Latest News

August 12, 2019

AUDIT CERTIFICATES: WHAT YOU NEED TO KNOW?

The South African Revenue Service (“SARS”) issued Interpretation Note 112 on 21 June 2019 to provide guidance on the interpretation and application of the audit certificate […]
August 12, 2019

WHAT YOU WANT TO KNOW ABOUT PAYROLL ADMINISTRATION

As payroll administrators ourselves, we encounter a few frequently asked questions that employers, business owners or those responsible for payroll administration within organisations struggle with. Below […]
August 12, 2019

2019 TAX LEGISLATIVE AMENDMENT

The 2019 tax legislation amendment cycle commenced on 25 June, when National Treasury issued the initial batch of the Draft Taxation Laws Amendment Bill which covers […]
August 12, 2019

SOUTH AFRICAN RESERVE BANK PROCEDURES

The South African Reserve Bank (“SARB”) is the central bank of the Republic of South Africa and the primary purpose is to achieve and maintain price […]
June 27, 2019

SARS ON MANAGING PAYROLL TAXES

The South African Revenue Service (“SARS”) has recently made changes with regards to the management of payroll taxes in order for employers to more effectively manage […]
June 27, 2019

TAX ON THE SALE OF SHARES

The distinction between amounts of a capital nature as opposed to a revenue (or income) nature is essential, and over the years, few other topics have […]
June 27, 2019

SECTION 7C: WHAT IS IT ALL ABOUT?

Section 7C of the Income Tax Act, No 58 of 1962 (the Act), was enacted effective 1 March 2017 and serves as an anti-avoidance measure aimed […]
June 27, 2019

SOUTH AFRICAN RESERVE BANK PROCEDURES

The South African Reserve Bank (“SARB”) is the central bank of the Republic of South Africa and the primary purpose is to achieve and maintain price […]
May 23, 2019

RENDERING OF TRANSPORT SERVICES BY EMPLOYERS

Paragraph 2(e) of the Seventh Schedule to the Income Tax Act[1] deems an employer to grant a taxable benefit to an employee if any service has, […]
May 22, 2019

Value-added Remarks on Value-added Tax (VAT)

VAT is an integral part of our economic society and is something that influences everyone, especially businesses in South Africa.  In this article, we will discuss […]
May 22, 2019

IFRS vs IFRS for SMEs

The majority of financial statements in South Africa are arguably compiled by implementing the International Financial Reporting Standards for Small and Medium-sized Entities (IFRS for SMEs) […]
May 22, 2019

VAT Regulations dealing with the supply of electronic services

Since 2015, foreign suppliers of electronic services (such as audio-visual content, e-books etc.) in South Africa are deemed to operate an enterprise for VAT locally. Although […]
April 17, 2019

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 […]
April 17, 2019

SARS SCAMS

Education and awareness around identity theft, phishing and other frauds have become part of life globally. If nothing else, scamsters are innovative and keep trying new […]
April 17, 2019

TAXPAYERS’ RIGHT TO HAVE DISPUTES RESOLVED

In a recent Tax Court decision[1], the Tax Court confirmed that taxpayers have a right to have their disputes resolved in a court of law as […]
April 16, 2019

RING-FENCING OF ASSESSED LOSSES OF CERTAIN TRADES – PART I

Persons are generally allowed to set off any losses incurred in respect of one trade against the income derived from another trade, thereby reducing their overall […]
February 19, 2019

WHEN TO MAKE USE OF THE SMALL CLAIMS COURT

This article discusses claims making use of the Small Claims Court. It specifies what the benefits are of approaching the Small Claims Court and who would […]
February 19, 2019

FORM REQUIREMENTS FOR OBJECTIONS

Dispute resolution with the South African Revenue Service (SARS) generally has a two-pronged approach. Firstly, taxpayers must present their case on the merits – this will […]
February 19, 2019

S129 NOTICE TO THE CONSUMER AND “DELIVERY”

A consumer who enters into a valid credit agreement with a credit provider, is obliged to pay in respect of the terms of the credit agreement. […]
February 19, 2019

NON-RESIDENT SELLERS OF IMMOVABLE PROPERTY

Section 35A of the Income Tax Act[1] came into effect on 1 September 2007 and sets out the capital gains tax consequences of the sale of […]
February 14, 2019

