SARS HELPING BUSINESSES LESSEN THE TAX LOAD
The last few months have been extremely tough for small business owners as a result of the global COVID-19 pandemic, and various lockdown measures that have created a challenging trading environment. The South African Revenue Service (“SARS”) has identified this hardship, and as a result, the National Treasury recently tabled the Disaster Management Tax Relief Administration Bill, which would assist micro, small and […]
CHOOSING THE BEST BASE OF OPERATIONS
When businesses expand, they often look beyond national borders. With such an expansion, there are several added advantages for establishing a holding company, which then owns the various group operating companies in different jurisdictions. Various aspects contribute to considering an ideal holding company location, and a brief discussion is outlined below. Political stability Political instability […]
TAX LAW FOR EMPLOYER-PROVIDED TRANSPORT SERVICES
Many business transactions are concluded in terms of section 42 of the Income Tax Act. This section essentially allows a transfer of an asset by a person to a company, in exchange for equity shares in that company, allowing for a tax neutral transaction. The South African Revenue Service has recently issued Binding Private Ruling […]
RESEARCH IS AT THE HEART OF REWARDS
Investing in a business is a daunting decision. Whether you are investing in a new or established enterprise, there will always be risk involved. The best way to mitigate these risks is to gather as much information as possible on the enterprise you wish to invest in. But how do you go about gathering this […]
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 opportunity for each of the highly regarded professional advisory firms, expanding our national footprint in the Western Cape and Gauteng provinces. Brincon, Wolfe-Coote, Xstream Accounting and 1.2.3. Consulting are […]
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. Typically, the parties involve a majority shareholder of a company that is interested in buying out the minority shareholders in the company and which will ensure that that majority […]
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 dreaming about for such a long time… you are going to invest in your own business. You have found the perfect business and is excited about your new journey, […]
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 are however many technical considerations related to the increase that remain unclear. One such an uncertainty is with regards to deposits paid prior to the effective date of the […]
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 the day to day operations of the business, it is easy to keep control of expenses. As a business grows, however, it may become necessary to appoint employees to […]
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, you want to pay as little as possible, and if you are the seller, you want to sell your business for as much as you can get. Ultimately the […]