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Mentally Aware, Mentally Prepare

At Moore, we care deeply for our peers and unfortunately people suffering from a mental health disorder do not disclose this for fear of being discriminated against in general and especially in the workplace. There is very little education around this subject due to the various mental disorders such as depression, anxiety, substance abuse and job stress. Statistics show that many people have experienced  job stress or anxiety which can lead to a downward spiral should they not be caught and managed as soon as possible.

Diversity In the Boardroom

The need for greater diversity in the boardroom has never been greater than now, not because it is a hot topic, but rather for the sake of the relationship between the workforce and positive business performance. Jacqueline Cousins elaborates.

The Status of South African Real Estate and Construction

The southernmost state in Africa has been ‘yo-yo-ing’ between myriads of amended lockdown levels which has not only kept the economy in limbo, but our sanity too. We have all, to some extent, felt the impact of “covid fatigue” and the real estate and construction sector is no exception.

Protecting Your Excluded Assets Throughout Your Marriage (And in The Case of Divorce)

In our previous article we discussed the benefits of an antenuptial contract. In this article we delve deeper into the concept of excluded assets and how to keep them excluded throughout your marriage and in the case of divorce.

The Impossible Task of The Non-Executive Director

It has become the norm for most companies, even those not under some sort of regulatory obligation, to appoint non-executive directors. Indeed, most appoint a majority within the board. The notion of a non-executive director is brilliant - a provider of objective and wise mentoring from a strategic perspective, gently assisting in steering the boat in the right direction. Louw van der Merwe takes a closer look.  

Are We Still Being “COVID-Ethical”?

October is global ethics month, with Global Ethics Day being held on 20 October 2021. It is, therefore, a good time to focus on personal and business ethics and how ethically each of us is behaving through the pandemic. Being ethical means different things to different people, to me it means acting in the best interests of the most people, without harming yourself or others in the process.

Employment Equity, The Legislation and Beyond

Employment Equity in South Africa is regulated by the Employment Equity Act (no. 55 of 1998) (EEA) and governed by the Department of Labour. Read more as Moore Cape Town's HR Team unpacks Employment Equity, the legislation and beyond.

Zero To R100+ Million Revenue in Three Years: How Revov Batteries Used a Unique Working Capital Strategy to Supercharge Their Growth

In July 2018, Revov Batteries was a two-person team with a few million rand in consulting fees and a plan to transform the alternative energy landscape in South Africa. Today, the business generates well in excess of R100 million in revenue and is one of the top 3 local suppliers of lithium-ion batteries. In this article, Moore Johannesburg takes a closer look at the key drivers to Revov’s success.

An Audit Is an Audit … Or Is It?

One of the biggest frustrations of an audit for both auditors and auditees alike is the fact that the audit of the financial statements of a small, simple company is treated the same as the audits of listed entities with a number of subsidiaries and divisions.

Where There Is a Will, There Is a Way

In the event that an individual passes away without a valid Will, their assets will be divided amongst their closest relatives, for example, their surviving spouse, children, parents or siblings in a specific order as determined by the Act. Moore Cape Town’s Estate Planning department offers their insight.

Women in Business: The Challenges, Opportunities and Advantages

Maureen Penfold, Moore Kingston Smith’s Managing Partner shares the challenges of being a woman in business and reflects on playing the roles of both a parent and a professional.

China Tech Stocks Fall Again as Data Privacy Law Passes

Over the past year, China has cracked down heavily on its technology (tech) sector in areas such as data security and anti-competitive practices, gaming, and fintech. On Friday (20 August), tech shares in China fell once again after the country passed strict data privacy legislation, adding to these tech counters’ compliance burden. Marco de Matos of Anchor Capital looks at the recent developments.

Directors – To Remove or Resign

The Companies Act 71 of 2008 (the “Act”) imposes a fiduciary duty on all directors of a company. Directors have a duty to act in good faith, exercise reasonable care, skill and diligence and act in the best interests of the company. The fiduciary duties of a director may be relinquished if they choose to resign, or if they are removed from the board.

Renewed ETI and PAYE Tax Relief Measures

Following the recent unrest, destruction of public and private infrastructure and extensive business interruptions country wide, the president announced additional tax relief measures during his recent address to the nation. Subsequently, National Treasury has released draft Legislative Amendments to enact the proposed interim tax relief measures. Although not promulgated yet, these Bills provide the necessary Legislative Amendments required to implement the Covid-19 tax relief measures as proposed. Mark Hewitt takes a more detailed look.

Purchase Price Allocation (PPA) And When Do I Need One?

If you are in the process of acquiring a business or have recently acquired a business then you’ll need to know this information. It is likely that the purchase of a business includes an element of Goodwill (i.e. the purchase price is greater than the net assets you acquired). In these circumstances, the International Financial Reporting Standards (IFRS) require you to assess the fair value of assets acquired and liabilities assumed. This process is referred to as a Purchase Price Allocation (PPA). In this article, Moore Advisory Johannesburg takes a closer look at what a PPA is, who needs to perform one and when it needs to be performed.

UIF explained

The Department of Finance has increased the UIF Contribution limit to R177.12 with effect from 1 June 2021. The result thereof is that UIF will now be capped at a maximum contribution of R177.12 per month (as opposed to the R148.72 previously). Megan Veldman unbundles UIF.

Malala Day

“How dare the Taliban take away my basic right to education?” … 11-year-old Malala Yousafzai as she delivered her first speech and spoke up against the closing of girls’ schools and education in Swat Pakistan.   Little did one know that her journey would be a testimony to the triumph of the human spirit … a story of Bravery, Strength, Courage and Defiance against the Taliban leading to a fight for greater peace, and becoming an advocator of free, safe and quality education for girls around the globe. Anusha Ramraj gives us insight into Malala Day.

Benefits of an Antenuptial Contract

Since 1984 there have been three marital regimes in South Africa: In community of propertyAntenuptial contract with accrualAntenuptial contract without accrual Tarryn Wright and Karen Botha dive in deeper.

NPOs Threatened with Deregistration

Approximately 70% of NPOs in South Africa are non-compliant. Holly Lawson looks at the ramifications of non-compliance and the affect that this may have on the country’s NPOs and communities at large.

Tax Deduction for Home Office Expenses. Do You Qualify?

Flexible work arrangements have become increasingly popular as the need of employers and employees change in response to the coronavirus (COVID-19) pandemic. In this article, Grant Ward discusses the specific circumstances that need to be met before workers can qualify for a home office deduction for tax purposes.  

Amazon To Acquire MGM Studios

Amazon, the world's largest online retailer, is in talks to buy US movie studio MGM for c. US$9bn. MGM was forced into bankruptcy about 10 years ago, after piling up debt of c. US$4bn. Marco de Matos has a closer look.

Conquer The Communication Challenges Caused by Masks

June is Effective Communications Month. In the context of South Africa entering its third COVID wave, Anel Jacobs considers the impact of mask-wearing on communication, and shares tips on how to conquer the communication challenges caused by masks.

Have You Declared Your Income from Crypto? If not, Apply for a VDP Quickly

Cryptocurrency is a hot topic at the moment and in February this year, SARS commissioner Edward Kieswetter confirmed that undisclosed cryptocurrency holdings will be a big area of focus for SARS. Are your tax affairs in order or do you need to apply for a VDP? Grant Ward elaborates.

Top 5 Reasons Why Outsourcing Your Payroll is the Smart Choice

For many businesses, salaries and wages are one of the biggest overheads. Managing this non-core aspect of the business can be time consuming and complicated. Moore Johannesburg looks at why more and more businesses are choosing to outsource their payroll processing to professional payroll administrators.

Independent Directors and SME’s

The Companies Act does not set out what would be considered an independent director nor, for that matter, does it distinguish between executive and non-executive directors. Matthew Delaney looks at Independent Directors and SME's.

Tesla Camera Concerns Result in Car Ban by China’s Military

Electric vehicle (EV) and battery manufacturer, Tesla’s cars have been banned from military complexes and housing compounds in China due to concerns that sensitive data will be collected by the cameras built into Tesla’s vehicles.

From Surviving to Thriving

At the end of March, we passed the one-year mark of the pandemic, and while it is easy to focus on everything lost and missed out on during these last 12 months, now more than ever it is important to celebrate that which is right in this world. LeadMe shares tips to shift your mindset from scarcity to abundance so you can move from surviving to thriving.

How to Have A Competitive Advantage in The New World of Work

A year ago, when South Africa went into its national lockdown, we found ourselves in unchartered territory. Read more as Moore Cape Town's HR Team describes how companies can gain a competitive advantage in the new world of work.

International Women’s Day - 8 March 2021 #Choosetochallenge #IWD2021

Ever since Elizabeth Candy Stanton and Lucretia Mott gathered a few hundred people in 1848 to take a stand against oppression and gender inequality, a movement was born... their nation’s first Women’s Rights Convention in New York. They demanded social, civil, political and religious rights for women.    This battle continued into the 1900s where a group of women stood up against their working conditions - historically referred to as the “garment workers’ strike” leading to the Socialist Party dedicating the First National Women’s Day to honour these brave women. Anusha Ramraj delves in deeper at this year’s theme #ChooseToChallenge #IWD2021

Managing the Change

“A leader’s job is to look into the future and see the organisation not as it is, but as it should be.” Jack Welch    Megan Veldman, the Human Resource Manager at Moore Johannesburg in Parktown shares her views on how Human Resources should be the driving force in any organisation to ensure that employees and Management have the best resources to deal with the changing landscape.

Tesla Invests in Bitcoin

Electric vehicle (EV) and battery manufacturer, Tesla has invested US$1.5bn in cryptocurrency, bitcoin and will have made a c. US$1bn paper profit from this investment, according to a report by Wedbush Securities. Marco de Matos has a closer look. 

Selling Your Business Part - 6

Selling a business is a lot easier – and more profitable – if you know how. By following some practical tips, any businessperson can ensure that this milestone is a positive one. Read more about our six-part series, in a nutshell.  

Selling Your Business Part - 5

By following a few basic principles you can create the kind of value that truly attracts buyers. To maximise value and sell at the price you want, you’ll need to demonstrate profitability, identify potential and reduce risk. Read on for our quick guide to creating value for buyers.

