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The Importance of Tax Planning

What is Tax Planning? Tax planning can be defined as an arrangement of one’s financial and economic affairs by taking complete legitimate benefits of all deductions, exemptions, allowances and rebates according to laws and regulations to ensure that tax liability reduces to a minimum. Tax planning imply compliance with the taxing provisions in such a […]

Tax Implications of Death

Benjamin Franklin once said that “the only thing certain in this world is death and taxes”. Whilst it is extremely difficult to deal with the loss of a loved one, it is important to understand the tax consequences of death. When a person passes on, all their assets are placed into an estate. These assets […]

Small Tax Mistakes – Beware!

You can now be fined or jailed for small tax mistakes. Inadvertent (unintended, unintentional, unplanned) tax errors – including not alerting SARS of a change in your personal details or failing to keep records from previous tax years – could potentially land you with a fine, or even jail time. This is the result of […]

Capital Gains Tax and the sale of Bitcoin

Capital Gains Tax was introduced on 1 October 2001. It forms part of normal income tax and is based on the sliding tax tables for individuals. Capital gains is based on the concept of disposal. Events that trigger a disposal include a sale, donation, exchange, loss, death and emigration.  It comes about most often for taxpayers when […]

Break-Even Analysis: Definition and How to Calculate and Use It

What Is a Break-Even Analysis? A breakeven analysis is a calculation that tells business owners the minimum number of units of a good or service they must sell to cover all their costs and to be profitable. It helps entrepreneurs come up with a pricing strategy that will not only cover costs but will generate […]

Why vendors fail VAT audits?

As accountants, we have noticed over the past years a significant increase in VAT and Income Tax verifications and audits conducted by SARS. These reviews and audits are not limited to the refunds due by SARS but includes returns where payments have been due and paid over to SARS. A verification is simply a SARS […]

Personal Income Tax Requirements

Income tax is the normal tax which is paid on your taxable income. Examples of amounts an individual may receive, and from which taxable income is determined, include the following – Remuneration (income from employment), such as, salaries, wages, bonuses, overtime pay, taxable (fringe) benefits, allowances and certain lump sum benefits Profits or losses from […]

Provisional Tax (IRP6) Submission Deadline at SARS – 29 February 2024

14 February 2024 Provisional Tax (IRP6) Submission Deadline at SARS – 29 February 2024. Provisional tax is not a separate tax from Income Tax. It is a method of paying tax due, to ensure the taxpayer does not pay large amounts on assessment, as the tax liability is spread over the relevant year of assessment. Final […]

Plans to Replace IAS 1 with IFRS 18

IAS 1, Presentation of Financial Statements, is about to become an IFRS as it is being replaced by IFRS 18, Presentation and Disclosure in Financial Statements, likely to be issued early this year (2024). A significant change will be the introduction of new subtotals and recording income and expenses into newly specified categories.   New subtotals […]

VAT on Property Sales: Buyers and Sellers Information

VAT is a tax applied to the cost of the supply of goods and services by somebody who is registered as a VAT vendor. In a purchase agreement, it’s important to clarify upfront whether the purchase price of a residential property includes VAT and whether VAT or transfer duty is payable on a property transaction.   […]