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April 2020

MOORE ALERT: LEVEL 4 LOCKDOWN IMPLICATIONS

South Africa is entering Lockdown Level 4 on 1 May 2020. This has far reaching implications for employers, employees and the business community at large.   The regulations issued by the South African government (the “government”) on 29 April 2020 are very detailed and specific to each respective industry and employer. Due to the large volume of information we cannot communicate the intricacies of the regulations and have therefore elected to rather ensure our client base has access to the relevant source documents in order to investigate and conclude on their own.   The pertinent information is detailed below and must be read with the source documents referred to:

An Unprecedented R500 Billion Relief Package

At approximately 8:30 pm on 21 April 2020, President Cyril Ramaphosa announced a government backed COVID-19 relief package of unparalleled magnitude never before seen – worth an estimated R500 billion. This roughly equates to 10% of the South African GDP. To put this in perspective – it is roughly R50 billion more than the entire Eskom Debt to date, which has dominated the news headlines over the recent years. The majority of the R500 billion relief package will be funded by additional debt the government will bring onto the balance sheet of South Africa from various international financial institutions, with the minority of the relief package being funded via available government funds and a reallocation of the current budget

A Comprehensive Update on The Covid-19 Temporary Employer/Employee Relief Scheme

Subsequent to our previous article (click HERE) which discussed, amongst other topics, the intricacies of the COVID-19 Temporary Employee/Employer Relief Scheme (“C19 TERS”), the Department of Employment and Labour (“DEL”) have made numerous amendments to the relevant requirements and the application process.   We suspect that more amendments will inevitably be implemented by the DEL in relation to C19 TERS, but we are of the opinion that the material amendments have been made and that a form of ‘stability’ has been reached.   We would like to take this opportunity to point out that certain spokespeople have issued statements that are contradictory to the information published in the government gazette and/or in UIF/TERS Guidelines. Verbal statements by Ministers or similar Representatives on media platforms do not amend the published laws, regulations and guidelines and are non-binding.   In this article we delve into what the current format of C19 TERS entails, what the requirements as at 20 April 2020 are, who can apply and where to apply. Lastly, we answer a number of frequently asked questions.   Our specialist tax and advisory teams at Moore SA are committed to ensure our clients have access to accurate and relevant information at all times which supports the commercial decision-making process. We remain cognisant of the fact that information changes on a frequent basis. Our commitment to our readers during the Lockdown period, however, remains the unchanged:  Helping youthrive in a changing world   We have condensed the most pertinent information from lengthy and in-depth government sources, but request our readers to, where source documents are referred to in this article, read our article in conjunction with the source documents before making decisions.

Leadership Insights: Financial Sustainability

Mark Hewitt CA(SA), a Tax and Advisory Consultant at Moore Cape Town with a Masters in Taxation (MTax), recently joined Dr Andy Brough and Dr Dennis Farrell as part of their webcast series produced in order to support South African businesses in the midst of the COVID-19 pandemic. Mark shared his thoughts on financial sustainability in the current business climate. He has also written and compiled some helpful articles for businesses, which can be found HERE.

Covid-19 Government Relief Alert

In our previous article, released on 31 March 2020, we discussed the various tax relief measures, implemented by the South African Revenue Service (“SARS”) to curb the negative impact of the COVID-19 pandemic and the Lockdown. The article can be found HERE for reference.