Tesla Excels In 2020, Forecast to Deliver Over 1Mn EVs by 2022

Electric vehicle (EV) and battery manufacturer, Tesla had an impressive 2020, with its share price soaring an unbelievable 720% for the year. This year its upward trajectory has continued with the share rising c. 20% YTD, closing at $850.45 on 20 January. In addition, Tesla delivered 499,550 EVs (+36% YoY) to customers last year, slightly below its own target of 500,000, with Wedbush expecting it to deliver 1mn plus vehicles p.a. by 2022.

Regulated Companies – The What, When and How

Dorette van Deventer unpacks how companies are regulated in terms of Section 118 of the Companies Act 71 of 2008 (“the Act”) and in conjunction with Regulation 91 of the Companies Regulations in her latest article.  

The Prescribed Officers

Companies are generally guided by their directors, who run the risk of personal liability in certain circumstances. Unlike directors, prescribed officers are not appointed or elected to the board but could also be held personally liable. Jacqueline Cousins guides us through the new regulations.

Your Year End Checklist 2020

This has been a year like no other, but it’s not over yet. With a few more days left of 2020 there are still a few things you need to attend to before you can put your feet up and take a well-deserved break. Here are six smart things you should be looking at right now that will give you peace of mind and put you on the right track for next year.

Alibaba Singles Day Shopping Event Breaks Past Sales Records

Alibaba’s annual online Singles Day (also called Double 11) shopping event, which usually takes place on 11/11, was this year extended to around two weeks. The event nearly doubled 2019’s record sales as China’s economy, unlike EU and Western economies, continued to recover from the ravages of the COVID-19 pandemic.

What Should Audit Committees Be Thinking About at This Time

Audit committees have a critical role in assisting the Board in overseeing and monitoring an organisation’s principles and processes by which financials are recorded and disseminated, the hiring and monitoring of external auditors, ensuring regulatory compliance, assessing a company's internal financial controls, and reviewing risks with the senior management team. This role may also reach beyond financial performance monitoring to include a broader scope of the organisation's risk and control environment that includes operational processes and new technologies.

Selling Your Business Part 4 - Minimising Tax

Be sure to keep SARS happy but take advantage of generous concessions and planning opportunities by thinking ahead.

Alibaba Affiliate Ant Group’s Listing Could Be the World’s Largest IPO

Alibaba affiliate, Ant Group’s (Ant’s) listing could turn out to be the biggest initial public offering (IPO) in history as it chases a valuation that would rival the world’s biggest payment firms.

Directions on Occupational Health and Safety Measures in Certain Workplaces

“Safety isn’t expensive, it’s priceless.” – Author Unknown. Megan Veldman, HR at Moore Johannesburg looks at Occupational Health and Safety measures in certain workplaces.

Friendly Share Buy-Backs and Section 48(8) Of the Companies Act

The share buy-back has long been an effective manner to consolidate ownership within a company. A share buy-back in many instances is also attractive from a tax perspective because it is considered a dividend and thus does not give rise to a capital gains event. Share buy-backs are governed by Section 48 of the Companies Act 71 of 2008 (“the Act”), which allows the Board of Directors (the “Board”) of a company to determine that the company will acquire its own shares, subject to a solvency and liquidity test. Matthew Delaney Legal Consultant at Resolve Corporate Services takes a closer look.

Gender-Based Violence – Not My Problem

Gender-based violence (GBV) is a profound and widespread problem in South Africa, impacting on almost every aspect of life. GBV (which disproportionately affects women and girls) is systemic, and deeply entrenched in institutions, cultures and traditions in South Africa. Karen Botha Wright delves into this subject a bit deeper.

Selling Your Business Part 3: Finding the Right Buyer

The Moore Advisory Johannesburg team has partnered many entrepreneurs through the sale of their businesses. Based on this experience, the team have put together a six-part series of articles with advice on understanding the sales process. In part 3, they talk to you about who are you going to sell to?

The Audit of Accounting Estimates in Terms of ISA 540 (Revised)

In a rapidly changing business environment, businesses are constantly forecasting what the future may hold, whether strategically, operationally or when accounting for transactions, assets and liabilities in their accounting records. In accounting terms, we call those forecasts accounting estimates.

Tesla’s Energy Storage Business’ Revenue Contribution Could Soar over the Next Decade

Known for its electric vehicles, expectations are that Tesla’s energy storage business segment has enormous growth potential. It is estimated that this segment’s revenue contribution could jump from FY19’s $1.5bn to an impressive $12.4bn by FY23, crossing the $200bn revenue mark by FY33.

Prevention and Detection of Fraud – Auditor’s Responsibility?

Financial fraud is a major contributor to the widespread poverty plaguing South Africa. From SAA being looted - leading to job losses - to fraud and corruption in the management of SASSA grants, it seems that the poorest of the poor are always the unwilling losers. But whose responsibility is it to prevent and detect fraud? Sindy Pretorius looks into this.

Selling Your Business Part 2: Managing the Business Sale Rodeo

The Moore Advisory Johannesburg team has partnered many entrepreneurs through the sale of their businesses. Based on this experience, the team has put together a six-part series of articles with advice on understanding the sales process. In part two, they talk to you about managing the ups and downs of the sales process.

Leading with Ethics

October is ethics month and the question at the top of our minds this month is, “Is it possible for a person of questionable morals or ethics to do ethical business or lead a good company?” For the record, we believe that the answer is a firm “no”, but that the question warrants discussion. Tarryn Wright and Anusha Ramraj delve a bit deeper into this topic.

Global Talent Acquisition – Working without Borders

With the change in modus operandi for companies during these turbulent times, we look at Global Talent and how to acquire this locally. Megan Veldman, Moore Johannesburg, Human Resources Manager, takes a closer look.  

What to do about Internal Audit

Most organisations are currently looking at their internal resources and cost effectiveness in these turbulent times. Presumably, one of their conundrums will be whether or not to retain the internal audit function. Louw van der Merwe, Director of Moore Risk Services, takes a closer look.

Purpose of POPIA in the South African Context

South Africa's Protection of Personal Information Act of 2013 (POPIA), came into effect on 1 July 2020. Pike Law Attorneys in association with Moore CT Forensics take a closer look.

Selling Your Business: Part 1- Preparation

The Moore Advisory Johannesburg team has partnered many entrepreneurs through the sale of their businesses. Based on this experience, the team has put together a six-part series of articles with advice on understanding the sales process. In part 1, it asks: Is your business ready to sell?  

Lockdown Level 2 And Key Amendments to TERS

During the course of the past few days, significant developments have taken place with respect to the UIF Temporary Employee/Employer Relief Scheme (“TERS”) as well as the Lockdown regulations.

Ten Must Reads for Women’s Month

Anél Jacobs, our L&D lead, brings us ten books by women to read this women’s month, covering everything from the power of passion and perseverance, to the gift of radical candour. Charge up your bookstand or kindle and be inspired.

Women in Business – Working from Home

In celebration of Women’s month, Moore Johannesburg Director, and mom, Candice Whitefield, looks at the increased challenges women are dealing with as a result of COVID-19, and shares some of her tips for creating balance.

Amended JSE Listing Requirements and the CEO and CFO

The corporate governance principles contained in the King IV (King Code) are in general voluntary. However, from 31 December 2020, organisations will be compelled to disclose additional information regarding corporate governance practices in their annual reports. Henco Beukes of Moore Johannesburg, takes a closer look.

UIF TERS Extended To 15 August 2020

Earlier today the Minister of the Department of Employment and Labour (“DEL”) announced that applications for the Temporary Employee/Employer Relief Scheme (“TERS”), operated by the Unemployment Insurance Fund (“UIF”), will be extended until 15 August 2020.

UIF TERS Open for June Applications

As part of the government’s response to the negative economic impact of the COVID-19 Lockdown, the Unemployment Insurance Fund (“UIF”) has been managing the processing and payment of claims submitted in relation to the Temporary Employer/Employee Relief Scheme (“TERS”).The total payments made to employers/employees, as confirmed by the Department of Employment and Labour up to and including the 19th of June 2020 is close to R 24 billion - R 6 billion of which solely relates to the month of May.

Lockdown Level 3 and TERS Updates

On the 12th of July 2020, the President announced further amendments to the Lockdown Level 3 Regulations in terms of the Disaster Management Act No. 57 of 2002. These amendments have been made in the wake of an exponential increase in positive COVID-19 test results throughout South Africa, specifically the Western Cape, Eastern Cape and Gauteng.

COVID-19 Related Rent Concessions

IFRS 16 Leases contains requirements that specify the accounting for changes in lease payments, including rent concessions, where entities are required to assess whether such rent concessions are lease modifications.

UIF TERS Open for May Applications

As part of the government’s response to the negative economic impact of the COVID-19 Lockdown, the Unemployment Insurance Fund (“UIF”) has been managing the processing and payment of claims submitted in relation to the Temporary Employer/Employee Relief Scheme (“TERS”).The total payments made to employers/employees, as confirmed by the Department of Employment and Labour (“DEL”) on 26 May 2020, is just over R 15 billion. These payments, however, only relate to the month of April. UIF TERS relief for May has been long awaited by employers and employees.

TERS, Tax Relief and Level 4 Regulations

On 13 May 2020, President Cyril Ramaphosa re-affirmed the government’s commitment to balancing the health of the South African people and the ability of those exact people to earn a living. He commented that the positivity rate has remained low and stable, allowing for a further relaxation of the regulations under Level 4. We have already seen some of these relaxations implemented during the course of May.   The take away from his latest speech was that the government will immediately begin a process of consultation with relevant stakeholders on a proposal that by the end of May, most of the country be placed on Level 3, but that those parts of the country with the highest rates of infection remain on Level 4. Minister of Health, Zweli Mkhize announced that the lockdown will be assigned on a district basis and not provincial as initially speculated.   The full speech of the president of 13 May 2020 can be located HERE.   An updated version of the regulations under Level 3 has not yet been released, but we will communicate as such when more information becomes available.   Since our “Moore: Alert” on the Level 4 Lockdown Regulations, which can be located HERE, additional information has been released by the National Treasury, the UIF and the government on various matters.   In this article we communicate the latest developments with respect to UIF TERS, Tax Relief and Level 4 Lockdown Regulations in order to ensure our client base remains informed and vigilant. We request our readers to read our article in conjunction with the relevant source documents, where referred to.

