provisional taxpayer). However if you have still not sent in your 2009 information we strongly suggest you get that in ASAP.
Remember this is a general email sent to all our clients do not click on “reply to sender” as we will not get it.
Kind Regards
FINTAX PE TRUST
RBW 01/11/2009
2 November, 2009
Company owned residential property relief

The Draft 2009 Taxation Laws Amendments contain a proposal that, if enacted, will allow individuals to transfer their domestic residence out of a company or close corporation, for a period of two years, tax-free.
The motivation for the proposal was to allow such entities to avoid the payment of annual duties. It appears that Trusts that own domestic residences will not benefit from any relief. All of the shares or members interests in the entity have to be held by the person residing in the property, or that persons spouse, during the period from 11 February 2009 until the date the residence is distributed out of the entity."
The residence has to be used exclusively for domestic purposes during the above period and has to be the sole asset of the company or close corporation. It must also be distributed out of the entity between the 1st of January 2010 and the 31st of December 2011, and finally, the entity has to be wound up after the above distribution."
The effect of the proposal is that the transfer will be free from Capital Gains Tax (CGT), Secondary Tax on Companies and Transfer Duty. The transferee will also be able to benefit from the R1,5m "primary residence exclusion" from CGT if the residence is subsequently sold for a profit. The transfer will be treated as a roll-over, meaning that the transferee will step into the shoes of the transferring entity insofar as the history of the residence is concerned.
Remember that this is just a proposal at this stage and should the proposal in fact become law, we strongly encourage those taxpayers who do own their residential homes in a company or Close Corporation to take advantage the concession. However it does appear that the conditions as currently set out could exclude most property companies as traditionally the shares would be owned by a Trust.
We will have to see what the final wording ends up at before decisions can be made.
FINTAX PE TRUST
RBW06/07/09
6 July, 2009
NB NB NB - Motor Vehicle Log Books

With the tax season fast approaching we would like to again emphasize the importance of ensuring that if you receive a car allowance, or run your own business and use a car for business purposes, you supply us with a detailed and accurate log book of business kilometers travelled for the tax year. This would be required for every car used.
We have, on many occasions, given you details of what is required and remind you to visit our website www.fintaxpetrust.co.za click on ‘important announcements or publications’ and scroll down until you come to the example of a log book if you still need help. WE ALSO NOW REQUIRE THE MAKE OF THE CAR, THE MODEL AND MANUFACTURING YEAR FOR EACH CAR. This is a new requirement so please make sure your log book reflects this info.
SARS are now doing detailed audits on log books where they are not only requesting the log book itself, but proof of the ODO meter reading of the car during the period in question. Basically what they do is they either request from you, or directly from your service provider, a copy of an invoice during the year when the car was sent in for a service. As you know, whenever your car goes in for a service your ODO meter is recorded. They then compare this at the same date in your log book and if things do not balance they could firstly, disallow your entire claim, and secondly, possibly take criminal action for misrepresentation. Therefore, with no accurate and complete log book, there can be no claim.
Please ensure that you follow the correct procedure with regard to log books and understand that should you not bother, you can also lose out on an extensive deduction resulting in additional tax payable. Please note that this is not a requirement by us, but a requirement by SARS and while it is an annoyance, it is something that must be done and it must be done correctly.
FINTAX PE TRUST
6 July, 2009
NEW INCOME TAX PENALTY LAWS
New laws came into effect on 1 January 2009, and apply to all areas of non-compliance occurring on or after 1 January 2009.
The laws allow SARS to impose penalties per month, based on the taxpayer’s previous year’s taxable income as follows:-
Taxable income for preceding year Penalty
(i) Assessed loss - R250
(ii) R0 – R250,000 - R250
(iii) R250,001 – R500,000 - R500
(iv) R500,001 – R1,000,000 - R1,000
(v) R1,000,001 – R5,000,000 - R2,000
(vi) R5,000,001 – R10,000,000 - R4,000
(vii) R10,000,001 – R50,000,000 - R8,000
(viii) Above R50,000,000 - R16,000
The penalty arises on the date of the non-compliance, if the non-compliance is not rectified within 30 days, the penalty is levied again every month. It is clear that SARS intend to penalize more severely taxpayers who do not inform SARS of address changes, i.e. current address details are not on record with SARS or if SARS is unable to deliver the penalty assessment:
SARS in possession of SARS not in possession Current address of current address
Maximum successive 36 48
monthly penalties
Areas of non-compliance and triggering the penalties listed above are as follows :
1. failure to register as required by the Income Tax Act (e.g. as a taxpayer, employer etc)
2. failure to notify SARS of a change in address
3. failure by a company to appoint a public officer, domicilium, etc.
4. failure to submit a return or other required documents/information
5. failure to make available required information, etc.
6. failure to reply to or answer a question when required
7. failure to attend and give evidence when required
8. failure by an employer to notify SARS of a change of address or the fact of
Having ceased to be and employer
9. failure by and employer to submit a monthly declaration of employees’ tax
10. failure by an employer to provide details of an employee
11. failure to deliver an employees’ tax certificate to one or more employees as and
when required by the ITA
12. delivery by an employer of an employees’ tax certificate without first rendering
An employee’s tax return
13. failure by a provisional taxpayer to submit an estimate of taxable income as and
when required under the Act
14. any other non-compliance with an obligation imposed under the ITA.
Note that these fixed-amount penalties are separate from the percentage-based penalties that might also apply in some cases (e.g. 10% for late payment of provisional tax/
Vat / Paye).
SARS are very serious about imposing these penalties and we strongly advise clients to understand their responsibilities regarding their tax affairs and ensure that your affairs with SARS are in order and up to date.
FINTAX PE TRUST
RBW
9 March, 2009
EMPLOYEES TAX RECONCILIATIONS
As we enter the new filing season for the submission of EMP501 returns (annual paye reconciliation and employee tax certificates) we remind you that this can only be done electronically via Sars easy file system, utilising the free software made available by Sars. This can be submitted electronically or on a CD delivered to a SARS office.
This “new” system introduced by SARS last year must be taken EXTREMELY SERIOUSLY by business owners who employ staff and deduct EMPLOYEES TAX from their employees. Every business owner in this position must ensure they understand what their obligations are and will need to ensure that they complete and submit the required forms to SARS well before the deadline date of 30 May 2009 or face SEVERE PENALTIES (10% of the total employees tax deducted on all staff for the year).
This responsibility rests with you and even if we have assisted you to complete and reconcile your IRP5 returns in prior years we will NOT BE ABLE TO AUTOMATICALLY do so this year. You need to specifically request that we attend to this matter and you will need to contact Kim Engelbrecht () at our office should you require our office to attend to this on your behalf.
Due to the deadline imposed by SARS on the new system we have limited time in which to attend to all these submissions and request that should you require our assistance, you contact Kim at our office without delay.
We will require all information to be delivered on or before the 20 March 2009.
During last years submissions, we noted that information was not always supplied for employees and casual workers on whose salary only uif contributions were paid over or Skills development levy was paid. As the new system requires the reconciliation of all three taxes (Paye, Uif and Sdl) it is imperative that we are supplied with full details on all salary and casual workers.
Please ensure that the information delivered is complete to avoid unnecessary delays.
Please remember that this notice only applies to business that are registered for employees tax and deduct PAYE and SITE from the salaries and wages paid to their staff. If you are not registered for employees tax as a business owner and you do not deduct PAYE/SITE it has no impact on you.
Don’t forget that this is a general email sent via our website to all our clients so please do not click on reply to sender as it will not reach us.
Kind Regards
FINTAX PE TRUST
6 March, 2009
2009 BUDGET SUMMARY

Please click on
http://www.thebudget.co.za/?20
for all the details on the recent budget.
Kind Regards
Royden Whitfield
FINTAX PE TRUST
17 February, 2009
VAT DEREGISTRATION – PROBLEMS BE CAREFULL
VAT DEREGISTRATION – PROBLEMS BE CAREFULL
by Royden Whitfield
Registered for VAT and thinking of deregistering as a result of the turnover threshold increase in March to R1 million, or have you received a letter from SARS advising you that you have been suspended as a VAT vendor because your income is below R20 000.
Please take note of the following :
The COMPULSORY VAT registration threshold is increasing from R300 000 to
R1 million in March 2009.
The increase in the compulsory VAT registration will simplify tax compliance for small enterprises. Taxpayers with turnover levels below the new registration threshold have been given two options:
(a) retain as is (do nothing) ; or
(b) deregister as VAT vendors.
As far as deregistration is concerned, taxpayers have been given two further options :
i) register as a small business and in future be taxed in terms of a new small business tax regime (which will automatically include deregistration as a VAT vendor); or
ii) deregister as a VAT vendor on the basis of your turnover being below the new registration threshold.
Whatever option is taken, please take note of the consequences of deregistration and ensure that an informed decision is made.
Problems
When a business deregisters for VAT, it is deemed to dispose of all assets held and certain rights attaching to the business immediately before deregistration and: -
a) VAT is payable to SARS on the lower of the cost or the open market value of such assets and rights. This results in VAT being payable to SARS without any commercial sale having been concluded. For example, if your business has a property that cost you R1 million, you will then have to pay VAT back of R140 000 on deregistration.
b) VAT also has to be accounted for on the amount of any outstanding trade creditors as at the date of deregistration.
Relief Provided
a) SARS has provided some relief for businesses that choose to deregister as VAT vendors due to the increased registration threshold. Businesses will be entitled to settle any VAT liability resulting from deregistration (excluding any liability resulting from unsettled creditors at the date of deregistration) over a period of 6 months. SARS has been given a discretion to extend the period beyond six months should the situation warrant it.
b) In addition, no interest will be payable on the outstanding amount during this period. For businesses not registering in terms of the small business tax regime, this relief is however only available if you deregister on or before 30 June 2009.
c ) For businesses that opt to be taxed in terms of the small business tax regime, they will also be entitled to reduce the amount on which VAT must be paid on deregistration (excluding VAT on outstanding creditors) by R100 000. This additional relief results in a VAT saving of approximately R12 300 for the business.
Therefore, careful planning needs to be done before a vendor decides to deregister for VAT purposes or ignores the letter from SARS stating that they are suspending your Vat registration as their could be large costs involved.
26 January, 2009
YEAR END UPDATE -CELEBRATING 20 YEARS IN PRACTICE
What a year this has been. It is amazing how quickly time flies, especially when we are confronted with the extraordinary challenges of our current times.
We did send a very important email out last month with the latest developments and strongly suggest you read it as it contains some very important changes to the tax system to be introduced early next year. A copy is saved under our “Announcements” on our web page.
SARS are continually changing the goal posts and setting earlier deadlines and in order to be able to complete your required returns on time we are going to need all your information as early as possible next year. We are finding that in many instances there is a lot of information outstanding when we start working on client’s affairs making it very difficult for us to complete it, as we have to keep stopping and starting. This can be very time consuming and can add to your costs unnecessarily. With this in mind I plan to send out a more detailed memo on what we require at year end (after end of February 2009) to assist clients to bring in a more COMPLETE list of the information that we will be requiring.
With this being our 20th year in practice we would like to take this opportunity in thanking you for your continued support and loyalty since becoming a client and look forward to looking after your financial affairs for the next 20 years and beyond and assure you of our best service at all times.
We have enjoyed tremendous growth since we started out in a small office with only one employee back in January 1989. We were one of the first accounting practices in Port Elizabeth to have a website and to use the medium of mass emails to keep our clients informed and up to date with important information.
While it can be a challenge at times, we have embraced all SARS moves towards an integrated “intellectual” electronic filing and assessment system and have upgraded our IT and internal administration systems to incorporate those of SARS. While SARS systems still have a way to go we are confident that they are on the correct path and look forward to the future when all has been implemented and running smoothly.
We spend a lot of time and money on continued professional development and while this is a professional requirement we go far beyond those set by our regulatory bodies to ensure that we are always up to date and on top of our game. With the fast changing world of taxation legislation this is vital.
We wish you and your families well over the festive season and hope that everybody takes the opportunity to relax and spend time with family and friends.
Kind Regards
FINTAX PE TRUST
RBW 18/12/2008
18 December, 2008
YEAR END CLOSE DOWN
Kindly note that we will be closing our offices from the 22nd December 2008 and reopening on the Monday 12th January 2008.
We would also like to take this opportunity to wish all our clients well over the festive season and a prosperous New Year and thank you all for your continued support.
Yours Faithfully
Fintax PE Trust
RBW12/12/2008
12 December, 2008
TAX UPDATE FROM FINTAX
by Royden Whitfield
This is a very important update on what’s going on in the world of Taxation Administration in South Africa so please read it.
New R1million Vat Threshold
We have had a lot of enquires regarding the new increased Vat threshold of R1million. Please note that this is effective only from 1 March 2009 and if your turnover is below this level and you intended to step out of the Vat system then this can only be done after 1 March 2009.
Proposed New Small Business Tax
This is also only likely to be introduced next year and could be applicable to business who’s Turnover is below R1million. It will NOT apply to all business and one will need to do some homework to establish if it would be applicable and if so whether it would be beneficial to your specific circumstances. We will send out a detailed explanation on what all this entails early next year and will assist clients who could benefit by switching.
Tax Clearance Certificates
This has become quite literally an absolute nightmare!!
If a taxpayer requires a tax clearance certificate for a government tender or to make an overseas investment, SARS will not issue that certificate unless all supporting documents are provided AND there is NO OUTSTANDING TAX OR RETURNS OF ANY FORM. This includes Income Tax, VAT, SDL, PAYE etc. Now the problem arises in that SARS do not issue any statement of account for any taxes that are outstanding, so a taxpayer has no idea that he may owe one of these taxes until he applies for a Tax Clearance certificate, hard to believe but true. In addition if their office has mislaid or misallocated a payment, its up to the taxpayer to provide proof or explanation of the problem, irrespective of how far back it may go. Even if you have proof that the return was sent in or the cheque has been cleared by your bank you will need to prove to them that its been paid and/or figure out how they have misallocated the funds. We have come across cases where SARS are refusing to issue a TCC because of returns that they say are outstanding for over 5 years, but that they have never advised taxpayers of such. Imagine the problems associated with now trying to go back 5 years to prove that the return or payment was made. In many instances these were submitted on time but not captured on their system!!! At a recent stakeholders meeting with SARS we were told that SARS are looking at introducing a consolidated statement that will reflect all outstanding tax and returns, but that this would take some time to implement.
Therefore we warn all clients that if you require a Tax Clearance Certificate do it sooner rather than later as it can be a very Looooong and costly process. DO NOT LEAVE IT TILL THE LAST MINUTE.
Vat Registrations
SARS have introduced a whole new set of stringent rules regarding Vat registration, making this a very time consuming and costly process.
2nd Provisional Tax Payments
All provisional taxpayers need to take special note of this proposed change. If accepted it could affect ALL provisional taxpayers from their next provisional tax return being 28 February 2009- so read this very carefully. Up till now you were able to base your 2nd provisional tax payment on your last years assessed income to ensure that you did not expose yourself to any risk of penalties.
A recent proposal by SARS will see a change to that practice and a requirement that all 2nd provisional returns will now need to be an 80% accurate payment of their total tax liability for the year ended. Thus for Feb 2009 your provisional tax payment had better be 80% accurate otherwise you will be hit with severe penalties. This is going to be a huge challenge for taxpayers who do not keep accurate monthly records (run monthly accounting). Even for those that do, it is still going to be very difficult to work out one’s liability without all the year-end CGT and other info from financial institutions that is only sent out in about April. While we will try assisting our clients this could be almost impossible for many clients who only start getting their affairs together after the end of the tax year. This change is extremely concerning to us and while we have, via our professional institutes, addressed our concerns with SARS it does not appear as if they will budge on the matter.
Log Books for Traveling Allowances
While I am sure you are tired of our continued reminders about log books we need to again remind you about their importance. SARS are now in nearly all cases requesting (in addition to the log book) supporting documentation to support your opening and closing kilometers. This is done by asking for copies of service history or an invoice from the company that services your car. They also ask for garage card records to ensure your mileage is correct to your logbook. Please ensure that you keep an accurate logbook for each car that you use for business and that you intend to claim as a business deduction.
Finally, this months recommended read - the article on the front page of Finance Week- 6 November Edition.
Kind Regards
FINTAX PE TRUST
RBW/ 14/11/2008
14 November, 2008
FOREIGN TAX CLEARANCE CERTIFICATES
Bellow is an email recently forwarded to us from SARS regarding tax clearance certificates
Good day
As most of us know by now the process of a foreign investment has changed. There is no more issuing of manual certificates as all foreign applications must be captured on the TCC system.
Herewith are some key points regarding the process of the foreign investments:
The applications may be submitted and collected at ANY branch office as the issuing of a TCC for FIA is not area restricted
The application must be fully completed and signed by the taxpayer
All documents for proof of the source of capital must be attached to the application (original documents)
Application to be processed within 3 to 5 working days
Documents needed for different sources:
LOAN (loan agreement must be attached)
Where the parent lends money to the child
The parent must provide evidence of the source of the capital AND
A loan agreement must be provided
The trust lends money to the trustee/beneficiary
A trust deed must be provided:
Loan agreement AND
List of names of all trustees and beneficiaries
The company lends money to a director
Loan agreement between the company and the director AND
Original bank statements from the company, duly stamped by the financial institution, not older than one month
DONATION
If the donation is between spouses
Only a declaration must be submitted
If the donation is not between spouses
Proof (the receipt) that donations tax is paid and
Original bank statements duly stamped by the financial institution, not older than one month (from both parties)
INHERITANCE
A letter from the executor of the estate must be attached
A copy of the liquidation & distribution account must be attached
Original bank statement duly stamped by the financial institution, not older than one month
SAVINGS/CASH/BANK ACCOUNT
Original ban statement duly stamped by the financial institution, not older than one month
FIXED DEPOSITS
A current original bank statement duly stamped by the financial institution where the money is held
SHARES
A letter from the institution confirming that the institution will transfer the funds offshore will be sufficient
This letter must contain the amount of shares and estimated current market value available
SALE OF PROPERTY
A copy of the Deed of Sale
A copy of the transfer duty declaration signed by both parties where they affirm the purchase price
A letter of the conveyancer to confirm the transfer of the property
The transfer duty receipt
Original bank statement duly stamped by the financial institution, not older than one month or
A letter from the conveyancer stating that the money will be transferred from his/her trust account
OTHER
Proof and explanation must be submitted
EARNINGS
Where a taxpayer has recurring foreign investments not exceeding R30 000 per annum a salary slip is needed once a year
The policy number and
It must be noted the institution (e.g. Sanlam/Old Mutual) will apply on behalf of the taxpayer
A TCC cannot be issued if a taxpayer is not on register for income tax purposes
The TCC system will decline where another TCC application is captured on the system which is less than 30 days from the new application.
COLLECTION OF A CERTIFICATE (at any SARS Branch Office)
A tax clearance will only be issued:
On presentation of the letter received via e-mail and
South African identity document
If the TCC is collected by a representative (i.e. any other person except the taxpayer) then a power of attorney must be produced to the SARS Branch Office
VALIDITY OF A TCC
A TCC remains active for 12 months provided that the taxpayer remains compliant with SARS
The new FIA001 is available on SARS Intranet and the website. Please ensure that the new application form is completed when applying for a clearance ( see attached application form)
These changes only applies to foreign investments, nothing has changed regarding to the tender and good standing applications.
Kind regards
Chantel Pretorius
Uitenhage Branch Office
Fax: 0865 192 374
E-mail:
Please Note: This email and its contents are subject to our email legal notice which can be viewed at http://www.sars.gov.za/Email_Disclaimer.pdf
13 November, 2008
CIPRO ANNUAL RETURNS FOR CLOSE CORPORATIONS

We refer to our previous emails and correspondence and again wish to REMIND you that CIPRO Annual Returns will become payable for all Close Corporations from 1 September 2008.
All returns must be submitted on the anniversary date of the formation of your Close Corporation. Therefore it is vital that you are aware of the anniversary date of the formation of your Close Corporation and ensure that your annual return is submitted by the end of the month following the month of the anniversary of the incorporation of the CC.
Fees payable to CIPRO are as follows:
R100 for a CC with turnover of up to R50 million
R4000 for a CC with turnover more than R50 million
Penalties of R150 will be payable if the annual return is not lodged by the end of the month following the month of the anniversary of the incorporation of the CC, as prescribed by Sec 15A(3) of the Close Corporations Act.
If returns are not submitted CIPRO will take steps to have the CC removed from the register.
We suggest that you visit www.cipro.co.za in order to obtain the necessary information on how to submit your annual return on line or call them on 086 184 3384.
We are able to assist you and submit the returns on your behalf for a fee R171.00 per submission (this fee excludes the Cipro fee). You will however have to contact Charmaine at our office should you wish us to assist in this regard as we are unable to assume this responsibility without your instructions.
Charmaine’s email address is - or call her on 041-3743201.
6 October, 2008
2008 Financials and Tax Returns and 3Rd Top up Provisional payment.
August 2008
2008 Financials and Tax Returns and 3Rd Top up Provisional payment.
As you may be aware SARS now require (as from 2008) that all IRP 5 certificates and reconciliation’s be completed via the new easy file (efiling) system. While this is a very good idea in the long term, the move to this new system has delayed the issuing of IRP 5 and other supporting documents until the end of August this year. This has resulted in many clients not been able to submit all their required information to us on time.
In addition SARS has delayed the efiling season this year and we have been advised that we will only be able to start the efiling process from the 1 September.
While this is again going to put us under pressure to meet deadlines, we do not see this as a major problem (at this stage) as, in addition to increasing our staff compliment, we have extension for the submission of all business returns until the end of the year.
We request that you bear with us over this period and appreciate that our main concern at this stage is to get the financials and relevant tax returns completed. We do have a first in first out queuing system for clients work received to ensure that we maintain a fair system on delivery.
Those taxpayers with possible top up payments are able to make voluntary 3rd top up payment at anytime after the end of September should they wish to avoid interest. Remember this is not a deadline for the submission of the returns but just a voluntary payment to avoid interest running on any short payment of provisional tax from1 October 2008. The interest SARS charge is currently 14% per year while interest on an overdraft at prime is 15.5% per year. Therefore should you be worried that your taxable income has increased significantly on last year and that you may have underpaid on provisional tax, please send us an email ASAP and we will estimate an amount to be paid.
Remember this would only be necessary should you not wish to pay SARS interest.
Kind Regards
FINTAX PE TRUST
15 August, 2008
Security Transfer Tax
Security Transfer Tax has been introduced by SA Revenue Services to replace the revenue stamp duty system and is effective as from 1 July 2008. Thus if a change in membership in a Close Corporation or change in shareholding in Pty/Ltd Company (listed or unlisted) occurs, STT must be paid over to SARS. The amount payable is determined & calculated on the value of the member’s interest/shares transferred, at a rate of 0.25%. STT must be paid by the 14th day of the month following the month during which transfers occurred.
Payment can only be made via SARS e-filing (www.sarsefiling.co.za). We are corresponding with SARS to enable manual payments (cheques or cash). Failure to make the required payments will result in interest and penalties.
Should our office attend to any of these amendments on your behalf, we will calculate the tax payable and accommodate where we can to assist with the payments via e-fling.
You may contact Charmaine Lцtter at our office for any queries or assistance required in this regard. Alternatively contact Morgan Whitfield on.
FINTAX PE TRUST
RW/cl 15/08/2008
15 August, 2008
SARS NEW EMPLOYEES TAX SYSTEM
by Royden Whitfield
SARS have announced that from 1 July 2008 to 29 August 2008 businesses will be required to submit PAYE information (EMP501 returns and employee tax certificates) using the new procedures for the Employers Filing Season 2008.
This can be done electronically using the online e-filing system on free software that will be made available by SARS. SARS says it will ensure greater accuracy and allow all IRP5, IT3 (a) and IRP501 returns to be submitted electronically or on a CD delivered to a SARS office.
This “new” system to be introduced by SARS must be taken EXTREMELY SERIOUSLY by business owners who employ staff and deduct EMPLOYEES TAX from their employees. Every business owner in this position must ensure they understand what their obligations are and will need to ensure that they complete and submit the required forms to SARS well before the deadline date of 29 August 2008 or face SEVERE PENALTIES (10% of the total employees tax deducted on all staff for the year).
This responsibility rests with you and even if we have assisted you to complete and reconcile your IRP5 returns in prior years we will NOT BE ABLE TO AUTOMATICALLY do so this year. Therefore, if you have already submitted your employees tax info (IRP5, Payroll and Recons etc) to us with your year end information assuming that we will attend to this for you when we draft your year end financials you will need to come and collect and attend to the submission of these returns via the electronic format now required by SARS.
We have been provided with very little information from SARS to exactly how this will work but they do assure us that by implementing their automatic payroll software it will be fairly easy because the software automatically produces all the information required to populate the on-line forms and returns. Only time will tell how successful this “new” system and its implementation by SARS will be.
The SARS Port Elizabeth office, are providing FREE training and assistance in this regard and we strongly suggest you contact Chantel Pretorius who can arrange a session to discuss the changes and impact on your business from a PAYE perspective and meet and train your payroll staff in the coming weeks on the new SARS Software, e-filing and returns regarding PAYE.
Due to the short notice and deadline imposed by SARS on the new system we are going have to have to rely on SARS to assist our clients as far as possible and STRONGLY suggest that you make contact with them if you are having any problems with the conversion to this new system.
Please remember that this notice only applies to business that are registered for employees tax and deduct PAYE and SITE from the salaries and wages paid to their staff. If you are not registered for employees tax as a business owner and you do not deduct PAYE/SITE it has no impact on you.
Don’t forget that this is a general email sent via our website to all our clients so please do not click on reply to sender as it will not reach us.
Kind Regards
FINTAX PE TRUST
RBW 27/06/2008
27 June, 2008
THE ESTATE AGENTS AFFAIRS BOARD ANNUAL AUDIT REPORT 2008
If you run your own Estate Agency business the annual audit report for the estate agents affairs board needs to be completed for your business for the 2008 tax year.
Kindly forward the necessary bank statements from 1 March 2007 - 28 February 2008 FOR YOUT CLIENT TRUST ACCOUNT in order for our office to attend to this for you. Even if there has been no activity on the Trust Account bank statements we still need them. If you have received the official audit report in the mail from the board, please deliver this as well.
Please ensure that we receive the requested information no later then 31st May 2008 in order to ensure that it is completed and submitted timeously to the board.
16 May, 2008
CAR LOG BOOKS – SARS
With the tax season fast approaching we would like to again emphasize the importance of ensuring that if you receive a car allowance, or run your own business and use a car for business purposes, you supply us with a detailed and accurate log book of business kilometers travelled for the tax year. This would be required for every car used.
We have, on many occasions, given you details of what is required and remind you to visit our website www.fintaxpetrust.co.za click on ‘important announcements or publications’ and scroll down until you come to the example of a log book if you still need help.
SARS are now doing detailed audits on log books where they are not only requesting the log book itself, but proof of the ODO meter reading of the car during the period in question. Basically what they do is they either request from you, or directly from your service provider, a copy of an invoice during the year when the car was sent in for a service. As you know, whenever your car goes in for a service your ODO meter is recorded. They then compare this at the same date in your log book and if things do not balance they could firstly, disallow your entire claim, and secondly, possibly take criminal action for misrepresentation. Therefore, with no accurate and complete log book, there can be no claim.
Please ensure that you follow the correct procedure with regard to log books and understand that should you not bother, you can also lose out on an extensive deduction resulting in additional tax payable. Please note that this is not a requirement by us, but a requirement by SARS and while it is an annoyance, it is something that must be done and it must be done correctly.
FINTAX PE TRUST
9 May, 2008
LEARNERSHIP AGREEMENTS
The purpose of this e-mail is to remind clients again of the Section 12 H deduction allowed in terms of the Income Tax Act where an employer has entered into a Learnership Agreement with a staff member.
If you have entered into a Learnership Agreement, which is registered with your relevant Skills Development Levies SETA, it is imperative that you provide us with details of that agreement, as well as details of specific remuneration paid for that employee, in order that we can claim this Section 12 H deduction when completing your year end financials and tax returns. For more details on what this learnership allowance is all about please visit our website, click on publications, and then click on learnership agreements.
FINTAX PE TRUST
RBW 30/4/2008
30 April, 2008
EXCHANGE CONTROL
by Royden Whitfield
One of the most important changes to Exchange Control policy for individuals is the introduction of a single discretionary allowance. Any natural person over the age of 18 years is allowed a single allowance of R 500 000 per calendar year, without the requirement to obtain a Tax Clearance Certificate. It is used to cover the following expenses:
· Monetary gifts and loans to non-resident individuals and to resident individuals who are overseas temporarily (excluding residents who are abroad on holiday or business travel).
· Donations to missionaries – on the strength of a letter from a recognized religious body.
· Maintenance transfers to a father, mother, brother, or sister who is ‘in necessitous circumstances’.
· Travel allowance. These may now be transferred to the resident’s bank account overseas. Note that South African residents studying abroad may not receive a foreign exchange travel allowance.
This is separate from the R2 million foreign capital allowance. It may not be used to invest in overseas assets. Residents under 18 do not get the allowance. They will be entitled to the normal R 160 000 travel allowance per calendar year.
An increase in the R 500 000 discretionary allowance will only be agreed to in exceptional cases.
25 April, 2008
2008 TAX REQUIREMENTS

