Lebone House Project

We as first years went to Lebone Village on 20 July 2018 to spend 67 Minutes for Madiba day.

Lebone Village is an AIDS mission outreach association that brings hope to children, youth and families, that has been affected by poverty. Lebone means light in Sotho. Lebone brings light to children and youth that lives without parents.

We as first years had the opportunity to do some maintenance work in the coffee shop. We sanded the wooden tables, chairs and pillars and varnished it afterwards.

We would like to think that the new and improved furniture will bring hope and joy to the people of Lebone.

By :Amore and Leanette

http://www.lebonevillage.com/

From Left to Right

Amoré Rosslee, Mareli Swart, Nikita Martins, Leanette Schoeman and Laureate Mathe.

From Left to Right

Tiaan Terblanche, Amoré Rosslee, Mareli Swart, Nikita Martins, Lulu from Lebone House, Leanette Schoeman, Laureate Mathe, Arné Nel and Nirvard Alberts

67 Reasons to Love South Africa

 

Amore Rosslee

  • I am proud to be a South African, because only in South Africa we “braai”. In other countries they call it a barbeque and nothing comes near South African “braai” food.
  • South Africa is the second largest exporter of fruit in the world. South Africa is also the world’s largest producer of macadamia nuts.
  • South Africa has the longest wine route in the world. South Africa also has the oldest wine industry outside of Europe and the Mediterranean.
  • Kruger National Park supports the greatest variety of wildlife species on the African continent as well as the Big 5 is very special to South Africa.
  • South Africa has the oldest meteor scar in the world, just across the Vaal River near Parys, called the Vredefort Dome. This is a UNESCO World Heritage Site.
  • Kimberley has the biggest man-made hole in the world, but in Jagersfontein it has the deepest vertical man-made hole.

Anne Gouws

  • The word ubuntu that originated from Africa which means humanity towards others

Annette Malherbe

  • Familie
  • Chutney
  • Klimaat
  • Braaivleis
  • Chappies

Anze

  • Nowhere else in the world does anyone understand what the term now-now means… and that it can be anything from a couple of minutes to a couple of hours or days.

Hannetjie

  • Sunshine and braai!

Heleen

Inge

  • We are one of only 13 countries that are home to the ‘Big Five’; a collection of animals that got their title from hunters, who marked them as ‘the toughest five animals to hunt.

Who are the Big Five?

  • Elephant
  • Lion
  • Rhino
  • Leopard
  • Buffalo

Izel

  • Ek hou van Suid-Afrika se verskillende klimaatstreke, waar jy een oomblik nog by die see kan wees en na net n paar ure terug in die bosveld. Ek hou van die verskeidenheid diere in ons land , waar anders kry jy die groot 5, mense kom besoek ons land soms slegs net om die groot 5 te kan sien.
  • Ek hou van ons land se top gehalte wyn wat selfs by groot restaurante oorsee bedien word en ons beeldskone wynplase regoor die land. Ek hou van ons land se warm somers waar mens kan uitspan op ons spierwit strande en ons koue winters waar jy kan wyn drink en biltong eet langs n warm kaggel.
  • Ek hou van Suid-Afrika want ek glo nie jy kry iewers anders mense wat so lekker kan braai en kuier soos ons nie.

Jane Motshabi

  • Ke motlotlo go nna Aforika Borwa ka gore:
  • Re setshaba se se ikadileng ka dipuo tse masome a mangwe(11), seo se dira gore re kopane re le setshaba sa batho. Re nale mafelo le ditlhago di le dintsi mo Aforika Borwa a a re supetsang ngwao ya rona le mo re tswang teng. Pina ya setshaba e nale dipuo tsotlhe tsa Aforika Borwa, seo se kaya ha re kgona go kopana ka sengwe le sengwe. Dijo tsa Aforika Borwa di farologanye mo ditshabeng tsotlhe mo lehatseng jaaka Biltong,Pap le Boerewors.
  • Ke ka moo ke kgonang go sa tshabe ebile ke le motlotlo gore ke mo Aforika.