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.

Covid-19 Tax and Compliance Alert

In this article we analyse the various relief measures made public by the South African Government (“the government”) to date and aim to communicate how South African employers can access these funds and relief measures.

Covid-19 Business Impact Alert

Considering the magnitude and severity of the COVID-19 outbreak, which has been declared a global pandemic by the World Health Organisation (“WHO”), the Minister of Coorperative Governance and Traditional Affairs on 15 March 2020 declared a National State of Disaster in terms of the Disaster Management Act No. 57 of 2002 (“the Disaster Act”) per Government Gazette No 43096.

Market Outlook: Global 2019 Box Office Revenues

2019 recorded the highest ever box office revenue, globally.  In an article written exclusively for Moore, Anchor Capital looks at how the movie industry is performing.

A Tour Like No Other

Moore Stellenbosch Partner, Izak du Plessis, and five other cyclists will cycle a distance of 1904 km, from Johannesburg to Cape Town, in 11 days to raise awareness of child abuse. Izak is no stranger to the bike. He has been cycling for 26 years, he has completed 22 Cape Argus cycle tours and 4 Epics, alongside various other multi-stage cycling events, too many to mention! But this will be a tour unlike any other in South Africa. It will not only impact Izak’s life, but it will change the lives of many others.   Support him by making a donation towards this extraordinary fundraising effort. #ProudlyMoore  Click here to donate and pledge.

Market Outlook: The Latest Coronavirus

In an article written exclusively for Moore, the team at Anchor Capital looks at the impact the spread of the Coronavirus, originating in Wuhan, China, may have on markets, and what it means for investors.

Tax tips for 2020

The tax year ends on 29 February 2020. Our national tax advisory experts share their tips for reducing your tax liability, preparing for tax year-end, advice for avoiding penalties and some thoughts on how to #GetOrganised.

Market Outlook: The Fourth Industrial Revolution

In an article written exclusively for Moore, the team at Anchor Capital looks at the Fourth Industry Revolution, and how this era of technological disruption and social change is rapidly changing the way we create and distribute value.

Audit at The Crossroads

Mike Hathorn, Chair, Global Quality Standards Board discusses the changes in the audit industry he has seen over his 50-year career and why the industry is at a crossroads.

Get Your Financial House in Order these Holidays

The holiday season is almost upon us, and it's an excellent time to get your financial house in order. Olivier Barbeau, Managing Partner at Moore Johannesburg, suggests that a pre-holiday financial to-do list should a top priority for anyone looking to kick off the new decade with some peace of mind. Most of these tasks can be accomplished quickly, but the benefits can last a lifetime.

An Update on The Property Practitioners Act

The release date of the Estate Agency Affairs Act 112 of 1976 (EAAA) clearly indicates that it is outdated. A lot has changed in the last 43 years and now, so has this act. The Property Practitioners Act 22 of 2019 (PPA), which replaced and repealed the EAAA, was promulgated in the Government Gazette on 3 October 2019. National Technical Director of Moore South Africa, Sindy Pretorius, takes a closer look.

The CIPC Companies Compliance Checklist

On 13 August 2019, CIPC issued Notice 52 of 2019 confirming that it is now implementing a new method to monitoring compliance with the Companies Act 71 of 2018 with the so-called Compliance Checklist. As of 01 January 2020, the submission of the compliance checklist will be compulsory and needs to be submitted to CIPC as part of the annual return submission process. Nadia Van Der Merwe, Cosec Manager at Moore Johannesburg-East Rand, looks at what is required in the checklist, and what companies need to do to ensure compliance.

A Moore Trainee’s Take on the New Brand

As part of the recent rebrand from Moore Stephens to Moore, the brand refreshed its brand pillars – the traits we hold as key to who we are and the working environment we seek to create for both clients and our team. Matt Budden, a trainee in the Moore Cape Town firm, shares his thoughts on what these pillars - access, passion, community and care - actually mean in industry, traditionally defined by just the numbers.

Tax Alert: Tax Advice could be Conceived as a Taxable Fringe Benefit

In a recent Supreme Court of Appeal case, BMW South Africa (Pty) Ltd v Commissioner for the South African Revenue Service (No. 1156/2018), the court unanimously ruled that services provided by professional tax advisors to expatriate employees of BMW constituted taxable fringe benefits in the hands of the employees, on which PAYE should have been withheld. Moore Cape Town’s Grant Ward looks at the implications.

Fundamentals Are Key in Approaching Risk Management

The velocity at which today’s global marketplace is changing requires organisations to continuously re-assess risks or events that may affect the achievement of their strategic business objectives. Henco Beukes of Moore Johannesburg explores the fundamentals that are key to managing your risk environment.

Manufacturing Incentives - South Africa’s Best Kept Secret

The Manufacturing Industry in South Africa is full of opportunities for investment, and the SA Department of Trade and Industry has ensured that there are a number of attractive incentives to do so. Kai Reuning, Director at Moore Johannesburg, takes a closer look.  

Provisional Taxpayer Alert: The Tax Implications of Naspers’ Listing of Prosus

On 11 September 2019, Naspers Limited (“Naspers”) successfully listed its international investments, through a newly-established company called Prosus N.V (“Prosus”), on the Euronext Amsterdam Exchange. Grant Ward, tax expert with Moore Cape Town, provides insight into the tax implications of the Prosus listing for Naspers shareholders.  

A Season for Everything

Spring traditionally brings with it the promise of hope and renewal – things in short supply in South Africa at present. Olivier Barbeau, Managing Partner of Moore Johannesburg, looks at the challenges facing our nation and notes that now, more than ever, businesses need ethical leadership, rock solid advisors and the will to stand and be counted.

Essential Reading – a Recap of our Best Reads

For the last eight months, we’ve shared 16 of our most inspiring reads for business leaders. If you missed any of them, here’s a recap of the books we’ve been reading and why we love them.

Examining the Carbon Tax in South Africa

The Carbon Tax came into effect 1 June 2019. Moore Stephens Cape Town’s tax experts look at what the Carbon Tax entails and ask whether it is the break of a new dawn or the straw that breaks the camel’s back.

Essential Reading - Our Top Picks for July

Each month, our Moore Stephens L&D team brings you its top picks for essential reading. Ahead of Women’s Day on 9 August, we look at two books focussed on Women in Leadership.  

IFRS 16 and its Impact on Lessees

The International Accounting Standards Board (IASB) issued IFRS 16 Leases on 13 January 2016. Revising the lease accounting requirements was first added to the IASB’s agenda in 2006. Since then, several exposure drafts have been issued and hotly debated. Now that IFRS 16 has been released, our team looks at the key implications for leases and lessees.  

Essential Reading - Our Top Picks for June

Each month, our Moore Stephens L&D team brings you its top picks for essential reading. This month we look at two books published in 2018 on legacy and leadership – one about what makes ordinary people into extraordinary leaders and one about how to build a long-term legacy in a short-term world.

Section 12J – Answers to Your Most Frequently Asked Questions

We received an overwhelming response to our March newsletter article on Section 12J and how it is delivering growth for South Africa. To answer just some of your questions, we have put together a list of FAQs related to Section 12J and Section 12J Venture Capital Companies (VCC). Kai Reuning and Hans-Dieter Hillermann of Moore Stephens Johannesburg share their insights.

Tax-Free Company Transport – How to Benefit from This Provision

Transport to and from work is a daily struggle for many South Africans and as a result, many businesses provide transport for their employees. In recognition of this necessity, SARS has introduced Paragraph 10(2)(b) of the Seventh Schedule to the Income Tax Act to provide this service at “no value” for tax purposes. Lynn Alaraju of Moore Stephens Johannesburg takes a closer look.

Compromise of Tax Debts with SARS – Do you Qualify?

In these tough economic times, more and more taxpayers are struggling with cash flow and are unable to settle tax debt due to SARS. Moore Stephens Cape Town’s Grant Ward takes a closer look at the compromise arrangements available to individuals, trusts, close corporations and companies.

2019 Tax Return Filing Season – What you Need to Know

SARS Commissioner, Edward Kieswetter, has announced changes to the tax return threshold, as well as the dates for the 2019 tax filing season. Moore Stephens Cape Town’s Grant Ward looks at what you need to know.

Is HMRC taxing you on your UK Pension, interest or royalty income? Time to claim a refund!

The Double Taxation Agreement (“DTA”) between The United Kingdom (“UK”) and South Africa (“SA”) has been enforced since December 2002.  In terms of Articles 11,12 and 17 of the DTA interest, royalties and pensions, other than Government pensions, paid to a South African tax resident is only taxable in South Africa meaning HM Revenue & Customs (“HMRC”) do not have taxing rights on these sources of income.

Is Your Internal Audit Function Adding Value?

Many internal audit functions within organisations fail to add a practical value that exceeds their costs. Louw van der Merwe of Moore Stephens Risk Services argues that Internal Audit can only deliver true value if underpinned by a robust Enterprise-wide Risk Management process. 

Tips for Giving Recognition

It is no secret that one of the key motivators in performance is recognition. Anel Jacobs, Head of L&D at Moore Stephens, takes a look at how to give recognition authentically and with impact.

TAG’s Tips for Giving Feedback with Impact

Most of us dread giving feedback – whether it’s at work, at home or any other area of our lives!  Our in-house academy, TAG Talent & Growth, explains what feedback is, why it is important and shares some tips for giving feedback with impact.

TAG Tips for Goal Setting

Moore Stephens’ in-house academy, TAG Talent & Growth, run by our L&D team, explains why goals are important and shares some tips for successful goal setting in 2019.

Important Changes to Leave Entitlements for Prospective Parents

The definitions and roles of parents have significantly changed over the last decade, and while legislation has been slow to catch up, in 2018 we saw some exciting changes in our labour law. The Basic Conditions of Employment Act (BCEA) now includes three new leave entitlements for parents, adoptive parents and commissioning parents.