IMPORTANT NOTE : READ CAREFULLY
Dear Client
As you are no doubt aware, the 2008 tax year came to an end on 28 February 2008 and we will soon be requiring all your relevant information to complete and submit your IT12/IT14 income tax returns.
To give you time to gather the relevant information we will, on your behalf, attempt to arrange for an extension for the submission of your returns to the South African Revenue Services until September 2008. However, Revenue will NOT grant extension for your 2008 tax return should your 2007 returns not have been submitted or should you have any outstanding tax liabilities.
Revenue has indicated that no further extension will be granted after the end of September for salaried taxpayers and only in select instances will additional extension be granted for businesses until the end of December 2008. Penalties of up to 20% of your tax liability can automatically be levied if your returns are late this year.
It is VITAL that your financial information is submitted to us in sufficient time to enable us to finalize your tax and accounting matters well before the final due dates of September and December. Accordingly we require ALL your information by no later than 30 May this year. Information submitted later could result in us being unable to finalize your financials on time.
Please note the onus for submission of returns to the South African Revenue Services rests with you, the taxpayer.
PLEASE REMEMBER THAT EACH TRUST AND CLOSE CORPORATION IS A SEPARATE TAXPAYER AND SEPARATE RETURNS NEED TO BE SUBMITTED.
Please bear in mind that should your net taxable income exceed R 50 000 for the year, a third topping up provisional payment is required before the end of September.
Please note that should you use your vehicle for business purposes we will be unable to submit a claim if you do not provide a logbook for each vehicle with the relevant information.
KINDLY NOTE WHEN DELIVERING INFORMATION TO OUR OFFICE – MARK YOUR INFORMATION CLEARLY FOR THE ATTENTION OF THE SPECIFIC PERSON HANDLING YOUR AFFAIRS, THE TAX YEAR AND YOUR NAME
Please turn over to get a brief indication of the type of information we will be requiring which must serve only as a guide to assist you. Please ignore details that do not affect you.
Kind Regards
FINTAX PE TRUST
RBW 28/3/2008
GUIDE OF INFORMATION REQUIRED
___________________________________
1. IT12 Income Tax Return. (This will in most cases be in our possession).
2. Interest Statement IT3(a). IT3 Certificates.
3. Retirement Annuity Certificates.
4. IRP5 Certificates.
5. Section 18 (A) Donation Certificates.
6. Cash Book or computer printout of TRIAL BALANCE and DETAILED LEDGER.
7. VAT 201 Returns and working papers.
8. Bank Statements, cheques / deposit books for the year ended 28 February 2008.
9. List of Stock on hand as at 28 February 2008.
10. List of Creditors as at 28 February 2008.
11. List of Debtors as at 28 February 2008.
12. Cash on hand as at 28 February 2008.
13. Copies of monthly: UIF Returns, Employees tax returns
14. Copies of new lease, rental and Installment Sale Agreements with finance houses
(i.e. Stannic, Wesbank etc)
15. Fixed asset schedules and FULL details of all your motor vehicles including details of cars sold and purchased during the year.
16. List of bad debts.
17. Building Society / Bank / Bond statements for the year ended 28 February 2008.
18. Medical Aid Tax Certificates plus details of number of members and dependents covered by the medical aid.
19. CGT MATTERS. Details of all Capital assets disposed of during the year that may have Capital Gains Tax implications.
20. LOG BOOK for each vehicle used for business (This must reflect opening and closing KM)- see example under publications on our website www.fintaxpetrust.co.za
21. Details of the bank account for each taxpayer within your group - VERY NB
28 March, 2008
CIPRO ANNUAL RETURN FOR CLOSE CORPORATIONS
Dear Client
We wish to inform you that CIPRO (Registrar of Close Corporations) now requires annual returns of information to be submitted for all Close Corporations from 1 May 2008. Fees that need to be paid to CIPRO are as follows:
R100 for a CC with turnover of up to R50 million
R4000 for a CC with turnover more than R50 million
Penalties of R150 will be payable if the annual return is not lodged by the end of the month following the month of the anniversary of the incorporation of the CC, as prescribed by Sec 15A(3) of the Close Corporations Act.
All Close Corporations (active or NOT) need to file an annual return. We suggest that you visit www.cipro.co.za in order to obtain the necessary information on how to submit your annual return on line or call CIPRO on 086 184 3384.
We are able to submit these returns on your behalf – our fee will be R171.00 per submission (this fee excludes the CIPRO fee). Please contact Charmaine or call her on 041 3743201 should you require our assistance.
Don’t forget that this is a general email sent via our website to all our clients so please do not click on reply to sender as it will not reach us.
Regards
FINTAX PE TRUST
14/03/2008
14 March, 2008
HAPPY NEW TAX YEAR

The beginning of March brings with it the beginning of another new Tax year. We will soon be requiring all your relevant information to complete and submit your 2008 IT12/IT14 income tax returns and will send out our normal reminders at the end of March. However you can visit our website www.fintaxpetrust.co.za and download the YEAR-END GUIDE so long that will indicate to you what information we will need.
As you know, the introduction of e-filing by SARS has not gone nearly as smoothly as they had hoped and at this stage only individual e-filing seems to be running at a satisfactory level. What this basically means is that e-filling of close corporations, companies, incorporations and trusts is still not yet fully operational from SARS point of view. With SARS extensions policy dictating that all filing must be done via e-filing this year, you can appreciate that this has put us under great pressure and we would like to this opportunity to thank all our clients who have been patient with us over this testing period. We sincerely hope that SARS resolve these gremlins and we can get back to normal as soon as possible. Despite these problems, we are excited about this new format of filing tax returns and are encouraged by SARS attempts to resolve problem areas and their proposed vastly improved system that we believe should be implemented during the course of this year.
It is becoming VITAL to keep up to date on all Taxation and related matters and ensure that ALL Tax returns are submitted on time. It is therefore VERY important for clients to read all our e-mails and visit our website www.fintaxpetrust.co.za regularly to keep abreast and confirm due dates etc. Remember that your tax affairs and ensuring that you comply with the various sections of the Tax Act and the submission of all your Tax Returns on time remains YOUR responsibility and accordingly you need to be as informed as possible.
Don’t forget that this is a general email sent via our website to all our clients so please do not click on reply to sender as it will not reach us.
FINTAX PE TRUST
RBW/03/03/2008
3 March, 2008
2008 Tax Year coming to an end
Friday is the last day of the 2008 tax year. Please take note of the following:
- Record the closing KM reading on Friday the 29th for all cars that are used for business travel.
- You have an accurate logbook for each car used for business (e.g. under publications on our website www.fintaxpetrust.co.za).
- Those clients that have their own business that have TRADING stock on hand must do a stock take of all trading stock on Friday the 29 February 2008 (as per normal)
- If you plan to make use of the donations tax exemption - a cash transfer of UP TO R100 000 must be made to your Trust by the end of the month (29 Fen 2008). Remember both spouses may donate up to R100 000 each to their Trusts.
For those few clients that have still not yet handed in their 2007 (1/3/2006 to 28/2/2007 i.e. last year) accounting and/or tax information to us, we suggest you do so ASAP as SARS will start issuing FINAL DEMANDS shortly.
Please note that we are experiencing an extremely high volume of phone calls this week and with nearly all our staff tied up with efiling and provisional tax deadlines with SARS until Friday evening, we request that you rather contact us next week should you need any assistance.
Don’t forget that this is a general email sent via our website to all our clients so please do not click on reply to sender as it will not reach us.
Many Thanks
FINTAX PE TRUST
Rbw27/02/2008
27 February, 2008
2008 Main tax proposals
The 2008 Budget proposes R10.5 billion in net tax relief. The proposals include:
• Personal income tax relief for individuals amounting to R7.7 billion
• An increase in the compulsory VAT registration threshold from an annual turnover of R300 000 to R1 million
• A simplified tax package for very small businesses with an annual turnover up to R1million
• A reduction in the headline corporate tax rate by one percentage point from 29 to 28per cent
• A review of learnership allowances to encourage apprenticeships
• The second phase of reforms to the secondary tax on companies (STC), culminating in the introduction of a final withholding dividend tax at shareholder level in 2009
• Incentives to encourage venture capital equity investments in small and medium sized businesses
• R5 billion in tax subsidies over the next three years to support the emerging industrial policy
• Measures to encourage private land owners to protect biodiversity
• The introduction of an electricity levy of 2 cents per kilowatt hour.
20 February, 2008
ANNUAL TAX ADMIN BILL
Our Annual Tax Admin Charge, billed in January of each year covers your ENTIRE group of active income tax entities and covers the following:
1) The completion and submission of both August & February IRP6 Provisional Tax Returns for the calendar year for ALL your active entities (i.e. Mr, Mrs, Trusts, CC etc).
This entails:
1. Receipting all the IRP 6 Returns.
2. Obtaining duplicates if not issued or sent to another address.
3. Checking the Last Taxable income and relevant calculations.
4. Discussing the payment requirements with clients if need be.
5. Sending letters notifying clients of amounts to be paid.
6. Collecting the relevant payments from clients. (Including follow-ups)
7. Capturing all of the above procedures and payments on our computer system. (Which is now vital due to SARS misallocations)
8. Hand delivering the payments and returns to SARS on the due date.
2) The obtaining of an extension for the submission for the IT12 or IT14 income tax return from the South African Revenue Services until October of each year.
1. This is done for all your entities.
2. Progress reports and re-submissions have to be made to SARS.
3) The receipting and checking of ALL your IT34 Income Tax Assessments raised by SARS.
This entails –
1. Receipting of all the IT34 assessments from SARS.
2. Checking to see if they are correct.
3. Notifying SARS by way of a letter of any errors on the assessments. However, an additional fee,
based on time spent may have to be raised on assessment that are found to be incorrect due to
SARS errors or as a result of incorrect or outstanding information from the client.
5. Notifying SARS Accounts Department to withhold collection procedures on incorrect assessments.
6. Forwarding assessments to clients.
7. Notify clients of tax refunds.
8. Notify client of payment requirements..
4) Computerised recording of all the transactions.
5) Incidental costs such as filing and storing of records and acting as registered and postal address for the South African Revenue Services.
A fee of R 592.80 (incl. Vat) will be charged for your first entity. Should you have more than one active taxpayer, we allow a discount of 10% on the second entity, a further 10% on the third and a further 10% on the fourth, etc. You will NOT receive small debit notes from time to time to cover these services as they have been covered in the Annual Tax Charge. Please note that this fee does not cover SARS audits or tax queries, general assistance and consultations that you may require during the year.
Please note that your statement is a valid tax invoice.
Yours faithfully
FINTAX PE TRUST
14 February, 2008
YEAR END UPDATE
14 December 2007
Dear Clients
It is quite unbelievable how time has flown this year and that we are already moving towards the festive season.
This year has been extremely testing for us, mainly due to the small business tax amnesty that had to be submitted within deadline dates and all the additional workload that accompanied the amnesty. As our clientele is traditionally in the small, medium business sector and the professional arena, many of our clients could apply for and enjoy the benefits of the amnesty. As a result of that, and the continuous amendments and changes at the last minute by SARS, it was a very testing time for us to be able to get clients’ amnesty applications in on time and also continue with our normal work.
All amnesty applicants who have a levy to pay must please make sure you pay your levy by the deadline date. Remember your amnesty will fail if you do not pay your levy by the due date.
As can be appreciated all this additional work has resulted in a little bit of a backlog with regard to our normal accounting and tax filing function this year. However, I am glad to say that we have nearly caught up.
Another matter that SARS forced upon us this year was the move to the e-filing process which, in the long run, is going to be substantially beneficial not only to SARS, but also to you, the taxpayer, and ourselves who assist clients in this regard. However, the introduction of the e-filing by SARS has not gone nearly as smoothly as they hoped and I can say that, at date of writing, only individual e-filing seems to be running at a satisfactory level. What this basically means is that the submission of close corporations, companies, incorporations and trusts is still not yet fully operational from SARS point of view. However, we will continue to persevere with SARS and provide whatever input we can and move forward in this direction. As many of you know, we
have registered all our clients and that is not only individuals, but your trusts, close corporations and companies on e-filing. We have upgraded our computer systems, our e-filing capacities and employed personnel specifically in this department and will endeavor to file by whatever deadlines are set by SARS, provided SARS are up and running properly.
With the move towards e-filing and the so-called ‘paperless society’, there is a misconception amongst some clients that you don’t need to provide supporting documentation anymore because SARS don’t require them. Nothing could be further from the truth. From our perspective, before we can actually submit a return electronically, we need to submit certain information that we need to obtain off the relevant supporting documentation and without that information we are unable to submit the return electronically as SARS just automatically reject it. So, for example, this idea that you no longer need to submit logbooks is incorrect as without certain information that we need to take off the logbook, we are unable to complete the return correctly resulting in it being rejected. The same thing applies with regard to IRP.5’s, Retirement Annuity Certificates, Medical Aid contributions and so on. In this regard we can also advise that with us now having to do a lot of the work for SARS it will free up more of their personnel to attend to areas such as audit and investigations and accordingly we are anticipating an increase in this form of activity by SARS in the future. Therefore it is imperative that clients keep accurate and precise accounting records of their various businesses and personal taxation matters. In short, if you do not have a good accounting system within your business operation this needs to be outsourced, or you need to employ someone to do this as the consequences of erroneously or incorrect submissions to SARS can be extremely severe and can even lead to criminal sanction. Therefore, we cannot stress enough the importance of ensuring that your accounting and taxation affairs are accurate, up to date and submitted to us timeously to ensure that deadlines are achieved..
I do believe next year is going to be fairly challenging as SARS continue to roll out the e-filing process with the time that it takes to settle and to sort out the various gremlins. However, it is clear that the e-filing process is the way forward as it will reduce the large number of errors that are coming out of SARS’ office. SARS themselves are facing serious challenges of their own with regard to restructuring and administration and we are finding it very difficult to be able to deliver in certain aspects where we are reliant on SARS. The examples of these are tax clearance certificates, statements of account, revised assessments and so on. As you know, we are unable to deal with the local office but have to deal through a call center now and that is proving to be quite a challenge. We do believe that SARS are addressing a lot of these issues and we hope that matters will settle in the not too distant future. However, clients need to appreciate that in most instances the delays in obtaining tax clearances, foreign investment clearance certificates, details as to additional assessments raised, or just refund cheques or assessments, is really out of our hands and we are totally reliant on SARS in this regard.
An excellent survey has been recently carried out by the Foreign Investment Advisory Services of the World Bank Group. This was a survey of tax practitioners performed with the co-operation of South African Institute of Chartered Accountants, the South African Institute of Professional Accountants and the South African Institute of Certified Bookkeepers. It was interesting to find that the most burdensome aspect of the tax practitioner at the moment is the capturing and processing errors made by SARS and the time taken to correct these errors by SARS, penalties and interest incorrectly raised by SARS with regard to provisional tax and the time taken to correct these errors and the period taken to register for Vat So clearly dealing with SARS at the moment is a challenge for all of us and I hope that things will be improving. The response from SARS to the survey was that reforms and improvements in addressing most of the concerns raised in the survey are already in process including designing a more streamlined Vat registration process, automatic submission and the tracking of objections and appeals. They also indicated that the issue of errors on the capturing of returns would be addressed by the electronic filing of returns that is going to be made more accessible in the future. Basically this is e-filing and we certainly agree with SARS and that is why we have taken the initiative to register all our clients on e-filing during the course of this year.
FAST CHANGING LAW REGARDING THE ADMINISTRATION AND LAW OF TRUSTS
Another matter I would again like to bring to the attention of all clients who have trusts is the fast change of the law regarding the administration and law of trusts. In the last couple of years there have been some dramatic changes in our law with regard to the administration and certain minimum legal requirements for a trust to be valid. These have come about by the various decisions handed down in our courts. We have over the last couple of years been bringing these matters to your attention, specifically with regard to ensuring that you have independent trustees of your trust and that you correctly administer your trust. Therefore those clients who have trusts please ensure that your house is in order in this regard.
For all clients whose 2007 (March 2006 to Feb 2007) financial information has not yet been submitted to us we suggest that you do so as soon as possible.
Finally I would like to take this opportunity to thank all my clients for your loyal support during the course of the year and we look forward to a long and continued relationship with you. We wish you and your families well over the festive season and hope that everybody takes the opportunity to relax, spend time with their families and we look forward to seeing and hearing from you in the new year.
Please note that our offices will be closed from the 18th December to the 7th January.
Don’t forget that this is a general email sent via our website so please do not click on reply to sender as it will not reach us.
Many thanks.
Kind regards
ROYDEN WHITFIELD
FINTAX PE TRUST
14 December, 2007
E-FILING AT SARS
As you might be aware, the 2007 tax returns are now available for submission on the SARS e-filing website. We are hoping to accommodate SARS’ request and register our entire client base on the SARS website in order to submit these returns on your behalf via e-filing.
In order to lodge these returns correctly we are required to insert each taxpayer’s personal details. Should any information that is mandatory on the tax return be omitted, it will be rejected by SARS and a fresh return would have to be lodged.
Note that the bank details are extremely important, as SARS will no longer issue refunds in cheque format. Instead they will electronically transfer the funds into the taxpayers account. Please state should you and your spouse have joint bank accounts.
In order to ensure that we have EACH TAXPAYERS correct and updated details we request that you please complete the below form for EACH OF YOUR ENTITIES and email back to us at.
We appreciate your prompt assistance in this regard in order to avoid any delays in submission of your 2007 tax returns.
If you have any queries, please do not hesitate to contact our office.
Yours Faithfully
FINTAX PE TRUST
Please complete the details below FOR EACH OF YOUR ENTITIES (e.g. spouse, children, CC’s, Pty’s, Trust’s) and email back to.
FULL NAME OF TAXPAYER: …………………………………………………………………………..
ID (or d.o.b) OR REGISTRATION NUMBER: ……….…………………….……………………………
PASSPORT if no ID: ………………………………………………….……………………………
MARRIED (YES / NO): …………………………………………..………….………………………
MARRIED IN or OUT of community of property: …………… ……………….……….………………
BUSINESS ADDRESS (not postal): ……………………………………………………………………
RESIDENTIAL ADDRESS (not postal): ……………………………………………………………….
HOME TELEPHONE: ……………………………WORK TELEPHONE: …………..………………
FAX NUMBER: …………………………………CELL PHONE: ………………………………………
BANK DETAILS FOR THIS ENTITY
BANK NAME: ……………………………………………………………………………………………
A/C NUMBER: ………………………….………………………BRANCH NO: ………………………
NAME OF ACCOUNT: ……………………………….…………………………………………………
CHEQUE OR SAVINGS ACCOUNT: ………………………………………………………………..
Please reply to
17 August, 2007
Outstanding Fintax Accounts
Dear Clients 25 June 2007
Most of you will be aware of the new National Credit Act that has been introduced with effect from the 1st June 2007.
In terms of this Act, certain businesses who are not traditional credit providers will fall into this legislation as a result of incidental credit agreements such as allowing customers to pay off outstanding accounts. This creates all sorts of compliance formalities and the need to register as a Credit Provider.
As we are not able to register as a credit provider, we are forced not to be able to provide credit any longer to clients. Most of our clients do settle on presentation of their fee note, or statement, but there are certain clients who do take time to pay and therefore this change, forced upon us, will be affecting those clients.
Settlement of our account can be made in cash, cheque, or electronic bank transfer (internet transfers) and/or credit or debit card. We do have credit card facilities and those of you who are unable to settle their account in full immediately can take advantage of their budget facility on their credit card, which effectively means you can pay off your fee by using the budget facility on your credit card.
With effect from the 1st June 2007 we are no longer allowed to advance credit to any client and we request that you please co-operate in this regard. For those clients who have outstanding accounts, we would request you contact the partner attending to your affairs and make arrangements for the settling of the outstanding debt as soon as possible. Please note that we will accommodate clients as best that we can over this transitional period.
We apologise for the inconvenience caused by the above, but obviously have no control over legislation and have to comply therewith.
Yours faithfully
FINTAX PE TRUST
1 August, 2007
TRUSTS-ADMINISTRATION AND FORMALITIES REGARDING YOUR TRUST
Please be advised that once your trust has been established, it is important that you follow all the correct legal, accounting and administrative procedures that are required in terms of Trust Law. To assist you in this regard, we list below certain points that are essential for the good governance, administration and legality of your trust.
1. Please ensure that you open up a bank account for your trust and that the donation received by the trustees from the donor be deposited into this bank account.
2. Should the trust receive any further donations it is imperative that the assets donated, if they are in the form of cash, be deposited into the trust’s bank account. This is not only required from a good governance point of view, but also to ensure that there can be no CGT implications on the waiver of a debt, as opposed to a physical donation of an asset.
3. Please ensure that the trust is always legally solvent i.e. its assets must exceed its liabilities.
4. Please ensure, at all times, that as many trustees as possible should be independent of the beneficiaries and that there must never be a situation that trustees and beneficiaries are the same people as this could invalidate the trust. The more independent trustees the better and when we talk about independent we are talking about trustees who are not beneficiaries.
5. Please ensure that the trustees hold meetings for all decisions that are made and that these meetings are properly minuted, and properly held, and records of all these meetings are kept in a Minute Book for the trust.
6. Where at all possible it is important that unanimous decisions be made by the trustees.
7. It is vital that no single trustee can be seen to be controlling the trust in any way i.e. it should not be seen as one’s alter ego.
8. Not only is it important to minute meetings, but it is imperative that all trustees meet on a regular basis to ensure the good governance of the trust’s assets in the best interest of the beneficiaries.
9. Please ensure that proper accounting and bookkeeping records are kept for the trust and that all information is recorded on an annual basis.
10. Should we be appointed as the trust’s accountant, please ensure you visit our website, www.fintaxpetrust.co.za and click on year end guide to get an indication of the information that we require. We also suggest that you visit our website for the various articles on how to administer and run your trust according to correct legal principles.
11. It is suggested at all times that all the trustees unanimously sign the Financial Statements, or unanimously sign a Minute authorizing an individual to sign the Financial Statements on behalf of the trust, and that distributions, income or capital are unanimously agreed to by all the trustees in the correct manner. (Copies of what should be in this minute is on our website (Publications) and listed on the year end guide.)
12. Finally, we suggest that an agreement be entered into between the trustees to ensure that should you not have a majority of independent trustees, that no major decisions be made on behalf of the trust unless that independent trustee is in the affirmative. In other words he should hold a veto vote on decision making procedures.
Should the above not be clear we suggest that you contact us, or seek further legal advice in this regard.
FINTAX PE TRUST
17 July, 2007
TRUSTS AND AMNESTY FOR SMALL BUSINESSES
We refer to all previous correspondence regarding the small business tax amnesty and must advise that there is going to be a late amendment to the ACT to accommodate certain types of Trusts.
Previously only Trusts where the beneficiaries were ONLY natural persons could qualify. This excluded most Trusts as most Trusts generally have other Trusts and companies and charities included in the definition of beneficiary. However an amendment has been proposed to include Trusts where natural persons are included as beneficiaries and a distribution of Trust income has been made to a natural person as a beneficiary in either the 2004, 2005 or 2006 tax year ONLY.
Therefore Trusts that have distributed to other Trusts, companies or charities etc or have not made a distribution at all or only have other Trusts or companies as beneficiaries will be EXCLUDED and CANNOT apply. This means most Trading Trusts that are owned by family Trusts will be excluded.
All the other conditions as referred to in our previous correspondence on this amnesty must also be met in order for the Trust to qualify.
If you have traded via a Trust and you feel that you may need to apply for amnesty because of non disclosure of income or are worried that the Trusts tax affairs could have been incorrectly declared or 2005 and prior years are still outstanding, then you will need to contact us ASAP for us to determine if your Trust will qualify. This amnesty ends at the end of this month 31 MAY 2007 and we are FAST running out of time. SARS have not helped by leaving this amendment so late and we APPEAL to clients that ONLY those of you who have a concern about the accuracy of your Trusts affairs to contact us.
If you have made full and honest disclosures of your Trusts Tax affairs you do NOT need to apply for amnesty and therefore do not need to contact us. This is ONLY for those whose Trusts Tax affairs are not in order.
If you need help please contact the person who attends to your affairs by email RATHER THAN PHONING as it will make this process a lot easier and quicker for us as we can first then identify if the Trust you wish to apply for is going to qualify or not. We will then get back to you thereafter. If we have not got back to you within 7 days then please call in case your email went missing.
Please do not click on reply to this email as it’s a MASS email and the reply goes to the mass email server and NOT directly to the person attending to your affairs. Therefore please use the following emails should you need assistance depending on who attends to your affairs and make reference to the Trust that you are thinking of applying for.
Royden Whitfield’s clients use
Minette Nesbit’s clients use
11 May, 2007
AMNESTY FOR SMALL BUSINESSES
We refer to the various correspondence that we have already sent via e-mail, or snail mail, in regard to the above and would like to take this opportunity to bring this to your attention FOR THE LAST TIME.
THIS AMNESTY ENDS ON 31 MAY 2007
If you are a small business trading as a sole proprietor, close corporation, or company with a turnover under 10 million, it is very possible that you qualify for this amnesty. It does not mean that if your affairs are all in order that you cannot apply. Basically this amnesty will cover anybody who qualifies, as referred to above. Even if all your tax affairs are in order and up to date, it is still something worth considering. This amnesty is fantastic mainly due to the fact that you do not have to explain to SARS why you are applying for amnesty. In other words, you do not have to give full details of what transgressions you may have made over the years. All that is required is an amnesty application form being submitted, together with full details of assets and liabilities and your 2006 financials.
Therefore, even if you believe that your affairs are in order, it is still worth considering due to the fact that once amnesty is granted SARS will not go back and audit your affairs for the 2005 and prior years. This has significant benefits in itself. One must remember that errors may have crept into your bookkeeping that you may not even be aware of and therefore if the levy payable is not significant it is certainly something to consider purely for piece of mind to ensure that what is the past is the past and that the door is closed from a SARS audit point of view.
This is an AWSOME AMNESTY that is currently on offer by SARS. Those who qualify and do not ensure that they apply their minds to it properly and make an informed decision regarding it, do so at their peril. We do not see SARS offering anything like it again. So what is it all about?
Visit our website www.fintaxpetrust.co.za or SARS website which is www.sars.gov.za for more information on this amnesty, or contact Jillian at our office who will be able to give you some guidance in this regard.
Yours faithfully
FINTAX PE TRUST
3 May, 2007
OFFICE CLOSURE MONDAY 30 APRIL