Merger announcement

The Executive Teams of 1.2.3. Consulting, Brincon, Wolfe-Coote and Xstream Accounting are delighted to announce the merger of our firms. The merger is an exciting growth […]
January 23, 2019

THE PUBLIC AUDIT AMENDMENT ACT: GROUNDBREAKING FOR SOUTH AFRICA IF PROPERLY IMPLEMENTED

Introduction On 21 November 2018, the 2017/2018 consolidated national and provincial audit outcomes report was released, which indicated a discouraging fourth consecutive year of regressive compliance […]
January 23, 2019

CIT RETURNS AND PENALTIES

In general, all registered companies must submit corporate income tax (“CIT”) returns within 12 months of the end of the company’s financial year-end. This is applicable […]
January 23, 2019

SIMULATION

In addition to specific anti-avoidance provisions and the general anti-avoidance provisions (GAAR) in the Income Tax Act,[1] the South African Revenue Service can apply another established […]
January 23, 2019

HELPFUL TAX RESOURCES

South African taxes are inherently complex and often involve interpretation, consulting and in exceptional cases, a fair amount of educated guessing on exactly what the legislature […]
January 17, 2019

Avoid Interest and Penalties, submit your Provisional Tax Return

The February financial year-end is in sight and natural persons registered for provisional tax and all companies whose year-end falls in February 2019, must pay the […]
November 26, 2018

MANAGEMENT’S RESPONSIBILITY

Throughout the audit of a set of financial statements, the phrase “management/director’s responsibility” appears. It is included in the engagement letter, the financial statements and the […]
November 23, 2018

SARS INTEREST ON PROVISIONAL TAX

As with various other business transactions, taxes in their various forms also attract interest, either payable by the taxpayer to SARS, or due to the taxpayer […]
November 23, 2018

ADDITIONAL CHANGES TO INCOME TAX RETURNS FOR TRUSTS

The South African Revenue Service (“SARS”) implemented several changes to the income tax returns for trusts (the ITR12T) on 17 September 2018. These changes are in […]
November 23, 2018

BAD DEBTS AND VAT

While there is currently a focus on the income tax considerations of bad and doubtful debts (given that National Treasury has proposed changes to section 11(j) […]
October 24, 2018

RATING FORMULA FOR FARMING INCOME

The Income Tax Act[1] provides for a natural person who derives income from farming operations to elect (within three months after a year of assessment) to […]
October 24, 2018

CORRECTION OF TAX INVOICES

Since it is illegal to issue more than one tax invoice per taxable supply, and another tax invoice may not be issued to alter any consideration […]
October 24, 2018

TAX ON RETIREMENT LUMP SUMS

Determining the tax consequences in respect of any lump sum benefits from retirement funds can be complex and various legislative changes have been incorporated over the […]
October 24, 2018

SPECIAL TRUSTS

The Income Tax Act[1] includes specific provisions for “special trusts”. These trusts are taxed on the same sliding scale applicable to natural persons, which could be […]
October 16, 2018

TAX DEADLINES – 31 OCTOBER 2018

Non-Provisional Individuals: For all non-provisional taxpayers, filing season for the period 1 March 2017 – 28 February 2018, closes on 31 October 2018. Tips for filing […]
October 3, 2018

BELINDA MCKENNA CFP®

PROFILE: Belinda has over 15 years’ experience in Human Resources and Employee Benefits. She is passionate about making a difference in people’s lives and being an […]
September 19, 2018

THE PREPARATION OF FINANCIAL STATEMENTS

The Companies Act of South Africa (the Act) requires all companies to prepare financial statements within 6 months after the end of its financial year. A […]
September 19, 2018

CHANGES TO BAD DEBT ALLOWANCE

Most South African businesses are at some point in time exposed to credit risk in the form of bad debts. Although taxpayers would undoubtedly prefer to […]
September 19, 2018

VALUATION OF PREFERENCE SHARES

In income tax, the question of valuation of shares often causes a great deal of uncertainty, especially where shares are not traded on a recognised exchange. […]
September 19, 2018

CAPITAL GAINS TAX AND THE ANNUAL EXCLUSION

With the 2018 tax-filing season for individuals in full swing, it is worthwhile looking at a common misconception regarding the determination of capital gains tax for […]
September 17, 2018

