DEPRECIATION VS WEAR & TEAR
Deterioration, obsolescence and wear and tear are among the reasons why assets decrease in value. By realising a deduction on depreciation for tax purposes, your company can recover the costs of certain moveable assets that are used in the production of income. Generally, businesses won’t be able to make use of assets like heavy machinery […]
Are you depreciating your assets in accordance with the Accounting Standard?
Historically companies applied the SARS rates for wear and tear to their assets and used this as the accounting depreciation charge. This avoided the need for deferred tax (being the accounting entry for the tax effect on the difference between the SARS wear and tear rates and the accounting depreciation). Although this simplifies matters it […]
WILL YOUR TRUST STAND UP TO SCRUTINY?
There are many benefits of having a family Trust, but most importantly they provide protection of assets from creditors, a shield from Estate Duty and control over preservation of the assets into the future. In order to ensure that these benefits are intact and maintained it is important to ensure that the administrative and authoritative […]