Please note that this office will be closed on Monday 30 April 2007 due to the public holidays on the 1 May and 27 April. We will be back at work as usual on Wednesday the 2 May.
Thanks
FINTAX PE TRUST
19 April, 2007
MINUTES REQUIRED FOR YEAR END FINANCIALS
TRUSNAME
MINUTES OF THE MEETING OF THE TRUSTEE AT THE PLACES AND ON THE DATES SET OUT BELOW.
TRUSTEES PRESENT:
TRUS1
TRUS2
TRUS3
TRUS4
NOTICE
Due notice having been given, the meeting was declared properly constituted.
TRUSTEES
The Trustees throughout the accounting period under review and at the date of this report were as per the Letter of Authority issued by the Master of the High Court from time to time.
MEETING OF TRUSTEES AND ADMINISTRATION
The Trustees confirm that appropriate meetings and signed resolutions as well as all procedural and administrative requirements as set out in terms of the Trust Deed, the Trust Property Control Act, 1988 and as would generally be required to be done to perform their duties correctly have been performed/adhered to and filed in an appropriate manner.
TRUSTEES REMUNERATION
Trustees remuneration as provided for in the Financial Statements for the period under review was duly confirmed.
DISTRIBUTIONS MADE TO BENEFICIARIES
Distributions (if any) to beneficiaries of income or capital as reflected in the financial statements were approved by the Trustees in the appropriate manner. Where distributions have been made to beneficiaries who are also Trustees the appropriate voting procedure and measures have been followed by the Trustees to ensure that such Trustee’s private interests have not conflicted with those of the Trust beneficiaries.
FINANCIAL STATEMENTS
The financial results for the period under review are adequately reflected in the financial statements. Accordingly the financial Statements, for the year ended 28 FEBRUARY 2007 were tabled and, after some discussion, were duly approved and adopted. It was agreed that any one of the Trustees listed above could sign the financials and tax returns for and on behalf of the Trust and the other Trustees.
ACCOUNTANTS
FINTAX PE TRUST, was re-elected as the Trusts Accountants.
There being no further business the meeting ended.
PRESENT:
PLACE ____________________ ________________________________
TRUS1
DATE ____________________ ________________________________
TRUS2
________________________________
TRUS3
________________________________
TRUS4
16 March, 2007
YEAR END KM READING -LOG BOOKS

Please note the 2007 tax year comes to an end midnight tonight. Please remember to record your closing KM reading on each of the vehicles you use for business purposes before midnight tonight. This is an important part of the logbook we will require in support of any business claim on traveling for each vehicle used.
FINTAX PE TRUST
RBW 28/2/2007
28 February, 2007
2007- FINTAX BUDGET BRIEF

TAX Highlights of Finance Minister Trevor Manuels 2007/08 Budget:
· The income tax threshold for people under 65 would be raised by 7.5 percent to R43 000,
· The income tax threshold for taxpayers aged 65 and over would be increased to R69 000 from R65 000 currently, an increase of 6.1 percent.
· Tax-free savings thresholds — interest and dividends — would also be raised to R18 000 from R16 500 for taxpayers under 65 and to R26 000 from R24 500 for taxpayers over 65.
· It was proposed that the annual exclusion threshold for capital gains or losses be increased to R15 000 from R12 500.
· Increased tax-free medical aid contributions (tax-free contributions will rise to R530 from R500 for each of the first two beneficiaries and to R320 from R300 for each additional beneficiary);
· Basic exemption for estate duty adjusted for individuals from R2.5-million to R3.5-million;
· Donations tax adjusted from R50 000 to R100 000;
· The sale of shares held for more than three years would be treated as capital gains.
· Tax depreciation for the wear and tear of commercial buildings would be implemented at a rate of five percent a year — i.e. a write-off period of 20 years.
· Replacement of secondary tax on companies with a dividend tax and reduction in the rate from 12.5 percent to ten percent;
· Abolition of retirement fund tax;
FINTAX PE TRUST
RBW 21/02/2007
21 February, 2007
AMNESTY FOR SMALL BUSINESSES

TAX AMNESTY FOR SMALL BUSINESSES
This is an AWSOME AMNESTY that is currently on offer by SARS. Those who qualify and do not ensure that they apply their minds to it properly and make an informed decision regarding it, do so at their peril. We do not see SARS offering anything like it again. So what is it all about?
In the February 2006 Budget the Minister of Finance announced that the government would be offering a tax amnesty to small businesses to afford them the opportunity to regularize their tax affairs.
This amnesty was introduced on 1 August 2006 and will run until the 31 May 2007. All application forms must be submitted during this period.
The amnesty will be applicable to any individual, unlisted company, close corporation, trust, co-operative or insolvent or deceased estate which meets with the following requirements :-
1. the individual or entity must have carried on a business.
2. the gross income during the 2006 tax year was not more than R10million.
3. in the case of a company or close corporation all the shares must have been held directly by individuals throughout the 2006 year of assessment.
4. in the case of a trust all the beneficiaries must have been natural persons throughout the 2006 year of assessment.
If an application for amnesty is successful, the applicant is granted relief from the payment of:-
1. income tax on the profits of the small business in all years of assessment preceding the 2006 year of assessment.
2. employees tax in terms of the 4th schedule during any tax period ending on or before 28 February 2006
3. VAT during any tax period ending on or before 28 February 2006
4. withholding tax in respect of amounts paid to non-residents during any tax period ending on or before 28 February 2006
5. STC in respect of any dividend declared or deemed declared in all the years of assessment preceding the 2006 year of assessment.
6. UIF during any tax period ending on or before 28 February 2006
7. SDL-skills development levies during any tax period ending on or before 28 February 2006
A levy based on the 2006 taxable profits of the small business will be payable based on a sliding scale starting at 0 to 5% will be payable.
This is a brief summary of the provisions of the amnesty and there are certain EXCLUSIONS as well as OTHER CONDITIONS that are applicable and we suggest you contact the partner attending to your affairs should you feel that this is something you may need to consider.
This is a very broad amnesty and would apply to MOST SMALL BUSINESSES and is certainly something to seriously consider should any aspect of your taxation affairs not be in order and up to date.
Please apply your mind properly to this Notice!!!
Yours Faithfully
FINTAX PE TRUST
13 January, 2007
YEAR END CLOSE DOWN
Kindly note that we will be closing our offices from lunchtime on the 20th December 2006 and reopening on the 8th January 2007.
We would also like to take this opportunity to wish all our clients well over the festive season and a prosperous New Year and thank you all for your continued support.
Yours Faithfully
Fintax PE Trust
RBW12/12/2006
12 December, 2006
TRUSTS AND TRUSTEE ADMINISTRATION
Trusts are still extremely beneficial in Estate and Personal financial planning in South Africa, but it is imperative that when setting one up you fully understand your obligations as a trustee and that the trust is set up correctly from the beginning. We set out below in point form various aspects with regard to trusts and trust administration that we believe you should be aware of. However, it is important that in addition to this that you clearly ensure that you understand your obligations as a trustee when administering a trust.
1. Make sure that you have at least three trustees of a trust and that at least one of these trustees is an independent person i.e. not related to the other trustees and/or any of the beneficiaries. In terms of various recent Court rulings this has now become extremely important and many of the Masters of the High Courts will not register a trust if the trust does not have at least one independent trustee.
2. If a trustee is also a beneficiary ensure that correct voting procedures are laid out for the allocation of benefits to such a trustee as beneficiary.
3. Make sure you clearly understand your obligations as a trustee. Make sure you understand the contents of the Trust Deed and you comply with them.
4. Make sure you understand the various legislation that affects your trust, especially the Income Tax Act and the Trust Property Control Act.
5. Make sure that you have been correctly appointed as a trustee i.e. the Master of the High Court has issued a Letter of Authority which clearly reflects that you and your co-trustees are authorized to act.
6. Always act with due diligence when making decisions with regard to the trust and that all decisions made are clearly recorded, minuted and registered in the records of the trust.
7. Determine the intention of the Donor/Founder of the trust and the needs of the respective beneficiaries.
8. Make sure that no inappropriate investments are made because this is quite often what leads to conflict between the trustees and a beneficiary at some future date.
9. Determine the needs of the beneficiaries. Always pay attention to the short, medium and long term needs of the beneficiaries.
10. Make sure that correct financial statements are prepared and when signing the financial statements make sure that you are duly authorized thereto and that the financial statements clearly reflect the position of the trust as it is the responsibility of the trustees to ensure this.
24 November, 2006
LOGBOOKS CAR ALLOWANCES BUSINESS TRAVELLING
We have on many occasions advised our clients on the importance of keeping accurate log books for each vehicle used for business travel. SARS now automatically disallow any claim made that is not supported by a logbook. We often get details of claims without logbooks and have been submitting returns without the log books in order that our clients get the benefit. However this has created untold problems for us both with SARS and clients. Accordingly we are now unable to submit ANY claim WITHOUT the log book in support. The tax benefit can be large and we cannot stress enough the benefit of the deduction. On many occasions we get very basic log books with little information from clients, which SARS do not accept as a logbook. With this in mind we list below the minimum requirements of the logbook.
1. Description of the vehicle
2. Registration Number of the vehicle
3. Opening and closing KM readings
4. Daily KM record of BUSINESS trips
5. Short description of the business trip ( e.g. Visit to the bank to do deposits)
We do not need details of petrol costs on the logbook or litres used when filling up etc.
You can visit our website www.fintaxpetrust.co.za click on Publications and an example of a logbook can be printed out.
FINTAX PE TRUST
RBW 2/3/05
20 November, 2006
ADMINISTRATION OF TRUSTS
ADMINISTRATION OF TRUSTS
We have on many occasions in the past pointed out the importance of ensuring that the administration of your family trust is done correctly.
It is important that you clearly identify trust assets as being trust’s assets and not those of your own and in order to do this proper accounting and record keeping must be done. In addition, proper Minutes must be passed from time to time empowering certain trustees to act for the Trust to acquire and to sell trust assets such as the acquisition of property, investments in unit trusts, approval of financials statements and the like. All these Minutes and other supporting documents must be signed by ALL trustees and recorded and it is advisable, on an annual basis, to provide copies of these to us to keep on file.
Further, it is strongly recommended that your FAMILY trust have AT LEAST 3 trustees who are all actively involved in the administration of the trust’s assets WITH AT LEAST ONE TRUSTEE NOT BEING RELATED TO THE BENEFICIARIES OR THE OTHER TRUSTEES (an outsider). It is important that not one trustee be seen to be able to make unilateral decisions and effectively controlling the trust. When a trust is to acquire or sell an asset or make an investment, approve financial statements or distributions etc, a proper meeting should be held where the matter is discussed in detail and a decision is then made by the ALL of the trustees to make such an acquisition or investment. There could be severe implications should it be proven at a later date that an individual trustee was effectively controlling the trust and utilizing the trust’s assets as if it was his own.
There have been some interesting court decisions recently regarding Trusts and there are many lessons to be learnt from these judgments such as:-
- Trusts where the Trustees are related to each other and are also beneficiaries should be viewed with circumspection
- People who treat their Trust assets as their alter egos are playing with fire.
- Trustees MUST UNDERSTAND their obligations when accepting such appointment and Trustees who ignore the provisions of the Trust Deed, including procedural and administrative requirements, do so at their peril.
- Persons dealing with Trusts should not assume that the trustees have complied with the procedural requirement of the Trust.
Please ensure that your Trust complies with all of the above and visit our website www.fintaxpetrust.co.za (publications) or contact Charmaine at our office should you require any further assistance in this regard.
Yours Faithfully
FINTAX PE TRUST
3 October, 2006
Provisional Tax – 31 August 2006
Please be advised that SARS are extremely late with the issuing of the August provisional Tax Returns. Whilst we have now received some of the returns many are still outstanding from SARS. We would like to start sending out our usual letters but are unable to do so until we have received at least the majority of the returns from SARS. To do so now would be futile as we would need to send out letters again later and that would cause major confusion. SARS are aware of their problem and have promised to get the outstanding returns issued ASAP. To make matters worse we are unable to prepare our own duplicates as the risk of exposing you to penalties increases should our figures not correspond to theirs. Therefore we request that you be patient and we hope to send out letters by the end of next week.
Please do not reply to this email as it has been sent via a mass mail network and by clicking on reply to this email it will not reach us.
FINTAX PE TRUST
RBW 4/08/2006
4 August, 2006
TAX AMNESTY FOR SMALL BUSINESSES
In the February 2006 Budget the Minister of Finance announced that the government would be offering a tax amnesty to small businesses to afford them the opportunity to regularize their tax affairs.
This amnesty will be introduced on 1 August 2006 and run until the 31 May 2007. All application forms must be submitted during this period.
The amnesty will be applicable to any individual, unlisted company, close corporation, trust, co-operative or insolvent or deceased estate which meets with the following requirements :-
1. the individual or entity must have carried on a business.
2. the gross income during the 2006 tax year was not more than R10million.
3. in the case of a company or close corporation all the shares must have been held directly by individuals throughout the 2006 year of assessment.
4. in the case of a trust all the beneficiaries must have been natural persons throughout the 2006 year of assessment.
If an application for amnesty is successful, the applicant is granted relief from the payment of:-
1. income tax on the profits of the small business in all years of assessment preceding the 2006 year of assessment.
2. employees tax in terms of the 4th schedule during any tax period ending on or before 28 February 2006
3. VAT during any tax period ending on or before 28 February 2006
4. withholding tax in respect of amounts paid to non-residents during any tax period ending on or before 28 February 2006
5. STC in respect of any dividend declared or deemed declared in all the years of assessment preceding the 2006 year of assessment.
6. UIF during any tax period ending on or before 28 February 2006
7. SDL-skills development levies during any tax period ending on or before 28 February 2006
A levy based on the 2006 taxable profits of the small business will be payable based on a sliding scale starting at 0 to 5% will be payable.
This is a brief summary of the provisions of the amnesty and there are certain EXCLUSIONS as well as OTHER CONDITIONS that are applicable and we suggest you contact the partner attending to your affairs should you feel that this is something you may need to consider.
This is a very broad amnesty and would apply to most small businesses and is certainly something to seriously consider should any aspect of your taxation affairs not be in order and up to date.
FINTAX PE TRUST
RBW 27/07/2006
28 July, 2006
2006 TAX REQUIREMENTS
IMPORTANT NOTE : READ CAREFULLY
Dear Client 1 March 2006
As you are no doubt aware, the 2006 tax year came to an end on 28 February 2006 and we will soon be requiring all your relevant information to complete and submit your IT12/IT14 income tax returns.
To give you time to gather the relevant information we will, on your behalf, attempt to arrange for an extension for the submission of your returns to the South African Revenue Services until September 2006. However, Revenue will NOT grant extension for your 2006 tax return should your 2005 returns not have been submitted or should you have any outstanding tax liabilities.
Revenue has indicated that no further extension will be granted after the end of September for salaried taxpayers and only in select instances will additional extension be granted for businesses until the end of December 2006. Penalties of up to 20% of your tax liability will automatically be levied if your returns are late this year.
It is VITAL that your financial information is submitted to us in sufficient time to enable us to finalize your tax and accounting matters well before the final due dates of September and December. Accordingly we require ALL your information by no later than 30 May this year. Information submitted later could result in us being unable to finalize your financials on time.
Please note the onus for submission of returns to the South African Revenue Services rests with you, the taxpayer.
PLEASE REMEMBER THAT EACH TRUST AND CLOSE CORPORATION IS A SEPARATE TAXPAYER AND SEPARATE RETURNS NEED TO BE SUBMITTED.
Please bear in mind that should your net taxable income exceed R 50 000 for the year, a third topping up provisional payment is required before the end of September.
Please note that should you use your vehicle for business purposes we will be unable to submit a claim if you do not provide a logbook for each vehicle with the relevant information.
KINDLY NOTE WHEN DELIVERING INFORMATION TO OUR OFFICE – MARK YOUR INFORMATION CLEARLY FOR THE ATTENTION OF THE SPECIFIC PERSON HANDLING YOUR AFFAIRS, THE TAX YEAR AND YOUR NAME
To follow is a brief indication of the type of information we will be requiring which must serve only as a guide to assist you. Please ignore details that do not affect you.
GUIDE OF INFORMATION REQUIRED
___________________________________
1. IT12 Income Tax Return. (This will in most cases be in our possession).
2. Interest Statement IT3(a). IT3 Certificates.
3. Retirement Annuity Certificates.
4. IRP5 Certificates.
5. Section 18 (A) Donation Certificates.
6. Cash Book or computer printout of TRIAL BALANCE and DETAILED LEDGER.
7. VAT 201 Returns and working papers.
8. Bank Statements, cheques / deposit books for the year ended 28 February 2006.
9. List of Stock on hand as at 28 February 2006.
10. List of Creditors as at 28 February 2006.
11. List of Debtors as at 28 February 2006.
12. Cash on hand as at 28 February 2006.
13. Copies of monthly: UIF Returns
Employees tax returns
Regional Services Council levies returns
14. Copies of new lease, rental and Instalment Sale Agreements with finance houses
(i.e Stannic, Wesbank etc)
15. Fixed asset schedules.
16. List of bad debts.
17. Building Society / Bank / Bond statements for the year ended 28 February 2006.
18. CGT MATTERS. Details of all Capital assets disposed of during the year that may have Capital Gains Tax implications.
10 March, 2006
HAPPY NEW TAX YEAR
The beginning of March brings with it the beginning of another new Tax year. We are glad to confirm that there were some interesting and beneficial tax proposals in the recent BUDGET (see announcements on www.fintaxpetrust.co.za). It is becoming VITAL to keep up to date on all Taxation and related matters and ensure that ALL Tax returns are submitted on time. It is therefore VERY important for clients to read all our e-mails and visit our website www.fintaxpetrust.co.za regularly to keep abreast and confirm due dates etc. Remember that your tax affairs and ensuring that you comply with the various sections of the Tax Act and the submission of all your Tax Returns on time remains YOUR responsibility and accordingly you need to be as informed as possible.
FINTAX PE TRUST
RBW/01/03/2005
1 March, 2006
YEAR END KM READING -LOG BOOKS
Please note the 2005 tax year comes to an end midnight tonight. Please remember to record your closing KM reading on each of the vehicles you use for business purposes before midnight tonight. This is an important part of the logbook we will require in support of any business claim on traveling for each vehicle used.
FINTAX PE TRUST
RBW 28/2/2005
28 February, 2006
LOGBOOK EXAMPLE
LOGBOOK-2004 TAX YEAR
TAXPAYER MR J BOND
VEHICLE DESCRIPTION VW BEETLE
VALUE OF VEHICLE R50 000
VEHICLE REG No TAX 007 EC
OPEN READING 74000
OPEN DATE 01/03/2003
CLOSE READING 84000
CLOSE DATE 28/02/2004
BUSINESS KM 5500 (As reflected below)
TOTAL KM 10000 (Deduct opening KM from closing KM above)
PRIVATE KM 4500 (Total KM for the year less Business KM Reflected below)
DATE KM TRAVELLED DETAILS OF TRIP
03/03/2003 25 SARS REGARDING COLLECTIONS
03/03/2003 20 DEBTORS CHEQUE PROCESSING
05/03/2003 38 MONTHLY REPORTS ON DEBTORS
05/03/2003 28 SARS MONTHLY RETURNS DELIVERY
07/03/2003 29 POST OFFICE COLLECTION OF POST
07/03/2003 38 DEBTORS CHEQUE PROCESSING
11/03/2003 35 CLIENT VISIT – CLIENT NAME
13/03/2003 29 POST OFFICE COLLECTION OF POST
14/03/2003 40 MONTHLY REPORTS ON DEBTORS
17/03/2003 39 VISIT SUPPLIER – SUPPLIERS NAME
17/03/2003 39 DEBTORS CHEQUE PROCESSING
18/03/2003 34 DELIVERY TO CLIENT – CLIENT NAME
19/03/2003 39 DEBTORS CHEQUE PROCESSING
28/03/2003 776 GEORGE CALL ON CLIENT – CLIENT NAME
26/03/2003 37 DEBTORS CHEQUE PROCESSING
03/04/2003 38 VISIT FINTAX REGARDING TAX MATTERS
03/04/2003 36 SARS MONTHLY RETURNS DELIVERY
03/04/2003 37 PURCHASE OF OFFICE SUPPLIES
04/04/2003 38 MONTHLY REPORTS ON DEBTORS
04/04/2003 39 DEBTORS CHEQUE PROCESSING
04/04/2003 30 PURCHASE OF STATIONERY FOR OFFICE
08/04/2003 30 POST OFFICE
08/04/2003 39 SARS MONTHLY RETURNS DELIVERY
SAME AS ABOVE FOR EACH AND EVERY MONTH UNTIL END FEBRUARY
24/02/2004 29 SARS MONTHLY RETURNS DELIVERY
24/02/2004 29 VISIT FINTAX REGARDING TAX MATTERS
27/02/2004 39 DEBTORS CHEQUE PROCESSING
Total Bus.KM 5500
28 February, 2006
2006- FINTAX BUDGET BRIEF