BEE, Y.E.S. INITIATIVE

Say Y.E.S To empowering South African youth On the 28th August 2018 The Department of Trade and Industry (DTI) finalised and gazetted the Youth Employment Service (Y.E.S.) […]
August 23, 2018

TAX ALLOWANCES AGAINST ASSETS USED FOR PURPOSES OF TRADE

The Income Tax Act[1] allows for various income tax allowances to be claimed in respect of moveable assets used for purposes of a taxpayer’s trade. Most […]
August 23, 2018

DEBT REDUCTION RULES: NEW TAXPAYER FRIENDLY AMENDMENTS EXPECTED

The South African Income Tax Act contains a number of rules which give rise to onerous tax consequences where a taxpayer’s debts owing is forgiven. These […]
August 23, 2018

THE TAX COURT REVIEWS THE DEDUCTIBILITY OF GENERAL BUSINESS EXPENSES

The recent Cape Town Tax Court judgment of S G Taxpayer v The Commissioner for the South African Revenue Service,[1] delivered on 9 May 2018, re-affirmed […]
August 23, 2018

BUYING OUT SHAREHOLDERS

We are often approached by clients to advise on the most tax efficient manner in which a shareholder can sell an investment in a private company. […]
July 24, 2018

WHAT SHOULD YOU CONSIDER WHEN INVESTING IN A BUSINESS

You have worked hard for many years, and have finally saved enough funds and mustered the courage to take the big leap that you have been […]
July 24, 2018

EMPLOYEES’ TAX (PART I): PERSONAL SERVICE PROVIDERS

For there to be an obligation for PAYE to be withheld is typically dependent on three elements being present. These elements are all defined in the […]
July 24, 2018

CUSTOMS FOR INDIVIDUALS TRAVELLING ABROAD AND RETURNING TO SOUTH AFRICA

The South African Revenue Service (SARS) recently published a media release to clarify the confusion about the customs requirements for South African travellers returning from abroad […]
July 24, 2018

DEDUCTIBILITY OF INTEREST FOR NON-TRADING INDIVIDUALS

SARS Practice Note 31.2 (PN31.2) provides for a person to be able to deduct interest paid, even where that person is not a moneylender or doesn’t […]
June 27, 2018

IFRS 15 – REVENUE FROM CONTRACTS WITH CUSTOMERS

IFRS 15 recently became effective for financial periods beginning on or after 1 January 2018. IFRS 15 is only applicable to entities that have implemented International […]
June 27, 2018

CHANGING BANKING DETAILS WITH SARS

In order to prevent fraud, the South African Revenue Service (“SARS”) requires confirmation of new or any changes to existing banking details and will only process […]
June 27, 2018

TAX DEDUCTIONS AGAINST SALARY EARNINGS

Our clients who earn only a salary will know that very few tax deductions are available against salary income for income tax purposes and whereby they […]
June 27, 2018

UNDER WHAT CIRCUMSTANCES CAN A PRIVATE COMPANY AND/OR CLOSE CORPORATION BE DEREGISTERED?

During the registration of a company or close corporation that entity acquires a legal personality. This legal personality comes to an end when the directors and/or […]
June 8, 2018

2018 Tax Season: SARS shortens submission period

The annual tax filing season is upon us and acting SARS Commissioner, Mark Kingon, announced that the season will open on 1 July 2018 for eFilers. […]
May 23, 2018

IS IT POSSIBLE TO BACKDATE AN AGREEMENT?

A popular question which comes up during a consultation with a client when the drafting of commercial documents is discussed is, “what is the effective date […]
May 23, 2018

HOW THE VAT INCREASE AFFECTS YOUR BUSINESS

Consumers and suppliers have by now had an opportunity to familiarise themselves with the increased Value-Added Tax (VAT) rate of 15% since 1 April 2018. There […]
May 23, 2018

CRYPTOCURRENCY

Cryptocurrency and blockchain has been the hot topic in the media the past year.  It is a concept that few truly understand, and could change the […]
May 23, 2018

VALID TAX INVOICE REQUIREMENTS FOR VAT VENDORS

When making a purchase for your business, you should always ensure you receive a valid VAT invoice. This enables you to claim input VAT from SARS. […]
April 12, 2018