 

  • I am proud to be a South African based on that:
  • We are a nation dignified by 11 languages, that is the reason we are bonded together. We have a lot of places and nature in South Africa which symbolises our heritage and cultures. The national anthem has most of  the South African languages, which is an indication that we are a Rainbow Nation. Our food is different from other nations/countries such as Biltong, Pap and Boerewors and that is unique.
  • In that way I am very happy and proud to an African.

Jason van Tonder

  • 1 of the things I like about living in South Africa is – is to braai, while watching rugby and to drink beer and eat biltong.

Jo-Mari

Ek is ‘n kind van Suid-Afrika,
gevorm deur mense eie aan ons spesiale land,

 

 

 

 

waar groen koringlande my speelparkie is,

 

 

 

 

 

die geblêr van ‘n lammetjie vroeg op ‘n wintersoggend die teken van hoop is,

 

 

 

 

 

en die mooiste sonsondergange my daaraan herinner dat daar wel ‘n Groter Hand is,

 

 

 

 

Dit is my land: Suid-Afrika

Joseph

  1. FOLAKGA YA RONA (OUR FLAG)

Ke yona naha feela ka bophara eo falakga ya yona e mmala e tseletseng.

(The only National Flag in the world with six colours).

  1. Iindlela Evulekileyo neyoku paka mahala.

(Open roads and free parking)

  1. NELSON MANDELA

Re wa setshaba o senkitlang wa lebala go umaka leina la gagwe ha o bua ka Aforika Borwa ka gore ke mongwe wa batho ba ileng ba re etela pele gore naya kgololesego e re iphitlhela re leng mo go yona gompieno.

(Father of the Nation, can never go unmentioned when it is he who lead South Africa into the freedom that we enjoy today).

Laureate

  • Ke motlotlo go ba mo Aforika Borwa. Ntlheng le kgetlhololo ya letso la mmala re kgona go Bona kgololosego ka rra rona Nelson Mandela.
  • English: I am proudly South African because though we had disadvantaged historical background, we have conquered as a nation with thanks to the father of nation Mr Nelson Mandela.
  • Re setshaba se sengwe le merafe yotlhe, re na le di puo tse di monate tse di farologaneng. Ke ikgantsha ka naga ya rona.
  • English: We are rainbow nation with a variety of cultures, with different languages. I am proud of our country.

Leanette

  • The people in Bloem is the most warm and friendliest people  in the whole South-Africa . Not even the people in Cape Town is so nice even if they have lot of wine farms .
  • The people in bloem still have respect for each other even if it is just greeting back with smile.

Louise

  • In SA is die weer lekker meeste van die tyd
  • Daar is altyd iemand wat graag  rondom n vuur bymekaar wil kom en braai
  • Roosterkoek met botter en kaas
  • Melktert, Malva en Koeksister (daar is selfs n monument in Orania vir n koeksister)
  • Bloemfontein is sentraal gelee aan die see, die bosveld en berge, vakansie keuses is maklik

Lucha

I love my country.  It is impossible to list all the good things, but here is a few:

We, the people of South Africa,

Recognise the injustices of our past;

Honour those who suffered for justice and freedom in our land;

Respect those who have worked to build and develop our country; and

Believe that South Africa belongs to all who live in it, united in our diversity.

We therefore, through our freely elected representatives, adopt this Constitution as the supreme law of the Republic so as to ­

  • Heal the divisions of the past and establish a society based on democratic values, social justice and fundamental human rights;
  • Lay the foundations for a democratic and open society in which government is based on the will of the people and every citizen is equally protected by law;
  • Improve the quality of life of all citizens and free the potential of each person; and
  • Build a united and democratic South Africa able to take its rightful place as a sovereign state in the family of nations.

May God protect our people.

Nkosi Sikelel’ iAfrika. Morena boloka setjhaba sa heso.

God seën Suid-Afrika. God bless South Africa.

Mudzimu fhatutshedza Afurika. Hosi katekisa Afrika.