Changes effecting Individuals
1. Top marginal tax stays 40%,
2. Top tax threshold increased to R400 000.
3. Minimum tax threshold raised to R40 000,
4. Minimum tax threshold for over 65s raised to R65 000 a year.
5. Transfer duty on houses below R500 000 abolished; five percent rate applies between R500 000 and R1m, and eight percent above.
6. Offshore foreign currency allowance for individuals increased from R750 000 to R2m.
7. Regional Service Council levies abolished.
8. Monthly taxable benefit of a company car increased to 2.5% of its value.
9. Proportion of motor vehicle allowance subject to PAYE increased from 50 to 60%.
10. Threshold for individual tax-deductible medical expenses raised from five to 7.5% of income.
11. Donations tax exemption increased from R30 000 to R50 000.
12. Estate duty exemption increased from R1.5m to R2.5m
13. Primary residence exclusion from capital gains tax increased from R1m to R1.5m.
14. Tax on retirement funds reduced from 18% to nine percent.
15. Municipal property rates revenue zero-rated for VAT.
16. Maximum old age and disability grant, and care dependency grant, increased by R40, to R820 a month; foster care grant by R30, to R590; and child support grant by R10, to R190 a month.
Changes effecting Businesses
1. Annual turnover threshold for small businesses raised from R6m to R14m, and taxable threshold for the lower ten percent rate increased from R250 000 to
R300 000.
2. Small business income tax exemption threshold raised from R35 000 to
R40 000.
3. Small items under R5 000 (previously R2 000) – 100% deduction.
4. Deduction for research and development spending increased from 100 to 150%
5. Tax amnesty for small businesses.
Final Note
The tax benefits of Close Corporations and Companies that qualify as Small Business Corporations has again been increased significantly and must be investigated thoroughly by ALL who may qualify.
FINTAX PE TRUST
RBW 15/02/2006
15 February, 2006
CLOSE CORPORATION ACT CHANGES
It appears as if the Close Corporation Act has been amended to allow for Trusts (with certain limitations) to hold an interest in a Close Corporation. This is a SIGNIFICANT amendment and will have some major estate planning advantages. It will also help to solve some of the problems created by the restrictions imposed on the holding of interests for Small Business Corporations.
FINTAXPETRUST
RBW/25/01/2006
25 January, 2006
YEAR END CLOSE DOWN
YEAR END CLOSE DOWN
Kindly note that we will be closing our offices from lunchtime on the 21st December 2005 and reopening on the 9th January 2006.
We would also like to take this opportunity to wish all our clients well over the festive season and a prosperous New Year.
Yours Faithfully
Fintax PE Trust
RBW/14/12/2005
14 December, 2005
RING FENCING OF ASSESSED LOSSES

SARS have indicated that as from the 2005 Tax Year, a loss from any Trading Activity will programmatically be ring fenced, unless the taxpayer can substantiate their claim by submitting documentation to prove that he carries on a business/trade with a reasonable prospect of deriving taxable income from such a business/trade. The taxpayer will then only be able to deduct the loss from that specific trade against his/her other sources of income for a CERTAIN PERIOD OF TIME.
Important factors to consider when determining whether the business is carried on to derive taxable income and thereby qualifies for the exclusion are as follows:
· The proportion of the gross income in relation to the amount of the allowable deductions;
· The level of activities or the amount spent on advertising and promotions;
· The commercial manner in which the trade is carried on, taking into account:
1. The number of full-time employees (other than persons employed to provide
services of a domestic or private nature);
2. The commercial setting of the premises; the extent of the equipment used exclusively for purposes of carrying on that trade; and
3. The time that the person spends at the commercial premises on the carrying on of the trade;
4. The number of years of assessment during which losses occurred in relation to the period from the date the person commenced with the trade and also taking into account:
5. Any unexpected events giving rise to any of those losses; and
6. The nature of the business involved;
7. The business plans and any changes thereto to ensure that taxable income is derived in future; and
8. The extent to which any trade asset is used, or is available for use for recreational purposes or personal consumption.
The above information is accordingly required in support of your claim. Please provide as much detail as possible in order to submit to SARS together with your 2005 Financial Statements.
3 October, 2005
Access to Information/ PAIA: Exemptions

South African Human Rights Commission has released the following notice see their website www.sahrc.org.za
Access to Information/ PAIA: Exemptions relating to section 51 manuals
The Human Rights Commission welcomes the decision of the Minister of Justice and Constitutional Development to exempt private bodies from compiling and submitting section 51 manuals on 1 September 2005.
All private bodies with the exception of public companies are exempted from submitting the manual from 1 September 2005 until 31 Dec 2005. The effect thereof is that inter alia all sole proprietors, partnerships, private companies, close corporations, section 21 companies and body corporate will now be exempt from compiling and submitting their manuals at least until 31 Dec 2011. However, a further long - term exemption post 31 December 2005 has also been granted. The long - term exemption applies to all private bodies and private companies, except all public companies. The long - term exemption is for the period 1 January 2006 up to and including 31 December 2011.
However, if a private company employs 50 or more employees, or has a total annual turnover equal to exceeding the amounts set out in the Schedule herein below, it must comply with section 51, after 31 December 2011.
However, it is regrettable that this decision of a further exemption was made at this late stage, when members of the public have already incurred expenses in the compilation and submission of the manuals. The Commission did approach the Department of Justice and Constitutional Development for the exemption in question long before the due date.
Notwithstanding the decision of the Minister, the Commissions position has been for the past few years that the Act should be amended in order to exclude small private bodies from submitting the manuals in question - the temporary exemptions are not satisfactory as they result in uncertainty in the law and causes unnecessary stress to members of the public.
Agriculture
R 2 million
Mining and Quarrying
R 7 million
Manufacturing
R 10 million
Electricity, Gas and Water
R 10 million
Construction
R 5 million
Retail and Motor Trade and Repair Service
R 15 million
Wholesale Trade, Commercial Agents and Allied Services
R 25 million
Catering, Accomodation and Other Trade
R 5 million
Transport, Storage and Communications
R 10 million
Finance and Business Services
R 10 million
Community, Special and Personal Services
R 5 million
5 September, 2005
ANNUAL RETURNS FOR COMPANIES
CIPRO has just made it known that all private companies will now be obliged to submit an annual return with effect from the 1st May 2005 together with the prescribed fees.
What this means is, should you have a (Pty) Ltd company (which includes a professional incorporation) you will need to submit an annual return to the Registrar of Companies with effect from the 1st May 2005. At this stage it does NOT apply to Close Corporations but we understand that it will be applying to Close Corporations from a date still to be announced.
Please note, this has nothing to do with your income tax and other returns that you have been submitting on an annual basis this is something new and has to be submitted to the Registrar of Companies (CIPRO).
These returns can only be done on-line. In other words they cannot be done manually or via the post and have to be submitted within the anniversary month of the incorporation date of the company.
Therefore it is vital that you attend to this matter when they become due and in this regard we suggest you contact the Registrar of Companies (CIPRO) direct on the following number in order to get assistance or an explanation as to how these should be done, or alternatively, we will be setting up an infrastructure within Fintax to assist clients with this new obligation. Should you wish to do it yourself CIPRO’S details are as follows :-
TELEPHONE NO: 086 184 3384
Should you wish Fintax to attend to this matter on your behalf on-line, please e-mail Charmaine at with your name, contact number and the name of your company in order that we may contact you to explain exactly what we are going to need to do, how it is going to be done, and what our cost to assist you in this regard will be. There are prescribed statutory fees that will have to be paid to CIPRO which have been set out as follows:-
1. Should your company’s annual turnover be less than 10 million, the annual fee that you will have to pay CIPRO will be R 450.
2. If you annual turnover is above 10 million but less than 50 million, the fee that you will have to pay CIPRO will be R 2 500 per annum.
- 2 -
3. If your annual turnover is 50 million and above, the annual fee payable to CIPRO will be R 4 000.
CIPRO warned that should the annual returns not be submitted on the due date an automatic additional fee of R150 will be levied. They also advise that if after successful reminders the defaulter still fails to lodge and/or pay the fee, the Registrar will, after 6 months, institute deregistration proceedings against your company.
From the above you can see that it is vital that you comply with these obligations. Please note that these obligations apply whether your company is active or not. Therefore, if you have a company and it is actually not trading and you consider it dormant but it is still registered with the Registrar of Companies, it appears as though you will still have to submit this annual return and pay the prescribed fee.
Below please find the notification that we have taken off the CIPRO website which gives a full explanation about the abovementioned.
Yours faithfully
FINTAX PE TRUST
RBW/6.4.2005
Dear Customers
Section 173 of the Companies Act, 1973, which came into operation on 25 August 2003, provides that all companies must lodge an Annual Return with the Registrar. The section further requires that this return must be lodged every year by not later than the end of the month, which follows upon the month within which the anniversary of the date of the companys incorporation occurs.
Annual returns refer to the information that companies and close corporations must submit to the Registrar as confirmation that the company / close corporation is still in business and that the information provided is still valid. It has become imperative that Annual Returns should be introduced for purposes of data integrity and information reliability. Annual Returns are used in most countries across the world to update information kept by the Registrar.
All private Companies are obliged to submit their Annual Returns with effect from May 1, 2005 together with the following prescribed fees:
· Annual turnover less than R10m...............................................R450.00
· Annual turnover above R10m but less than R50m...............R2 500.00
· Annual turnover R50m and above...........................................R4 000.00
Since Annual Returns for Private Companies come into effect as from May 1, 2005, this means Companies that were incorporated in May, irrespective of the date and year, will have to submit their Annual Returns by no later than end of the following month, in this case its June. Those incorporated in June will lodge by no later than end of July, and so on.
Companies will only be allowed to lodge Annual Returns electronically. Electronic transactions will have the effect that CIPRO will not accept or receive paper documents or cash from the companies. All lodgments and payments will be done via an electronic banking system preferably by using credit cards. Alternatively, the required money can be deposited in the CIPRO bank account at ABSA Bank, Account no. 4055681017, Branch Code 323345. The reference required on the ABSA deposit slip is most important and all persons wishing to lodge annual returns must first register as a "customer" on the CIPRO Website. It must also be noted that only directors and officers of companies who are registered as such with CIPRO will be able to lodge Annual Returns.
Annual Returns will be facilitated through our CIPRO website where we will be showing the company what information CIPRO has on the company. The annual return information will be stored separately on our database and will not update the actual database. Companies will still be required to lodge any relevant CM Forms to update changed information.
If a company fails to lodge its Annual Returns and subsequently fails to pay the prescribed fee, an additional fee of R150.00 will be levied on the defaulter. If after successive reminders, the defaulter still fails to lodge and/or pay, the Registrar will, after six months, institute deregistration proceedings against the company.
Please note that this information will also be published in the newspapers and other communication media during the course of the week.
Yours faithfully
REGISTRAR OF COMPANIES
12 April, 2005
BENEFITS – SMALL BUSINESS CORPORATIONS
We refer to our previous correspondence with regard to the above and specifically the amendments proposed in the recent budget by Trevor Manual.
We can now advise that the Draft Taxation Laws Amendment Bill of 2005 was recently released for public comment. Whilst this is not final, it does give us an indication as to the extent of the amendments that have been proposed.
The good news it that Section 12E of the Income Tax Act, which governs small business corporations, has been extended extensively and many businesses could now qualify. The most significant change is that the service sector could also qualify if you trade via a close corporation/company and employ 4 staff or more. If you run your business via a close corporation or company and that business provides personal services, which includes the field of accounting, agriculture, architecture, auctioneering, auditing, broadcasting, broking, commercial arts, consulting, draughtsmanship, education, engineering, entertainment, health, information technology, journalism, law, management, performing arts, real estate, research, secretarial services, sport, surveying, translation, valuation or veterinary science, you need to sit up and take note of these amendments.
In short, no tax has to be paid on the first R35 000 of taxable profits and then only 10% tax on the balance up to R 250 000 so the annual tax savings could be significant. In addition to this, accelerated depreciation write offs can also be enjoyed.
Please note that in order to qualify you have to trade as a close corporation or company. This close corporation or company’s turnover must not exceed 6 million rand per annum and no member of the company or close corporation can hold an interest in any other close corporation or company during the course of the year. Accordingly, a certain amount of planning may need to take place and advice given and hence your need to contact the partner attending to your accounting and taxation matters at your earliest convenience in order to determine if your business qualifies.
Yours faithfully
FINTAX PE TRUST
RBW 4/4/2005
1 April, 2005
NB NB 2005 TAX RETURNS

As you are no doubt aware, the 2005 tax year came to an end on 28 February 2005 and we will soon be requiring all your relevant information to complete and submit your IT12/IT14 income tax returns.
To give you time to gather the relevant information we will, on your behalf, attempt to arrange for an extension for the submission of your returns to the South African Revenue Services until September 2005. However, Revenue will NOT grant extension for your 2005 tax return should your 2004 returns not have been submitted or should you have any outstanding tax liabilities. See SARS Extension rules under “Publication” on our website.
Revenue has indicated that no further extension will be granted after the end of September for salaried taxpayers and only in select instances will additional extension be granted for businesses until the end of December 2005. Penalties of up to 20% of your tax liability will automatically be levied if your returns are late this year. SARS EXTENSION RULES HAVE BEEN PASTED ON OUR WEBSITE UNDER ANNOUNCMENTS
It is VITAL that your financial information is submitted to us in sufficient time to enable us to finalize your tax and accounting matters well before the final due dates of September and December. Accordingly we require ALL your information by no later than 30 May this year. Information submitted later could result in us being unable to finalize your financials on time.
Please note the onus for submission of returns to the South African Revenue Services rests with you, the taxpayer.
PLEASE REMEMBER THAT EACH TRUST AND CLOSE CORPORATION IS A SEPARATE TAXPAYER AND SEPARATE RETURNS NEED TO BE SUBMITTED.
Please bear in mind that should your net taxable income exceed R 50 000 for the year, a third topping up provisional payment is required before the end of September.
Please note that should you use your vehicle for business purposes we will be unable to submit a claim if you do not provide a logbook for each vehicle with the relevant information.
Please visit our website www.fintaxpetrust.co.za and click on YEAR END GUIDE for a brief indication of the type of information we will be requiring which can serve as a guide to assist you. Please ignore details that do not affect you.
KINDLY NOTE WHEN DELIVERING INFORMATION TO OUR OFFICE – MARK YOUR INFORMATION CLEARLY FOR THE ATTENTION OF THE SPECIFIC PERSON HANDLING YOUR AFFAIRS, THE TAX YEAR AND YOUR NAME
Yours Faithfully
FINTAX PE TRUST
RBW23/3/05
23 March, 2005
BUDGET TAX PROPOSALS - 2005
Income tax relief for everyone!
An individual younger than 65 years of age earning —
• R35 000 or less pays no income tax
• R60 000 pays tax equal to an average rate of 7,5 per cent of earnings and saves R500 tax a year
• R90 000 pays tax equal to an average rate of 12 per cent of earnings and saves R920 tax a year
• R300 000 pays tax equal to an average rate of 26,5 per cent of earnings and saves R4 570 tax a year
Increased exemption for interest income and distributions from unit trusts
The annual exemption for individuals younger than 65 years of age is raised from R11 000 to R15 000. The exemption for individuals 65
years of age and older is raised from R16 000 to R22 000.
A 40 year old individual investing R210 000 in a savings account at 7 per cent interest per annum is not taxed on the interest income of R14 700.
A pensioner and the pensioner’s spouse (both older than 65) each invests R275 000 (in total R550 000) and earns interest of 8 per cent per annum. They will not pay tax on the combined interest income of R44 000 earned during the tax year.
Claims against motor vehicle allowance for business travel.
Updated cost tables will apply from 1 March 2005 which reflect current fixed, fuel and maintenance cost. Fixed cost is capped at a vehicle to the value of R360 000. Where no log book of business travel is kept it is assumed that the first 16 000 kilometres of the actual distance travelled during the tax year is private and the next 16 000 of actual
distance travelled during the tax year is for business.
Transfer duty payable on the purchase of property is Reduced
The purchaser of a property costing —
• R190 000 pays no transfer duty
• R400 000 pays transfer duty of R12 600 which is R2 300 less than the duty previously payable
Excise tax is increased as follows from 23 February 2005:
• Malt beer – 5c per 340ml can
• Wine – 18c per 750 ml bottle
• Spirits – R1,48 per 750ml bottle
• Cigarettes – 52c per packet of 20
Levies on fuel will be increased from 6 April 2005 by:
• 10c per litre in the case of diesel
• 10c per litre in the case of petrol
Excise duties on sun protection products abolished Stamp duty on debit entries (to credit card and bank accounts) abolished
23 February, 2005
SMALL BUSINESSES TAX PROPOSALS -2005 BUDGET
Budget 2005 contains a host of measures to help small businesses thrive. This is a summary of the tax measures that Minister Trevor Manuel announced today.
Relief for all small businesses
New to the tax system
• Single form: Only one form needed to register for all taxes, including Income tax and VAT
• Voluntary disclosure: Those who are not registered for tax or didn’t declare their income properly will be given a chance to come forward and we will not charge penalties. But you only get this chance if you come forward before we catch you!
Cutting the red tape
• New, simpler VAT scheme: The small retailers’ VAT package will be ready from April 2005. This is a simple way of accounting for VAT for businesses with a turnover of less than R1 million per year. It is meant for small retailers that don’t use modern cash registers.
• Fewer VAT returns: Small business with an annual turnover of less than R1 million will only be required to submit a VAT return once every four months from August 2005.
• Skills Development Levy exemption: Small businesses with an annual payroll of less than R500 000 will no longer pay Skills Development Levies from August 2005.
• RSC levies: Abolished from July 2006.
• eFiling: Applications for tax clearance certificates can be done online.
• Single Customs declaration: Imports and exports will be captured on one form.
Empowering Small Business
• Community tax helpers: SARS will send staff to visit small businesses to help them with tax issues like registration, tax returns and other tax obligations.
• Call centre: A single national call centre number will be created for all tax and customs enquiries.
• Small business help desks: Dedicated facilities will be made available for small business in the call centre and at SARS offices, with extended hours.
• Focus on VAT education: A specific campaign on VAT education will be undertaken.
• Accounting and payroll packages: SARS will make accounting and payroll packages available to small businesses. You can obtain software for your own computer or use one of the SARS kiosks we will set up.
BUSINESS
Relief for close corporations and companies
The following applies only to Small Business Corporations (SBCs):
• SBC programme expanded: The preferential treatment for SBCs will be expanded to include more service industries. SBCs employing at least four employees involved in core operations in, for example, architecture, engineering, entertainment and information technology will now qualify for this preferential system.
• Turnover threshold increase: The maximum annual turnover to qualify as an SBC is increased from R5 million to R6 million.
• Wear and tear: Besides the current 100% write-off for manufacturing assets, all other depreciable assets will be written off for tax purposes on a 50:30:20 basis over a period of three years.
• New tax rate structure:
Taxable income Rates
R 0 – 35 000 0%
R 35 001 – 250 000 10%
R 250 000 + 29%
These changes mean that:
A company that qualifies as an SBC with a taxable income of R400 000 will pay R32 500 less income tax than before.
A company providing information technology services with a taxable income of R400 000 that now qualifies as an SBC for the first time will pay R55 000 less tax than before.
Other companies and close corporations
• Tax rate down: The tax rate for companies and close corporations is reduced from 30 to 29 percent.
For more detailed information, visit the SARS website at www.sars.gov.za
23 February, 2005
SARS POLICY ON DEFERRED PAYMENTS
South African Revenue Service Port Elizabeth Whytes Road, Port Elizabeth, 6001P.O. Box 345, Port Elizabeth, 6000Telephone (041) 5057500www.sars.gov.za
Dear Stakeholder,
SARS POLICY ON DEFERRED PAYMENTS
SARS has implemented several policies as from 1 November 2004 and I would like to take this opportunity to inform you of the policy relating to instalments especially with the Provisional Tax 2005/02 being due on 28 February 2005.
.
The following changes will be applicable with regards to the application for Deferred Payment Arrangements as from 1 November 2004:
· No automatic deferred payment arrangements shall be granted on all taxes.
· No deferment shall be considered unless written application with detailed reasons why a once off payment can not be made is received
· No deferred payment arrangement shall be granted over the telephone
· A Collection Information Statement must accompany all applications for deferred payment arrangements. Attached to this statement must be:
1. Bank statements of all accounts for the latest 3 months
2. Proof of all expenses claimed
3. Proof of income e.g. payslip
4. If married ANC then proof thereof
5. In case of a CC/Company then Cash flow, Debtors- Creditors lists
· Collectors may demand security as a condition of deferment if the client appears to be trading under insolvent circumstances
· No deferred payment arrangement shall be entered into if the taxpayer failed to honour previous deferred payment arrangements
· The deferment shall be granted in writing and the client will have to sign an agreement to secure the installment plan.
I trust that the policy, to grant clients the privilege to remit taxes in deferred payments, is clearer.
Regards
RECEIVER OF REVENUE
11 January, 2005
YEAR END CLOSE DOWN

Kindly note that we will be closing our offices on the 15th December 2004 and reopening on the 3rd January 2005.
We would also like to take this opportunity to wish all our clients well over the festive season and a prosperous New Year.
Yours Faithfully
Fintax PE Trust
RBW/8/12/2004
8 December, 2004
NB! NB! 2004 TAX RETURNS

