Monthly Archives: February 2014

Colour Run 2014

Newtons Staff at the Colour Run 2014 Woodlands Estate and Conference Centre.

SANBS Blood Drive

The SANBS Blood Drive was held on the 7th of February 2014. Congratulations to the staff in SWG’s Section for donating the most blood.

Nicholas Newman: SA Cycling road and time trial Championships in Durban

From 4 – 9 February it was the SA Cycling road and time trial Championships in Durban. It was my first cycling championships and the TT route (16.4 km) was flat with a very strong wind (40km/h). I ended up in 3rd place in my category 20 sec behind 2nd place also from Free State and 2min behind the winner. There were 22 athletes in total. The road race was a disaster I bombed out (I hit the wall hard) on the first lap, but all and all it was a good week for me. Article written by Nicholas Newman

Director’s personal financial interests

2If in terms of section 75(5) of the Companies Act a director of a company who has a personal financial interest in respect of a matter to be considered at a meeting of the board, or knows that a related person has a personal financial interest in the matter, the director:

  1. Must disclose the interest and its general nature before the matter is considered at the meeting;
  2. Must disclose to the meeting any material information relating to the matter, and known to the director;
  3. My disclose any observations or pertinent insights relating to the matter if requested to do so by the other directors;
  4. If present at the meeting, must leave the meeting immediately after making any disclosure contemplated in paragraph (b) or (c);
  5. Must not take part in the consideration of the matter, except to the extent contemplated in paragraphs (b) and (c);
  6. While absent from the meeting in terms of this subsection:
    • Is to be regarded as being present at the meeting for the purpose of determining whether sufficient directors are present to constitute the meeting; and
    • Is not to be regarded as being present at the meeting for the purpose of determining;
    • Whether a resolution has sufficient support to be adopted; and
  7. Must not execute any document on behalf of the company in relation to the matter unless specifically requested or directed to do so by the board.

The above does not apply:

  1. To a director of a company
    • In respect of a decision that may generally affect
      1. All of the directors of the company in their capacity as directors; or
      2. A class of persons, despite the fact that the director is one member of that
        class of persons, unless the only members of the class are the director or
        persons related or inter-related to the director; or
    • In respect of a proposal to remove that director from office; or
  2. To a company or its director, if one person:
    • Holds all of the beneficial interests of all of the issued securities of the company; and
    • Is the only director of that company.

If a person is the only director of a company, but does not hold all of the beneficial interests of all of the issued securities of the company, that person may not:

  1. Approve or enter into any agreement in which the person or a related person has a personal financial interest; or
  2. As a director, determine any other matter in which the person or a related person has a personal financial interest, unless the agreement or determination is approved by an ordinary resolution of shareholders after the director has disclosed the nature and extent of that interest to the shareholders.

Source:  Companies  Act 2008

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.

Tax Administration Act 2011

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The following are extracts from the SHORT GUIDE TO THE TAX ADMINISTRATION ACT, 2011  regarding records that are to be kept in terms of the Act.

 

Record retention:
The duty to keep records

This Act imposes a duty on a person to retain the records, books of account or documents needed to comply with a tax Act. It is important to note that certain taxpayers, for example employers and vendors, are required to keep additional specific records in terms of the relevant tax Acts.

In what form must records be kept?

Regarding the manner of keeping records, a new requirement is added. This is to ensure the orderly and safe retention of the records and efficient access thereto by SARS, for purposes of an inspection or audit, during the prescribed retention period. To ensure that records are kept in the correct form, provision is made that SARS may inspect the records for this purpose, in addition to an examination, audit or investigation under the Act.

A person obliged to keep records must:

  1. Keep the records in:
    • Their original form;
    • The form generally prescribed by the Commissioner by public notice; or
    • The form authorised by a senior SARS official upon request by a specific taxpayer for the retention of information contained in records or documents by that taxpayer in a different but acceptable form;
  2. In an orderly fashion;
  3. In a safe place; and
  4. Open for inspection, audit or investigation by SARS.

SARS can do an unannounced inspection to ensure that the records that have to be retained are actually retained and a taxpayer has the duty to keep the necessary records open for inspection by SARS in South Africa.

For what period must records be retained for?

The periods for which persons are required to keep records are set out in Table 3.

Table 3: Record retention periods

Person Period
A person who has submitted a return From the date of the submission of the return until the last day of a period of five years
A person who is required to submit a return for the tax period and has not submitted a return Indefinite, until a return is submitted, as from when the period of five years applies
A person who is not required to submit a return but has, during the tax period, received income, has a capital gain or loss or engaged in any other activity that is subject to tax or would be subject to tax but for the application of a threshold or exemption Until the audit is concluded or the applicable five year period, whichever is the latest
A person who has been notified or is aware that the records are subject to an audit or investigation. If required to submit return: Date of submitting returnIf not required to submit return but received income: End of the tax periodIf failed to submit return: End of the tax period
A person who has lodged an objection or appeal against an assessment or decision under this Act. Until the disputed assessment or decision becomes final or the applicable five year period, whichever is the latest

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.