  • The rest of the world do not know how to make a good pudding.  Jip, it’s true. Nobody can ever beat Malva pudding with lashings of cream, or what about Peppermint Crips Tart, Melktert and koeksisters?
  • While we are on the food subject, what would life be without these wonderful truly SA products?
    • Marmite
    • Pecks vissmeer
    • Mrs Balls
    • Rooibostee
    • Cream Soda – the rest of the world can try, but they just can’t get this one right
    • Krummelpap in die oggend wat so bietjie gebrand het
    • Braaibroodjies
    • Biltong met geelvet
    • Pamoenkoekies for Sunday lunch
    • Bokkoms op toast
  • While our sea may not be turquoise blue and our beaches not perfect white sand, we most certainly have the best waves to body surf.  Trust me.  I’ve tried the rest.  It’s just not the same.
  • On a more serious note, I am proud of our president and most of our past presidents.
  • I love Archbishop Desmond Tutu.
  • Die grasvlaktes van die Vrystaat.  Die Karoo.  Die berge van die Oos-Vrystaat.  Die reuk as jy naby aan die see kom. Die Weskaap.  Johannesburg se bome.  Pretoria se Jakarandabome. Graaff-Reinet. Die Drakensberge.   Ek kan heeldag aanhou.  Kyk bietjie hoe mooi is dit om jou.

Maria Nel

Below are a few reasons why I am personally happy and proud to be a South African living in Bloemfontein:

  • I am proud to be a South African as we as South Africans have the most diverse cultures than any other nationality which functions together.
  • I am proud to be a South African in Bloemfontein as this is the centre of South Africa where rural areas are not too far and the city is not too big, thus as a Bloemfonteiner I experience and get in contact with both types of living conditions. (Rural and city life)
  • I am happy to be a South African (coming form a farm background) as this has taught me where food in super markets come from and taught me to respect all processes for live maintenance.
  • I am proud to be South African as the colours of our nation does not consist of only green and gold but of all colours. Implying that we as South Africans accept all forms of uniqueness around us.
  • I am proud of being a South African as it means regardless of your background, you can achieve anything in this country as if you made no mistake but show that you learned from these mistakes and that they shaped a better citizen.
  • I am happy to live in Bloemfontein as the stars and natural beauty of the world has not gone lost between skyscrapers and traffic/street lights and can still be observed with ease.
  • I am proud of being a South African as I am part of a rich history with numerous monuments and important people who played important parts towards South Africa’s development all over the country.

 

  • I am happy to be a resident in Bloemfontein as there are no terrible traffic congestions forcing me to drive 3 hours before an appointment to be on time.
  • I am happy to be Bloemfontein resident as regardless of all the suburbs and traffic it only takes maximum 30 minutes to be on the complete other side of the city.
  • I am proud to be a resident in Bloemfontein as all shops (major or small) are all conveniently located as close as possible to everybody’s homes and are open to accommodate everyone who are working tight shifts or flexi hours.
  • I am happy to be a resident of Bloemfontein as there are various fun places to relax such as beautiful parks and gardens or nurseries and to let off steam such as gyms in every neighbourhood or amusement places such as Elude Escape Rooms and Cinemas.
  • I am proud to be a resident of Bloemfontein as our university are considered one of the best in South Africa and regardless of all the students coming to Bloemfontein on a yearly basis, Bloemfontein still remains balanced and has not become a student-city.
  • I am happy to be a resident of Bloemfontein as there are numerous schools in all suburbs and all start at different intervals and times to ensure that there are easy flowing traffic to eliminate long hours spent on the roads.
  • I am happy to be a resident of Bloemfontein as although there are water crisis or refuse is not being collected that 3rd outside parties step in and accommodate other who cannot afford water or who do not have trailers to remove waste. (Outsourcing of basic needs and rights when others strike)

Marlene

Kom ons waardeer die vars lug om van te lewe!

(nie besoedel soos in Japan… of Indie nie)

Geniet die warm sonskyn weer wat ons laat onthou ons lewe!!!!

(nie altyd bewolk en renerig soos in Engeland nie)

Ons is bevoorreg om in so ‘n maklike stad te woon..

(ons sit nie vir ure in die verkeer oppad werk toe nie)

Vrystaat……………….

Bloemfontein……………………………..

In die middle – soos ‘n oogappel !!!!!!!!