As you are no doubt aware, the 2004 tax year came to an end on 29 February 2004 (covering the period 1 March 2003 to 28 February 2004) and we are glad to report that most of our clients have provided us with their relevant information and their returns are in. A big thanks to all those clients who handed in their information on time.
HOWEVER there are still some of you who have not as yet brought in your 2004 Tax and Financial information and for those few, time is running out fast.
Revenue has indicated that no further extension will be granted after the end of February 2005 for the 2004 tax year. Penalties of up to 20% of your tax liability will automatically be levied if your returns are late.
Accordingly it is VITAL that all financial information is submitted to us before we close on the 15 December this year to enable us to finalize your tax and accounting matters well before the final due dates of February 2005. ( NOTE this only applies to those clients who have as yet not given us their 2004 Tax information)
Please note the onus for submission of returns to the South African Revenue Services rests with you, the taxpayer.
PLEASE REMEMBER THAT EACH TRUST AND CLOSE CORPORATION IS A SEPARATE TAXPAYER AND SEPARATE RETURNS NEED TO BE SUBMITTED.
Please note that should you use your vehicle for business purposes we will be unable to submit a claim if you do not provide a logbook for each vehicle with the relevant information.
Please visit our website www.fintaxpetrust.co.za and click on YEAR END GUIDE for a brief indication of the type of information we will be requiring which can serve as a guide to assist you. Please ignore details that do not affect you.
KINDLY NOTE WHEN DELIVERING INFORMATION TO OUR OFFICE – MARK YOUR INFORMATION CLEARLY FOR THE ATTENTION OF THE SPECIFIC PERSON HANDLING YOUR AFFAIRS, THE TAX YEAR AND YOUR NAME
Yours Faithfully
FINTAX PE TRUST
8 December, 2004
NEW REQUIREMENTS VAT INVOICES
All registered VAT VENDORS should be aware that from 1 March 2005 all tax (vat) invoices have to comply with new rules in order to be valid tax (vat) invoices.
Currently the following must appear on your tax invoice for it to be valid.
- The words “ TAX INVOICE” must appear in a prominent place.
- Your name, address and VAT registration number.
- The name and address of the recipient.
- The serial number and date of issue.
- Accurate description of goods and/or services.
- Quantity or volume of goods or services supplied.
- Price and Vat charged reflected separately with a total of the two together.
From 1 March 2005 your Tax Invoice (this also includes any debit or credit note) will also have to reflect the VAT NUMBER OF THE RECIPIENT (your customer).
However this new requirement will only apply to all transactions over R1000-00.
Please ensure that you make the relevant adjustments to your system in time and start requesting VAT numbers from your clients/customers.
This new rule applies to ALL VAT VENDORS on transactions over R1000-00. Please do not phone us to inquire if it applies to you as the answer is simply YES if you are a registered Vat Vendor ( i.e. charge VAT) and your charge exceeds R1000-00.
SARS VAT department will be able to assist on 5862404 or you may visit their website that may be accessed via our “LINKS” on our website at www.fintaxpetrust.co.za.
FINTAX PE TRUST
RBW11/11/2004
12 November, 2004
ADMINISTRATION OF TRUSTS
We have on many occasions in the past pointed out the importance of ensuring that the administration of your family trust is done correctly.
It is important that you clearly identify trust assets as being trust’s assets and not those of your own and in order to do this proper accounting and record keeping must be done. In addition, proper Minutes must be passed from time to time empowering certain trustees to acquire and to sell trust assets such as the acquisition of property, investments in unit trusts and the like. All these Minutes and other supporting documents must be signed and recorded and it is advisable, on an annual basis, to provide copies of these to us to keep on file.
Further, it is strongly recommended that your FAMILY trust have at least 3 trustees who are all actively involved in the administration of the trust’s assets WITH AT LEAST ONE TRUSTEE NOT BEING RELATED TO THE BENEFICIARIES OR THE OTHER TRUSTEES (an outsider). It is important that not one trustee be seen to be able to make unilateral decisions and effectively controlling the trust. When a trust is to acquire or sell an asset or make an investment, a proper meeting should be held where the matter is discussed in detail and a decision is then made by the majority of the trustees to make such an acquisition or investment. There could be severe implications should it be proven at a later date that an individual trustee was effectively controlling the trust and utilizing the trust’s assets as if it was his own.
12 November, 2004
THE DEDUCTION OF BOOKS AND JOURNALS FOR SALARIED TAXPAYERS
As all salaried taxpayers are aware, the Income Tax Act was amended significantly two years ago wherein many deductions and allowances that were previously deductible against taxable income were removed. However, one of the deductions that was not removed was the 11 (e) deduction in terms of depreciation. Accordingly, should you be in receipt of a salaried income and it is a condition of your employment that you subscribe to and receive various professional journals and/or books, magazines etc., you will be entitled to deduct this against your salaried income. Examples of this are lecturers, teachers, doctors and other professionals who are expected to keep abreast with certain legislation changes in order for them to perform their employment duties. Accordingly, it is imperative that should you fall into the above category that you provide us with full details of any expenses that you may have incurred in regard to the acquisition of books, journals, magazines etc.
FINTAX PE TRUST
23 September, 2004
LOGBOOKS/TRAVELLING ALLOWANCES
As you are all aware, we have been advising our clients for quite some time now of the importance of a logbook should you utilize your vehicle for business purposes. In this year’s budget Trevor Manual made specific reference to the investigation of car allowances and that they intended to clamp down on abuses in this regard. Should you receive a travelling allowance and utilize your vehicle in the furtherance of your business, SARS will not allow a deduction against this travelling allowance unless a detailed logbook is submitted with your income tax return. Should you not submit a logbook at all, no claim will be entertained whatsoever. Accordingly, it is imperative that a logbook be submitted for each vehicle utilized by yourself in the furtherance of your business.
The logbook must reflect the initial value of the vehicle, the make of the vehicle, the opening kilometers on the 1st March and its closing kilometers on the 28th February of each tax year, together with daily details of the business kilometers travelled.
FINTAX PE TRUST
21 September, 2004
CAPITAL GAINS TAX VALUATION
After being inundated with many calls with regard to capital gains tax valuations, we set out below a brief summary of what needs to be done.
We also refer you to our various articles on capital gains tax that we have posted on our website over the last 24 months that have already addressed this issue. In many instances most of our clients have already taken care of their requirements due to the fact that this deadline was initially the 30th September last year. This deadline has now been extended to this year.
VALUATION OF FIXED PROPERTY
1. Only property that was owned by you prior to the introduction of CGT on the 1st October 2001 needs to be valued. Therefore, any property that you may have acquired or purchased after the 1st October 2001 does not require a valuation due to the fact that it was acquired after the introduction of CGT.
2. All fixed property that you owned prior to the 1st October 2001 should be valued. However, residential property owned by the taxpayer and utilized by the taxpayer, as his residential home is exempt from CGT up to the first million rand.
3. However, should your residential home be owned by a close corporation, company or trust this exemption will not apply and it will be subject to CGT making the valuation imperative.
4. The Act does not stipulate who must do the valuation, anyone may do the valuation, but the valuation must be accurate as at the 1st October 2001 and the valuation must be able to be backed up and explained by whoever did it should SARS query it in the future. Obviously a registered valuator is the ideal person to value a property. However, many clients are utilizing the services of experienced and reputable estate agents and other members of the real estate profession.
5. The valuation only needs to be submitted to SARS when the property is actually sold one day. In other words, it does not have to be submitted by the end of September. The valuation must only have been completed by the end of September. Only properties in excess of 10 million rand will need to be submitted to SARS with the next tax return after the 30th September 2004. In other words your 2005 tax return. All other valuations only need to be submitted when the property is sold one day. As mentioned above, any fixed property with a valuation in excess of 10 million will, however, have to be submitted with your 2005 tax return (in other words next year).
6. We are unable to assist clients with the valuation of fixed property. However, we do recommend that copies (not the original) of the valuations be forwarded to us to be held in your file as a precautionary measure should you lose the original. Please note we only require a copy. We do NOT want the original, and our copy is just a backup to the original, which should be retained by you as the primary valuation copy.
VALUATION OF BUSINESSES
1 Only businesses that were already in existence, or acquired, prior to the 1st October 2001 need to be valued for the purposes of CGT.
2. Again, the Act does not prescribe who must do the valuation but anybody doing the valuation must be able to support his figures and the valuation must be accurate.
3. It is imperative that the valuation is market related with extensive working papers in order to support that valuation.
4. Only intangible assets, e.g. goodwill, that exceed a million rand need to be submitted to SARS with your next income tax return i.e. the 2005 tax year (next year). It does not have to be submitted to SARS by the end of September. All other valuations of businesses will only need to be submitted when the business is ultimately sold.
5. Again, it is recommended that a copy of the original valuation be forwarded to our office to be held on file as a backup to the original valuation, which must be retained by you.
FINTAX PE TRUST
21 September, 2004
REMINDER -CGT VALUATIONS
Please note that SARS have stated that no further extension will be granted for the Valuation of Assets (as at 31 October 2001) after the end of September 2004. Therefore if you have not already got your valuations in order time is FAST RUNNUNG OUT.
FINTAX PE TRUST
26/08/2004
26 August, 2004
URGENT-PROVISIONAL TAX AUGUST 1/2005
There are still many provisional cheques outstanding.
Thanks to all clients that have delivered their cheques timeously.
These cheques should have been delivered to our office before 18 August 2004. In order to avoid late submissions and penalties we need all outstanding cheques by no later than Friday 27 August. Any cheques received after this date will be late and you will be liable for an additional 20% penalty on the amount due. If you have not already sent in your cheque please do so immediately.
Your co-operation in this regard would be appreciated.
23 August, 2004
PROVISIONAL TAX -AUGUST2004
We will be posting Provisional tax letters, for the 1st 2005 period due 31 August 2004, by the end of this week. SARS have introduced a new format to these IRP6 returns and this has resulted in a delay by SARS in sending out the forms. Should you not agree with the SARS estimate, a detailed explanation must be submitted. However SARS have again agreed to consider a split payment (3 months) but this is subject to their approval and we need to make a request to SARS. Remember SARS does charge interest over the 3 month period. Therefore any client who will be requiring a split payment over three months must fax or e-mail such request to us by no later than 18 August 2004.
2 August, 2004
EMPLOYEES TAX/PAYE FOR DIRECTORS OF COMPANIES, CLOSE CORPORATIONS AND TRUSTEES OF TRUSTS
Some time ago the Income Tax Act was amended to make it compulsory for PAYE to be deducted from all the payments made to directors of companies, close corporations or trustees of a trust. Therefore, should you run your own business via the medium of a close corporation, company or trust, any remuneration or salary that you earn from your entity would need to be subject to a monthly deduction of employees tax and paid over to the Receiver of Revenue.
We have been in contact with our clients on many occasions in this regard and have assisted with the calculation of these amounts but must warn you that the situation changes from year to year and that it is important that you deduct PAYE according to the tables on whatever you draw from your entity from month to month.
A recent amendment was made by SARS that now allows Revenue to impose an additional penalty of up to 200 % on any under deduction of PAYE on remuneration earned by any of your staff or you as an employee of your own company, close corporation or trust. Therefore, it is important that you deduct PAYE from whatever you draw as a salary from month to month, as well as on any additional profits that you may draw out of your business from time to time.
Please contact us should you require any help in this regard.
Yours faithfully
FINTAX PE TRUST
RBW/24/5/2004
25 May, 2004
FINTAX CLOSED ON TUESDAY 13 APRIL 2004
Due to the long Easter Weekend and then the public holiday on Wednesday as a result of the election, we have decided to close our office on Tuesday 13 April. We will be open for business as usual again on the Thursday 15 April.
FINTAX PE TRUST
2 April, 2004
NB! NB! 2004 TAX RETURNS
As you are no doubt aware, the 2004 tax year came to an end on 29 February 2004 and we will soon be requiring all your relevant information to complete and submit your IT12/IT14 income tax returns.
To give you time to gather the relevant information we will, on your behalf, attempt to arrange for an extension for the submission of your returns to the South African Revenue Services until September 2004. However, Revenue will NOT grant extension for your 2004 tax return should your 2003 returns not have been submitted or should you have any outstanding tax liabilities.
Revenue has indicated that no further extension will be granted after the end of September for salaried taxpayers and only in select instances will additional extension be granted for businesses until the end of December 2004. Penalties of up to 20% of your tax liability will automatically be levied if your returns are late this year.
It is VITAL that your financial information is submitted to us in sufficient time to enable us to finalize your tax and accounting matters well before the final due dates of September and December. Accordingly we require ALL your information by no later than 30 May this year. Information submitted later could result in us being unable to finalize your financials on time.
Please note the onus for submission of returns to the South African Revenue Services rests with you, the taxpayer.
PLEASE REMEMBER THAT EACH TRUST AND CLOSE CORPORATION IS A SEPARATE TAXPAYER AND SEPARATE RETURNS NEED TO BE SUBMITTED.
Please bear in mind that should your net taxable income exceed R 50 000 for the year, a third topping up provisional payment is required before the end of September.
Please note that should you use your vehicle for business purposes we will be unable to submit a claim if you do not provide a logbook for each vehicle with the relevant information.
Please visit our website www.fintaxpetrust.co.za and click on YEAR END GUIDE for a brief indication of the type of information we will be requiring which can serve as a guide to assist you. Please ignore details that do not affect you.
KINDLY NOTE WHEN DELIVERING INFORMATION TO OUR OFFICE – MARK YOUR INFORMATION CLEARLY FOR THE ATTENTION OF THE SPECIFIC PERSON HANDLING YOUR AFFAIRS, THE TAX YEAR AND YOUR NAME
Yours Faithfully
FINTAX PE TRUST
26 March, 2004
HAPPY NEW TAX YEAR
The beginning of March brings with it the beginning of another new Tax year. We live in fast changing times in the Tax Profession but we are glad to confirm that there were no SIGNIFICANT changes in the recent BUDGET. Nevertheless we all need to keep on the correct side of “Uncle Trevor” and will need to keep up to date on all Taxation and related matters and ensure that ALL Tax returns are submitted on time. It is therefore VERY important for clients to read all our e-mails and visit our website www.fintaxpetrust.co.za regularly to keep abreast and confirm due dates etc.
Remember that your tax affairs and ensuring that you comply with the various sections of the Tax Act and the submission of all your Tax Returns on time remains YOUR responsibility and accordingly you need to be as informed as possible.
FINTAX PE TRUST
RBW/01/03/2004
1 March, 2004
YEAR END LOG BOOKS
Remember year end log books. We again remind you that all clients who run their own businesses or are in receipt of a travelling allowance to please provide us with a log book at the end of the year for each vehicle that is utilized for business purposes. Remember to ensure that you record all your mileage, specifically the mileage at the end of February of each year so one knows exactly what your opening/closing kilometers are year on year and your log book will reflect what would be business kilometers and what is private. Revenue now automatically disallows any motor vehicle claim should an accompanying logbook not be submitted.
26 February, 2004
ASSESSED LOSSES TO BE RING FENCED
As brought to your attention before, it appears as though the proposal first mentioned in the 2003 budget and now contained in the Revenue Laws Amendment Bill, attempts to formalize situations where certain business losses will not be allowed to be deducted against normal taxable income. It should come into effect from the years of assessment commencing on or after 1st March 2004. An interesting note is that these provisions will not apply to companies, close corporations or trusts and only to natural persons who are taxed at a maximum marginal tax rate of 40 %. This means that it would only apply to taxpayers whose income before deducting the assessed loss exceeds the current maximum threshold in any year currently R255000.
If you have a secondary business running at a loss, which is classified or falls under their listing of a suspect trade, the proposed legislation could apply to you. However, even if a trade is classified as suspect, taxpayers do have the opportunity to show that its a legitimate business to avoid the proposed ring fencing of losses. If a taxpayer can prove that the trade constitutes a business with a reasonable prospect of generating taxable income within a reasonable period of time, then ring fencing of losses will not apply. There are certain circumstances to the above that would need to be met and it appears that if trade losses have been incurred in carrying out the so-called suspect activities for 6 years of assessments out of a 10 year period (commencing 1st March 2004), losses will still be ring fenced.
Obviously these amendments have a far reaching impact and should you be an individual whose taxable income exceeds R 255 000 (before your secondary trade assessed losses) you will need to discuss this issue with ourselves in order to understand exactly what implications these amendments will have to your tax affairs.
26 February, 2004
PROVISIONAL TAX – SECOND PERIOD 2004
We will shortly be sending out our letters with regard to what your provisional tax liabilities are for the second period of the 2004 tax year due and payable on the 28th February 2004. Please check our calculations and contact us should you not be in agreement with the figures reflected therein. Please remember that any employees tax that you are paying monthly can be deducted against provisional tax paid. In most instances we would have taken this into account but in some cases, where we are not aware of the fact that you are now paying employees tax, this may not have been taken into account and it is simply a phone call away to discuss this issue should it be applicable. Please make sure that you follow the instructions as per our letter and ensure that we get the cheques timeously within the times as laid down in the letter. Also for those of you who would like arrangements made to pay off their provisional tax, you need to notify us as soon as possible as we have to get written authorization from SARS in this regard. Please, therefore, contact us as soon as possible should you be wanting to have your provisional tax paid over three months. Remember SARS will only allow a maximum of three months in which to pay your provisional tax, the months being February, March and April. Also remember that SARS do charge interest for these split payments.
23 January, 2004
YEAR END CLOSE DOWN
Kindly note that we will be closing our offices on the 19th December 2003 ( monthly accounting close 12th December) and reopening on the 12th January 2004.
We would also like to take this opportunity to wish all our clients well over the festive season and a prosperous New Year.
Yours Faithfully
Fintax PE Trust
RBW/9/12/2003
9 December, 2003
AMNESTY DEADLINE EXTENDED
After receiving what he described as "significant interest" in the governments Exchange Control Amnesty, South African Finance Minister Trevor Manuel has extended the due date of the amnesty from November 30, 2003 to February 29, 2004.
12 November, 2003
FINAL REMINDER-EXCHANGE CONTROL AND TAX AMNESTY
We refer to all our various correspondence with regard to the above matter and must now advise clients that should the above be applicable to yourselves, or should you require any input or assistance from ourselves with regard to the above matter and have not already made contact with ourselves, please do so by the end of this week otherwise we are not going to be in a position to help you should the deadline not be extended after the end of November.
Yours faithfully
FINTAX PE TRUST
rbw10/11/2003
10 November, 2003
DECLARATION FOR NOTIONAL INPUT VAT

SARS in their recent Vat news September 2003 stated that a new form (Vat 264) is presently being drafted to standardize the information which vendors must maintain in terms of Section 20 (8) of the Act to validate the notional input tax claims on second hand goods. The form will be a declaration by the person selling the goods (the owner) to the vendor claiming the notional input tax. This form will be made available on the SARS website shortly.
Accordingly, those of you who from time to time do acquire second hand goods from a non registered Vat vendor and who intend to claim a notional input, it is imperative that you visit the SARS website on a regular basis in order to obtain the new Vat 264 form. You can visit the SARS website at www.sars.gob.za., or alternatively go to our website and click under links.
FINTAX PE TRUST
RBWOctober2003
9 October, 2003
EXCHANGE CONTROL & ACCOMPANYING TAX AMNESTY

I refer to the various e-mails we have sent with regard to the abovementioned and can confirm that significant amendments have been released with regard to the above matter.
This is precisely the reason why we have been advising clients to hold back until such time as clarity on certain issues can be obtained and with this now having been done, we can advise that we can now assist clients with regard to the above issues. Those clients who have already made contact with us with regard to the above can be assured that we will be contacting them within the next two to six weeks in order that matters relating to the above can be finalized and the relevant applications submitted.
Yours faithfully
FINTAX PE TRUST
RBW/October 2003
9 October, 2003
PPS SICKNESS BENEFITS

We have, in the past, advised clients of the possibility of either the reduction of the PPS contributions towards sickness benefits being deductible or alternatively whether the actual benefit payouts would be taxable. After three years intensive discussions between SARS and PPS a ruling has now been received. The situation is now as follows:-
The contributions towards your sickness benefits will, as in the past, not be tax deductible. However, any payments received in future will be considered of a capital nature and therefore not taxable.
PREVIOUS TAX YEARS
It appears as though any sickness benefits that you were taxed on during the 2001 and 2002 tax years was therefore treated incorrectly. PPS has confirmed that they will be sending out letters correcting the situation for past tax years and should any client be in receipt of such a letter, please ensure that we get it immediately so that we can request a revised reduced assessment from SARS.
FINTAX PE TRUST
RBW 11 August 2003
11 August, 2003
FOREIGN EXCHANGE AND ACCOMPANING TAX AMNESTY
Having completed our first round of workshop seminars and studies with regard to the above issue, we must confirm that this is a very complex legislation.
The one thing that has come out abundantly clear, from every possible avenue, is that anyone who has foreign assets and has transgressed exchange control and/or income tax in that regard, would be a downright fool not to take advantage of the abovementioned amnesty.
There are many unanswered questions due to the complexity, and probably the haste, in which the Act has been drafted and we advise clients not to rush forward with their applications until such time as clarity on all aspects of the amnesty become available. We believe that certain amendments and changes to the Amnesty Act are in the pipeline and accordingly it is imperative that one waits for these amendments before an application is made. Remember that all amnesty applications are coupled with your 2003 tax return, and again we must advise that anyone who is considering applying for the amnesty ensure that all their 2003 taxation affairs, including all the income generated from overseas assets, have been provided to us and, if not, please provide same as soon as possible.
As soon as these latest amendments are published by Government, which we anticipate within the next 2 to 3 weeks, we will then be in a position to start assisting clients in this regard. Remember once this amnesty period is over no professional adviser will be able to assist on ANY matters as relates to “undisclosed foreign assets”
6 August, 2003
FIRST PROVISIONAL PAYMENT 2004 TAX YEAR

We will soon be posting out all Provisional Returns to clients where provisional payments are due and payable. Please keep an eye out for your Provisional letters and ensure that should you require split payment, that you notify us in writing before Monday 11 August 2003.
SARS have again confirmed that they will allow a split payment of a maximum of three months and that interest will be charged as always. Please ensure that all cheques are delivered to our office before the 19th August 2003.
In many instances where there is a nil payment required we won’t generally be advising clients. If you don’t hear from us with regard to the payment of provisional tax and it is your opinion that a provisional payment should be made, please contact our office by no later than the 20th August 2003.
Yours faithfully
FINTAX PE TRUST
RBW 4 August 2003
6 August, 2003
FINTAX “SILLY SEASON”
Dear Clients
We like to keep clients informed of developments and what is happening in our profession and at Fintax. For those of you who have not already realised it we are now in the middle of our HECTIC TAX SEASON and need your co-operation to ensure that we keep SARS happy, submit returns on time and complete financials. We are battling tremendously with the volume of phone calls that are being received at the moment and we really need your assistance to try and keep these to a bare minimum. We do have a policy to try and be as accessible as possible but due to the confidentiality of our work when we are consulting we are unable to take calls. It also goes without saying that we need time to draft financials, complete returns, attend seminars and keep up to date with all the new tax laws and hence will be uncontactable from time to time. Please let our staff help you when we are unavailable, if they are unable to help they will always revert back to us or leave a detailed message for us making it a lot easier to sort out your query as soon as possible.
During this hectic TAX SEASON we would really appreciate your help with the following:-
1. Try and contact us with a list of queries as opposed to phoning us every so often.
2. PLEASE DO NOT REFER BANKS directly to us for copies of your financial statements. We will not provide them without a specific instruction from you, the client, and then we will only provide e-mail copies. We will need e-mailed instructions from you with the e-mail address and person you would like us to send them to. Remember you are given a BANK copy with your financials every year.
3. Please take the time to find your copies and originals of TRUST DEEDS and CC CK documents etc when requested by someone and don’t refer them directly to us. These are kept off our premises in a secure archive and is costly to extract and copy them which is an absolute waste of money and more importantly our time. We are more than willing to assist clients when they have mislaid their copies but would appreciate it if this could be kept to a bare minimum. Remember you are always given the ORIGINAL AND a Working copy at the outset. We again will in any event never provide this info to anyone other than the client directly so referring banks to us will not work.
4. Please make sure that you keep the original of any important documentation that you send to us such as CGT Property valuations and alike because these are also kept in a secure archive and is time consuming to extract and make copies for clients down the line. ALWAYS keep your own copy of important documents.
5. When forwarding your financial information to us please do not give us information that you will need back within a short period of time such as a cash book that you may need back to do your next VAT return. Rather close off the year and start a New cash/vat book for the current year. It is very disruptive to have to return books that we are working with.
6. Please try and get us ALL the required YEAR END information TOGETHER and not in bits and pieces, we know this is not always possible but it does make the completion of your financials and tax returns a lot quicker and easier when all the information is on hand. It is also very time-consuming to ensure that each new piece of information reaches your file each time you bring in something new and to follow up outstanding information.
7. Certain of our staff will not be able to see you if you have not made a prior appointment, so PLEASE make arrangements with a specific staff member if you need to see them when popping in to our office.
8. Yes we DO NEED your LOGBOOKS for each and every car that you use for business purposes whether you are a self employed Doctor, a business person running your own business or a salaried employee in receipt of a Traveling Allowance. You can buy a LOG BOOK from CNA or you can down load ours free off our website at www.fintaxpetrust.co.ca. Without the logbook SARS will automatically DISALLOW any motor vehicle claim. If you have already submitted your info to us without a logbook we will request one from you if we need it.
9. Remember you are at liberty to phone SARS on 041- 5057500 with any general query you may have or if you need clarity on basic issues.
10. Yes we HAVE got extension for all our registered clients ( in good standing) whose Tax affairs for last year 2002 Tax year ( March 2001 to Feb 2002) have been submitted, so please do not panic regarding SARS very much published drive that TODAY is D- Day re the submission of 2003 Tax Returns. No need to phone us about this matter.
Remember this is a mass e-mail sent to ALL OUR CLIENTS and is not directed at anyone in particular but is designed to help us provide the best possible service to our clients during these busy periods and more importantly to keep you informed.
Finally we would like to thank you for your continued support and your kind co-operation.
Kind Regards
FINTAX PE TRUST
RBW11/07/2003
11 July, 2003
2003 TAX RETURNS
2003 TAX RETURNS
SARS will not be granting blanket extensions for the submission of tax returns this year, especially for salaried taxpayers (taxpayers who do not have their own businesses) and accordingly you need to get all your tax information to us as soon as possible. Visit our website on www.fintaxpetrust.co.za and click on year end guide for a reminder of the information that we will require.
FINTAX PE TRUST
RBW 8/7/2003
9 July, 2003
EXCHANGE CONTROL AND ACCOMPANYING TAX AMNESTY

