- Ex - VAT auditor spills the beans on how you might trigger your own unnecessary VAT audit
- 'Dear Vongai, we've been audited by SARS for four tax periods in a row. What is the problem?'
You could unnecessarily trigger your own VAT audit
Avoid this one red flag SARS looks out for
Have a look at this letter I received from Lucia, one of our Practical VAT Handbook Subscribers.
'We've been audited by SARS for four tax periods in a row. That's every tax... ››› more
- [05 June 2017]
- Seven simple steps to calculate your provisional tax correctly
- Has SARS sent YOU a nasty penalty assessment because your provisional taxes were incorrect?
Use these seven steps to calculate your provisional tax correctly
Find detailed calculations and examples for these seven steps here With provisional tax, you estimate and pay your taxes in two payments in the financial year. It's one payment every six months, instead of having to pay one big amount at th... ››› more
- [02 June 2017]
- SARS reveals five helpful hints for completing your ITR12T form
- As a trustee, you have a legal duty to complete and send an Income Tax Return for your Trust to SARS every year. Failure to do so is an offence and could result in harsh penalties.
The good news is, SARS is going to make your Income Tax Return for Trust (ITR12T) completion seamless.
It understands that the ITR12T may be a bit tricky and it wants to help you submit an accurate return and be c... ››› more
- [13 April 2017]
- Use these seven tips to improve ventilation in your workplace - or face penalties
- If your employees are experiencing headaches, dizziness, sinus congestion, itchy or watery eyes, scratchy throats and an inability to concentrate at work, poor ventilation is probably to blame.
And if you don't improve the ventilation in your workplace, you'll risk your business facing hefty penalties or even getting shut down! It will also contribute to unproductivity and increased sick leave ... ››› more
- [11 April 2017]
- 13 Ways to protect your employees' information and stay on the right side of POPI
- Just as you have a right to protect your company's privacy, so your employees have a right to privacy too. And since the President signed the Protection of Personal Information Bill (POPI) last month, you now have a legal duty to protect your employees' information!
Here are the top 13 ways you can keep your employee's information safe and sound...
The 13 best ways to protect your employee'... ››› more
- [31 March 2017]
- Four steps SARS has to take before removing money out of your bank account
- The money in your company's bank account isn't totally under your control! SARS can demand you pay someone else's taxes. With the Tax Admin Act telling taxpayers that ignorance is no excuse, make sure you know your rights and how to prevent SARS from taking money out of your bank account.
For SARS to recover any tax debt, you have to receive an assessment. And the assessment should be correct.... ››› more
- [24 March 2017]
- The SARS 10 commandments for eliminating your tax debt
- If you've ever owed SARS money, you know that SARS goes on a drive to collect all outstanding taxes in February and March each year.
And you're probably thinking SARS won't bother you again until 2016.
Well... things have changed.
SARS' image took a huge knock earlier this year when some of its senior staff acted beyond their authority to gather information on suspected tax evaders. So S... ››› more
- [23 March 2017]
- The 1 vital condition you have to meet to get a tax compromise
- Is your company battling to get on top of tax debt? If so, then it's worth noting that you have a solution!
I'm talking about a tax compromise, and you should definitely use it!
You see, SARS would much rather make a compromise and get some tax out of you than risk getting nothing at all.
But you need to keep in mind that SARS will only grant a tax compromise if this 1 important condit... ››› more
- [23 March 2017]
- How much does absenteeism cost YOUR company?
- The truth is, the real cost of absenteeism can be extremely high, yet many companies still ignore it! In fact some companies don't even know how much absenteeism costs them.
For instance, did you know the cost of absenteeism to your company isn't only limited to your employee's salary for the day he's absent? The costs can actually go up to 3 times that amount taking into consideration the prod... ››› more
- [10 March 2017]
- Are you struggling to implement EE in your company? Here are six practical ways to make sure you're 100% compliant...
- The 26 changes to the Employment Equity Act are in full force. And, if you aren't complying, you could face fines of up to 10% of your annual financial turnover.
In fact, in a previous Bulletin, Janine told us about the increase in the number of Director-General audits this year compared to the same timeframe last year...