Nelri

Nirvard

Our diverse cultural backgrounds
Love for sport
The degree of unity which we’ve achieved thus far
Our beautiful national anthem

I am proud of the beautiful landscapes and stunning natural landmarks which our country has to offer.

Sarena

SA has 290 000 windmills throughout the country, second only in number to Australia

Siseko

Reasons to be proud of being a South African

  • Our country has a rich history.  A history that drew international attention to the country for various reasons. Being born post-apartheid, I value the history that this country has, I value the sacrifices made by those who came before me. I value the sacrifices of those who fought relentlessly for the beautiful rainbow nation we have today. South Africa is a country that came out of great adversity and it survived some horrific atrocities committed against its citizens, black and white. Today I am proud to be a citizen of a country that was able to soar above its differences and unite to uphold the rights of every South African. Names like Nelson Mandela, Ahmed Kathrada, Joe Slovo, Ruth First, Winnie Mandela, Lillian Ngoyi make me proud to walk the streets of this country with friends of different races, gender and background knowing we are not different from one another, we have the same blood running in our veins and we share the same invaluable history – winners and victors of triumph and struggle.

Izizathu zokuziqhenya ngokuba nguMzantsi Afrika

  • Ilizwe lethu linomlando ocebileyo. Iimbali ezenza ingqalelo kwihlabathi jikelele ngezizathu ezahlukahlukeneyo. Ukuzalwa emva kombandlululo, ndiyayixabisa imbali yeli lizwe, ndiyayixabisa imibingelelo eyenziwa ngabo bafika phambi kwam. Ndiyayixabisa imibingelelo yabalwe bahlala balwa ngokukhawuleza kwilizwe  elihle lomlambo esinalo namhlanje. UMzantsi Afrika lilizwe  elalivela kwiinkxwaleko ezinkulu kwaye kwasinda ubuninzi obubi obubhekiselele kubemi balo, abamnyama nabamhlophe. Namhlanje ndiqhayisa ukuba ngummi welizwe  elikwazi ukunyuka ngaphezu kweyantlukwano kunye nokudibanisa ukuxhasa amalungelo abo bonke abemi baseMzantsi Afrika. Amagama afana noNelson Mandela, u-Ahmed Kathrada, uJoe Slovo, uRuth First, uWinnie Mandela, uLillian Ngoyi enza siziqhenye ngeendlela zeli lizwe kunye nabahlobo beentlanga ezahlukileyo, ubulili kunye nolwazi ngokungazi ukuba ahluke omnye komnye, sine gazi elifanayo emithanjeni yethu kwaye  nembali efanayo-singabaphumeleleyo nabanqobileyo bokunqoba kunye umzabalazo

Susan

  • South Africa has the most richest language diversity of 12 when Braille is considered as well compared demographically to other countries in size and amount of languages.
  • South Africa is the most southern country where we can witness a yellow/orange/red sunset due to the dust particles in the air caused by our vast nature and wildlife reserves.
  • I am happy to be South African as we have the most beautiful coast line and even a garden route.
  • I am proud to be a South African where one of the new 7 wonders of the world (Table Mountain) is easily accessible even if you are on the other side of the country.
  • I am a proud South African because our history is rich, including a war and many travellers whom are well known through history.
  • South Africa has the boere, the Khoi-San and other traditional tribes that are still present yet they have evolved and modernised through the ages.
  • We as a country, given our size, have a range from rivers, mountains, waterfalls, forests and deserts – including hot springs!
  • South Africa experience all types of weather, from thunder storms, to snow, draught etc.
  • I am proud that we have what we call our own and did not only copy or take from others like – biltong, the big 5 etc.
  • As a nation South Africans find other South Africans when abroad and we greet each other like family and we feel united when this happens.

SWG

  • South African braai with “braaibroodtjies” and “boerewors

Tania Botes

  • I am proud to be a South African as we have The Big Five and our country is the home of the most amazing wildlife and some of the last rhinos left on the planet.
  • I am proud to be a South African as we as South Africans comes together at big sport events where we forget about colour and race and just become South Africans with the most amazing sport spirit.

Teddy

  • Embracing the many cultures that we have in the country through food. In a household a family can easily have tripe, bunny chows, bobotie and then top it off with everyone’s favourite… A braai.
  • So the diversity we express through our food.