We refer to our various correspondence in the past with regard to the above and recent publication of the Act.
We must advise that whilst the first draft was available quite some time ago, the second draft, which was only released about 3 weeks ago, has now been accepted and is a substantial improvement on the first draft. We have already started dissecting all aspects of this amnesty but unfortunately are going to need a months or so in order to obtain input and assistance from various sectors of the professional fraternity ranging from Exchange Control to the Amnesty Unit themselves. Accordingly, any clients who are considering this amnesty or are not quite sure whether they need to apply for the amnesty or not and require any input with regard to the amnesty, we would request that you please start contacting us only towards the middle of July FOR DETAILED INPUT in this regard.
This amnesty is far reaching and while we can assist now on the basics of the amnesty such as how to apply etc and with the income tax component of the amnesty, the foreign exchange component is a different story and needs a lot of research. We have been in touch with relevant “Forex Authorized dealers” and have managed to get a copy of the Exchange Control Manual” but as this is a specialized field on its own and we need to get more clarity on this aspect of the amnesty.
In the meantime we must, however, remind you that one of the conditions of the amnesty is that your 2003 returns have to be 100% accurate and be completed at the same time when the amnesty is applied for. This means that you need to get cracking with regard to your 2003 financial statements and Tax matters and if you haven’t already submitted them to ourselves please make sure that you do so as soon as possible because if these are not completed you are unable to apply for the amnesty. Remember you have until the end of NOVEMBER to apply for the amnesty so we have plenty of time.
FINTAX PE TRUST
RBW/6 June 2003
10 June, 2003
NB -VAT 201 RETURNS FARMERS
All farmers who are submitting Vat Returns on a six monthly basis need to be aware of the fact that as soon as their turnover exceeds ONE Million Rand per annum they are no longer permitted to submit Vat Returns on a bi-annual i.e. every six months basis but have to submit a return on a two monthly basis. SARS have not been too forceful in following this up in the past but, we believe, they are now looking into this and accordingly we suggest that any farmer who is submitting Vat Returns twice a year and whose turnover does exceed ONE MILLION RAND per year change to two monthly Vat
FINTAX PE TRUST
RBW/10/06/2003
10 June, 2003
UIF CEILING INCREASED
Did you know that the UIF ceiling has been increased from R8099 to R8836 with effect from 1 April 2003.
Below please find GOVERNMENT NOTICE IN THIS REGARD
GOVERNMENT NOTICE
SOUTH AFRICAN REVENUE SERVICE
No. R.466 1 April 2003
DETERMINATION OF LIMIT ON AMOUNT OF REMUNERATION FOR
PURPOSES OF DETERMINATION OF CONTRIBUTION IN TERMS OF
SECTION 6 OF THE UNEMPLOYMENT INSURANCE CONTRIBUTIONS
ACT, 2002 (ACT NO. 4 OF 2002)
By virtue of the powers vested in me by section 6(2) of the Unemployment
Insurance Contributions Act, 2002 (Act No. 4 of 2002), I, Trevor Andrew
Manuel, Minister of Finance, hereby after consultation with the Minister of
Labour and the Unemployment Insurance Commissioner, determine that
section 6(1) of that Act shall, with effect from 1 April 2003, not apply to
so much of the remuneration paid or payable by an employer to an employee
during any month, as exceeds R8 836.
T A MANUEL
MINISTER OF FINANCE
6 May, 2003
PROMOTION OF ACCESS TO INFORMATION ACT
We can now assist you in the preparation of this manual and lodge on your behalf with the Human Rights Commission. Our fee for a Standard / Basic Manual will be R500 + Vat. Should you require our assistance in this regard, please complete the information below and email to Denise de Lange on or fax her on (041) 3743282. On receipt of your instruction and below details we will contact you for further information that we will require.
Please provide the following information :
1. The Name of the Person who will handle all matters in this regard
(usually the Owner/Partner/Member).
2. Short description of your business / profession.
3. Physical address of your business
4. Confirm your : a. Telephone number
b. Fax number
c. E-Mail address
5. Confirm the e-mail address of the Professional Body you are a member of (if any). This only applies to professional sectors : Doctors, Attorneys, Accountants etc.
FINTAX PE TRUST
28 March, 2003
2003 TAX RETURNS
As you are no doubt aware, the 2003 tax year came to an end on 28 February 2003 and we will soon be requiring all your relevant information to complete and submit your IT12/IT14 income tax returns.
To give you time to gather the relevant information we will, on your behalf, attempt to arrange for an extension for the submission of your returns to the South African Revenue Services until October 2003. However, Revenue will NOT grant our extention for your 2003 (or Past Years) tax return should your 2002 returns not have been submitted or should you have any outstanding Tax liabilities. Please note the onus for submission of returns to the South African Revenue Services still rests with you, the taxpayer. As Revenue are no longer prepared to grant extensions for indefinite periods it is of VITAL importance that as soon as you have gathered the information for the 2003 tax year, it be submitted to ourselves to enable us to finalise the 2003 income tax returns before the end of May this year.
PLEASE REMEMBER THAT EACH TRUST AND CLOSE CORPORATION IS A SEPARATE TAXPAYER AND SEPARATE RETURNS NEED TO BE SUBMITTED.
Please bear in mind that should your net taxable income exceed R 50 000 for the year a third topping up provisional payment is required before the end of September and accordingly we will require your information by no later than 20 June this year. Information submitted late could result in us being unable to finalise your financials on time.
Please visit our website and click on YEAR END GUIDE for a brief indication of the type of information we will be requiring which must serve only as a guide to assist you. Please ignore details that do not affect you.
11 March, 2003
Promotion of Access to Information Act, (PAIA) 2000 -Extension Granted
Promotion of Access to Information Act, (PAIA) 2000 -Extension Granted
We refer to our recent e-mail in regard to the above Act and are glad to advise that the Minister of Justice has granted an extension for the submission of the required manuals to 31 August 2003.
This goes a long way to reduce the URGENCY in this regard. However as stated in our previous e-mail these manual need to be compiled and lodged with the relevant authorities/bodies. As previously confirmed we will be in a position to assist clients in this regard and will be forwarding a detailed e-mail/article by the end of March.
FINTAX PE TRUST
RBW/06/03/2003
6 March, 2003
INDEPENDENT CONTRACTORS AND TAX DIRECTIVES
INDEPENDENT CONTRACTORS AND TAX DIRECTIVES
We refer to our reminder that contractors need re-apply for a Tax Directive from SARS based on a fixed percentage on your Contractors Income and must advise that we have been unable to assist in this regard. SARS have responded to our requests with a standard letter stating that the liability to deduct employees tax from remuneration paid lies with the person paying the remuneration (i.e. your client).
In their letter SARS state “The substance of the contractual relationship between you and your employer or client is crucial in the determination of your status as either an independent contactor or an employee. Your employer or client, being a party to the contract is in the best position to determine whether or not you are an independent contractor. It is for this reason that the liability to determine your status is on your employer or client.”
SARS end the letter with the following paragraph “ You are therefore requested to approach your employer or client for a decision in this regard.”
We understand that SARS will in certain circumstances consider issuing a fixed percentage directive provided your status as an independent contractor is confirmed by your employer or client and they are given a copy of your contract.
Accordingly we must advise that there is nothing further we can do to assist in this regard and suggest that you take this matter up with the payroll officer/accountant of your client/employer and SARS directly.
FINTAX PE TRUST
RBW/05/03/2003
6 March, 2003
FOREIGN EXCHANGE AMNESTY AND ACCOMPANYING TAX TREATMENT
One of the most encouraging aspects of the recent budget was the abovementioned amnesty that was proposed.
Having had a good look at the proposals, as set out in the budget review, this is an amnesty for those who could be affected by the above, to sit up and take note of. Full details of the amnesty will be made available during March and April of this year and as soon as we are able to get a copy of the relevant legislation, we will prepare a detailed note in this regard setting out exactly what it covers and what the benefits are and how we can assist clients in applying for the relevant amnesty. One aspect that is clear is that all your taxation affairs must be correct and up to date including your 2003 tax return before applying for the amnesty. Therefore should you think that you may need apply for this amnesty start getting all your taxation affairs in order ASAP considering that all amnesty applications will need to be filed by 31 October 2003. In the meantime, we suggest you go to our website at www.fintaxpetrust.co.za click on “publications” and then again on the “2003 budget review” wherein we have set out the brief explanation currently supplied by SARS.
FINTAX PE TRUST
RBW/1 March/2003
6 March, 2003
HAPPY NEW TAX YEAR
HAPPY NEW TAX YEAR
The beginning of March brings with it the beginning of another new Tax year. We live in fast changing times in the Tax Profession with another hall of new laws been announced in the recent budget, some good and some not so good. Nevertheless we all need to keep on the correct side of “Uncle Trevor” and will need to keep up to date on all these and other changes that may be made. It is therefore VERY important for clients to read all our e-mails and visit our website www.fintaxpetrust.co.za regularly to keep abreast.
Remember that your tax affairs and ensuring that you comply with the various sections of the Tax Act remains YOUR responsibility and accordingly you need to be as informed as possible.
FINTAX PE TRUST
RBW/03/03/2003
3 March, 2003
2003 BUDGET -TAX PROPOSALS IN MORE DETAIL
We have downloaded a more detailed summary of the 2003 Budget proposals relating to Taxation matters under “Publications”. Click on “publications” on your left and scroll down to Budget 2003.
27 February, 2003
2003 BUDGET SUMMARY OF TAX PROPOSALS

BRIEF SUMMARY OF TAX PROPOSALS- 2003 BUDGET
The main tax proposals in this years budget presented in parliament today are as follows:
•R13,3 billion in personal income tax relief
•Interest income exemption raised to R10 000 for taxpayers under
age 65 and R15 000 for taxpayers aged 65 and over
•Reduction in the retirement fund tax from 25 per cent to
18 per cent
•Accelerated depreciation allowances for investment in
underdeveloped designated urban areas
•A foreign exchange control amnesty and accompanying tax
treatment is introduced aimed at encouraging repatriation of
illegally held foreign assets and broadening the tax base.
•Small business turnover threshold for lower company tax rate
increased to R5 million and an additional deduction for start-up
expenses of up to R20 000
•Further extensions to the list of public benefit organisations
qualifying for tax-deductible donations
•Removal of tax on foreign dividends from offshore subsidiaries
•Removal of excise duties on computers, and inflation-related
adjustments to excise duty formula on passenger vehicles
•Increases of between 10 and 11 per cent in taxes on alcoholic
beverages and tobacco products
•Increases in the general fuel levy by an average of 4,3c on petrol
and 4c on diesel, and a 3c a litre increase in the Road Accident
Fund levy.
Several measures to limit avoidance of tax are also proposed.
FINTAX PE TRUST
3.30pm 26 February 2003
RBW/Publications
26 February, 2003
PROMOTION OF ACCESS TO INFORMATION ACT
The above Act regulates the right of access to information held by ANY PRIVATE BODY and the procedures on how the information is to be requested.
A “ PRIVATE BODY” is very widely defined and covers any trade, business or profession whether it be a Natural Person, Close Corporation, Company or Trust.
Therefore if you own your own business or practice as a professional this ACT will apply to you no matter how big or small your business and you need to comply with various mandatory obligations.
In a nutshell you will need to compile a business manual listing certain prescribed information, appoint a person (i.e. yourself) to deal with this matter and publish the manual in the Government Gazette and on your website ( if you have one). In addition a copy will need to be lodged with the Human Rights Commission and in the event that you are a practicing professional with your controlling body.
This business manual must also be available for public inspection during office hours and upon request.
Strictly according to the Act you are required to comply with all these obligations BEFORE the 28 February 2003, but contrary to media reports there is no imprisonment of up to two years in terms of the South African Human Rights Commission Act and reference to “huge fines” and “fines up to R10 million “ is speculative, as only a court of law will decide on this (extract from Press Statement issued by SA Human Rights Commission 13 February 2003). However, failure to comply to the ACT could result in a High Court Order against your business and it is a criminal offence to deny the right to access to information (i.e. your manual), thus we strongly recommend you comply with this Act and prepare the required manual.
We are currently investigating exactly what should be in this manual and what the costs are as relates to the publication in the Government Gazette and the Human Rights Commission and hope to be able to assist you in this regard shortly. At a first glance the information required does not appear to be that detailed and we are investigating avenues for our clients to comply with the Act at the lowest possible cost with the least amount of hassle.
We will follow this up with a second detailed e-mail/article shortly and would request that you wait until after that notice before you contact us should you require us to assist you in this regard.
FINTAX PE TRUST
20 February, 2003
CREDIT CARD PAYMENTS / OUTSTANDING ACCOUNTS OWING TO FINTAX PE TRUST
Dear Client 11 February 2003
Due to popular demand by our clients we have now signed up with a credit card merchant and are able to receive payment of fees by way of credit card.
We would also like to take this opportunity to remind our clients that all our accounts are payable on statement date and interest will be charged on overdue accounts. We really appreciate all those clients who do settle their accounts timeously.
Being a credit card merchant we are able to receive instructions for payment of accounts over the phone and in this regard we request that you call Colleen, in our Accounts Department, who can assist you in this regard.
Yours faithfully
FINTAX PE TRUST
11 February, 2003
2ND 2003 PROVISIONAL PAYMENTS - DUE 28 FEBRUARY 2003
Letters notifying all clients of their 2nd 2003 Provisional Tax liabilities will be posted this week. Please ensure the following:
· Cheques need to be made out to South African Revenue Services and dated
28 February 2003.
· All cheques to be delivered to our office by no later than Friday 21 February 2003 in order for the necessary administration to be processed.
· Please ensure cheque details are correctly completed by yourself, as Fintax staff cannot be held responsible for any cheque errors.
· Please note that Fintax may not accept cash payments. Cash payments are to be made directly to the SARS office together with your original IRP6 form, which may be collected from our offices. The same applies for cheque payments made directly to the SARS office.
Kindly notify Fintax PE Trust if payments are made directly to SARS office, in order for us to process these payments on our system.
· Should any clients not be in agreement with our figures, please contact our office before 19 February 2003.
· SARS have indicated that they will allow a maximum of 3 months for deferred payments should you require to split your payments (Interest will be charged by SARS). Only WRITTEN REQUESTS (fax or e-mail) requesting split payments will be accepted by NO LATER THAN 19 February 2003.
NO DEFERRED REQUESTS WILL BE PROCESSED AFTER THE 19 FEBRUARY 2003
Sean’s clients to:
Royden’s clients to:
Minette’s / Ursula’s clients to:
7 February, 2003
TAX DIRECTIVES - CONTRACTORS / COMMISSION EARNERS
Please note that all contractors / commission earners must apply for a NEW Tax Deduction Directive at the beginning of each tax year. All clients who require assistance with their directives for the 2004 tax year (ie. from 1 March 2003) must please advise us in writing or e-mail before the 24 January 2003.
Following information will be required:
NAME OF CONTRACTOR / COMMISSION EARNER
TEL NUMBER
NAME OF EMPLOYER
CONTACT NAME AT EMPLOYER
TEL NUMBER
PHYSICAL ADDRESS
POSTAL ADDRESS
COMPANY PAYE NUMBER
9 January, 2003
CAPITAL GAINS TAX – BUSINESS VALUATIONS

As explained in previous correspondence on Capital Gains Tax, all persons who own their own businesses, and this includes professionals in private practice, have to have their businesses valued as at an effective date 1st October 2001. These valuations have to have been concluded by no later than 30th September 2003. The valuation of your business is of utmost importance as should you dispose of your business in the future Capital Gains Tax will be payable on the goodwill value of your business. In most instances your business will already have a considerable amount of goodwill value as at the 1st October 2001, hence the reason why it is imperative that a valuation of the business be determined.
We are in the process of finalizing all the 2002 Financial Statements which is the ideal opportunity in order to start attending to these valuations. We intend to start preparing these Valuation Reports from November this year and accordingly would appreciate it if clients wishing us to assist in this regard could please start forwarding instructions to ourselves over the next two months (please e-mail or fax confirmation that you would like us to proceed). We will start preparing these valuation reports on a first come, first serve, basis.
28 October, 2002
SALE OF TRUSTS, CLOSE CORPORATION AND COMPANIES

The recent draft Tax Bill that has been released for public comment has made some significant changes to the Transfer Duty Act, specifically with regard to the sale of a share, member’s interest or beneficial interest in a company, close corporation or trust. In the past persons have avoided the payment of transfer duty, by transferring ownership of the trust, company or close corporation to the new buyer. Amendments have been proposed whereby the transactions mentioned above will, in future, be subject to transfer duty.
The proposed amendments are far reaching and it appears as though a slight change to the Trust Deed, whether it be removing or appointing additional trustees and/or beneficiaries, could trigger the liability for transfer duty should that trust own fixed property.
This is only a draft bill at this point in time but it is expected that these changes will be passed and will become effective. Accordingly any clients currently looking into the acquisition of a close corporation, company or trust in order to take ownership of fixed property, should seek assistance or advice in this regard as soon as possible.
21 October, 2002
FRINGE BENEFITS AND VAT
FRINGE BENEFITS
Where a director or an employee enjoys a fringe benefit arising from employment, output tax must be declared on the fringe benefit. For motor cars. the amount that must be declared is 0,3% of the price of the motor car excluding VAT, multiplied by 14/114. Where the vehicle is not a motor car, e.g. a bakkie or motor cycle, the percentage that must be used is 0, 6 % and not 0, 3 %.
Example:
An employer provides a company car that costs
R1 14 000 including VAT to an employee. Output tax is calculated as follows:
First, calculate the price of the car excluding VAT.
R 114 000 - (R114 000 x 14/114) = R100 000.
Then calculate the amount of output tax:
0,3 % x R100 000 x 14/114 = R36,84
Please note. this amount is per month. If the vehicle is a motor cycle, bakkie or delivery vehicle, the calculation would be:
0, 6 % x R100 000 x 14/114 = R 73,68
VAT auditors have found many omissions in this regard and vendors should ensure that under-declarations are rectified.
(EXTRACT FROM SARS VAT NEWS)
7 October, 2002
NOTIONAL INPUT TAX CLAIMED BY MOTOR DEALERS ON SECOND-HAND MOTOR VEHICLES
Motor dealers often purchase second-hand motor cars and other vehicles from private owners (non-vendors) or accept trade-in of such vehicles. Motor dealers also acquire “motor cars” as defined in section 1 of the Act from persons registered for VAT (vendors). VAT vendors (except motor dealers, motor manufacturers and car rental businesses) cannot claim input tax on “motor cars”, and may therefore not charge VAT when they sell these “motor cars”.
For VAT purposes the term “motor car” includes a motorcar, station wagon, minibus, double cab, light delivery vehicle and any other vehicle of a kind normally used on public roads, which has three or more wheels and is constructed or adapted wholly or mainly for the carriage of passengers...”.
Where a dealer buys “second-hand goods” as defined in the VAT Act from a person who is resident in South Africa,he is entitled to claim a notional input tax by applying the tax fraction (14/114) to either:
- the amount paid for the second-hand vehicle, or
-the amount given by way of a trade-in.
A motor dealer may not claim a notional input tax deduction unless he has obtained and kept the following:
• A declaration by the person selling or trading-in the motor vehicle stating whether the supply is a taxable supply for VAT purposes or not.
• The name, address and identity number of the person selling or trading-in the motor vehicle and, if the price is more than R1000, a copy of the seller’s identity document.
• The date the motor vehicle is bought or taken in as
a trade-in by the motor dealer.
• A description (including registration details, chassis and engine numbers and vehicle identification number [VIN]) of the motor vehicle.
• The amount paid for the motor vehicle or the value given as a trade-in by the motor dealer.
• Proof of the payment made by the motor dealer for the motor vehicle or proof of the reduction of the purchase price by the trade-in value relating to the trade-in.
Note: If the purchase from a vendor is a taxable supply (e.g. another motor dealer or a car-hire business),the seller must levy VAT and furnish the motor dealer with a tax invoice.
The above requirements have been in effect since
29 June 1998 but it has been found that many motor dealers are not complying with these requirements. From October 2002 SARS auditors will be visiting motor dealers to ensure compliance. Motor dealers who have not complied were given a period of 3 months commencing 1 July 2002, to obtain the necessary records. Failure to comply may result in input tax being disallowed and additional tax, penalties and interest being imposed.
Where a commercial vehicle is bought from a vendor, input tax may be claimed only on the strength of a tax invoice furnished by the vendor. The motor dealer may not issue a tax invoice on behalf of the seller. (TAKEN FROM SARS VAT NEWS)
7 October, 2002
CIPRO AND ITS AFFECT ON COMPANY AND CLOSE CORPORATION REGISTRATIONS:
Our problems, especially that of time delays, in the past, in dealing with the Registrar of Companies office in Pretoria are hopefully something of the past with the creation of CIPRO (Companies & Intellectual Property Registration Office). CIPRO is the result of the merger of two former directorates of the Department of Trade and Industries – SACRO (South African Companies Registration Office) and SAPTO (South African Patents & Trademarks Office) with effect from the 1st March 2002, into a single efficient and customer driven business agency called CIPRO.
CIPRO is made up of a Board, a CEO and two major divisions being the Companies and Close Corporations Office and the Intellectual Property Registration Office.
The basic changes affecting persons wishing to register a close corporation or company will be that such registration will have to take place through one of CIPRO’s registered agents. Fintax is in the process of registering as such agent, and as such should be able to offer a far more efficient and expedient service in all matters relating to companies and close corporations.
The main advantage of the abovementioned changes is that all registration details will be available online on CIPRO’s official website at www.cipro.gov.za.
Instead of two copies being required in respect of CK1 and CK2 registrations, only one copy is now required. An applicant will no longer receive a stamped copy of the form confirming registration, but will now receive a certificate confirming all the registration details. The certificate could be emailed to applicants immediately on registration and the contents thereof could be verified by banks and other interested parties by simply viewing the registration details online on the CIPRO website.
A special 24-hour processing service has been introduced whereby one could have urgent matters attended to. However, the fee for such would be significantly higher than the fee for routine registrations. This special service would drastically reduce the need for the creation of shelf companies and close corporations.
Other changes introduced by CIPRO are:
· revenue stamps will no longer be required on company and close corporations forms – such stamps will be replaced by an appropriate way of collection by CIPRO from its registered agents;
· name reservations will also be capable of being done online with payment of a fee for such being levied to the registered agent;
· only one copy of CK1 and CK2 forms will be necessary. (The requirement to use specified colours on certain forms will fall away with all forms being printed out on white paper);
· all information regarding the status of document processing is available in the processing bulletin on the CIPRO website.
CIPRO has confirmed that the computer literacy amongst its staff is at a high level and that staff members have been adequately trained. Structures have also been put in place to identify where delays are occurring so that management could be made aware of such delays and have them addressed. One of CIPRO’s aims is the reduction of the loss of documents and forms submitted under the “old” system, and through its online application, to have a better control and follow-up process which is more client friendly and easily accessible. For this reason, a call center has been established to assist clients with any queries that may arise. There will be twenty call center agents who would have access to twelve back office staff, for more complex matters which may need to be queried or discussed.
More Details
Contact
ADV Linda Kennedy
Legal Dept
Fintax PE Trust
9 September, 2002
Independent Contractors and Skills Development Levies
The general rule is that independent contractor’s fees are to be brought into the calculation for Skills Development levies. The reason for this is the lack of clarity at present as to the distinction between the term “employee” and “independent contractor” as set out below:
The proposed amendments to the Labour legislation give particular reference to the concept “employee”. To date, there remains considerable debate as to when an individual is an employee and when an independent contractor.
The common practice today is for employers to attempt to circumvent the employment relationship (service contract) and to place the working relationship within the realm of a contractual relationship (contract of work). The reason for this is often an attempt to avoid tax payments.
The Labour Relations Act, 1995, as amended, has nothing in its “employee” definition which clearly distinguishes an employee from an independent contractor. As the Basic Conditions of Employment Act, 1997, also contains no clear distinction between an employee and an independent contractor, our courts have adopted, and consistently apply one main test in this regard – the Dominant Impression Test. In essence, this test looks at both the form (the contract) and the substance (practical applications of the contract) of the relationship and thereby assesses the true nature of the relationship.
The legislators have however, stated that this matter should be clarified through legislation. The proposed amendments seek to create a presumption in law that all working relationships are employment relationships if one or more of the following factors are present:
- that the company exercises control over the individual in respect of the hours of work and/or the manner in which the work is to be done;
- the individual forms a part of the organization;
- the individual is economically dependent on the company;
- the company pays the individual at regular intervals;
- the individual only carries out work for one company.
The burden of discharging the presumption rests entirely on the company. Thus, the intention of the proposed amendments is to presume the working relationship is an employment relationship unless proven otherwise. Therefore, the only way in which Skills Development levies would not be payable in respect of an independent contractor, would be where none of the above factors are present in the working relationship.
These amendments will conform well with the already amended regulations to the Income Tax Act.
20 August, 2002
TRANSFER OF RESIDENTIAL PROPERTIES OUT OF COMPANIES AND/OR TRUSTS
We refer to all the previous correspondence with regard to Capital Gains Tax, with specific reference to those persons whose residential properties are currently owned in trusts and/or companies. SARS has recently issued a Practice Note in this regard clearly setting out what transfers of properties will be exempt from transfer duty should an individual wish to transfer his house out of a Trust or Close Corporation into his own name.
This is just a friendly reminder to those of you who are considering the above, to firstly ensure that you will qualify for the exemption, and then secondly, that the property must be acquired by the individual before 30 September 2002 and registered in your name by 31 March 2003. In simple terms, the documentation required in order to transfer the property from the Trust’s or CC’s name onto your own name has to be concluded by the end of September 2002 (i.e. in two months’ time) and the actual transfer into your name has to be registered at the Deeds Office by the 31st March 2003.
6 August, 2002
New Application Process for Tax Clearance Certificate in Respect of Foreign Investment Allowance