FINANCIAL RATIOS: WHAT DO THEY MEAN? (Part 1)

The purpose of calculating ratios is to get a bird’s eyeview of the financial situation of a business by analysing the relationships between different amounts on […]
June 8, 2017

SOME POINTERS FOR PLANNING YOUR ESTATE

The main aim of planning your estate is to ensure that as much of the accumulated wealth is utilised for your own benefit and for the […]
June 8, 2017

ESTATE PLANNING FOR YOUNG ADULTS

It is very important for you to plan your estate, which could include a living will, a last will and a living trust. This can help […]
May 22, 2017

REGISTERING FOR PROVISIONAL TAX

Many taxpayers file their tax returns on an annual basis unaware thereof that they may be regarded as provisional taxpayers in terms of the Income Tax […]
May 22, 2017

WHAT IS THE COST OF MY ESTATE DUTY?

In terms of the stipulations of section 4 of the Estate Duty Act No 45 of 1955 certain deductions from the value of an estate are […]
May 22, 2017

FINANCIAL RATIOS: WHAT DO THEY MEAN? (Part 2)

The purpose of ratio analysis is to simplify the financial situation of a business by looking at the relationships between different categories of accounting data. The […]
May 22, 2017

HOW SOUTH AFRICAN DIVIDENDS ARE TAXED

Dividends received by a South African taxpayer are generally exempt from income tax.  The major exemption though being dividends received from so-called REITs (these being some […]
May 16, 2017

NON-EXECUTIVE DIRECTORS – HAVE YOU REGISTERED FOR VAT?

SARS recently published two Binding General Rulings (number 40 and 41) that have put the tax treatment of non-executive director’s fees to bed, which will come […]
April 12, 2017

EXPLAINING ZERO RATED VAT

Value-Added Tax, or VAT, is currently typically charged at 14% on all taxable supplies of goods or services rendered by registered VAT vendors. Taxable supplies exclude […]
April 12, 2017

SO WHAT IS THE FUTURE OF TRUSTS?

One of the questions that we are most confronted with by our clients is what the future of trusts are in South Africa.  Some questions even […]
April 12, 2017

DONATIONS TAX

Donations tax is levied in terms of section 54 of the Income Tax Act, 58 of 1962 (‘Income Tax Act’).  The rate of tax is currently […]
March 24, 2017

BUDGETS: ARE THEY WORTH THE EFFORT?

A lot of small businesses are managed by the owner, especially in the early years of a business’s existence. As the owner is intimately involved in […]
March 24, 2017

ADVANTAGES AND DISADVANTAGES OF TRUSTS

Trusts have various advantages, but unfortunately there are also disadvantages. Although this is not a complete synopsis of all the pros and cons, our experience may […]
March 24, 2017

SARS POWER OF ATTORNEY: WHAT YOUR TAX PRACTITIONER CAN LEGALLY DO ON YOUR BEHALF

A taxpayer or representative taxpayer must grant a tax practitioner power of attorney before the tax practitioner can legally work on the taxpayer’s tax affairs. A […]
March 24, 2017

TAX ON PENSION FUNDS AND DIVORCES

It is an unfortunate reality that marriages may after many years end up in divorce. When this happens the parties either have to agree on how […]
February 28, 2017

HOW TO DETERMINE THE SELLING PRICE WHEN BUYING OR SELLING A SMALL BUSINESS

It is difficult to determine the selling price of a small business as such a valuation is very subjective. If you are buying a small business, […]
February 28, 2017

SO WHEN AM I AUTHORISED TO ACT AS TRUSTEE?

The Trust Property Control Act 57 of 1988 defines a trustee as meaning “any person (including the founder of the trust) who acts as a trustee […]
February 28, 2017

THE TAXATION OF PARTNERSHIPS

In terms of South African law natural persons (individuals) and legal persons all enjoy legal personality: in other words, both groups represent “persons” capable of e.g. […]
February 28, 2017

PROVISIONAL TAX FOR INDIVIDUALS: DID YOU KNOW?