Thelma

  • South Africa really is the only place in the world where you shop at the robot. Be it for a newspaper, cellphone charger, sunglasses, beaded art work and toys.
  • Our Beautiful multi-coloured South African flag. LOVE IT!
  • We’re the home of Rooibos tea and Ouma Rusks
  • We are a passionate sporting nation with a song like shosholoza and vuvuzelas

Tineke

  • I am proud of where I live because I am able to work at Newtons where I found the largest group of caring people who makes everyday a good day. At Newtons the people are not only colleagues, they become family and people to look up to as they teach us to be humble and appreciative of everything that we have and hold dear.

Cedric

  • Nowhere else do the stars shine as brightly and as beautifully as right here in the central part of this beautiful country. The Milky Way, the Southern Cross…
  • Giraffes right on our doorstep.
  • Thousand year old Olienhout trees.
  • The birdlife in the Free State is one of the most after in the birding circles

Wayne

  • The Argus, Two Oceans and weekly park-runs

Willie

Adv. Jannie Lubbe SC

  • Great Constitution
  • Backed by a strong independent judiciary.
  • Freedom of speech.

Omheining van verliese (artikel 20A) vir natuurlike persone

Artikel 20A het met ingang van 1 Maart 2004 in werking getree. Hierdie artikel handel oor die omheiningsbepalings wat verhoed dat natuurlike persone hul belasbare inkomste verminder deur verliese uit sekondêre handel te gebruik.

Artikel 20A vervang altans nie artikels 11(a) en 23(g) nie. Alle uitgawes wat nie volgens artikel 11(a) kwalifiseer nie of wat as ’n aftrekking ingevolge artikel 23(g) geweier word, sal permanent verlore gaan. Artikel 20A is dus in teenstelling met artikel 11(a) en 23(g) aangesien uitgawes nie permanent geweier word nie, maar slegs omhein word deur dit as ’n aftrekking toe te laat teen toekomstige belasbare inkomste van die primêre bedryf.

Artikel 20A(2) stel die onderstaande vereistes waarvolgens aangeslane verliese omhein sal word:

  1. Indien ’n belastingbetaler teen die maksimum belastingkoers belas word, voor inagneming van enige aangeslane verliese en balanse van vasgestelde verliese van die vorige jare van aanslag, moet onderstaande punte 2 tot 4 oorweeg word.
  1. Artikel 20A(2) vereis dat die “3-uit-5-jaar”-toets toegepas word vir 2 kategorieë nl. wildsboerdery-aktiwiteite en die handel dryf in “verdagte aktiwiteite” –

2.1 Aangeslane verliese wat ontstaan uit wildsboerdery-aktiwiteite vir 3 van die voorafgaande 5 jare kan moontlik omhein word.

2.2 Artikel 20A(2)(b) verskaf ’n lys van “verdagte aktiwiteite” en indien aangeslane verliese gegenereer word uit een van die onderstaande aktiwiteite vir ten minste 3 van die voorafgaande 5 jare sal sodanige verliese moontlik omhein word:

  • enige sportaktiwiteite beoefen deur die belastingbetaler;
  • enige handel in versamelstukke;
  • die verhuur van residensiële eiendom, tensy ten minste 80% van die akkommodasie gebruik word deur die persone wat nie verwant is aan die belastingbetaler nie, vir ten minste helfte van die jaar van aanslag;
  • die verhuur van voertuie, vliegtuie of bote soos gedefinieer in die Agtste Bylae, tensy ten minste 80% van die voertuie, vliegtuie of bote gebruik word deur nie verwante persone, vir ten minste helfte van die jaar van aanslag nie;
  • diere skou beoefen deur die belastingbetaler;
  • boedery of stoetery, tensy die belastingbetaler hierdie aktiwiteite beoefen op ’n voltydse basis;
  • enige vorm van beeldende of uitvoerende kunste beoefen deur die belastingbetaler; en
  • enige vorm van dobbelary of weddery beoefen deur die belastingbetaler.
  1. Bogenoemde bepalings is nie van toepassing in die geval waar ’n verlies gely word vir die jaar van aanslag, uit ’n bedryf wat ’n redelike kans het om ’n belasbare inkomste (uitgesluit kapitaalwins) te genereer binne ’n redelike periode en ook voldoen aan sekere kriteria soos gelys onder artikel 20A(3) nie.
  1. Alhoewel omheining vrygespring kan word onder punt 3 kan verliese steeds omhein word as daar vir ten minste 6 van die voorafgaande 10 jare verliese gely word. Die onus is dan op die belastingbetaler om die SAID te oortuig dat besigheid bedryf word met ’n redelike vooruitsig om belasbare inkomste te genereer binne ’n redelike tydberk.