SA Introduces the National Minimum Wage Act

The introduction of the National Minimum Wage Act is a significant milestone in South African Labour Law. Moore Stephens Cape Town HR Director, Elizabeth Landsberg, takes a closer look.

Holiday Housekeeping

The holiday season is almost upon us, and it's an excellent time to get your financial house in order. Olivier Barbeau, Managing Partner at Moore Stephens Johannesburg, shares 6 smart planning tasks that will give you peace of mind.

What Private Companies Need to Know About Takeover Regulations

South Africa has entered a technical recession. We can expect an increase in merger and acquisition activity. Often the Takeover Regulations contained in the Companies Act No. 71 of 2008 are overlooked. Failing to adequately consider these implications could have dire consequences for shareholders, particularly those of small to medium private companies.

Reaping the Benefits of Good Tax Planning

As South Africa heads into a recession, good tax planning is essential for companies in order to manage their tax liabilities against cash flow. Janine Bamber of Moore Stephens Durban looks at five ways to be more tax efficient.

Annual Employment Equity Reports Due

Statutory Annual Employment Equity Reports will shortly fall due for submission to the Department of Labour.  Non-compliance can result in prosecution, so it’s advised that designated employers prepare and submit their reports on time.

Five Top Tips for Investing in Property

Building a property portfolio could add an exciting dimension to your investments. In our Sensible Soundbite slot, Izak du Plessis, the head of the property team at Moore Stephens, gives his top tips for surviving, and hopefully thriving, in the property world.

Investing for The Long-Haul in Property Could Bring You Added Tax Benefits

Growing your capital and bringing in income is a major drawcard for property investors. But there could be tax benefits along the way, if you are in it for the long haul.

Get the most out of your home office

It is well-known that sole proprietors who work from home are able to claim back certain expenses related to a home office, but individuals who are formally employed – and even those who don’t have a contract - can also claim back home office expenses, provided they can prove that these expenses were bona fide for the “more efficient performance of their duties”.

Do employers have a moral obligation to help their employees save for retirement?

The fact that fewer than ten percent of South Africans can afford to retire comfortably raises an interesting question about whether employers have a moral responsibility to ensure that their employees are provided for when they retire.

Sensible Soundbite: Five tips for surviving change

Regardless of your industry, there is one theme that is true of every business and that is: change happens. Irrespective of the size and nature of your business, you will always have to react to outward forces — political interference, volatile exchange rates, labour unrest and changes in technology. 

Agriculture in Africa Is Set to Become More Prominent

Agriculture in Africa is set to become more prominent, helped by a growing population and the recent signing of the African Continental Free Trade Area agreement. In the second of our two-part series on agriculture, Kim Cloete speaks to Fanus Truter, a Moore Stephens director in the Southern Cape, about prospects for farmers, boosting exports and shifting gear to keep up with new technology.

The South African Economy Has the Potential to Prosper

Savings and investment; demography; policy and institutions; education; health and openness are the six common ingredients which can catapult an economy to prosperity, Chief Executive of Cannon Asset Managers, Adrian Saville, has outlined in an address to Moore Stephens partners and clients in Cape Town.

Winds of Change in Africa Promise Opportunities for Mining

A boost in commodity prices, an improved political outlook for South Africa and Zimbabwe and a greater appetite for investment in the mining sector have prompted new leads and partnerships since the Investing in African Mining Indaba.   The winds of change blowing across parts of southern Africa have also held promise.

Property Developers Temporarily Letting out Residential Fixed Property

Property developers who let out residential units have been dealt a blow, as relief provided for in the VAT Act has come to an end.   In terms of current legislation where a VAT vendor acquires assets for the purpose of making taxable supplies and this application changes, whether it be a periodic or permanent change, they are required to make a change of use adjustment and effectively repay to SARS the input tax they would have previously claimed.

Moore Stephens Team Shows It’s Open for Business at This Year’s Investing in African Mining Indaba

A boost in commodity prices, an improved political outlook for South Africa and Zimbabwe and a greater appetite for investment in the mining sector has prompted new leads and partnerships for Moore Stephens. This follows the successful Investing in African Mining Indaba in Cape Town.

Spotlight on Transfer Pricing, Says Finance Minister

It was indeed a relief that we had a budget speech as scheduled and without major disruptions. Although not being the main focus point of the post budget media discussions (the increased VAT rate won that prize), there is a strong emphasis in the budget proposals on increased enforcement of rules and regulations governing transfer pricing and cross border transactions, that may result in profit shifting.

Twin Peaks: A New Regulatory Era

The Financial Sector Regulation Act (FSR Act) was signed into law by the President on 21 August 2017. The Act aims to consolidate the regulation and supervision of the financial sector and its various subsectors - namely banking, insurance, financial products and services and market infrastructure - to ensure that each subsector is subject to financial regulation. This regulation requires financial firms to control risks and hold adequate capital as defined by capital requirements (Prudaential requirements) and consumer protection rules in the form of market conduct supervision.  

Economic and Market Overview

Global 2017 turned out to be a buoyant year on the global economic front. Leading indicators in most developed economies were trending up and talk about a synchronised global recovery has been widespread. This was evident in capital market performance over the last twelve months.   The manufacturing PMI lead indicators have been particularly strong towards the end of 2017: the ISM indicator in the US rose to its highest level since 2004, the Chinese official PMI is the highest since 2012, and the European composite is its highest since 2011.

The Outlook for Agriculture in 2018

The South African agricultural sector has gone through a turbulent time over the past year, with many farmers facing a battle of survival in drought-stricken areas.  In the first of a two-part series, Kim Cloete speaks to Jo Viviers, a partner in the Moore Stephens Humansdorp office, about prospects for the industry and how Moore Stephens is helping to advise farmers.

Five Money Resolutions for a More Financially Secure 2018

There is no question that we are living in uncertain economic times, but that doesn’t mean that you can’t feel financially secure. For most people, financial security means having a reliable source of income, but there are other ways to ensure that, even during tough times, you won’t feel the crunch. We recommend committing to these five resolutions to ensure that in 2018 your financial well-being is in the best shape possible.

More Than 32% Of SA Companies Affected by Cybercrime – Is the Threat Real?

Thanks to the recent publicised outbreaks of ransomware, cybersecurity is suddenly a hot topic amongst most C-level executives. Most are scrambling to understand the impact of cybercrimes, what cybersecurity means and what they should be doing to protect themselves and their companies. But is the threat real?  

Appraisal Remedy - Independence in Context

In the previous newsletter, I set out the purpose of the appraisal remedy, and how a dissident investor would engage the remedy, from a procedural point of view. In this post, I will discuss how a company undertaking a fundamental transaction may prevent or avoid an adverse appraisal of the fair value of its shares.

National Treasury Softens Stance on Tax Exemption for Foreign Employment Income

National Treasury has confirmed that the tax exemption for foreign employment income, as contained in section 10(1)(o)(ii) of the Income Tax Act, will be amended to allow for the first R1 million of foreign remuneration per year to be exempt from tax in South Africa if the individual is outside of South Africa, for a certain period of time. This is a welcome change from Treasury’s previous stance on the matter, which proposed a complete repeal of the exemption, with foreign remuneration consequently fully taxable in South Africa.

Economic and Market Overview

Global Real global economic growth has tilted up and is approaching the long-term trend of 3.5% per annum, and yet global interest rates remain at depressed levels. At 1.25%, the Federal Reserve’s Fed funds rate is high when measured against its peers (Bank of England’s clearing bank rate at 0.25% and the European Central Bank’s repo rate effectively at 0%). Yet it is by no stretch of the imagination high when measured against historical levels.  Monetary policymakers, especially outside of the US, are particularly dovish and very careful not to stifle economies with near-term interest rate increases. There are, however, pockets of strong growth around the world – the aggregate real GDP growth of emerging markets averages nearly 5% at the moment. Sadly, South Africa is the worst performing of these markets at around 0.5%.

Manage Risk While Optimising and Sustaining Your Company’s Growth

The world of risk is changing. Challenging economic times, volatile world events and fast-changing technology are leaving organisations more vulnerable than ever. Given these factors, it is much harder to predict where new risk will come from. 

Self-Insurance: Manage Risk While Optimising and Sustaining Your Company’s Growth

Did you know that alien abduction insurance has been available in the USA since 1987? Today, it would be unusual to find someone who has not purchased some form of insurance, whether it be for his/her car, home, life or business. Insurance gives us the financial security against unforeseen, calamitous and sometimes tragic events, with insurers providing policies for these risks, and many, many others.

How to Live the American Dream

It may be called the “Land of the Free”, but the ability to live and work in the USA as a freedom citizen of another country is largely denied – and increasingly coveted. So much so, in fact, that the uptake of various federal visa programmes administered by the United States Citizenship and Immigration Services (USCIS) has skyrocketed in recent years. Among the most popular of these are the EB-5 and E2 programmes.

A Short Case Study of Successful Collaboration Between Moore Stephens Cyprus and Moore Stephens South Africa.

Andrew Pitt a Director of Moore Stephens Cape Town Inc. wrote a simple email to George Stylianou of Moore Stephens Nicosia on the 3rd October 2016 introducing himself and asking whether MS Nicosia would be interested in taking part in a due diligence project for an acquisition which would potentially take place in Cyprus. Within minutes of receipt George responded positively and an hour later an NDA was sent by Andrew to establish confidentiality in place.

Combating the Effects of Sick Leave in the Workplace

It is that time of year again, when sick leave may impact staff attendance and in turn, impact productivity, reducing staff morale and costing your company money. The key to combating the effects of sick leave in the workplace, is to understand what the sick leave entitlement covers, and have policies in place to manage sick leave.

Interest Rates Fall, as Politics Stalks the SARB

MPC Announces 25bps Interest Rate Cut The Monetary Policy Committee (MPC) of the South African Reserve Bank (SARB) announced a 25 basis point (bps) cut in the benchmark interest rate at its 20 July meeting, thus dropping the repo rate from 7.00% to 6.75%.

Internal Audit – To Outsource or to Insource?

We are regularly asked this question by clients who are looking to establish an internal audit function. As professional service providers of internal audit services on an outsourced basis, there is obviously a case to be made that we are not in a position to provide independent advice, as it relates to this question. We do, however, like to think that we put our ethics before our wallets.