Provisional tax is not a separate type of tax but pre-payments on income tax for a specific tax year. The aim of provisional tax payments is […]
January 27, 2017

Tax free annual donations: To your Trust or your dependents

  Individuals may donate up to R 100,000 per annum tax free, to their Trust or dependents.  The benefit of this donation is to reduce the […]
January 27, 2017

Logbook lethargy? There is help!

As we embark on a new year, we reflect on our weaknesses from last year and promise ourselves to strive to be better this year. We […]
January 27, 2017

A year of Sheep, Wolves and Sheepdogs!

There was a memorable scene in the movie American Sniper where an extract from a book written by Lieutenant Colonel David Grossman called On Combat which […]
January 27, 2017

VAT Recons: Why they are essential!

This article serves as a reminder to do your VAT Turnover Reconciliation before submission of the last vat return. The VAT turnover reconciliation aims to reconcile […]
November 23, 2016

Have you hugged your Adviser today?

Being a Certified Financial Planner/Wealth Manager at Harbour Wealth is the ‘easiest’ hardest job in the world. The easy part being that if you can build […]
November 23, 2016

SAGE ONE: Welcomes you to the world of online accounting solutions.

Sage One is currently trending as South Africa’s top online accounting and bookkeeping software, providing its customers with seamless access to their data from anywhere, at […]
November 23, 2016

Managing your tax compliance status

With SARS continued effort to improve compliance they have made it even easier for taxpayers to manage their tax affairs by introducing an enhanced Tax Compliance […]
November 23, 2016

Providing you with the ultimate HR Solution!

Dear Clients We are excited to announce our collaboration with LabourNet to provide you with the ultimate HR solution for your business!We are continuously searching for […]
October 31, 2016

Never invest in an Investment you can’t understand

Estimated Annual Cost Harbour Wealth clients may have already noticed a new acronym floating around the financial services space – EAC! At first glance it may […]
October 31, 2016

Little logbook – Work smarter not harder!

        Lucro has joined in association with Little LogBook to provide our clients with a solution that automates one of the most mundane, […]
October 31, 2016

Five ways a virtual office can benefit a small business

The term virtual office often implies many things, which include provision of communication and address services without actually having a physical office space or meeting rooms. […]
October 31, 2016

Dividends Tax exemption – The pitfalls to avoid

Dividends Tax is imposed at a rate or 15% on the receipt of dividends. It is a withholding tax, as it must be withheld and paid […]
October 3, 2016

Trusts: Beware of interest-free loans

Major tax implication for Trusts (1 March 2017)The 2016 Draft Tax Amendment Bill introduces a new section to prevent Estate Duty and Donations Tax avoidance through […]
October 3, 2016

Due date for annual financial statements – 6 months after year end

Are you aware that the Companies Act (No71 of 2008 section30) requires companies to prepare Annual Financial Statements within six months after the end of its […]
October 3, 2016

SARS SPECIAL STOPPERS – Causing Major Inconvenience!

Please note that for almost all refunds SARS has issued a “Special Stopper”. This is effectively a system-generated hold, placed on your tax account, and requires […]
October 3, 2016

Last Will and Testament

“Most people do not know whether their loved ones have executed a Will, where the original might be kept or who has been nominated to wind up the […]
October 3, 2016

PAYE interim reconciliation opens on 1 September 2016

The South African Revenue Service (SARS) requires that employers must, every six months, submit an Employer Reconciliation Declaration (EMP501). The interim reconciliation covers the six-month transaction […]
October 3, 2016

The importance of delegating

Almost every business owner has too much to do and too little time.By delegating effectively, you can take some of the weight off your shoulders, and […]
October 3, 2016

South Africa’s GDP growth

Gross Domestic Product (GDP) is one of the most important of all economic statistics because it reflects the state of the economy in a single figure. […]
October 3, 2016

Revised Special Voluntary Disclosure Programme

In terms of the new global standard for the automatic exchange of information between tax authorities, the South African Revenue Service (SARS) will start receiving offshore […]
August 29, 2016

Income and a “Rule of Thumb”

Back in 1782, James Gillray published a satirical cartoon “Judge Thumb”. The cartoon lambastes a certain Sir Francis Buller, an English judge, for allegedly ruling that a man […]
August 29, 2016

Proposed Tax Changes Affecting Trusts

On 8th July 2016, the National Treasury and the South African Revenue Service (SARS) published for public comment the final two bills to give effect to […]

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