Hierdie artikel is ʼn algemene inligtingsblad en moet nie as professionele advies beskou word nie. Geen verantwoordelikheid word aanvaar vir enige foute, verlies of skade wat ondervind word as gevolg  van die gebruik van enige inligting vervat in hierdie artikel nie. Kontak altyd ʼn finansiële raadgewer vir spesifieke en gedetailleerde advies. (E&OE)

“Booking” capital losses on shares is not that easy

There is a number of techniques that taxpayers use to reduce their capital gains tax (CGT) exposure on long-term share investments. A common practice is to utilise the annual exclusion of R40 000 provided for in paragraph 5 of the Eighth Schedule of the Income Tax Act[1] by selling shares that have been bought at a low base cost, at a higher market value and then immediately reacquiring those shares at the same higher value, thereby ensuring that the investments’ base cost is increased by as much as R40 000 per year. If the gain on those shares is managed and kept below the annual R40 000 exclusion, taxpayers receive the benefit of a ‘step-up’ in the base cost of the shares to the higher value for future CGT purposes, without having incurred any tax cost.

A reverse scenario is to build up capital losses for off-set against any future capital gains and taxpayers are often advised, especially during times of market volatility, to ‘lock-in’ capital losses created by the expected temporary reduction in share prices. This involves selling shares at a loss and then immediately reacquiring the same shares at the lower base cost, but with the advantage of having created a capital loss – a technique known as ‘bed-and-breakfasting’.

Without placing an absolute restriction on ‘bed-and-breakfasting’, paragraph 42 of the Eighth Schedule limits the benefit that could have been obtained from the ‘locked-in’ capital loss. The limitations of paragraph 42 apply if, during a 45-day period either before or after the sale of the shares, a taxpayer acquires shares (or enters into a contract to acquire shares) of the same kind and of the same or equivalent quality. ‘Same kind’ and ‘same or equivalent quality’ includes the company in which the shares are held, the nature of the shares (ordinary shares vs preference shares) and the rights attached thereto.

The effect of paragraph 42 is twofold. Firstly, the seller is treated as having sold the shares at the same amount as its base cost, effectively disregarding any loss that it would otherwise have been able to book on the sale of the shares and utilise against other capital gains. Secondly, the purchaser must add the seller’s realised capital loss to the purchase price of the reacquired shares. The loss is therefore not totally foregone, but the benefit thereof (being an increased base cost of the shares acquired) is postponed to a future date when paragraph 42-time limitations do not apply.

Unfortunately, taxpayers do not receive guidance on complex matters such as these on yearly IT3C certificates or broker notes, since these are generally very generic. Therefore, taxpayers wishing to fully capitalise CGT exposure on market fluctuations are advised to consult with their tax practitioners prior to the sale of shares.

[1] No. 58 of 1962

This article is a general information sheet and should not be used or relied upon as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your financial adviser for specific and detailed advice. Errors and omissions excepted (E&OE)

Tax allowances against assets used for purposes of trade

The Income Tax Act[1] allows for various income tax allowances to be claimed in respect of moveable assets used for purposes of a taxpayer’s trade.

Most commonly, section 11(e) provides for a deduction equal to the amount by which the value of any machinery, plant, implements, utensils and articles have diminished by reason of wear and tear during the tax year. Typically, these assets must be owned by the taxpayer, or must be in the process of being acquired. Where an asset was acquired during the year, the allowance provided for in section 11(e) is proportionally reduced according to the period of use during the year.