Pretoria, August 04, 2002 - The South African Revenue Service (SARS) has substantially amended the process of issuing the Tax Clearance Certificates in respect of the Foreign Investment Allowance. These changes became necessary in the light of abuses that were identified in the old process.
Effective from Monday, 05 August 2002, the following important changes will be implemented:
The taxpayer must apply only at the SARS Branch Office where he/she is registered for Income Tax purposes.
The tax clearance certificate will no longer be given to taxpayers. SARS will now send the certificate directly to the Paying Bank / Authorised Dealer handling the actual transfer / investment of the funds as per the application form. The taxpayer will be notified of this fact by way of a letter.
The tax clearance certificate may be faxed directly to the Paying Bank / Authorised Dealer, and the original will thereafter be posted. The Paying Bank / Authorised Dealer may directly collect the certificate from the SARS office.
Every attempt will be made to issue the tax clearance certificate within a period of five (5) working days, unless the application has been referred to the Audit or Special Investigation Sections, whereupon it can take longer. In the latter case, the taxpayer will be notified in writing.
Effective from 05 August 2002, the following new application forms for Tax Clearance Certificate in respect of Foreign Investment Allowances will be utilised:
Application form number FIA 001 is the new application form for any lump sum amount including annualised amount in excess of R30 000, in respect of recurring premiums.
Application form number FIA 002 is the new application form for annualised amount of less than R30 000, only in respect of recurring premiums,
Form FIA 003 is the new format of the Tax Clearance Certificate in respect of Foreign Investment Allowances to be issued by SARS.
The new application forms - FIA 001 and FIA 002 - are available on the SARS website (www.sars.gov.za ) and may also be obtained from any SARS Branch Office.
ISSUED BY: The Commissioner for the South African Revenue Service
P.O. Box 402
PRETORIA
0001
4 August 2002
For inquiries, contact Fani Zulu (082 451 0457)
6 August, 2002
OVERSEAS INVESTMENTS NEW LEGISLATION
Income Tax: Amendment of section 78 of the Income Tax Act, 1962
The Minister of Finance proposed in his Budget Review this year that where any taxpayer does not account properly for assets outside the Republic, an amount of deemed foreign income will be subject to income tax. Therefore, failure to report foreign assets adequately will result in the inclusion in taxable income of a deemed amount of income based on the undisclosed foreign assets.
In terms of section 78 of the Income Tax Act, 1962, the Commissioner may estimate either in whole or in part the taxable income of a person where that person makes default in rendering a return or information or where the Commissioner is not satisfied with the return or information furnished by that person.
In order to give effect to the proposal of the Minister, it is proposed tht section 78 be extended to provide that where the Commissioner has reason to believe that a resident has not declared or accounted for any funds held in foreign currency or assets owned outside the Republic or where the income or capital gains from any funds in foreign currency or assets outside the Republic could be attributed to that resident in terms of section 7 or Part X of Eighth Schedule, the Commissioner must estimate the amount of foreign currency of such funds or the market value of such assets. The Commissioner may estimate the value after taking into account any information at his or her disposal which includes information relating to –
· any funds or assets transferred by that resident from the Republic;
· any amount received by or accrued to that resident from any source outside the Republic; or
· the period that has elapsed since those funds or assets were transferred, or amount was received or accrued.
This estimated amount shall be a percentage of the estimated value of those funds or assets, which shall be determined by applying the “official rate of interest” as contemplated in the Seventh Schedule to the estimated value of those funds or assets. The Commissioner may, however, estimate a higher amount of income in terms of the general provisions of section 78.
The amount so estimated in foreign currency must be translated to the currency of the Republic on the last day of the year of assessment by applying the ruling exchange rate on that date in order to determine the deemed amount of taxable income. Any amount of deemed income so estimated must be taken into account by the Commissioner in estimating the deemed amount of funds or assets owned offshore during any succeeding year in which such funds or assets are not declared or accounted for. Any such estimation shall be subject o objection and appeal.
This amendment will come into operation on 1 January 2002 and will apply in respect of any funds held in foreign currency or assets owned offshore which are not declared or accounted for in any return submitted in respect of any year of assessment ending on or after that date.
Example
The South African resident submits his 2003 tax return and discloses no foreign assets.
The Commissioner has information as his disposal that the individual has-
· transferred 0 000 or R750 000 from South African for foreign investment purposes at the end of the 2001 tax year.
· Invested 000 with a foreign portfolio manager while working on contract in New Your for 4 months until February 2002; and
· Changed the registration of his light aircraft from a South African to a Botswana registration in 2001 before commencing charter operations in Botswana.
The taxpayer fails to account for foreign assets after a request by the Commissioner to complete the sections of the tax return dealing with foreign assets and liabilities.
Estimated value of foreign currency
In terms of section 78(1A) the Commissioner estimates the value of foreign currency owned by the taxpayer on 28 February 2003 as follows:
· foreign investment of 0 000 increased by the official rate of interest
for the tax year 2001/2 (0 000 x 1.13) = 3 000
· investment with foreign portfolio manager = 000
· the 2001 market value of the specific make of aircraft is 000 and had not decreased by February 2003
Estimated taxable income
In accordance with section 78(1B) the Commissioner estimates an amount of taxable income derived from the above funds and other assets
(3 000 + 000 + 000) by applying the official rate of interest of 11.5% which applied for the full 2003 tax year.
Estimated taxable income = 3 000 x 0.115
= 945
Translation of taxable income
The amount of taxable income estimated in foreign currency is then translated to Rand on 28 February 2003 at the ruling exchange rate of /R11
The amount of R307 395 is included in the taxable income of the taxpayer.
25 June, 2002
TAX IMPLICATION OF OVERSEAS INVESTMENTS
In his budget speech, delivered on 23 February 2000 the Minister of Finance announced that the tax system was to be changed from one based on source to one based on residence, as from 1 January 2001.
Accordingly an individual who has a February year end will be taxed on a residence basis from 1 March 2001. (i.e. the 2002 Tax Year).
Should a South African “resident” taxpayer have invested money overseas either in his own name or that of a Trust or company in nearly all circumstances the income and Capital Gains on those investments made/funded by the South African “resident” will be subject to Tax in his hands in South Africa.
Accordingly should the above apply to you we strongly suggest you e-mail us a request for more details re your Tax obligations to ensure you do not commit an offence by not reflecting your overseas income/interests.
Remember any taxpayer who knowingly and willfully makes any false statement in his return or evades or attempts to evade taxation and any person who assists a taxpayer to do so, is liable on conviction to a fine or to imprisonment for a period not exceeding two years. The taxpayer is, in addition, liable to be assessed and charged three times the amount of the tax which has been evaded.
19 June, 2002
RESIDENCY BASE TAX & CGT 2002 TAX RETURNS
INCOME TAX RETURNS AND FINANCIAL STATEMENTS
All clients should by now have received notification from ourselves that the 2002 tax year came to an end on 28 February 2002 and hopefully forwarded all relevant information to us. You will recall that we included a Schedule of Assets & Liabilities that we requested you complete, which is VERY IMPORTANT.
The reason for this e-mail is to give you some background as to why the assets and liabilities is important, as well as to give you some background on the new Residency Base Taxation. As you probably gathered by now, SARS are palming off the responsibility for the collection of taxes from themselves to the individual taxpayers bringing in new sophisticated tax law enabling them to penalize and take legal action against taxpayers who are not fully familiar with the taxation legislation or do not disclose all their specific information to Revenue on an annual basis in their tax returns.
Accordingly, it is imperative that the information you provided to us in order to assist with the completion and submission of your relevant income tax return is as COMPREHENSIVE and ACCURATE as possible. This will ensure that all the correct information and disclosure of income is made to Revenue and ensure that SARS do not have the ability to go back to past history due to the non disclosure of certain information.
CAPITAL GAINS TAX
With the recent introduction of capital gains tax, the recording of certain costs and expenses as relates to capital assets is now of utmost importance due to the fact that should you not carefully record all the capital expenses relating to your capital assets, when you dispose of those assets in the future you will end up paying unnecessary capital gains tax i.e. your capital gain will be unrealistically inflated.
It is now not only imperative that all information as relates to your income and expenditure is provided, but also full details of all capital assets acquired and/or investments made. Remember capital gains tax does not only apply to fixed property. It also applies to all investments such as unit trust, share acquisitions, fixed properties, equity funds both locally and off shore, time share and any other capital assets that previously did not form part of the income tax regime. Therefore, every time you increase your contributions towards any of the abovementioned assets, it is imperative that we are aware of that so that we can increase the cost of that investment. For example, should you acquire R 100 000 worth of unit trust on a once off payment and we pick this up but you continue to make contributions on a monthly basis via some private account or even in the form of cash and you do not notify us, that investment asset which could have an actual cost to you after five years of R 150 000 would still be reflected in your books at R 100 000 thereby rendering a R 50 000 increase in capital gain when the asset is ultimately sold.
With this in mind, it is imperative that your bookkeepers are fully au fait with this situation and that they clearly indicate all expenses incurred by yourself or your business via whatever account or in whatever form in order that it can be either allocated to an income tax expense deduction, a capital asset or a consumption drawing. It is also imperative that any payments towards a unit trust fund that may go off your personal account where the actual unit trust investment is the name of the trust, is clearly distinguishable and details are provided to us so that the relevant adjustments can be made to the trust’s financial statements increasing the investment via a loan account from the individual.
RESIDENCY BASE TAXATION
With effect from 1 March 2001 the Residency Base taxation came into effect in South Africa making taxpayers liable to tax on their world wide income. Accordingly, all income generated overseas on behalf of any resident taxpayer needs to be disclosed, whether that income is actually remitted into South Africa or not. This applies to any investments that may be in the name of an overseas trust where the trust was funded by a South African resident. So, for example, should you have invested R500000 overseas, loaned it to an overseas trust who, in its name, made an investment in a bank then the interest that the trust earns would be deemed to be taxable in your hands due to the fact that it was your funds that were loaned to the off shore trust.
Accordingly, it is imperative that we are advised of all international investments and that you contact the various brokers/investment advisers that may have assisted you in this regard in order to obtain as much information with regard to income generated from those investments in order that they may be disclosed properly on your relevant income tax returns.
10 June, 2002
WORKMEN’S COMPENSATION

This is just a reminder that all persons who employ one or more employees in connection with their business or farming activities are required to register and pay annual assessments to the Compensation Fund. These amounts may not be reimbursed from employees. A separate registration is necessary for each separate branch of a business unless an arrangement for a combined registration has been made.
For any information that you may require with regard to the Compensation Fund you may visit their website at www.wcomp.gov.za or contact them on telephone 0123-199111.
10 June, 2002
SPECIAL TRUSTS(PHYSICAL DISABILITY)

Most of our clients are aware of the benefits of a normal trust and have been utilizing a trust either in estate planning, asset protection or whatever over the last couple of years.
However, SARS have tightened up on the taxation of trusts to the extent that trusts are now taxed at a flat rate of 40% on all their retained income with effect from the 2003 tax year. However, one aspect that has been introduced over the last couple of years is the aspect of a special trust. A special trust means a trust created solely for the benefit of a person who suffers from
(i) any mental illness as defined in Section 1 of the Mental Health Act, or
(ii) any serious physical disability, where such illness or disability incapacitates such person from earning sufficient income for the maintenance of such person or from managing his or her own financial affairs, provided that where the person for whose benefit the trust was do created dies, such trust shall be deemed not to be a special trust in respect of years of assessment any or after the date of such person’s death.
Should a trust be created for a person as referred to above, the advantage is that the special trust is taxed at the same tax tables as applies to an individual (tax rates start at 18% and escalate up to 40 % on incomes above R 240 000). Accordingly, a special trust could enjoy substantial tax saving opportunities. Only 25% of any capital gain of a special trust will be included as taxable income in a special trust’s hands as opposed to 50% in a normal trust. Accordingly, should you have a family member who falls into any one of the definitions referred to above, it is imperative that you contact us in order that we may determine whether the formation of a special trust could have significant benefits for you and your family.
10 June, 2002
Small Business Entity/Corporation
Should you trade via a Close Corporation or Company (not a Trust) and should your turnover fall below R3 million a year you could fall into the definition of a SBE and enjoy the benefit of the first R150 000 of your taxable income being taxed at only 15%. Additional wear and tear write offs can also be enjoyed. To determine whether your CC falls into this category please visit our website at www.fintaxpetrust.co.za click on “Publications” and then “Small Business Entity Definition” or give us a call.
19 March, 2002
BASIC GUIDE TO THE OPERATION/FORMALITIES OF YOUR CC/TRUST
Please click on PUBLICATIONS for a guide on the formalities that you need to be aware of should you be trading via a CC or a Trust.
15 March, 2002
SKILLS DEVELOPMENT LEVY - MEMBERS OF CCs
Most companies employing staff should be registered for this new Skills Development Levy and should have been paying it over on a monthly basis. In the past there was an exemption that remuneration earned by directors of companies and members of close corporations were not subject to this Skills Development levy. However, with effect from 1 March 2002 as a result of the amendment to the 4th Schedule of the Income Tax Act making remuneration paid to directors of companies and members of close corporations being subject to employers tax, their remuneration will also be subject to the Skills Development levy and it is imperative that all clients with effect from the end of March 2002, pay over a Skills Development levy on the remuneration earned by members and directors.
15 March, 2002
VAT 201 RETURNS
Please be advised that it is imperative that all Vat registered clients who complete Vat 201 Returns on a bi-monthly or monthly basis keep copies of the actual returns that are completed and submitted to Revenue, as we require these at the end of every financial year. In the past we have been successful in getting copies of these from Revenue where clients have not made copies, but it appears as though Revenue have taken the decision of not providing this information in the future. This makes Vat Recons basically impossible making it very difficult for us to advise whether your turnover, per income statement, reconciles with the Vat 201 Return submitted.
13 March, 2002
DEPRECIATION WRITE-OFF
As per our Budget 2002 Tax Summary, those that have read it will have noted that the depreciation write-off for goods under R 1 000 has been increased to R 2 000 with effect from 1 March 2002. What this, means is that any capital item purchased that costs R 2 000 or less can be written off in full in the year that it is acquired and does not have to be capitalized and written off over five years.
Accordingly, it is imperative that when acquiring capital assets under R 2 000 that these be acquired one at a time. In other words do not acquire two or three items and pay for them by one cheque because your accountant and/or bookkeeper would then capitalize this item and write-off over five years when, in fact, it is made up of a couple of items under R 2 000. Therefore, when a couple of items under R 2 000 are acquired together and paid for under one cheque that your bookkeeper clearly allocates each acquisition separately and not as one joint acquisition.
8 March, 2002
Happy New "Tax" Year
2002 REQUIREMENTS
IMPORTANT NOTE : READ CAREFULLY
Dear Client 1 March 2002
RE: 2002 TAX RETURNS
As you are no doubt aware, the 2002 tax year came to an end on 29 February 2002 and we will soon be requiring all your relevant information to complete and submit your IT12/IT14 income tax returns.
To give you time to gather the relevant information we will, on your behalf, attempt to arrange for an extension for the submission of your returns to the South African Revenue Services until October 2002. However, Revenue will NOT grant our extention for your 2002 (or Past Years) tax return should your 2001 returns not have been submitted or should you have any outstanding Tax liabilities. Please note the onus for submission of returns to the South African Revenue Services still rests with you, the taxpayer. As Revenue are no longer prepared to grant extensions for indefinite periods it is of VITAL importance that as soon as you have gathered the information for the 2001 tax year, it be submitted to ourselves to enable us to finalise the 2002 income tax returns before the end of May this year.
PLEASE REMEMBER THAT EACH TRUST AND CLOSE CORPORATION IS A SEPARATE TAXPAYER AND SEPARATE RETURNS NEED TO BE SUBMITTED.
Please bear in mind that should your net taxable income exceed R 50 000 for the year a third topping up provisional payment is required before the end of September and accordingly we will require your information by no later than 20 June this year. Information submitted late could result in us being unable to finalise your financials on time.
For a Guide on the type of information we will be requiring please click on YEAR END GUIDE
1 March, 2002
MEMBERS / DIRECTORS / TRUST FEES NOW FALL INTO PAYE NET
MEMBERS / DIRECTORS / TRUST FEES NOW FALL INTO PAYE NET
The national Assembly has unanimously approved draft legislation to bring the taxation of Members/Directors/Trustees in line with that of employees.
The bill provides that Members of Close Corporations and Directors of Private Companies will become subject to pay-as-you-earn PAYE) on their monthly salaries/drawings and other remuneration (This will also effect Trustees of Trusts).
In the past only provisional tax was paid every six months and will have a major cash flow effect for these persons. This amendment will come into effect from the 1 March 2000 (i.e. first PAYE payment will be 31 March 2002). These persons will have to remain as Provisional Taxpayers making an adjustment for the PAYE paid during the period.
Accordingly all clients who will be affected by the above and who need assistance with the above please contact the partner handling your affairs by e-mailing them at their address below by no later than the 12th March 2002.
Please note this does not affect persons who practice / trade in their own names (i.e.: self employed doctors).
E-Mail Addresses:
Royden Whitfield :
Sean McQuaide :
Minette Nesbit :
1 March, 2002
Budget Tax Proposals Summary
BUDGET TAX PROPOSALS SUMMARY
Minister Manuel delivered his budget yesterday, which had both good and bad news. It seems as if the good news again outweighed the bad, especially if one considers that there were NO NEW TAXES introduced this year. After having to digest a barrage of new taxes (Personal Services Entities, CGT, Non-Residents tax. etc) over the last few years this comes as a welcome relief.
What follows is a summary of the tax proposals, which I think you would find interesting:
1. The income tax threshold has been increased from R23000 to R27000, effectively meaning people earning R27000 or less a year pay no tax.
2. The maximum marginal tax rate has been decreased from 42% to 40%.
3. There has been significant personal income tax rate bracket adjustments, for example a person earning R58000 a year will now pay R980 a year less tax and a person earning R100000 a year will pay R4180 a year less tax.
4. The first R6000 of interest earned by taxpayers under 65 will now be tax-free and the first R10000 for taxpayers over 65 will be tax-free. However, only the first R1000 of overseas interest/dividends will be tax-free.
5. Certain depreciation deductions have been improved for the benefit of taxpayers and all assets costing R2000 or less can be written-off in full in the year of acquisition.
6. The tax benefits of Small Business Corporations have been extended and is an area that small business should take advantage of.
7. Slight changes to Medical expense deductions have been made.
8. Donations free of donations tax have been increased from R25000 to R30000.
9. Tax-free awards for long service and bravery have been increased from R2000 to R5000.
10. Estate Duty exemption has been increased from R1 Mill. to R1,5 Mill.
11. Slight increases in exemptions for bursaries have been made.
12. The R150 a day subsistence allowance has been scrapped.
13. Trusts will now pay a flat tax rate of 40% on all retained income (previously 32% on the first R10000 and 42% on income above R100000).
14. Salaried earners who have been allowed certain deductions in the past will find that some of these deductions will not be allowed in the future.
IN THE PIPE LINE
Certain proposals are being investigated / researched by SARS and could be introduced late in the year or in the future and includes the following:
· Reducing the compliance burden for small businesses
· Simplifying the tax forms and reducing the number of returns that must be filed
· A Vat retail method for small businesses is being investigated
· The introduction of more frequent provisional tax payments
· Additional tax penalty (Section 76) on taxpayers defaulting on submitting statements of assets and liabilities
· Review of penalty provisions and the application thereof
· Amendments to the taxation laws to include legislation in terms of substantive tax law and tax administration that prevents tax fraud, evasion and avoidance
Kind Regards
ROYDEN WHITFIELD
15 February, 2002
Tax admin fee