IFRS 17: A Synopsis

In a distant kingdom, many years ago, the International Accounting Standards Board (IASB) wanted to achieve consistent accounting for all insurance contracts by all companies around the world (although the US has opted out and US GAAP will persist), to enable comparability with non-insurance products. In May 2017, the International Financial Reporting Standard (IFRS) 17 on Insurance Contracts was released with an effective date of 1 January 2021, with prior-year comparative reporting required.

The Common Reporting Standard: A Catalyst for Tax-Advantaged Residence

For those concerned about new regulations regarding the cross-border sharing of financial information, an alternative residence can provide peace of mind.  

Recession: Surprise!!

South Africa plunged into its second recession in eight years during the first quarter of 2017. Africa’s most industrialised economy contracted by 0.7% in the first three months of the year after a 0.3% drop at the end of 2016.

Mandatory Audit Firm Rotation (MAFR)

IRBA published the Mandatory Audit Firm Rotation rule on Friday, 2 June 2017, implementing firm rotation on a rotation period of ten consecutive years, and a cooling off period of five financial years. The effective date is financial years commencing on or after 01 April 2023.

Sectional Titles Schemes Management Act CSOS Levies

On 7 October 2016 the Sectional Titles Schemes Management Act, No 8 of 2011 and the Sectional Titles Schemes Management Regulations, 2016, became effective. Together with the Act and Regulations, the Community Schemes Ombud Service Act, 2011, and the Regulations also became effective.

The New Mining Charter – The Good, the Bad and the Ugly

On 15 June 2017, the Minister of Mineral Resources published the reviewed Mining Charter.  In theory, the Charter seeks to address the issue of black economic empowerment within the mining sector. In practice, though, the Charter has already induced panic in the financial markets and is likely to discourage investment, complicate shareholding matters and reduce employment within the mining sector.

For Internationally Mobile Investors, a Second Citizenship Provides a Passport to the World

As the world becomes ever more globalised and people live and conduct business on a progressively more international scale, freedom to move within the global market provides a decided edge. Increasingly, a valuable asset in the portfolios of wealthy investors has become a second passport.

Ethics in Valuations

Some of these are rather simple. You are engaged by the shareholders of a business and asked to value the business, as the shareholders wish to take out buy-and-sell cover. It appears straightforward. However, at times there is an acrimonious split or a sale situation where the buyer and seller have very different values in mind. Emotions of the parties are running high and you are under pressure by one party to achieve a certain result.

Don’t Be Caught by These Common Scams - Part Five

Greeting cards, for example, are received via e-mail and seem to be from a friend. When the e-mail and greeting card are opened, malicious software is downloaded and installed on the receiver’s operating system.

Appraisal Remedy: Introduction - Part One

The appraisal remedy, found in Section 164 of the Companies Act, is a novel concept in our corporate law. It is derived in large part from the equivalent provision in the Canada Business Corporations Act.

Feedback on Risk Management to Oversight

Feedback on the Risk Management Process to Oversight obviously depends on the level of oversight required. In most organisations, the Risk and Audit Committees are combined. Feedback would, therefore, come from both these bodies.  

Don’t Be Caught by These Common Scams - Part 4

Phishing e-mail scams Phishing is defined by Wikipedia as “…the attempt to obtain sensitive information such as usernames, passwords, and credit card details (and sometimes, indirectly, money), often for malicious reasons, by masquerading as a trustworthy entity in an electronic communication.”

Proposal to Amend Foreign Employment Income Tax Exemption

Currently, if a South African resident is employed and works abroad for more than 183 days of which 60 days are continuous within a 12 month period, the employment income earned is exempt from tax in South Africa. This is commonly called the section 10(1)(o) exemption. Following the Budget announced on 22 February, this is now under attack.

At Last, Clarity on Tax Implications for Non-Executive Directors

For many years, there has been uncertainty on how to treat fees paid to Non-Executive Directors (“NED”) in relation to value –added tax (“VAT”) and pay as you earn (“PAYE”). Following the issuing of two binding general rulings by SARS, certainty is now created for taxpayers.

Heads up Trusts: Section 7C Has Arrived!

Many of us, especially those who have a significant number of assets and want some form of protection, have created Trusts over the years to benefit and administer our estates in such a way to minimise risk and as a consequence of common law and legislation, draw on the tax benefit it offers.   At the beginning of the year, the presidency signed into law the Taxation Laws Amendment Act, No. 15 of 2016, noted in the government gazette number 40562 on 19 January 2017 (the “Act”) which will change estate planning and how trusts are used.

Don’t Be Caught by These Common Scams - Part 3

From cellphone threats and malware, to organizations, innumerable numbers of threats exist across the cyber landscape. Because you can commoditize cyber crime, it is making it easier and cheaper to launch attacks on a global scale. Cyber security has become a buzzword in the business environment, due to the numerous breaches reported. In Part 3 of this series, we discuss fake technical support scams you may come across.

Fresh Optimism in Mining Sparks Opportunities for Moore Stephens

​The upswing in the mining industry, which was reflected at the 2017 Investing in African Mining Indaba in Cape Town in February, has opened up exciting opportunities for Moore Stephens.    Michael Simms, Moore Stephens Mining and Energy leader, based in London, was upbeat about projects which had survived the downturn cycle. Together with the more optimistic outlook for a number of commodities, he expects the expansion of Moore Stephens firms and increased presence in African countries to lead to wider opportunities.

Cash, Cows and Tax

Many South African farmers are suffering due to the effects of the severe drought that recently hit South Africa. Although fellow South Africans are trying to help farmers reduce the drought’s side effects, the taxman is not so sympathetic should the farmer not follow the correct procedures.   More often than not, livestock farmers pay more tax in a year that is hit by a severe drought than in a year with an above average rainfall. The reason for this is that, in a dry year, grazing pastures are limited which leaves farmers with no other option than to sell a portion of their livestock. Should the rain not arrive early enough to provide sufficient grazing before the end of his tax year, farmers will be unable to purchase replacement livestock.

2016 in Perspective

For the majority of South African investors, these four numbers represent a year that most are quite happy to see at its end. The proverbial punches started in December 2015 with Nenegate, and in January last year, global financial markets produced their worst start in decades, preceded by a tumbling oil price.  Locally, a sovereign credit ratings downgrade plagued markets as our economy continued to slow down. 

Being Financially Prepared For 2017

Moore Stephens Johannesburg Managing Partner, Olivier Barbeau, gives sound advice on being financially prepared for 2017 on The Lifestyle Show on SAFM.

POPI – It’s Time to Start Complying

POPI was signed into law by the President on 19 November 2013. Only certain parts of the Act have since come into operation, mostly the parts dealing with the establishment of the Information Regulator which, when the Act comes fully into operation, will be the governing body that will deal with any or all complaints in connection with personal information. The Act is expected to come into full operation within 12 months, being middle to end of 2017.

King James - A Winning Partnership

The enduring partnership between King James advertising icons, Chief Creative Officer, Alistair King and Chief Executive, James Barty, is almost legendary on the advertising scene in South Africa. As a client Moore Stephens is proud to call its own, we set out to find out more about this dynamic duo.  

Is Your House in Order? Your Holiday Checklist

The holiday season is almost upon us, and it's an excellent time to get your financial house in order. One of the keys to stress-free living in the holiday season is to make a financial checklist, suggests Olivier Barbeau, Managing Partner at Moore Stephens Johannesburg. While all the festive detail is being sorted, serious financial elements can go adrift and target dates missed. A pre-holiday financial to-do list is a top priority, or should be, for many of us. Most of these tasks can be accomplished quickly, but the benefits can last a lifetime.

Don’t Be Caught by These Common Scams - Part 2

Cyber security has become a buzzword in the business environment due to the numerous breaches reported. In Part 2 of this series, we discuss telephonic scams you may come across.

Don’t Be Caught by These Common Cyber Scams - Part 1 of 5

Cyber security has become a buzzword in the business environment due to the numerous breaches reported. In 2016 alone, there were reports about breaches in LinkedIn and MySpace. The Bangladesh Bank was robbed of $81 million via a SWIFT transfer, IRS, and the true extent of the Yahoo breach in 2014 is being reported. Hospitals and other healthcare organisations suffered ransomware attacks. In addition to attacks on companies, cyber criminals also target individuals with various different scams. In this series, we discuss more common scams you may come across, not only while browsing the internet or doing banking, but also in your everyday use of computers and other mobile devices. In this, Part 1, we cover Business Email Compromise, commonly known as Whaling.

Accounting Changes for Bearer Plants in The Agricultural Sector

Bearer plants related to agricultural activity are classified as property, plant and equipment under IAS 12 in the current financial period. (Effective date: For annual periods beginning on or after 1 January 2016). Previously, these would have been classified as biological assets along with the produce they bear, and valued at fair value per IAS 41. Produce continues to be classified as biological assets.

The Viability and Application of Polygraphs in The Conventional Investigative Processes

Polygraphing and its application can be a contentious issue. There are many reasons for this, but ultimately, as in all things, the level of input is equivalent to the resultant product.   The bulk of research done over the years, irrespective of personal opinion, is indicative of the fact that properly conducted polygraph examinations produce findings significantly better than chance. As such, this investigative tool has significant potential in the conventional investigative field.

Bringing Renewable Energy to Businesses in Rural Areas in Africa

Investors have identified opportunities to develop renewable energy in rural areas in several African countries, bringing power to small and medium-size businesses and the communities that surround them.   Together with technical partners, consulting and advisory firm, Moore Stephens Africa Advisory (MSAA) has a strategy to facilitate assisting rural communities and private developers to own and operate their own renewable energy farms.

SARS Special Stoppers

The issue of refunds remains of great concern to all involved. (See also the SAIT Member Alert 1 September 2016). We are sending this alert once again to inform you that you are not alone in your concerns. The issue of refunds is a widespread issue, based on the myriad of complaints that we receive daily, as well as on our discussions with other key recognised controlling bodies. The most urgent concerns relate to ITR12’s, with VAT refunds being an ongoing issue.