There are however various other specific asset allowances which may rather regulate whether a wear and tear allowance is available for tax purposes, depending on the nature of the specific asset or which specific industry the taxpayer operates in. Should the relevant requirements for these provisions rather be applicable, the section 11(e) allowance will not apply.

For example, section 12B provides for an accelerated allowance (generally split over three years on a 50/30/20 ratio) for certain plant, equipment and machinery used for farming purposes, the production of renewable energy such as bio-diesel or bio-ethanol products or the generation of electricity from wind, sunlight, etc. Section 12C again provides for a tax allowance in respect of assets used for manufacturing, co-operatives, hotels, ships and aircraft. Section 12E allows for a 100% write off of the cost of plant and machinery brought into use by a “small business corporation” in certain circumstances. Other (maybe lesser known) tax allowances include section 12F (providing for an allowance for qualifying airport and port assets) and section 12I (an additional investment and training allowance in respect of industrial policy projects). There are also various provisions in the Income Tax Act providing specifically for an allowance against which the value of buildings owned by a taxpayer and used for purposes of trade can be written down for tax purposes.

It is important to note that each of these provisions has very specific requirements regarding the type of qualifying assets that could potentially qualify for the allowance. This includes whether or not the specific asset is new and unused and if any improvements to the qualifying assets may also be taken into account. Other important considerations include who the relevant taxpayer is, when the asset was brought into use by that taxpayer for the first time and the costs to be taken into account in calculating the relevant allowance.

The take away is that taxpayers must continuously evaluate their asset registers to confirm that all assets are correctly classified for income tax purposes and that the correct tax allowances are claimed in respect of these assets. The most important consideration of all though is to ensure that available allowances provided for in the Income Tax Act are utilised where appropriate to do so.

[1] No. 58 of 1962

This article is a general information sheet and should not be used or relied upon as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your financial adviser for specific and detailed advice. Errors and omissions excepted (E&OE)

MSI Global Alliance appoints law member in Canada

MSI Global Alliance, one of the world’s leading international associations of independent legal and accounting firms, is delighted to announce the admission of Canadian law practice Bernier Beaudry to the association.

Based in Quebec City and Saint-Georges, Bernier Beaudry provides comprehensive legal services in the areas of business law, corporate law and litigation. The firm, with a team over 20 professionals, including 7 shareholders, was established in 1950. Bernier Beaudry also has an affiliate specialise in immigration law in Canada.

Bernier Beaudry’s client base includes dynamic small and mid-sized businesses as well as most of the Canadian banks.

Tim Wilson, chief executive of MSI, comments, “I am very pleased that MSI is further strengthening its presence in Canada, a globally important country. I look forward to Bernier Beaudry working closely with our members firms throughout North America and beyond”.

Jerome Beaudry, president of Bernier Beaudry, comments, “MSI is a great addition to our already broad offer of services that will definitely help our growing clientele, especially with their international needs, (given their ambitions!). We are looking forward to work and develop synergies with other MSI members around the globe”.

The admission of Bernier Beaudry adds to MSI’s existing membership in Canada, which now comprises eight legal and accounting member firms located in Montreal, Quebec City, Toronto, Vancouver and Yellowknife.

For further information please contact

MSI Global Alliance
Pauline Rottstock, Marketing and Business Development Manager
Tel: +44 20 7583 7000
Email: prottstock@msiglobal.org

About MSI Global Alliance

MSI is one of the world’s leading international associations of independent legal and accounting firms with over 250 carefully selected member firms in more than 100 countries. MSI was formed in 1990 in response to the growing need for cross-border co-operation between professional services firms.

MSI members worldwide work closely together to provide integrated, multidisciplinary services to meet each client’s legal and regulatory obligations and growth ambitions. MSI is ranked among the Top 20 international accounting and legal networks, associations & alliances.

Visit our website: www.msiglobal.org

Congratulations to Arné and Gillian Nel

“Let there be spaces in your togetherness, And let the winds of the heavens dance between you. Love one another but make not a bond of love: Let it be rather a moving sea between the shores of your souls.”

