Monthly Archives: June 2013

SANBS Blood Drive: 7 June 2013

We had our six weekly blood drive at Newtons on the 7th June 2013. We were able to donate 10 pints of blood. A big thank you to all the staff that participated!

Vacation Workers

Every June and July holidays we give students from the University an opportunity to come and so what the real working environment is like.

Here are a few that have joined us over the past weeks.

2nd Quarterly Apple Awards

On 7 June the second quarterly Apple Awards for 2013 took place and as always, it did not disappoint. Newtons was honoured to have Professor Hentie van Wyk from the UFS as the guest of honour for the evening. Professor Van Wyk has made a lifelong contribution to the Accountancy Profession and a Newtons jacket was handed over to him as a token of our appreciation. The quarterly Apple Award was awarded to Norman du Plooy and well deservingly so. He has shown utmost dedication and loyalty to Newtons and has been a valuable asset to the firm over the last few years. Well done Norman!

The evening also proved to be full of surprises. A lucky draw took place and a weekend’s stay for two in the Protea Hotel Bloemfontein, with the compliments of Lucia, was up for grabs. Elrico Greyvenstein was the lucky winner.

The evening was a great success and the Newtons employees took the chance to recharge and spend some quality time together.

See you next quarter when we do it again, the Newtons way.

Tjhabelang Primary School

Tjhabelang Primary School

We had the pleasure of hosting Mrs Engela Fourie and Mareli du Plooy from Tjhabelang Primary School on Friday 21st June 2013.

Tjhabelang Primary School provides the children of Bainsvlei, a rural area to the west of Bloemfontein, with the opportunity to enjoy an above average educational experience at a fraction of the cost of similar schooling in town. Tjhabelang’s holistic approach to education attends
to learners’ academic, physical, social and spiritual needs, thereby opening the mind to the possibility that life offers unlimited opportunities that, with the right skills and attitude of self-belief,
can lift people out of poverty and onto a path of purposeful self-determination. The founders of Tjhabelang believe a child’s experiences in his or her first nine years of life are fundamental to
shaping his or her attitude and approach to education in general.

Tjhabelang is fully dependent on the generosity of donors to finance its operations. You can visit their website at www.tjhabelang.com

The Adiactive Run

The adiactive run held by adidas & virgin active Northridge mall on 21 May2013 was supported by some redsockers to go stretch their legs  &  also support Robert Le Brun, an energetic red socker himself.

Robert, who hails from Cape Town, was the lead runner, as well as part of the organising team for the adiactive run.

This year he was part of the Unogwaja Challenge 2013 support crew.

The Unogwaja Challenge emulates the feat of Phil Masterton Smith – cycling in 10 days from Cape Town to Pietermaritzburg & then on the 11th day run the Comrades Marathon.

The Brundle as Robert is better known, was handed a small care package to be taken on the Unogwaja Challenge  & to be distributed on 24May2013, Red Sock Friday.

The care package as symbol that the Bloemfontein Red Sockers are supporting the Unogwaja Challenge 2013 team & crew members and wishing them well on their endeavour.

Marnus Erasmus | Vodacom Super Gees Competition

Marnus Erasmus

One of our staff members, Marnus Erasmus, has gone through to the Vodacom Super Gees Competition. This photo was taken at the Free State Stadium and his mates dressed him like Elvis as part of his Bachelors Party. Little did they know that he would make the Vodacom Super Gees Photo Board!

Good luck Marnus and keep up the GEES!

Marital regimes

June (4)
The big question has been asked and with great excitement you are exchanging wedding ideas.  The who, where and when are a part of your daily discussions and the last thing on either of your minds is probably which marital regime will be best suited to your marriage.  Many couples are also of the view that they don’t need to consider this and say that “they will never get divorced.”  The reality is that an antenuptual contract is not only of effect if a couple gets divorced, but it also protects their assets during their marriage.

There are three marital property regimes in South Africa.  It is important to make an informed decision before entering into a marriage.

1. Married in community of property

Should a couple not enter into an antenuptual contract before they get married then their marriage will automatically be in community of property.  This means that their separate estates (including all their assets and liabilities) will be joined and they will become co-owners of the joint estate.  Assets that will not form part of the joint estate include marital gifts to a specific spouse, benefits received from a will or deed of donation which specifically indicate that such assets will not form part a joint estate, as well as compensation received from a delictictual claim.  One of the disadvantages of this regime is that should one of the spouses be sequestrated; then the sequestration order will automatically bind the joint estate.

Both spouses must consent in writing for certain acts, for example the selling of a house they co-own.  A spouse can act without the consent of the other spouse when for example he/she is acting in the ordinary course of business of that spouse.

2. Married out of community of property without the accrual system:

If parties elect to be married out of community of property without the application of the accrual system then their contract must specifically exclude the accrual system.  Should they elect this property regime then each spouse will remain the exclusive owner of the assets acquired by that spouse before and after their marriage.  Each spouse will also be solely liable for debts incurred by that spouse before and during their marriage.  In other words the system of “what is yours is your and what is mine is mine” will apply.  The spouses will not need each other’s permission for the management, alienation or encumbrance of their respective exclusive properties.

