Hello to all our clients, and season’s greetings.
Please find below, our newsletter for this period.
Deadline 1: Our tax department is currently busy with finalising the 2022 tax year, which for natural persons ends on the 23rd January 2023. As time is now short, please react to their request for information speedily and comprehensively.
Deadline 2: the filing of Company and Trust tax returns, with a February 2022 year end, is due for completion by the end of February 2023.
Deadline 3: Provisional tax returns relating to the 2023 tax year will kick off in January, as the deadline for these returns is end of February. Our tax department will be contacting you shortly to begin the process. 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Further to our recent notification that SARS has withdrawn the old IT14SD audit and replaced it with a customized deep-dive audit, it is important that you as the taxpayer, be able to defend all expenses claimed in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 in your personal name, or that of 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(CGT)
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 disclosed in the relevant provisional tax return – be sure to advise 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 2022 Annual Financial Statements (AFS) season is now coming to an end as Steve and Sharon complete these statements and distribute for your review and sign off. Those entities with 2022 year ends other than February will be receiving priority from the AFS team.
Note that the AFS is used not only for filing company tax returns, but with CIPC as part of the annual return filing.
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 (ie 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.
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 experienced 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.
Ensure you have a valid will in place – contact Ashton on email@example.com.
The Learning Corner
The multitude of returns that require filing from a company perspective can be very bewildering and challenging.
Melanie has prepared an article on the company’s financial year life-cycle, to assist you in understanding the compliancy requirements of operating a legal entity within South Africa.
Please take 5 minutes to read the document and familiarise yourselves with these requirements, which do come around with alarming frequency.
Please download the updated listing of Finsolve focal points – please keep on file for handy reference when wishing to contact our staff.
Gavin Beretta – Finsolve Group