RE : ANNUAL TAX ADMIN BILL
Our Annual Tax Admin Charge, billed in January of each year covers your ENTIRE group of active income tax entities and covers the following:
1) The completion and submission of both August & February IRP6 PROVISIONAL TAX RETURNS for the calendar year FOR ALL your active entities (ie Mr, Mrs all Trusts, CC etc).
This entails - 1. Receipting all the IRP 6 Returns
2. Obtaining duplicates if not issued or sent to another address
3. Checking the Last Taxable income and relevant calculations
4. Discussing the payment requiremts with clients if need be.
5. Sending letters notifying clients of amounts to be paid
6. Collecting the relevant payments from clients (including certain follow-ups)
7. Capturing all of the above procedures and payments on our computer system (now vital due to SARS misallocations)
8. Hand delivering the payments and returns to SARS on the due date.
2) The obtaining of an extension for the submission for the IT12 or IT14 income tax return from the South African Revenue Services until October of each year.
1. This is done for all your entities
2. Progress reports and re-submissions have to be made monthly to SARS
3) The receipting and checking of ALL YOUR IT34 Income Tax Assessments raised by SARS.
This entails - 1. Receipting of all the IT34 assessments from SARS
2. Checking to see if they are correct
3. Notifying SARS by way of a letter of any errors on the assessments
4. Requesting SARS to correct their errors
5. Notifying SARS Accounts Department to withhold collection procedures on incorrect assessments
6. Forwarding assessments to clients
7. Hand collecting refund cheques from Post Office
8. Notify client of refunds and arrange for their collection
9. Notify client of payment requirements and arrange for their cheque to be delivered to our office or forwarded to SARS
10. Hand delivery of payments and assessments to SARS on due date.
11. Reconcile SARS statement of accounts where necessary.
4) Computerised recording of all the transactions.
5) Incidental costs such as filing and storing of records and acting as registered and postal address for the South African Revenue Services.
Please direct all queries in this regard to Colleen on (041) 3743201 or e-mail her on
Yours faithfully
FINTAX PE TRUST
10 February, 2002
2nd provisional payments 2002
Letters notifying all clients of their 2ND 2002 Provisional Tax liabilities will be posted this week.
Please ensure the following:
· Cheques need to be made out to SARS and dated 28 FEBRUARY 2002.
· All cheques to be delivered to our office by no later than Friday 22nd FEBRUARY 2002 in order for the necessary administration to be processed.
· Please ensure that your cheque accompanies a copy of our provisional letter and is in a clearly marked envelope with the relevant secretary’s name.
· Should any clients not be in agreement with our figures, please contact our office before Friday 15th FEBRUARY 2002.
· SARS have indicated that they will allow a maximum of 3 months for deferred payments should you require to split your payments (Interest will be charged by SARS). Only WRITTEN REQUESTS (fax or e-mail) requesting split payments will be accepted by no later than Friday 15th FEBRUARY 2002.
· CASH PAYMENTS
Fintax PE Trust CANNOT accept cash for provisional payment(s), only cheques
will be accepted by our staff made payable to SARS.
· DIRECT PAYMENT
Clients to kindly avoid paying SARS offices directly as errors have occurred in the past where payments have been allocated incorrectly or not allocated at all. Kindly let our office have your cheque by the 22 February 2002.
Clients who choose to pay directly to the SARS office, contact our office and we will gladly fax your IRP6 form to you which must accompany your payment.
No SARS office will accept a payment without the IRP6 Form.
Also, kindly let our office have a receipt of your payment(s) as to keep our records updated.
· Please ensure cheque details are correctly completed by yourself as Fintax staff cannot be held responsible for any cheque errors.
Sean’s clients to:
Royden’s clients to:
Minette & Ursula’s clients to:
31 January, 2002
2002 tax directives
Please note that all contractors must apply for a NEW Tax Deduction Directive at the beginning of each tax year. All clients who require assistance with their directives for the 2003 tax years (ie. from 1 March 2002) must please advise us in writing or e-mail before
the 25 January 2002.
Following information will be required:
NAME OF CONTRACTOR
TEL NUMBER
NAME OF EMPLOYER
CONTACT NAME AT EMPLOYER
TELEPHONE NUMBER
PHYSICAL ADDRESS
POSTAL ADDRESS
COMPANY PAYE NUMBER
Kind Regards
FINTAX PE TRUST
18 January, 2002
Internet & other electronic payments
SARS is currently experiencing problems with taxpayers making payments through the Internet or other electronic methods and not supplying the correct or complete reference details.
If you effect payment through electronic means, please ensure that the correct reference is supplied to credit your tax account correctly. The reference is displayed on most SARS forms that can be used for submission of a payment. Refer to the payment portion of the return for the detail to be entered.
Please ensure that the first 19 digits (reference number, tax type and period) are entered in the field “Beneficiary reference” when payment is made.
If you are unsure whether your previous electronic payments were correctly credited to your account, please phone your local Receiver of Revenue with such payment details.
11 January, 2002
Fintax chat dec 2001
The December 2001 Fintax Chat has been posted under FINTAX CHAT on our website
www.fintaxpetrust.co.za
Regards
Fintax Pe Trust
26 November, 2001
Vat and rental cars
Just another reminder, that should you be away on business and hire a rental car from Avis or Budget etc., even though the company will be charging you Vat on the renal of that car, you will not be entitled to an input Vat claim on the expense of hiring the motor vehicle. Also do not forget that you CANNOT claim input Vat on local entertainment and office refreshment expenses.
20 November, 2001
Skills development levy
We are all a little unhappy about the 1% payroll deducted for a training levy but one can ensure one gets back more than you pay in and enhance staff skills in the process by:
1. Appoint a skills development facilitator to draw up a plan. This is compulsory and entitles you to 15% of what you pay in.
2. At the end of the first year, report on the implementation of your plan. This will entitle you to a refund of a further 50% (to be cut to 45% next year).
3. An employer can apply for two Seta allowances for an apprenticeship programme – one for the implementation and one to subsidise remuneration of apprentices, provided they were unemployed prior to the apprenticeship.
4. An employer can also claim for costs incurred to implement a skills programme.
5. Various other allowances can be applied, to total over 35% of your payment. Altogether, you can get back more than 100%.
For more details contact your Sector Education and Training Authority (SETA). Visit our website and click on “publications” and then on “SETA Contacts” for details of the various SETA’s and the respective phone numbers
16 November, 2001
Defaulting taxpayers
Most clients who read the paper have probably become aware of SARS new action of taking criminal proceedings against defaulting taxpayers. SARS did indicate quite sometime ago, that they were going to be moving towards this approach and it appears now that this was no idle threat. Accordingly, we cannot stress enough that you make sure that you keep on the right side of the taxman in that all matters are declared and reflected properly but also that your relevant returns are also SUBMITTED TIMEOUSLY. It is interesting to note that SARS has taken criminal action against taxpayers where their returns have merely been outstanding.
15 November, 2001
Vehicle logbooks - very important
We have on numerous occasions expressed the importance for clients, who are either in receipt of a car allowance or run their own businesses, to keep a logbook clearly indicating that portion of the kilometers traveled for the year that represents business and the portion that represents private. SARS have made it quite clear that they intend to peruse these log books closely. Should you not have kept an accurate logbook this could have disastrous effects with regard to the private portion add-back on motor vehicle expenses. In order to assist clients, we have prepared an example of the logbook required on our website which can be accessed at www.fintaxpetrust.co.za, click on the button on the left that indicates logbook and you will be able to download the example should you have the excel programme.
7 November, 2001
Competitions act - the amended law in a nut shell
LAST year’s Competition Second Amendment Act resulted in changes in four main areas:
· The jurisdiction of the Competition Act;
· The definition of a merger;
· Threshold levels and fee structures; and
· Procedures for lodging complaints or applications of exemption.
Some companies had tried to circumvent competition law by invoking sector-specific public regulations. The amendment has clarified this issue by granting the competition authorities jurisdiction over all industries. As a result, situations will arise where both the competition authorities and the sector regulators will have to be consulted – and the commission is currently negotiating agreements to clarify the manner in which their con-current jurisdiction will operate.
The most important amendment is likely to be the reduction in thresholds and lower fee structure. Here, considerable relief is offered by the amendment. The thresholds for compulsory notification have been pegged substantially higher. Whereas it was previously set at a level of R50m for the combined assets or turnover of the acquiring and target company, or R5m for the target company’s assets or turnover taken on their own, the amendment sets the new threshold for the intermediate mergers at combined assets or turnover of R200m and R30m in the case of turnover or asset value of the target firm alone.
The threshold for large mergers remains the same; however, small mergers below R200m don’t have to be notified.
In addition, the fees for intermediate mergers have been reduced from R125 000 to R75 000 and that for large mergers reduced from R500 000 to R250 000. Small mergers, even if voluntarily notified, pay no fee.
The result of these changes and the clarification in the definition of a merger is that there’s certainty as to what mergers must be notified and the workload of the commission is consequently reduced to the point where it can do its major job of zeroing in on deals that ought to be prohibited.
This will certainly improve response times on notifications.
1 November, 2001
Financial intellegence centre bill (anti-money laundering legislation)
Criminals and would-be terrorists who launder up to R8 billion a year through South Africa were put on notice that they faced one of the toughest detection systems in the world when the national assembly passed the Financial Intelligence Centre Bill in October.
Trevor Manual, the finance minister, warned this legislation would place extra obligations on banks, life assurance companies, foreign exchange dealers, casinos, estate agents and even Krugerrand and vehicle salesmen. They would have to get to know their clients, record suspicious transactions and report them to the new Financial Intelligence Centre (FIC).
Those who practiced money laundering or failed to report cases of if faced imprisonment of up to 15 years or a fine of up to R10 Million, “sending out a very clear message that we are serious about implementing an anti-money laundering regime in this country”, Manual said.
Based on international experience and thoroughly vetted by the finance and justice committees to prevent loopholes, the bill was “amongst the most comprehensive anti-money laundering legislation anywhere in the world and has given South Africa the means to combat all manner of money laundering activity”.
Manual said money laundering not only means processing money for criminal and other activities through the system so that it could not be traced, but also involved tax evasion.
1 November, 2001
Outstanding tax returns 2001 tax year - important notice
Please note that extensions for the submission of Tax Returns for the year ended 28 February 2001 will terminate shortly. Revenue will then be issuing final demands and fines of up to R4000 for late returns for these years. If you have not already submitted your 2001 information to us, we strongly suggest you get your details to us as soon as possible to avoid the abovementioned fines. If your return is Dormant, please send us a fax/letter/e-mail to this effect so we can submit the Return immediately. For those active entities, please visit our website at www.fintaxpetrust.co.za, click on Year End Guide for a list of information we require for active entities.
16 October, 2001
Capital gains tax - guide
As you are all aware Capital Gains Tax (CGT) was introduced on 1 October 2001. This is a very complex form of taxation and will affect most people. We have a 32 Page pocket size Guide on CGT which covers most of the important aspects of this tax which can be purchased for R30.00 by contacting Charmaine on (041) 3743201.
16 October, 2001
Latest on pps share contributions
I refer to our recent e-mail we sent out advising clients that certain share contributions to PPS would, from the 2001 year, be tax deductible.
We have recently received notification from PPS that this matter has not yet been finalized between themselves and SARS and accordingly no confirmation of the tax deductible portion will be issued within the foreseeable future. Accordingly, we cannot put all affected clients financials on hold until such time as these two parties come to an agreement and have taken the decision to continue drafting and finalizing all financials affected by the above in the meantime.
The various financials and tax computations will, accordingly, be calculated without deducting the above and when these two parties have come to an agreement and the certificates are issued, we will then forward the certificates to SARS under a separate letter requesting that they be taken into account. We must stress that the above is probably the most prudent route to follow and confirm that should these amounts be deductible you will still get the full deduction with regard to your taxable income albeit that it may be by way of a separate letter instead of calculated on your financial statements.
Yours faithfully
FINTAX PE TRUST
22 August, 2001
1st provisional payments 2002
Letters notifying all clients of their 1st 2002 Provisional Tax liabilities will be posted this week.
Please ensure the following:
· Cheques need to be made out to SARS and dated 31 August 2001.
· All cheques to be delivered to our office by no later than Monday 20th August 2001 in order for the necessary administration to be processed.
· Should any clients not be in agreement with our figures, please contact our office before Monday 20th August 2001.
· SARS have indicated that they will allow a maximum of 3 months for deferred payments should you require to split your payments (Interest will be charged by SARS). Only WRITTEN REQUESTS (fax or e-mail) requesting split payments will be accepted by no later than Monday 20th August 2001.
· Please ensure cheque details are correctly completed by yourself as Fintax staff cannot be held responsible for any cheque errors (below see New Cheque Ruling).
Sean’s clients to:
Royden’s clients to:
Minette’s clients to:
KINDLY NOTE THE NEW CHEQUE RULING
From 1 August 2001, ALL South African banks will no longer accept or process cheques which have been ALTERED IN ANY WAY or which carry any form of bank stamp, such as cheques that have PREVIOUSLY BEEN RETURNED UNPAID.
This ruling applied to cheques which have been legitimately altered and the changes signed by the account holder. In addition, cheques which are damaged in any way (such as those which have been torn or marked by coffee spills) will not be accepted.
The decision not to accept cheque alterations is an anti-fraud measure.
REGARDS
FINTAX PE TRUST
25 July, 2001
2000 tax returns (ie last year)
Extensions granted by the Receiver of Revenue for the submission of tax returns for the year ended 28 February 2000 ran out recently. Fines of up to R4000 can now be imposed by the Receiver of Revenue on returns submitted late. Accordingly all clients who have still not submitted their information to us for the tax year ended 28 February 2000 (1/3/99 – 28/2/2000) had better do so ASAP to avoid LEGAL ACTION by SARS.
FINTAX PE TRUST
18 July, 2001
Members / directors / trustees fall into paye net
The national Assembly has unanimously approved draft legislation to bring the taxation of Members/Directors in line with that of employees.
The bill provides that Members of Close Corporations and Directors of Private Companies will become subject to pay-as-you-earn (PAYE) on their monthly salaries and other remuneration (This will also effect Trustees of Trusts).
In the past only provisional tax was paid every six months and will have a major cash flow effect for these persons. This ammendment will come into effect from the 1 March 2002.These persons will have to remain as Provisional Taxpayers making an adjustment for the PAYE paid during the period.
18 July, 2001
2000 tax returns (ie last year)
Extensions granted by the Receiver of Revenue for the submission of tax returns for the year ended 28 February 2000 ran out recently. Fines of up to R4000 can now be imposed by the Receiver of Revenue on returns submitted late. Accordingly all clients who have still not submitted their information to us for the tax year ended 28 February 2000 (1/3/99 – 28/2/2000) had better do so ASAP to avoid LEGAL ACTION by SARS.
FINTAX PE TRUST
18 July, 2001
Pps contributions
A recent ruling from the South African Revenue Services (SARS) confirmed that the risk portion of PPS premiums attributable to sickness, permanent and partial incapacity benefits would be tax deductible. The ruling will be in respect of fiscal years commencing on 1 March 2000. PPS have indicated that tax certificates will be mailed to members in the middle of July 2001.
PLEASE FORWARD CERTIFICATES TO US ON RECEIPT.
5 July, 2001
Diesel refunds
The diesel refund system, as announced by the Minister of Finance in his budget speech, comes into effect on 4 July 2001 for primary production in the Fishing, Farming, Forestry, Coastal Shipping and Mining Industries. Rail operators carrying goods are also given a limited concession. To avoid the costs of setting up a new system (Diesel Refund) and to minimize the administrative cost for qualifying diesel users, it has been decided to adjust the existing VAT system to administer these concessions.
WHO CAN QUALIFY FOR A DIESEL REFUND?
Any enterprise engaged in the following activities, i.e.
· Farming
· Mining
· Forestry
· Coastal Shipping
· Commercial Fishing
· Offshore Mining
· NSRI and
· Rail,
And who qualifies to be registered for VAT. Enterprises with a turnover of at least R20 000 per annum will qualify if diesel is used in the primary production process. Diesel that is used for other activities (transport, harvesting, construction, etc.) for reward may not be claimed.
REGISTERING FOR THE DIESEL REFUND SYSTEM
Vendors who qualify to claim a diesel refund must register at the Receiver of Revenue. New vendors must register for VAT (VAT101 – Application for Registration) and for the Diesel Refund (VAT101D – Application for Registration). Existing vendors need only register for the diesel refund by completing a VAT 101D form. Please contact the local Receiver of Revenue for details on the requirements for VAT and Diesel registrations.
Vendors not qualifying for diesel refunds or who neglect to register for diesel refunds will not be entitled to a refund. Vendors who qualify for diesel refunds must submit a claim by means of a VAT201 form. The existing VAT201 return will be adjusted to provide therefore.
13 June, 2001
New cheque ruling
From 1 August 2001, ALL South African banks will no longer accept or process cheques which have been ALTERED IN ANY WAY or which carry any form of bank stamp, such as cheques that have PREVIOUSLY BEEN RETURNED UNPAID.
This ruling applied to cheques which have been legitimately altered and the changes signed by the account holder. In addition, cheques which are damaged in any way (such as those which have been torn or marked by coffee spills) will not be accepted.
The decision not to accept cheque alterations is an anti-fraud measure.
13 June, 2001
Independent contractors - act now
For those independent contractors still trading via the medium of a Trust or Close Corporation, I have set out a few points resulting from SARS latest approach to your structures and request you visit our website at www.fintaxpetrust.co.za and click on “Publications” and then “Personal Service Entities – Act Now””.
19 March, 2001
Capital gains tax
The latest draft legislation on Capital Gains Tax was released last week and SARS have stood firm with their intention of introducing Capital Gains Tax with effect from October 1 this year.
A second draft legislation was made available by SARS and all interested parties have until 12 March in order to comment on the updated draft. SARS have indicated that they aim to have final legislation ready by the beginning of next month i.e. 1 April (end of April is probably more realistic).
There have been some important changes in the second draft from the first and a range of technical modifications. Essentially SARS have not budged on many of the issues that sparked a host of protests from business at the various hearings in Parliament.
One issue that seems clear is that any capital gains enjoyed by a trust will be able to be distributed down to the beneficiaries which obviously has certain advantages with regard to the inclusion rate of natural persons as opposed to the inclusion rate of a trust. What this means is that contrary to what was initially believed it’s not going to be necessary for individuals to rush out and transfer capital growth assets off their trusts back onto their names as one will be able to retain the asset in the trust, enjoy all the protection and benefits of the trust and then make the distribution of the capital gain, if and when the asset is actually sold, back to the individual should one feel it necessary.
However, it is clear that one still has to identify all growth assets and have these assets valued within the next two years.
As promised in previous notices, we will be holding workshops and/or providing information with regard to Capital Gains Tax as soon as the final draft has been made available in April. We, therefore, envisage that our first workshops will be in mid- June of this year. In the meantime we suggest that clients can start making a list of their various assets and how they are owned.
14 March, 2001
Budget speech in a "nutshell"
Capital Gains Tax postponed six months to 1 October 2001
Tax cuts for low and middle-income earners (a worker earning less than R23 000 will pay no income tax, and one earning R70 000 will pay 12% less)
Estate duty and donations tax cut to 20%
Interest and dividend income exemption raised from R3000 to R4000 for taxpayers
under 65 and R5000 for taxpayers over 65 years
Provisional tax threshold for non-employment income increased from R1000 to R2000 for individuals under 65 and individuals over 65 are exempt from the payment of Provisional tax if their income is below R80 000 per annum
VAT zero-rating on paraffin
Long-awaited diesel rebate for farmers
Assets swap mechanism, which allows institutions to invest in foreign portfolios, abolished
Incentives for companies to hire new workers, offer them “learnerships”, and embark on industrial projects that will boost jobs
An increase in the skills levy from half to one percent of payroll
Moves to close tax loopholes, including the possibility of bringing all members of CC’s and company directors into the pay-as-you-earn system
Investment incentives for small business enterprises (SME) introduced
The above is a brief overview of the Tax aspects of the budget, for a copy of the entire budget and relevant schedule, please visit our website at www.fintaxpetrust.co.za click on “LINKS” button and then on SARS.
22 February, 2001
Feb 2000 outstanding tax returns
Extensions granted by the Receiver of Revenue for the submission of tax returns for the year ended 28 February 2000 runs out on 28 February 2001. Fines of up to R4000 can now be imposed by the Receiver of Revenue on returns submitted late. Accordingly all clients who have still not submitted their information to us for the tax year ended 28 February 2000 (1/3/99 – 28/2/2000) had better do so before Monday, 12th February 2001 to avoid the abovementioned penalties.
FINTAX PE TRUST
5 February, 2001
2002 tax directive
Please note that all contractors must apply for a NEW Tax Deduction Directive at the beginning of each tax year. All clients who require assistance with their directives for the 2002 tax years (ie. from 1 March 2001) must please advise us in writing or e-mail before 15th February 2001.
FINTAX PE TRUST
5 February, 2001
2nd 2001 provisional payments
Letters notifying all clients of their 2nd 2001 Provisional Tax liabilities were posted on Wednesday 31 January 2001. Please ensure the following:
Cheques need to be made out to SARS and dated 28 February 2001.
All cheques to be delivered to our office no later than Friday 23 February 2001.
Should any clients not be in agreement with our figures, please contact our office before the 16 February 2001.
SARS have indicated that they will allow a maximum of 3 months for deferred payments should you require to split your payments (Interest will be charged by SARS). Kindly fax/e-mail our office a written request for split payments by no later than 16 February 2001.
FINTAX PE TRUST
5 February, 2001
Capital gains tax - first draft

Our brief comments on the first draft of the Capital Gains Tax Legislation can now be accessed by clicking on the “Publications” button on your left.
20 December, 2000
Capital gains tax legislation release
The long awaited Draft Capital Gains Tax Legislation was released by SARS yesterday.
The Public has been given until 10 January to comment and it seems that SARS are on track for the proposed implementation date of 1 April next year (2001).
Accordingly we will be studying the Act in detail and hope to post comments under “Publications” on our Website, on any amendments from the initial draft, before we close office on the 20 December.
Workshops will run from late February. Details of which will be forwarded to clients in mid-January next year.
13 December, 2000
New vat category
In recent changes to tax legislation a new category E has been introduced which allows for a Vat period of 12 months ending on the last date of the tax year. It could end on any other date if written approval is obtained from SARS. The new category E would apply where there are inter company/inter group charges, that can only be determined some months after the year end.
In order to qualify under category E the following requirements must be met.
1. The Vat vendor must be a Trust, CC or Company.
2. The vendor must apply in writing to SARS to be placed in category E.
3. Written approval must be obtained from SARS.
4. Vat invoices must be issued only once per year and the payment for the service must, by agreement between the parties, only become due once a year at the end of the tax year.
5. The recipient of the service must be always Vat vendors and entitled to full input tax deductions i.e. they must not be partially exempt.
6. The enterprise must consist solely of one or more of the activities of letting of property, renting of immovable goods, administration or management services and their services must be provided to a related person in relation to the vendor.
The above obviously assists tremendously with clients who have an administrative trust or a property trust from which they operate their business and accordingly any clients wishing to find out more details of the above, please contact us in order that we can assist with the application to convert to category E with SARS.
8 December, 2000
Fintax chat - december 2000
The December edition of Fintax Chat which will only be printed at the end of November can be accessed now by clicking on the relevant button on our Website at: www.fintaxpetrust.co.za
Regards
FINTAX PE TRUST
16 November, 2000
Capital gains tax - up-date
We believe that SA Revenue Services (SARS) hopes to distribute the first draft of the proposed Capital Gains Legislation, which comes into effect from 1 April 2001, for comment by the end of November.
It is likely that there would be several drafts and wide consultations. It appears as if the six month period to have properties valued could be extended.
Should a draft be available by the end of November, we will aim to start workshops in February next year. Our comments on the draft will be posted on our website within 2 weeks after its publication.
Regards
FINTAX PE TRUST
9 November, 2000
Matrimonial regimes in south africa
The following publication has been posted on our website under “publications” which includes:
1. MARRIAGE IN COMMUNITY OF PROPERTY :
2. MARRIAGE OUT OF COMMUNITY OF PROPERTY EXCLUDING ACCRUAL :
3. MARRIAGE OUT OF COMMUNITY OF PROPERTY WITH ACCRUAL :
29 September, 2000
3rd top-up payments
Please note that all 2000 Top-Up Payments need to be made by the end of September 2000 to avoid SARS been able to raise interest on outstanding taxes on income over R50 000.
FINTAX PE TRUST
15 September, 2000
Capital gains tax - update
According to SAICA – the South African Revenue Service are busy preparing a working document on the proposed introduction of Capital Gains Tax for submission to the Minister of Finance. After he has ruled on matters of policy, a further document will be drafted and released for public comment. SARS anticipates that draft legislation will be available to the public by February 2001 – Yet another delay!!!!!
FINTAX PE TRUST
15 September, 2000
Personal service trusts / cc - news flash
We have just returned from a meeting with Senior Personnel at SARS where certain issues were clarified regarding Personal Service Trusts / CC.
The most important aspect to come out of the meeting was their CONFIRMATION that the amendments will only come into effect for taxpayers ie Trusts/CC from 1 March 2001. (Provided the Trust has a February year-end and was in existence before 1 April 2000).
Basically this means that nothing changes for the current year (1/3/2000 – 28/2/2001). Therefore the urgency previously perceived due to the initial interpretation that the changes would be effective from 1 April 2000 is no longer present and the need to see clients on this issue as soon as possible via “Group” workshops is NOT NECESSARY.
We have until February next year (2001) to decide on what is best for each client, making it possible to rather consult on an individual basis with each client. Accordingly the proposed “Workshops” have been CANCELLED. In order to avoid additional costs to our clients, we will address these issues at the same appointment when we see you to sign-off your 2000 financials which will be anytime between now and February 2001. Accordingly it is NOT necessary for you to set up an appointment specifically to discuss these issues at this stage, UNLESS we have already completed and presented you with your 2000 financials.
8 August, 2000
Provisional tax - august 2000
Letters notifying all clients of their 1st 2001 Provisional Tax liabilities will be posted out on Monday 31st July 2000. Please ensure that all cheques are handed into our office by no later than 22nd August 2000. Should any clients not be in agreement with our figures, please contact our office before the 10th August 2000. Should clients need to pay-off their Provisional liabilities, SARS have indicated that they will allow a maximum of 3 months.
Please fax/e-mail our office for a request for split payment should it be required.
24 July, 2000
Personal service trusts and close corporations
PERSONAL SERVICE TRUSTS AND CLOSE CORPORATIONS
We have finally obtained a copy of the Taxation Laws Amendment Bill which attends to the amendments with regard to Personal Services Trusts and Close Corporations. We understand that this has still not been tabled in Parliament. The effect of the legislation can be found by clicking on our Publications button on the left.
21 July, 2000
Capital gains tax
CAPITAL GAINS TAX
SARS have still not released any draft legislation in this regard and we understand that the legal department responsible for drafting this legislation is nowhere near completion.
We understand that Government are adamant that CGT will be introduced into our tax system and are still aiming for 1 April 2001 effective date. We will keep clients posted and still plan to have our workshops once SARS release draft legislation – now anticipated at the end of the year.
21 July, 2000
Contractors - employment companies & trusts
We refer to our various notices re Employment Companies listed below and confirm tht we have just received confirmation from SARS that the definition of Employment Companies has been extended to include Trusts. If you are an Independent Contractor and trade via a Trust or a CC or Company, please click on the "FINTAX CHAT" button on your left to see how these amendments will affect you. We will be arranging a "Workshop" for affected clients once we have a copy of the Act which only becomes available later in June 2000. Please e-mail Colleen on with your name, contact number and e-mail address should you wish to attend this "Workshop" (to be held at the end of June 2000).
8 June, 2000
Employees tax - commission/locum fees/spotters fees
It has come to our attention on more than one occassion recently that clients have not been deducting EMPLOYEES TAX on amounts paid for LOCUM FEES / SPOTTERS FEES. Please note that amounts paid as COMMISSION / SPOTTERS FEES / LOCUM AND ASSISTANT FEES etc. are subject to EMPLOYEES TAX. Therefore should you pay any of the above, please ensure that you deduct EMPLOYEES TAX from any payments made.
12 May, 2000
Capital gains tax - (cgt)
Please note that SARS have extended the date by which comments on the proposed introduction of CAPITAL GAINS TAX must be submitted which will probably result in a further delay before the draft legislation will be made available to the public.
Accordingly, our proposed Seminars / Workshops will probably only be held in the later half of this year.
Please visit this space (IMPORTANT ANNOUNCEMENTS) on a regular basis to be kept informed with current developments.
12 May, 2000
Skills development facilitator
In accordance with legislation regarding the skills development levies, a Skills Development Facilitator must be appointed by employers by the 15th May 2000. Such person may be appointed from within the company, or be a formally contracted external person. The Skills Development Facilitator must be registered and approved by the applicable SETA concerned in order for the employer to be able to qualify for the grant recovery scheme which enables employers to be able to recover at least 50% of their levy payments.
14 April, 2000
Skills development levy
Clients interested to know more about the Skills Development Levy can click on the Publications button on your left and browse down to our Publication on the Skills Development Levy.
14 April, 2000
Contractors-employment companies-chapter three
SARS have indicated that they are looking into another amendment later on in this year, which will effectively make all payments to Independent Contractors subject to Employees Tax even if you do not fall into the definition of an “Employment Company”.
Therefore all payment of fees to Independent Contractors trading via Trusts, Close Corporations or Companies or as a Sole Proprietor will be subject to Employees Tax should 80% of your income come from one source.
Please note that this change “if introduced” will only effect the deduction of Employees Tax.
7 April, 2000
Contractors-employment copanies-chapter two
I refer to our article on the above with regard to employment companies and specifically our reference to the effect that it does not apply to trusts. There is a possibility that when the amendments finally come through they could change the wording to include a trust. Accordingly all contractors must be aware of the relevant points as raised in the abovementioned article.
Please note, as the wording currently stands as released by SARS, it will only apply to close corporations and companies and the local Receiver’s office has indicated that their understanding is that it will only apply to close corporations and companies.
7 April, 2000
Contractors - employment companies
Details of the upcoming amendments to the Income Tax Act as relates to Independent Contractors and Employment Companies can be accessed by clicking on the Fintax Chat button on your left.
31 March, 2000
Capital gains tax
Our views / understandings of the working paper issued by SARS on the proposed Capital Gains Tax can be accessed by clicking on the Fintax Chat button on your left. As information becomes more available / clearer clients will be kept informed via this web site.
31 March, 2000
Happy new tax year
The 2000 / 2001 tax year has just began and we would like to take this opportunity to remind clients that we now require all your relevant information to complete – submit your Tax Returns for the tax year 1 March 1999 to 28 February 2000 (2000 Tax Year). Our office must receive this information by NOT LATER THAN
15 JUNE 2000. Information received after this date could result in us being unable to finalise your financials on time which could result in interest and / or penalties being payable by you. For a guide on the information we require click on “Year End Guide” on your left.
1 March, 2000
Capital gains tax - (cgt)
Watch this space for more details on the impact of the proposed Capital Gains Tax. We will be planning Seminars / Planning Sessions for clients as soon as all available information on CGT has been studied. Details on the Seminars to be posted on this site next month.
1 March, 2000
Small business corporations - (sme)
Watch this space for more details on who will or won’t qualify to be a “SME” and benefit from the lower tax rates.
1 March, 2000
Personal service companies - (employment company)
Watch this space for more details on the impact of Revenue now defining and taxing Personal Service Companies (Employment Companies) differently to normal companies.
1 March, 2000
Budget 2000
For our comment and a brief overveiw of the 2000 Budget please click on the
FINTAX CHAT button on your left.
25 February, 2000
Fintax chat march 2000
The March edition of our Fintax Chat is now available by clicking on the
FINTAX CHAT button on your left.
25 February, 2000

Source: http://www.whitfieldfintax.co.za/Announcements.ASP


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