3. Married out of community of property with the accrual system:

The accrual system was incorporated in our legal system in 1984 with the commencement of the Matrimonial Property Act 88 of 1984.  When parties are married out of community of property with the application of the accrual, as in the case of a marriage out of community of property without the application of the accrual, the above-mentioned system of “what is yours is yours and what is mine is mine” will apply during the marriage.  However at the end of the marriage, whether by death or divorce the accrual (growth) of both party’s estate must be determined and the growth is then split equally between the two spouses.

This principle can be better explained by way of the following example:

grid

It is extremely important that a couple obtains expert advice before they get married to discuss the different marital property regimes before choosing the regime that will be applicable to their marriage.

This article is a general information sheet and should not be used or relied on 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.

Voluntary disclosure program under the tax administration act

June (3)
The Tax Administration Act No 28 of 2011 allows any person to apply for voluntary disclosure relief. This voluntary disclosure relief applies to all taxes administered by SARS, except Customs and Excise.

The application, supporting documentation and other information regarding this voluntary disclosure is confidential and may not be shared with any other division of SARS.The benefits of this voluntary disclosure program (VDP) are:

  • Immunity against criminal prosecution for any statutory offence under a tax Act as a result of the default.
  • Partial relief in respect of understatement penalties imposed in terms of the Tax Administration Act.
  • Full relief in respect of administrative non-compliance penalties imposed in terms of the Tax Administration Act.
  • Full relief in respect of penalties imposed in terms of other tax Acts  (the Income Tax or VAT Act), but excluding
    • Penalties for the late submission of a return, and
    • Penalties for the late payment of tax.

The requirements for a valid VDP application are:

  • The disclosure must be voluntary.
  • The application must disclose a default that has not previously been disclosed to SARS by the applicant.
  • The application must be full and complete in all material respects.
  • The application must involve the potential imposition of an understatement penalty in respect of the default.
  • The application may not result in a refund due by SARS.
  • The application must be made in the prescribed form and manner.

It is possible for a person to make an application for voluntary disclosure if there is an audit or investigation pending, if SARS believes that:

  • The default would not otherwise have been detected during the audit or investigation, and
  • The application would be in the interest of good management of the tax system and the best use of SARS’ resources.

The application form VDP01 can only be obtained, completed and submitted via SARS e-Filing (www.sarsefiling.co.za). If a person does not have access to internet or computer facilities, they may visit a SARS branch office, where a staff member of SARS will complete and submit the application via e-Filing on their behalf.

SARS will evaluate the VDP application and any supporting documentation, and if an applicant meets the above requirements, the Commissioner must grant the relief as set out above.  A voluntary disclosure agreement is then drawn up, containing the following information:

  • The rights and obligations of both SARS and the VDP applicant.
  • The material facts of the default.
  • The amount payable by the applicant, stating the understatement penalty separately.
  • The payment arrangements and dates.
  • The relevant undertakings by the parties.

The VDP agreement constitutes a contract and must be signed by both SARS and the applicant.

The Commissioner has the power to:

  • Cancel the VDP agreement if there is a breach of any material term of the agreement.
  • Withdraw the relief if it is established that the applicant failed to disclose a matter that was material to the application, and pursue prosecution for any statutory offence.

This article is a general information sheet and should not be used or relied on 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.

Honest about your tax? Read here

June (2)
Have you recently bought property or livestock? Yes, you have! And the taxman knows. In terms of changes to the Tax Administration Act the South African Revenue Service (SARS) can twice a year obtain information on taxpayers from third parties such as estate agents, attorneys and banks.

In this way SARS can establish whether taxpayers’ financial activities – such as the purchasing and selling of property and shares – correspond with what they declared in their annual tax returns.

The new regulations, which now also focus on trade in cattle and sheep, determines that third parties – such as listed companies, financial institutions and medical aids – must by 31 October this year provide SARS with information about their clients for the first six months of 2013.

Other third parties are, inter alia, persons who trade in livestock, fresh produce, wood products, minerals and gemstones.

The new legislation comes after SARS last year collected R12 billion less in taxes than it had reckoned on.

Michelle Steyn, a Johannesburg tax consultant, says that in terms of legislation anyone who employs people, makes or receives payment on behalf of someone else, or has any dealings with another person or controls the assets of another person, must complete returns to reveal this information to SARS.

Experts say that the new regulations make life difficult for tax evaders.

According to Ettienne Retief, chairman of the tax committee of the SA Institute for Professional Accountants, if you are clever enough you will still find ways of cheating, but from now on it is going to be extremely difficult. He adds that you will no longer be able to hide undeclared income in bank accounts and earn interest on it, and you can no longer use fixed property to cheat.

Steyn says that SARS’s collection techniques are becoming more and more effective and the taxman is now extending his coverage to target especially persons with an income of more than R7? million per year or those who have assets of more than R75? million. The law, she adds, makes it easier for SARS to do more effective lifestyle audits.

Retief’s only concern is that some third parties are possibly going to find it difficult to process the required information.

According to Steyn the new regulations will benefit honest South Africans who are registered for provisional tax. In the past persons had to use approximate amounts on their provisional tax forms and if the estimated amounts were too low, SARS fined them. Because interest certificates and other information must now be provided to SARS twice a year, the provisional tax forms will in future be o much more accurate.

This article is a general information sheet and should not be used or relied on 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.