My Will and Estate Planning

We never like talking about death and taxes, but ensuring that you have a valid and current will can alleviate further hardship for the loved ones whom you leave behind. In this way, some unintended consequences are avoided, not to mention the unnecessary hardship for surviving family members during an already difficult time. 

Recent Developments in Terms of South African Transfer Pricing Documentation Requirements

South Africa’s transfer pricing legislation came into effect on 1 July 1995 and was followed by Practice Note 2 and Practice Note 7. These provided taxpayers with guidance on how the South African Revenue Service (“SARS”) intended to apply the legislation, including certain guidelines on transfer pricing documentation, which was largely based on the Organisation for Economic Cooperation and Development (“OECD”) transfer pricing documentation guidelines. This remained the only point of reference for taxpayers and transfer pricing service providers until recently.  

Prioritising Risks - Inherent Versus Residual

We are often asked about the difference between inherent and residual risk ratings within the risk management process, and why this “academic” distinction is important to anyone other than a risk management practitioner or an internal auditor.

Key Issues When Acquiring an Energy and Mining Company - Part 3

Acquiring a business can be a complex, resource-intensive and time-consuming process, yet attaining the right business can generate substantial value. We have highlighted some key issues that should be taken into account when acquiring an energy and mining company. In the final of our three-part series, we consider points 11 to 15:

Amendments to The IFRS For SMEs Standard

After being with us for a little more than six years in its current form, the IASB has published amendments to the International Financial Reporting Standard for Small to Medium-sized Entities (IFRS for SMEs). Amendments become effective for annual periods beginning on or after 1 January 2017. Earlier application is permitted, in which case all amendments must be adopted.

Shareholder Responsibilities

In today’s economy it can be a smart business move to invest your funds in a growing company. Along with the benefits and the rights this affords you as a shareholder, there are accompanying responsibilities you need to be aware of. 

Brexit: Two Weeks Later……

Two weeks after the United Kingdom voted to leave the European Union (EU), the focus of attention is in three different areas: the political turmoil that has erupted in UK politics, the widespread speculation about the response of the remaining members of the EU and the reaction of global equity, bond and currency markets. 

Implications If MOI Is Not Completed and Submitted to CIPC

The Presidency proclaimed 01 May 2011 as the implementation date of the Companies Act, No. 71 of 2008, as amended by the Companies Amendment Act, No. 3 of 2011 (“New Companies Act”) and the Companies Regulations. This Act replaced the Companies Act, No. 61 of 1973 (“Old Companies Act”) on 01 May 2011, other than the provisions relating to liquidations and winding-up.

Security Best Practices for Cellphone Users – Part 2

Should you need, from time to time, to make confidential cellphone calls and wish to ensure integrity from your side of the conversation (there can be no guarantees that the recipient is secured), then the best option remains a satellite phone such as InMarSat (available locally from EvoSat). 

Key Issues When Acquiring an Energy and Mining Company - Part 2

Acquiring a business can be a complex, resource-intensive and time-consuming process, yet attaining the right business can generate substantial value. We have highlighted some key issues that should be taken into account when acquiring an energy and mining company. 

Security Best Practices for Cellphone Users - Part 1

There is no doubt that technology brings with it many advantages. However, there are also attendant risks which need to be carefully managed, to ensure that all its advantages can be enjoyed with the risks minimised as far as possible. Nowhere is this, perhaps, more important than in the case of mobile phones, where data can be accessed and compromised with relative ease.

Risk Management

We have seen many organisations implement an Enterprise-wide Risk Management Process during the last few years.  Yet very few have derived any practical value from this process.   The most common reasons why most ERM processes effectively fail during the first year, are discussed below.

Key Issues When Acquiring an Energy and Mining Company - Part One

​Acquiring a business can be a complex, resource-intensive and time-consuming process, yet attaining the right business can generate substantial value. We have highlighted some key issues that should be taken into account when acquiring an energy and mining company. In part one of our three-part series, we consider the first five:

Efforts to Expand Tax Base Bearing Fruit

The recent crackdown on the cash and carry sector in the South African economy seems to be bearing fruit.   The South African Revenue Service (SARS) has raised assessments worth R600 million in the past financial year, following on-site inspections and audits of non-compliant businesses.

Combined Assurance – What Is It?

The term “Combined Assurance” has been very popular over the last few years, and we have fielded many queries as to what exactly this concept entails.  Much like Risk Management, the removal of the capital letters somewhat demystifies the notion. 

What Is Skills Development?

The Skills Development Act and Skills Development Levies Act require businesses with yearly payrolls of R500 000 and over to register for Skills Development Levies (SDL).   The purpose of the Skills Development Act is to develop the skills of the South African workforce and to improve the quality of life of workers and their prospects of work.

International Foreign Exchange Payments: What You Need to Know

South Africa’s uncertain economic and political climate has put unprecedented pressure on the Rand. From February to December 2015, the Rand weakened against the US Dollar from R12.50 to R17, more than 35%. This has resulted in an increased number of people who wish to diversify their assets in offshore safe haven markets, and therefore an increase of outflows of personal wealth.

Survival of The Fittest in A Battered Mining Sector

The slump in commodity prices over the past year has jolted the mining industry out of its comfort zone. The industry is in a different place right now, where everything is under scrutiny. The fittest and most well-managed companies will be those that survive. So where are the opportunities and how do companies in the mining industry rise above harsh times that have affected them? Mike Simms and Olivier Barbeau offer some advice.

Pervasive Political Interference

The Companies Act 2008 introduced the key concept that a provision in a shareholder’s agreement that is inconsistent with the Companies Act and the company’s memorandum of incorporation (MOI) is void to the extent of the inconsistency. This was an about turn from the position under the previous Companies Act and the previous practice of shareholders, including a number of substantive provisions in a shareholder’s agreement, with little regard to the company’s memorandum and articles of association.

Special Voluntary Disclosure Programme In Respect of Offshore Assets and Income

On 24 February 2016 the National Treasury released a Media Statement announcing a Special Voluntary Disclosure Programme (SVDP). According to the media statement, the purpose of the SVDP is to give non-compliant taxpayers an opportunity to voluntarily disclose offshore assets and income. The Common Reporting Standard (CRS), formally referred to as the Standard for Automatic Exchange of Financial Account Information, is an information standard for the automatic exchange of information (AEoI), developed in the context of the Organisation for Economic Co-operation and Development (OECD). The legal basis for exchange of data is the Convention on Mutual Administrative Assistance in Tax Matters and the idea is based on the USA Foreign Account Tax Compliance Act (FATCA) implementation agreements.

HR Audits: What Are They and Why Are They Important?

An HR audit is a review of all existing documentation regarding employment, including employment policies and practices, to ensure legal compliance. Labour legislation changes periodically, so it is important to ensure your HR audits are done regularly and are updated where necessary.

Incentive for Employers to Provide Bursaries – No Effective Date of Implementation

“To support skills development, government proposes to increase the fringe benefit tax exemption thresholds for bursaries provided to employees or their relatives. The income eligibility threshold for employees to access the relief will be increased from R250 000 to R400 000. The value of qualifying bursaries will be increased from R10 000 to R15 000 for National Qualifications Framework levels 1 to 4, and from R30 000 to R40 000 for levels 5 to 10.”

Tax Treatment of Trusts

In his recent budget speech, Minister Gordhan made the following proposal: “An important role of the tax system is to reduce inequality. Some taxpayers use trusts to avoid paying estate duty and donations tax. For example, if the founder of a trust sells his or her assets to the trust, and grants the trust an interest-free loan as payment, donations tax is not triggered and the assets are not included in his or her estate at death."

Retirement Reform Update

Three aspects of the retirement reform project have been postponed: 1.       The annuitisation of provident funds;2.       The increase of the de minimis threshold; and3.       The tax neutral portability from a pension to a provident fund. This postponement is made possible by the Revenue Laws Amendment Bill, 2016, that was tabled in Parliament on 24 February 2016.  

Selling Your Business

Are you a small to medium-sized business owner? Selling your business is possibly not your priority right now, but in order to achieve a successful sale, you should start preparing early in order to optimise the value that you could receive. Let’s run through ten practical steps to help you achieve the best value on the ultimate sale of your business. Please note that this article is not in any way intended to be a technical treatise.

When Should I Establish a Risk Management or Internal Audit Function?

We are often asked the above question by organisations. Much like the answer to any business endeavour, the short and easy answer is when the value exceeds the cost.    However, the value is not always very easy to measure. Contrary to, for example, the value derived from starting a new manufacturing line or upgrading a key piece of equipment which is visible in the short term, the value derived from appointing a top non-executive director, strengthening the finance function to enable meaningful data analysis or establishing an internal audit or risk management function, is over a longer term. In addition, value derived from establishing an internal audit or risk management function is much more difficult to quantify. 

The Imperative for Mining Companies to Micro-Manage Surface Right Entitlements

BACKGROUND TO THE RISKS   The mining industry is a complex integration of many disciplines, all of which, when aligned, contribute towards achieving the commercial targets of the enterprise. The risks are enormous but the rewards are satisfying. Amongst these risks, there are two fundamental issues that can have a fatal impact on the success of the operations – complications related to tenure and inaccurate databases.

Is Bartering Making a Comeback?

Bartering, the ancient and original form of trading used before the introduction of legal tender, allows parties to dispense with cash but still be able to acquire the goods and services they require. Tough economic times across the globe have seen an increase in trading by bartering. Bartering is making a comeback!

Being A Director – What Is My Operational Role?

We are often asked about the operational responsibilities of directors. There is a large degree of subjectivity associated with the answer, and therefore no short, definitive answer that applies to all.  The importance of getting it right, however, cannot be overestimated.  Ask any executive about the frustrations and inefficiencies of a director getting it wrong towards the heavy end; and then ask any shareholder about the disappointments in a well-paid director being on the barely asleep side of involvement.  So how do some get it right, and what constitutes “right”?

New Regulatory Tax Reporting Requirements

In March 2016, the global version of the United States’ Foreign Account Tax Compliance Act (FATCA), also known as the Common Reporting Standard (CRS), will come into effect in South Africa. Both FATCA and CRS affect individuals, entities and financial institutions globally. In essence, FATCA aims to combat US offshore tax evasion and recoup US tax revenues. It requires non-US financial institutions to provide the US Internal Revenue Service (IRS) with information relating to its clients who are US citizens (in South Africa this information flow is facilitated via SARS).  Moore Stephens receives regular requests for Voluntary Disclosure assistance. Candice Olivier and Brett Abramowitz from Investec outlines some key points. 