And since an EE audit can prove a nightmare for your business if it ... ››› more
- [02 March 2017]
- Over 3 766 businesses are liquidated every year in South Africa. Will your company be next?
- If your company looks like you might have to shut its doors, I have a lifeline for you. It's called business rescue.
It's the legal process you can use to help rescue your business if it's in financial difficulty. And it's probably your last chance to get your business back on its feet.
Let me show you how it works so you can save your business from liquidation... How to make yourself invi... ››› more
- [01 March 2017]
- Think you still have plenty of time to get your EE house in order? Think again!
- At this time of the year, many companies probably think that they still have plenty of time to get their EE house in order, so to speak.
Unfortunately, the Department of Labour inspectors work year-round and they are already well into their stride with Employment Equity audits. I have noticed a marked increase in the number of Director-General audits this year compared to the same timeframe la... ››› more
- [28 February 2017]
- 500 New labour inspectors deployed - one is knocking at your door... Here are the FIVE things he'll check...
- Towards the end of 2015, the Department of Labour hired 500 extra labour inspectors in Johannesburg alone.
And what's on their agenda? To catch as many companies as possible who aren't complying with the over 70 changes to the labour laws that happened in the last few years!
The scary part? A labour inspector can go into any workplace at any reasonable time to check and enforce compliance ... ››› more
- [20 February 2017]
- SARS will interview you when you apply for Vat registration. Take note of the six pieces of information it wants to know or it will reject your application
- When you apply for VAT registration, SARS will do an interview to find out key information about your business.
It's important that you're aware of what SARS wants to know during this interview so you can get your VAT affairs in order and give them what they want.
Because here's the thing, if during the interview SARS finds any signs of non-compliance, they'll reject your application.
... ››› more
- [15 February 2017]
- Use this legal loophole to claim VAT on your clients' gifts
- You probably buy your clients gifts during the year. But just before you submit your VAT return and miss out on a potential VAT saving, you need to read this first!
You're probably thinking... SARS sees gifts as entertainment and disallows input tax claims from the onset, right? Well... not quite...
During the FSPBusiness VAT Masterclass, I found a secret loophole that's totally legal. And... ››› more
- [09 February 2017]
- The DoL took 1400 companies to court for not complying with employment equity law...
- Last year, the DoL took 1 400 of South Africa's medium and large companies to Labour Court for not complying with the Employment Equity (EE) Act.
The first issue of non-compliance was that these companies didn't submit their EE reports. And as we all know, this is one of the legal requirements you need to meet as a designated employer. So the DoL decided to make an example of them and set a pre... ››› more
- [03 February 2017]
- Use this checklist to help ensure you're fully compliant with the Employment Equity Act
- Do you have 50 or more employees in your company? Or is your company's annual turnover higher than Schedule 4 of the Employment Equity Act?
If so, then you're labelled a 'designated employer'. And with that label comes a lot of legal responsibilities, the most important of which is to comply fully with the Employment Equity Act.
If you don't comply with it completely, then you'll face heavy ... ››› more
- [03 February 2017]
- Make sure your credit notes have these six items or you'll face the following consequences
- It's simple. If you cancel a tax invoice, you have to issue a credit note.
You also have to claim back the VAT.
If you don't you will probably underpay your VAT and miss out on input tax deductions.
Let's have a look at what must legally be on your credit notes and the consequences you will face if you don't get it right.
But, before I cover that, let's look at why you must issue 'lega... ››› more
- [27 January 2017]
- Employment Equity Act change: What does 'EE steps and measures' mean?
- The Employment Equity Act amendments are still causing quite a lot of concern for employers.
The provisions mean you'll now have to increase your efforts to not only get more diversity into your organisation, but also actively eliminate unfair discrimination in all areas of work.
On top of this, you also have to thrash out exactly how you plan to do it. Then add that level of detail to your ... ››› more
- [27 January 2017]
- Four performance management activities to make your job easier
- I had some very interesting discussions with a client over the past month about the challenges of managing performance. He was complaining that it's very time intensive to stand over each of his employees, checking they're doing their job. He isn't getting his own work done and he's getting more and more despondent as time goes on.
Luckily for my client there is help at hand and we're implemen... ››› more
- [24 January 2017]
- What does 'ring-fencing of assessed losses' mean and how does it affect you?