– Kahlil Gibran, The Prophet

31954570_10160174111370391_4350672076936314880_n

Congratulations to Arné and Gillian Nel who promised true and everlasting love to each other on 5 May. We wish you much happiness!

Value Added Tax (VAT) Rates Change

Effective Date:  1st April 2018

The Minister of Finance Dr. Moeketsi Majoro in his budget speech delivered in Parliament on 28 February 2018 announced changes in rates of Value Added Tax (VAT) on the supply of goods and services. Legal Notice No 27 has been published in the Government Gazette No 24 of 23 March 2018 to effect the changes. The new VAT rates are effective from 1st April 2018 and they are as follows;

  • The standard rate of VAT will change from 14% to 15%,
  • Electricity rate increases from 5% to 8%, and
  • Telecommunications rate increases from 5% to 9%.

Important Aspects to Note

Time of Supply

It is important to establish when the taxable supply is made as that is the time on which VAT should be accounted for (i.e. point at which VAT becomes payable to Lesotho Revenue Authority (LRA)). In simple terms, time of supply is the date on which the transaction occurs or is deemed to occur and that in turn determines the applicable VAT rate.

The general time of supply rule is the earlier of the date on which –

  • The goods are delivered or made available or the performance of the service is completed;
  • An invoice for the supply is issued; or
  • Payment (including part-payment) for the supply is made.

This note applies to most transactions that fall within the general time of supply rule. The note does not deal with special time of supply rules which apply on some transactions like; supplies made under rental agreements, hire purchase or finance lease, auctions, own or exempt use.

Prices Quoted or Advertised

All prices advertised or quoted by vendors for taxable supplies must include VAT at the applicable rate (unless the supply is zero-rated). Vendors must state that the price includes VAT in any advertisement or quotation, or the different elements of the total price must be stated i.e. the total amount of VAT, the price excluding VAT and the price inclusive of VAT. Vendors must therefore ensure that all price tickets, labels, quotations, advertisements, etc., reflect the new VAT rates from 1 April 2018.

Accounting Systems

From 1 April 2018, vendors must ensure that their accounting systems including sales and billing systems are updated to reflect VAT at all applicable rates. Vendors should test their systems for errors, and check that transactions are processed and reflected at the correct VAT rates.

In some instances, transactions processed after 1st April 2018 may be subject to the old VAT rate e.g. 14%. This, as previously indicated will depend on the applicable time of supply rule. This therefore means that it must be ensured that accounting systems are able to accommodate the different VAT rates.

Documents: Quotations, Cash Register Slips, Tax Invoices, Debit and Credit Notes

Vendors must ensure that any quotes received on or after 1st April 2018 correctly reflect the new VAT rates. On the other hand, cash register slips and tax invoices issued must reflect the correct VAT rate in order to avoid disputes with consumers and additional taxes and penalties where the output tax is under declared as a result of the incorrect VAT rate used.

Supplier must be contacted if an incorrect VAT rate is reflected on a document, or the amount is incorrectly calculated.

Vat Returns

The correct VAT rates must be used when calculating the input tax on goods or services acquired during the tax periods before and on or after 1st April 2018. Vendors must also ensure that adjustments reflected on the VAT returns in respect of debit or credit notes, are made at the correct VAT rates. The VAT Return has been updated to reflect the new VAT rates.

Importation of Goods

Registered importers or clearing agents must take note that Customs declarations reflect the new VAT rates, generally 15% in respect of goods entered for home consumption on or after 1st April 2018. Invoices issued by the clearing agent for their services of clearing the goods must reflect the correct standard VAT rate. The rate will depend on the general time of supply rules (that is, the earlier of when an invoice was issued, the performance of a service was completed or payment/part-payment was made).

Notes

  • This NOTICE mainly deals with the transitional aspects and does not cover all other aspects of VAT.
  • The normal requirements for a tax invoice and all other documents have not changed.
  • VAT registration and other requirements, including thresholds for registration, have not changed.
  • Care must be taken in filing VAT returns for periods after 1 April to ensure that there is no overstatement of
    input tax claimed.

This article is a general information sheet and should not be used or relied upon as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your financial adviser for specific and detailed advice. Errors and omissions excepted (E&OE)