Picking Up the Pieces

The Zuma Policy ErrorThe policy error made by President Jacob Zuma in December last year, when he fired Finance Minister Nene and replaced him with unknown Desmond van Rooyen, is still priced into our investment markets.  

More Countries Sign Up to Transparency Through the EITI

The rising number of governments committing to the Extractive Industries Transparency Initiative (EITI) is a sign that they are getting more serious about transparency in their mining, oil and gas industries, as well as being more proactive about weeding out corruption in the sector.  

Moore Stephens Mining Team at The Mining Indaba Cape Town 8 - 11 February 2016

We recognise the many challenges faced by businesses focused on the mining of coal, gold, iron ore and other natural resources. Fluctuating commodity prices and currency values add greater complexity to the process of planning future operations. Persistently rising operating costs, not least through wage inflation in many regions, have increased pressure on margins and the need for efficiencies. Meanwhile, predicting demand has become more difficult with the slowdown in manufacturing growth in China, on the one hand, and continued growth of other developing nations on the other. 

How Secure Is Your It Infrastructure? Are Your Employees Stealing Your Data?

In today’s increasingly evolving technological world, it is virtually impossible to commit fraud without evidence being stored on electronic devices of one kind or another.   These include : computer workstations or servers, CDs and DVDs, laptops, Notebooks, hard drives, cell phones/PDA’s, iPads/tablets, SIM cards, USB flash drives, printers, cameras and so on. 

INTEGRATED RESORT SCHEME / REAL ESTATE SCHEME IN MAURITIUS

Following the 2015 / 2016 Budget Speech, it may well be that there will be changes in the rules regarding ‘Integrated Resort Scheme’ (IRS). My understanding is that the IRS concept will be modified because it is considered a ‘ghetto for the rich’ by the new Government. Government policy is shifting towards a more inclusive concept of ‘smart cities’, accessible to all. Parliament has passed the Finance Act, concise copies of which will be made available.

IS YOUR HOUSE IN ORDER? YOUR HOLIDAY CHECKLIST

The holiday season is almost upon us, and with it an excellent opportunity to get your financial house in order. One of the keys to stress-free living in the holiday season is to make a financial checklist, suggests Managing Partner, Olivier Barbeau. While all the festive detail is being sorted, serious financial stuff can go adrift and target dates missed. A pre-holiday financial to-do list is a top priority, or should be, for many of us. Most of these tasks can be accomplished quickly, but the benefits can last a lifetime.

HAVE YOU SUBMITTED YOUR PAIA MANUAL, DUE ON 31 OF DECEMBER 2015?

In terms of the Promotion of Access to Information Act No 2, 2000 (herein after referred to as “PAIA”), all private and public bodies must appoint an Information Officer and prepare a Section 51 Manual before 31 December 2015. All previous exemptions granted will expire on 31 December 2015. 

HR AUDITS: WHAT ARE THEY AND WHY ARE THEY IMPORTANT?

An HR audit is a review of all existing documentation regarding employment, including employment policies and practices, to ensure legal compliance. Labour legislation changes periodically, so it is important to ensure your HR audits are done regularly and are updated where necessary.

HIDDEN ASSETS IN DIVORCE CASES

Whilst the concealing, and uncovering, of assets is certainly not limited to divorce cases, it is one of the areas where issues commonly arise. A spouse/partner may be severely prejudiced if she/he is not aware of what is happening to her/his joint financial affairs.

MANAGE THAT EXCHANGE RATE RISK: DIVERSIFY OFFSHORE

Back in the early 1990s, a student was writing his Oxbridge General Paper (Oxford and Cambridge Entry Examination). There was just one question typed on the paper: 

CAMEROON ON THE RADAR

​In March/April 2015, Jeff Blackbeard received a special invitation by the Prime Minister of Cameroon, Mr Philemon Yang and was requested to identify potential investors in the Energy, Construction, Agriculture, Retail and Manufacturing sectors for specifically identified opportunities.

WHY DO PEOPLE COMMIT FRAUD?

As forensic practitioners, we are often asked: Why do people commit fraud? We understand “fraud” as including a range of criminal and unethical behaviours and we will use it in that sense in this article, too.

POTENTIAL IMPACT OF PROLONGED LOW OIL PRICES ON AFRICA

The drop in oil prices over the past 12 months to levels in the vicinity of 50 USD is expected to have a major impact on Africa, which during 2014 and the first two quarters of 2015 has already been grappling with poverty, food shortages, HIV/AIDS, regional conflict and the Ebola virus in West Africa. These low prices are impacting economies that depend on exports, such as Nigeria and Angola where Moore Stephens network member firms and clients are experiencing various aspects of the pricing levels.  It is likely that financial institutions in countries across Africa are stress testing for operations in countries at 40 USD per barrel.

EIGHT KEY QUESTIONS TO HELP YOU CHOOSE AN INVESTMENT.... A FEW THINGS TO THINK ABOUT THIS SAVINGS MONTH

The investment universe can be complex to navigate without a good grasp of what your needs are. But once you understand why you're investing and what you'd like to achieve, the process becomes far simpler.   July is savings month, an initiative aimed at encouraging South Africans to adopt a savings culture and ultimately save more. To help you sort through the clutter, we have outlined key questions you should be asking yourself before choosing an investment.

MAURITIUS SOUTH AFRICA DTA CHANGES

Dear All, Please find attached a copy of the MOU signed recently between the Government of Mauritius and South Africa with regards to the issue of ‘dual residence’ for DTA benefits under the revised Mauritius/RSA DTA. Your comments and views are most welcomed.

STRENGTHENING LINKS BETWEEN AFRICA AND CHINA

Moore Stephens China Africa Desk takes delegation to Beijing, ChinaA delegation from accounting and consulting firm, Moore Stephens, has been on a breakthrough visit to Beijing, and has signaled strong prospects of attracting more trade and investment between African countries and China. The delegation of partners and clients from South Africa and Cameroon met with Moore Stephens Da Hua in Beijing, and interacted with partners and clients on business opportunities in Africa.The visit is the largest ever undertaken by Moore Stephens (MS) partner firms in Africa to China.

IS YOUR FAMILY TRUST IN ORDER?

Trusts remain a valuable part of most long-term wealth management solutions. The estate planning opportunities and protection from creditors that they offer remain a compelling proposition for most clients.   During 2014, SARS overhauled the Trust Tax return. This is a clear indication of its intention to scrutinise trust affairs more closely.  We have embarked on a new project to assist you in proactively managing your trusts’ affairs with regard to administration, compliance and taxation. 

FIVE THINGS YOU NEED TO KNOW ABOUT YOUR WILL

1.       Consult a professional 2.       Make a list of your assets 3.       Liquidity 4.       Select guardians and trustees carefully 5.       Be specific about what your wishes are

INTERNAL AUDIT – ADDING VALUE OR ADDING PAPER?

Many internal audit functions within organisations fail to add practical value that exceeds their costs.  Why is this?   Firstly, it is our experience that an internal audit function is hard pressed to demonstrate and deliver value if not underpinned by a robust Enterprise-wide Risk Management (ERM) process.  In fact, where there is no ERM process in place, it is our recommendation that internal audit resources should first be applied in establishing an ERM process.  

CLARIFICATION ON TAX CLEARANCE APPLICATIONS FOR FOREIGN INVESTMENT PURPOSES

In the February Budget Review, National Treasury indicated that as from 1 April 2015 a South African resident’s (individuals only) foreign capital allowance would increase from R4 million to R10 million per calendar year. In order to take funds offshore, individuals would have to obtain a foreign tax clearance certificate from SARS before they could transfer the funds offshore.

AN OPPORTUNITY TO AUGMENT YOUR ANNUAL TAX PLANNING

A TFSA is a long-term investment vehicle which can be a valuable addition to your existing plan, due to its significant tax advantages. Since the introduction of the TFSA legislation on 20 February 2015, you've probably been faced with a myriad of TFSA-related news and marketing messages. It may be tempting to make a decision hastily, but it's worth taking a step back and ensuring these decisions are fully informed and costs are fair, especially since high fee charges within some of the available options on the market could erode some of its tax benefits. We'd like to help you understand more about what to consider when making your selection.

TRUSTS - ROLE AND RESPONSIBILITY OF PROTECTORS

To Protect or Not to Protect   Whilst the role of a trust protector is more often raised in connection with offshore trusts, he/she may be appointed in domestic trusts both inter vivos and will trusts. His/her role and responsibility are often misunderstood or unclear.   A trust protector has nothing to do with nor has any connection with the “Public protector”, set up in terms of South Africa’s Constitution to investigate complaints against government agencies or officials.

SELLING YOUR BUSINESS

The preparatory steps, even if the thought hasn’t crossed your mind yet!   Are you a small to medium-sized business owner? Selling your business is possibly not your priority right now, but in order to achieve a successful sale, you should start preparing early in order to optimise the value that you could receive. Let’s run through ten practical steps to help you achieve the best value on the ultimate sale of your business. Please note that this article is not in any way intended to be a technical treatise. 

SARS REPORTABLE ARRANGEMENTS AMENDED

On 16 March 2015 a public notice was issued by the Commissioner for SARS which listed a number of new transactions which would be regarded as reportable arrangements from the said date.

TAX-FREE SAVINGS ACCOUNTS

What is a Tax-Free Savings Account?   Tax-free savings accounts were introduced by National Treasury to encourage individuals to save with the benefit of the account being 100% tax free. These accounts came into effect on 1 March 2015. The investment account is exempt from income tax, capital gains tax (CGT) and dividend withholding tax. Individuals are allowed to contribute R30 000 per year to a tax-free savings account and there is a lifetime maximum contribution limit of R500 000. 

RISK MANAGEMENT

Top Management Tool or Administrative Nightmare?   We have seen many organisations implement an Enterprise-wide Risk Management Process during the last few years.  Yet very few have derived any practical value from this process.

