Smart Approaches to Trading Stock Valuation
GAAP / IFRS determines the accounting treatment, with tax largely following suit. Valuing your trading stock, also known as inventory, is a critical aspect of financial accounting and business management—not to mention tax compliance. Accurate valuation of inventory ensures that a company’s financial statements present a true and fair view of its financial position, directly […]
Is Your Business Paying the Price for Not Investing in the Right Technology?
Financial operations form the backbone of every organisation, but when the technology that supports them is outdated, the ripple effect can be damaging. Slow systems increase turnaround times, manual errors create compliance risks, and poor integration can lead to inconsistent reporting. The cost of “making do” with old systems is often invisible until it shows […]
Have a Little R.E.S.P.E.C.T for My Wishes
Your will gives you the final say – even after you’re gone. A Michigan court has ruled that a handwritten document from 2014 is Aretha Franklin’s valid last will and testament after the Queen of Soul passed away without a formal will in 2018. This follows a year-long court battle between her sons to determine […]
The ‘Big Three’ Tax Worries (Part 2): Shares
In the second part of this series, we focus on shares. If claiming against our car allowances is the number one thing that keeps us awake at night as taxpayers, then the fear of SARS lying in wait to lay their grubby paws on the slightest gain that we make on our share investments must […]
Set-Off of Assessed Losses, and Ring-Fencing
Unless you’re at the 45% marginal tax rate, most losses can be set off against other income. If a person is not at the maximum marginal tax rate, can they opt to have their taxable loss from their sideline business, e.g. bookkeeping, offset against the taxable income from normal employment (on which they pay PAYE) […]
The ‘Big Three’ Tax Worries (part 1): Cars
What keeps taxpayers awake at night? Judging by the many questions that I’ve been asked as a tax practitioner over the years, there is a definite ‘Big Three’ when it comes to problems that cause taxpayers sleepless nights: cars, shares, and property. The tax treatment of these three items probably causes more anxiety, and has […]
How SARS Holds Individuals Accountable with Lifestyle Audits
When it comes to tracking down tax-dodgers, SARS has the tools, the people, and the will. Tax evasion and illicit financial flows are two areas that have long undermined economic growth in South Africa and public trust in governance. To counter these challenges, SARS has increasingly leaned on a controversial but effective tool—the lifestyle audit. […]
CGT and Unit Trusts: When Are You Liable?
What are the Capital Gains Tax implications of investing in unit trusts? Unit trusts, or collective investments to give them their proper name, have long been popular investments, particularly for the ordinary investor. The main reason for this is that for a fairly small amount of money, one can gain access to a fairly diversified […]
Understanding Residency in Terms of Tax
When earning an income in South Africa, you are probably paying tax. The Income Tax Act 58 of 1962 (“the Act”) describes gross income as: “(i) in the case of any resident, the total amount, in cash or otherwise, received by or accrued to or in favour of such resident; or (ii) in the case […]
The Impact of Recent Companies Act Amendments on Audit and Review Requirements for Close Corporations
Under the amended legislative framework, members of a close corporation are now required to prepare annual financial statements (AFS) within six months after the financial year-end. This timeline was shortened from the previous nine-month period due to the incorporation of relevant provisions from the Companies Act into the Close Corporations Act 69 of 1984. Section […]