- Do you have a side business that you declare and claim losses for on your tax return? If so, beware! You may be caught out under the ring-fencing rules of Section 20A of the Income Tax Act (ITA). But what does ring-fencing of assessed losses actually mean? Read on to find out...
If you're not sure what 'ring-fencing of assessed losses' means, don't fret. The Practical Tax Loose Leaf Service has... ››› more
- [20 January 2017]
- THIS is your best course of action when you can't pay SARS on time
- As a Vat vendor, you have a duty to pay Vat on time.
But, the reality is that the current economic situation is making it harder to comply with this legal duty. Don't even get us started on unforeseen disasters that strike at any moment and make it impossible to meet Vat deadlines.
But, it's not all doom and gloom.
You have options if you can't pay SARS.
Read on to find out what to do... ››› more
- [17 January 2017]
- Three things on your Vat refund that'll get you in trouble with SARS
- You have to tread carefully when it comes to Vat refunds.
SARS scrutinises these and it'll punish you if it finds errors. And this means you can say goodbye to the cash injection you were hoping to get.
But we've got your back as always.
Today our experts reveal the three things that'll get you in trouble with SARS when it comes to Vat refunds. Read on to find out what they are so you c... ››› more
- [17 January 2017]
- The eight instances you can lodge an objection with SARS and win!
- Here's a true story with a happy ending:
I had coffee with Peter Franck, Contributor of the Practical VAT Handbook, and he told me an interesting story about one of his clients, Mr Hogenboezem*. He received a VAT assessment for R86 000 from SARS. SARS issued him with this assessment because he mistakenly claimed input tax twice on a bakkie and the invoices he received for purchases were techni... ››› more
- [11 January 2017]
- Three rules to complete your VAT return correctly and stay under SARS' radar
- VAT is a 'self-assessment' system. This means you're required to work out if you should be paying money in to SARS, or if you should be getting money back from it.
You do this calculation on a VAT return, called a VAT201 via eFiling at the end of your tax period.
But because of numerous mistakes VAT vendors make, SARS checks the VAT returns from time to time by way of a VAT audit. And if any... ››› more
- [22 December 2016]
- Get this wrong and SARS will chase you for someone else's tax!
- Do you do business with foreign nationals in other countries? If so, there's a new tax that you need to comply with: Withholding Tax on Interest (WTI)!
So when the foreign national has made a payment, you're obligated to withhold tax on the interest of the payment. And pay the tax over to SARS on behalf of the foreign national. If you don't SARS will hold you liable!
Sounds complicated righ... ››› more
- [20 December 2016]
- 10 Appointment letters you must have in your health and safety file to stay compliant.
- Managing a construction site isn't easy. That's why you need to manage the appointment of the right staff to help you.
When the DoL comes knocking, you need to be able to prove the competency of your health and safety team members.
For every new construction project you start, you must have an up-to-date health and safety file.
Here are 10 appointment letters the Construction Regulations ... ››› more
- [19 December 2016]
- Can I deduct the cost of a new laptop for my business?
- There's nothing better than getting money back from SARS. And let's face it, we all want money back. The challenge is keeping track all the little unknown expenses you can legally deduct to get SARS to put more money into your bank account. For example, did you know you can claim the cost of new laptops for your business? If not, you're not alone. One of the subscribers to the Practical Tax Loose ... ››› more
- [14 December 2016]
- What you NEED to know about International Vat claims
- Your company may be entitled to claim a Vat refund on a number of business expenses incurred in other countries. Here's what you need to know about International Vat claims.
You know that you can claim South African Vat as input tax. However, you may be neglecting to claim Vat refunds on international business expenses. Now it's your chance to exploit this untapped reserve.
International V... ››› more
- [12 December 2016]
- You don't have to use money to motivate your employees to be more productive. Use these four non-monetary methods instead to get the job done
- You have to be proactive when it comes to motivating your employees to be more productive. After all, improved employee performance means more productivity for your company
And the good news is it doesn't have to cost you a cent.
You don't need money to motivate your employees. Yes it's important, but it isn't everything. And there are studies that prove this.
So how do... ››› more
- [09 December 2016]