COMPLIANCE WITH ANTI-BRIBERY AND CORRUPTION LEGISLATION

In recent years, there has been increasing concern internationally about bribery and corruption. As a result, many countries have passed laws (or have sought to implement existing laws more actively) that target bribery and corruption, both inside and beyond their national borders. Apart from any reputational risk management issues, penalties for non-compliance are potentially very severe for offending parties, so it’s not just a case of “doing the right thing” from an ethical standpoint.

THE PRESCRIBED OFFICER

Do you hold general managerial and executive decision making powers in your current position?  Do you lead from the front, instituting changes that affect the way your business functions and the systems it operates? Do you ever assist and advise in the legal affairs of the Company? If so, you could be a Prescribed Officer. Why is this important? Simple. You can and will be held at the same level of responsibility and liabilities to that of a registered director for any gross negligence and mismanagement.  As such, it is imperative that you are aware of your corporate positioning. 

PHILLIP HAUPT UNPACKS CHANGES IN THE 2015 / 2016 BUDGET

South Africans at the top of the corporate ladder are unlikely to suffer much from increases in personal income tax, but they could be affected by a range of other changes which affect retirement annuities, rebates for foreign taxes and property transfer tax.

SELLING YOUR BUSINESS

The preparatory steps, even if the thought hasn’t crossed your mind yet!   Are you a small to medium-sized business owner? Selling your business is possibly not your priority right now, but in order to achieve a successful sale, you should start preparing early in order to optimise the value that you could receive. Let’s run through ten practical steps to help you achieve the best value on the ultimate sale of your business. Please note that this article is not in any way intended to be a technical treatise. 

COMPLIANCE WITH ANTI-BRIBERY AND CORRUPTION LEGISLATION

In recent years, there has been increasing concern internationally about bribery and corruption. As a result, many countries have passed laws (or have sought to implement existing laws more actively) that target bribery and corruption, both inside and beyond their national borders. Apart from any reputational risk management issues, penalties for non-compliance are potentially very severe for offending parties, so it’s not just a case of “doing the right thing” from an ethical standpoint.

THE INSIDE SCOOP OF INSIDER TRADING – THE ZIETSMAN JUDGEMENT

Insider trading is famously prohibited but prosecution is uncommon. The judgement in Zietsman and Another v Financial Services Board and Another (A679/14) [2015] ZAGPPHC (24 August 2015) has shown that this form of market abuse can be easy to detect and prove and the financial sanctions imposed are a strong deterrent besides the risk of criminal prosecution.

A TOUGH YEAR AHEAD...

David Crosoer, our Executive: Research and Investments answers some pertinent questions about our investment perspectives for 2015 and what happened in 2014. He shares insight into the broader global economy, the local picture and just how PPS Investments has diversified its portfolios to minimise risk for clients and help to generate long-term wealth.

STC CREDIT – USE IT OR LOSE IT

Dividends tax was introduced into the South African tax regime on 1 April 2012 and replaced secondary tax on companies (STC). STC was levied on dividends distributed by companies at the flat rate of ten percent. In terms of the dividends tax regime, a 15% tax is levied on the amount of any dividend paid by a company. The company is liable to withhold the amount of the tax in respect of cash dividends and pay it over to the South African Revenue Service (SARS).

TOPPING UP YOUR RETIREMENT ANNUITY

Have you ever wondered why, at this time of the year, you receive a plethora of emails from investment businesses recommending that you top up your retirement annuity (RA)? The short answer is that the 2014/15 tax year closes on 28 February and you’re able to reap significant tax advantages by making an additional RA contribution before the tax year-end. Generally speaking, an additional investment into an RA is beneficial, provided that you have not yet reached your maximum tax deductible retirement annuity contribution for the year and provided that all money returned from SARS in future is reinvested into your RA portfolio.

INVESTING INTO AFRICA MAURITIUS GBL 1 OR SA HOLDING COMPANY

Before addressing the topic of this article, it is appropriate to look at the proposed changes to the double tax agreement between Mauritius and SA announced in May 2014 and what the impact will be for investment by non-residents into SA and SA companies expanding offshore via Mauritius.

BUILDING YOUR PERSONAL BRAND

Increasingly, companies are realising the value of sharpening up their business branding and marketing. But with fierce competition and rapidly changing ways of communication, it’s becoming just as vital to build your own personal brand.

ECONOMIC COMMENTARY

David Crosoer, PPS Investment Executive, answers some pertinent questions about his investment perspectives for 2015 and over the past quarter. He shares insight into the broader global economy, the local picture and just how PPS Investments has diversified its portfolios to minimise risk for clients and help them generate long term wealth. 

WITHHOLDING TAX ON FOREIGN INTEREST PAID AND INCREASE IN RATE OF WITHHOLDING TAX ON ROYALTIES PAID (EFFECTIVE 1 JANUARY 2015).

Areas that could be of significance to entities that receive finance from abroad, are Sections 50A – 50H that came into effect on 1 January 2015.These sections deal with withholding tax on interest paid to or for the benefit of any foreign person, to the extent that the amount is regarded as having been received or accrued from a source within South Africa.  According to the new regime, withholding tax amounting to 15% of the interest payable will be required to be withheld and paid by the South African resident entity to SARS by the last business day of the month, following the month in which the interest is paid.

OUR MINING TEAM AT THE MINING INDABA IN CAPE TOWN 9-12 FEBRUARY 2015

We recognise the many challenges faced by businesses focused on the mining of coal, gold, iron ore and other natural resources.

DURBAN-BASED AGRI COMPANY SET TO EXPAND INTO AFRICA AND MIDDLE EAST

Durban-based company, VIPA Holdings, is set to become a leader in the fertiliser business into Africa and the Middle East after entering into an alliance with Cargill, the largest grain-rading company in the world. VIPA’S partnership with Cargill will enable it to import bulk fertilisers such as UREA, KCL as well as MAP for distribution into the regions.  These three products form the base of the standard Nitrogen, Phosphates and Potassium (NPK) which is widely used in agriculture.

IS YOUR HOUSE IN ORDER? YOUR HOLIDAY CHECKLIST

The holiday season is almost upon us, and with it an excellent opportunity to get your financial house in order. One of the keys to stress-free living in the holiday season is to make a financial checklist, suggests Olivier Barbeau, senior managing partner for audit and advisory firm, Moore Stephens South Africa.

QUALITY IS KEY SAYS MOORE STEPHENS INTERNATIONAL CHAIRMAN, RICHARD MOORE.

The Chairman of Moore Stephens International, Richard Moore, has encouraged partners and staff to make the most of tremendous opportunities over the next few years.  Mr. Moore was warmly welcomed when he joined 68 Partners at the 11th MSSA Partners Conference in Clarens, where he offered some valuable insights into the network and industry.

TAX-FREE SAVINGS ACCOUNTS

The concept of a tax-free savings account was introduced by Treasury in the 2013 Budget with an effective date of 1 March 2015.

TIM SHALLCROSS HEADS SOUTH FOR GLOBAL CONFERENCE

Business development manager, Tim Shallcross, is heading to South Africa to address Moore Stephens Africa network partners attending their annual partners’ conference on 7 November 2014 in Clarens, Eastern Free State. Tim ShallcrossThe conference brings together 200 attendees including 60 partners from 15 African countries.

7 DEADLY SINS – WHY BUSINESSES FAIL

The recent spate of corporate failures in South Africa should be a stark remind to all of us to have another close look at our own businesses. Why do some businesses succeed when others fail? Is it just a matter of luck? Unfortunately the reality is that there are common mistakes that kill many businesses before they ever get off the ground.

GOING CONCERN

A going concern is a business that functions without the threat of liquidation for the foreseeable future, usually regarded as at least within 12 months. It implies for the business the basic declaration of intention to keep running its activities at least for the next year, which is a basic assumption to prepare financial statements considering the conceptual framework of the IFRS. Hence, the declaration of going concern means that the entity has neither the intention nor the need to liquidate or curtail materially the scale of its operations.

HOME OFFICE EXPENSE: WHEN CAN IT BE CLAIMED BY AN EMPLOYEE?

An individual who operates as a sole proprietor is eligible for all deductions and allowances provided for in the Income Tax Act 58 of 1962 (the Act) with regard to their business expenses. An individual who is an employee however is limited in the deductions that may be claimed against their salary due to the operation of section 23(m) of the Act.

EMPLOYMENT EQUITY REPORT DEADLINE LOOMING

The deadline for the Employment Equity Reports to be submitted to the Department of Labour is approaching fast.All reports that are manually submitted (by hand or post) needed to be in by 1 October 2014. The deadline for online submissions via the Employment Equity Online Reporting System is 15 January 2015.

AN EVENTFUL QUARTER AT A GLANCE

The last quarter was characterised by weakness in South African equity markets, after the All Share Index failed to hold onto the all-time highs reached in the previous quarter; weakness in both commodity and foreign exchange markets with the South African Rand testing levels not seen since January this year; and weakness in the credit markets with the knock-on effects of the micro-lender African Bank (ABIL) being placed under curatorship in August was felt across the market.

INDEPENDENT REGULATORY BOARD FOR AUDITORS

South Africa maintains first position for the strength of Auditing and Reporting standards for five years in a row South Africa maintained its number one ranking for the strength of the Auditing and Reporting Standards for the fifth year in a row according to the World Economic Forum′s (WEF) Global Competitiveness Index for 2014-2015, released on 3 September.

IMPORTANT NOTICE TO CUSTOMERS - DISCONTINUED ACCEPTANCE OF CHEQUE DEPOSITS

The Companies and Intellectual Property Commission (CIPC) would like to inform customers that CIPC no longer accepts cheque deposits as a form payment with immediate effect. This is due to the high volume of dishonoured cheques received in the CIPC bank account.

TIGHTENING UP ON TAX IN AFRICA

With many African governments tightening up on their labour, tax and immigration policies, companies employing expatriates increasingly need to up their game. “The days of staff being paid offshore to avoid in-country tax and social security responsibilities are fast drawing to an end. Companies and staff currently involved in these under-the-radar activities should be concerned,” says David White, CEO of Moore Stephens DRG Outsourcing SA Pty Ltd.