Real Time Business Control
What happened to my cash flow?
Due to the current economic climate you may experience a problem to meet monthly obligations. According to your accounting package, you are showing a profit, but the money is not available in the bank. This could be due to a few of the following reasons:
- The work done and invoiced has not been received from the debtors yet
- Gross profit percentage may be too small to cover all the other business expenses
- Expenses are not being managed correctly and thus you are unsure about your total monthly obligations
How can I manage my expenses better?
A detailed analysis of expenses needs to be done to determine what the essential expenses are, and if there is room for cost cuts. Once this has been determined, a budget has to be set up to ensure that the company stays within these limits set each month. A budget comparison needs to be done on a regular basis to correct any differences as soon as possible.
Tax Solutions
I am due for an Income Tax Refund, when will I receive my refund?
SARS commits to finalizing your refund within 30 working days. Should your refund be systematically selected for risk verification you will be requested to submit the supporting documentation that was used to complete your return. Until SARS receives such documents the refund will be withheld. On submission however, SARS commits to finalize the refund within 30 working days
What is provisional tax?
Close corporations, Companies and Trusts automatically fall into the provisional tax system. Individuals who receive any other income than that which is reflected on their IRP 5 also fall into this system. The system ensures taxpayers provide for their final tax liability by paying at least two amounts during the course of the year of assessment. The final liability, however, is determined upon assessment.
Asset and Estate Shelter
What is the safest entity to protect my assets in?
A company where the shares are held by a trust is considered to be safe. Correct transfer of assets and the management of mentioned structures are of utmost importance!
How often should a will be revised?
It is advisable to revise an estate annually or as circumstances of the testator or relatives change. This will prevent the break-up of family unity after the death of the testator.
How important is it to keep detailed records of a trust and for what period?
It is of utmost importance to keep full written records of all decisions made during the lifespan of a trust. Should this not be done the objective of a trust can be defeated (by RSA court) and all trust assets and transactions allocated to the individual.
Statutory Registrations
What are annual returns?
CLOSE CORPORATIONS:
Section 15A of the Close Corporations Act and Section 16A of the Close Corporations Administrative Regulations stipulates that all Close Corporations must lodge an Annual Return with the Registrar of Companies.
Annual returns for Close Corporations (including those which are dormant) came into effect on 1 September, 2008 and is payable yearly during the Corporations anniversary month (i.e. month of incorporation).
N.B. Annual Returns may only be submitted electronically. The registrar will not accept or receive paper documents or cash from close corporations.
REGISTRAR’S FEE / ANNUAL RETURN
The fee is determined by your close corporation’s annual turnover as follows:
(Dormant close corporations pay the minimum fee)
Annual turnover less than R50,000,000
Annual turnover above R50,000,000
If the annual return is not lodged within the prescribed period, there will be a penalty payable to the Registrar. If, after 6 months, the annual return is not lodged, the Registrar will institute deregistration proceedings.
COMPANIES
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.
Annual returns for Private Companies (including those which are dormant) came into effect on 1 May, 2005.
N.B. Annual Returns may only be submitted electronically. The registrar will not accept or receive paper documents or cash from companies.
REGISTRAR’S FEE / ANNUAL RETURN
The fee is determined by your company’s annual turnover as follows:
(Dormant companies pay the minimum fee)
Annual turnover less than R10m
Annual turnover above R10m but less than R50m
Annual turnover R50m and above
If the annual return is not lodged within the prescribed period, there will be a penalty payable to the Registrar. If, after 6 months, the annual return is not lodged, the Registrar will institute deregistration proceedings.
Financial Hub
How do I acquire an income confirmation (proof of income)?
Proof of the last three months’ income is needed in order to obtain an income confirmation.
What information is needed to compile management accounts?
The latest backup of the financial program used to capture daily transactions applicable to the periods the financial institution requested.