Hello to all our clients, and season’s greetings.
Please find below, our newsletter for this period.
Another three deadlines!
Deadline 1: Our tax department is currently busy with filing of the 2023 tax year, which season opened in early July. As time is now short, (October 23rd for natural persons, non-provisional, and for provisional taxpayers, the 24th of January 2024). For companies, the deadline is 12 months after the company’s year-end. If you could react to their request for information speedily and comprehensively.
Deadline 2: the filing of Company and Trust tax returns, with a February 2023 year end, is due for completion by the end of February 2024.
Deadline 3: Provisional tax returns relating to the 2024 tax year, by end of August 2023. Our tax department has initiated the process and you will be receiving their communications in this regard. Please ensure sufficient funds are available to settle tax liabilities.
Importantly, if you could respond timeously to requests from our staff for documents and authorisation to file these tax returns, as, as usual, this is a high-pressure period.
Further to our recent notification that SARS has withdrawn the old IT14SD audit and replaced it with a customized deep-dive audit, it is important that you as the taxpayer, be able to defend all expenses claimed in your tax returns, whether that in your personal name, or that in your company or Trust.
We note that the new deep-dive audit is much more vigorous and probing, and is a reflection that SARS is returning to its pre- Zuma levels of operational performance.
Capital Gains Tax
With the ever-increasing value of residential properties, you are again reminded that properties sold for greater than R2m, will be subject to CGT on that portion of profit, greater than R2m.
With this in mind, we recommend you implement the following:
- Declare the sale of a property in your tax return,
- Keep records of improvements made to the residential property over the life of ownership of that property, to increase the base cost of the property.
SARS will disallow any improvements claimed, if not substantiated with documents or bank statements, regardless of when they were incurred.
Further, any capital gains realised on the disposal of capital assets, need to be shown in the relevant provisional tax return – be sure to inform our tax department of this, if applicable, when approving your provisional tax returns this season. Under disclosure of income, results in penalties and interest levied by SARS.
The 2023 Annual Financial Statements (AFS) season is in full swing, as Steve and Sharon complete these statements and distribute for your review and sign off.
Note that the AFS is used not only for filing company tax returns, but with CIPC as part of the annual return filing.
The new additional Beneficial Owner requirement necessitates that we obtain further detailed information on all shareholders of companies. We have sent our prior communication in this regard, and Erika from our Secretarial department will be updating our records.
Other stakeholders, such as Banks and Shareholders are key users of these statements.
Remember, to ensure that your Close Corporation or Company, has a compliant Fixed Asset Register, as we find SARS is requesting this more frequently, as they focus on wear and tear (i.e., tax depreciation) allowances. This is ever so more important, in light of the deep-dive audits mentioned above.
Our webinar training sessions continue to be extremely popular, as are our self-study online courses.
See attached order form which list all our offerings. If you require further information, please contact Ashton on firstname.lastname@example.org.
We will slowly be re-introducing our popular live face to face training workshops in the coming months – come and attend these and not only learn something new but enjoy the social interaction.
Remember, being aware of your business’s financial position and performance, is your responsibility – it is your livelihood and future after all.
Estate Planning and Trusts (FS Estates)
We remind all our clients of this offering – we have a highly experience lawyer and service provider working with us backed up with solid infrastructure.
Estate planning is vital for the protection of your wealth at time of your death, as the cost of estate management at time of death can be large. If you have assets that you or your trust own, you need to contact us asap.
Please contact us for more information and ensure you have plans in place. Death can come very quickly and unexpectedly. We offer very competitive executor fees for our clients.
Ensure you have a valid will in place – contact Ashton on email@example.com.
The Learning Corner
- A business review
A comprehensive review of business operations is a simple but powerful business tool. It enables business owners and managers to analyze performance in achieving goals and meeting key performance indicators (KPIs), and to identify problems and spot trends timeously.Most importantly, an effective review will reveal what is working and what is not, so the team can celebrate successes and build on what is working, and change what is not working to get better results.
Business areas that need to be reviewed may include:
- Business plan, sales, marketing and branding strategies.
- Total income to total expenses, cash flow statement and debtors’ reports, actual vs budget spend, and the balance sheet.
- Internal resources including the company’s people and processes.
- Client base, client processes and customer satisfaction.
- Statutory and regulatory compliance.
- Fees, contracts and costs.
The best way to do a business review is to involve your entire team and to call in professional assistance for a clearer understanding, particularly of the financial aspects of the review.
- Goals and a plan for 2023, including a budget
The business review will provide invaluable information and insights, creating a baseline from which goals can be set for the next 12 months. This enables planning for the year ahead, incorporating the necessary changes to get better results, as well as enhancing or duplicating the processes already generating good results.
- Measuring progress during the year ahead
Measuring progress ensures both better management and greater motivation. What is measured can be managed, and progress on all business goals can be measured through, among others, regular and up-to-date financial reports, (KPIs) and project management tools.
KPIs, for example, are like scorecards that track performance against business goals and can be an effective tool for keeping team members motivated during the year. Experts suggest that smaller businesses should start by measuring only a few KPIs in the crucial business areas of income; customers; employees; and processes; but your accountant will be able to provide invaluable advice for your specific business
Gavin Beretta – Finsolve Group