Monthly Archives: January 2015

The impact of the new BBBEE Codes of Good Practice on your business

A1The compilation and verification of a scorecard for an entity in terms of the Broad-Based Black Economic Empowerment (BBBEE) Act is done according to the Codes of Good Practice (the Codes) issued by the Department of Trade and Industry (the dti). The Codes have been amended and the new Codes were gazetted on Friday 11 October 2013. These changes will have a significant effect on the BBBEE strategy of businesses and careful consideration will have to be given to adjustments in this area.

Major changes to the previous Codes include:

  1. The seven elements on the scorecard are reduced to five elements and the weighting of each element has been adjusted as follows:
    – Ownership (25 points weighting)
    – Management Control (15 points weighting)
    – Skills Development (20 points weighting)
    – Enterprise and Supplier Development (40 points weighting)
    – Socio-Economic Development (5 points weighting)
  2. The total score will now amount to 105 instead of the previous 100.
  3. The elements Ownership, Skills Development and Enterprise and Supplier Development are now categorised as priority elements, which means that certain minimum requirements are set for these elements. Large enterprises are required to comply with all the priority elements, whereas Qualifying Small Enterprises (QSEs) have a choice to comply with Ownership and one of the remaining priority elements.
  4. If the minimum requirements set for priority elements are not met, the actual level obtained will be discounted by one level.
  5. The limits for Exempt Micro-Enterprises (EMEs) have been adjusted to enterprises with an annual turnover of between R0 and R10 million (unless a sector charter applies). EMEs will still be deemed to be level four contributors.
  6. QSE limits have been adjusted to enterprises with an annual turnover of between R10 million and R50 million (unless a sector charter applies).
  7. EMEs and QSEs with black ownership of more than 51% will automatically qualify as level two contributors.
  8. EMEs and QSEs with black ownership of 100% will automatically qualify as level one contributors.
  9. Start-up enterprises will still be measured as EMEs during the first year following the formation of the enterprise.

There will be a twelve-month period from 11 October 2013 to 10 October 2014 during which businesses may choose to have their scorecard compiled and verified under either the old Codes or the new Codes. The purpose of this is to give businesses a chance to align and implement their BBBEE strategy to comply with the new Codes. Sector charters also have to align to the new Codes, but it is unclear whether it will be possible or even required to do this during the twelve-month period.

It is crucial to seek expert advice when adjusting any entity’s BBBEE strategy in order to avoid costly mistakes and ensure maximum benefit for the business, while properly complying with the relevant BBBEE legislation. For instance, enterprises that previously relied on an annual Socio-Economic Development grant in order to obtain a required BBBEE level will have to significantly adjust this amount.

Only qualified verification agents accredited under IRBA or SANAS may conduct independent verifications and issue the applicable certificate.

Copyright © Succeed Group. All rights reserved | Contact Us at info@succeedgroup.co.za

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.

Dealing with marriage and estate planning

A2It is important to understand the legal implications of the marital property regime, especially when drafting a Last Will and Testament and also when entering into a marriage, as the regime chosen by the estate planner is going to affect his/her assets.

The most important forms of marriage are: marriage in community of property, marriage out of community of property (without accrual), and marriage out of community of property (with accrual).

Marriage in community of property

  1. There is no prior contractual arrangement, apart from getting married;
  2. Spouses do not have two distinct estates;
  3. There is a joint estate, with each spouse having a 50% share in each and every asset in the estate (no matter in whose name it is registered);
  4. Applies to assets acquired before the marriage and during the marriage;
  5. Should one spouse incur debts in his own name it will automatically bind his/her spouse, who will also become liable for the debt;
  6. If a sequestration takes place (in the case of insolvency), the joint estate is sequestrated.

Marriage out of community of property without the accrual system

  1. An antenuptial contract (ANC) is drawn up by an attorney (who is registered as a notary), before the marriage;
  2. Where there is no contract, the marriage is automatically in community of property;
  3. The values of each spouse’s estate on going into the marriage are stipulated in the contract;
  4. A marriage by ANC means that all property owned by spouses before the date of the marriage will remain the sole property of each spouse;
  5. Each spouse controls his/her own estate exclusively without interference from the other spouse, although each has a duty to contribute to the household expenses according to his/her means;
  6. To allow for assets acquired by spouses during the marriage to remain the sole property of each spouse, the accrual system must be specifically excluded in the ANC.

Marriage out of community of property with the accrual system

  1. The accrual system automatically applies unless expressly excluded in the antenuptial contract;
  2. The accrual system addresses the question of the growth of each spouse’s estate after the date of marriage.

ESTATE PLANNING

Donations between spouses are exempt from donations tax and estate duty.

Marriage in community of property

  1. In the event of the death of one spouse, the surviving spouse will have a claim for 50% of the value of the combined estate, thus reducing the actual value of the estate by 50%. The estate is divided after all the debts have been settled in a deceased estate (not including burial costs and estate duty, as these are the sole obligations of the deceased and not the joint estate).
  2. When drafting a Last Will and Testament, spouses married in community of property need to be aware that it is only half of any asset that he or she is able to bequeath.
  3. Upon the death of one spouse, all banking accounts are frozen (even if they are in the name of one of the spouses), which could affect liquidity.
  4. Donations or bequests to someone married in community of property can be made to exclude the community of property; in other words, if the donor stipulates that the donation must not fall into the joint estate, then the donee can build up a separate estate. However, returns on such separate assets will go back to the joint estate.

Marriage out of community of property without the accrual system

Each estate planner (spouse) retains possession of assets owned prior to the marriage.

Marriage out of community of property with the accrual system

A donation from one spouse to the other spouse is excluded from the calculation of each spouse’s accrual; in other words, the recipient does not include it in his growth and the donor’s accrual is automatically reduced by the donation amount.

DIVORCE

In the event of divorce, the marriage will be dissolved by court decree, which will address such aspects as child maintenance, access, guardianship and custody, spousal maintenance, the division of assets, division of pension interests and so on.

COHABITATION AND DEFINITION OF “SPOUSE”

Cohabitation is defined as a stable, monogamous relationship where a couple who do not wish to or cannot get married, live together as spouses. The Taxation Laws Amendment Act has extended the definition of “spouses” to include “a same sex or heterosexual union which the Commissioner is satisfied is intended to be permanent”.

Many pieces of legislation, including the Pension Funds Amendment Act and the Taxation Laws Amendment Act, now define spouse to include a partner in a cohabitative relationship, the effects of which are that cohabitees will benefit from the Section 4(q) estate duty deduction in the Estate Duty Act, and the donations tax exemptions of the Income Tax Act.

Copyright © Succeed Group. All rights reserved | Contact Us at info@succeedgroup.co.za

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.

 

MSI Global Alliance admits law firm in Portugal

A3MSI Global Alliance, a leading international association of legal and accounting firms, has appointed law firm CNCM Sociedade de Advogados (CNCM) in Portugal to its membership. With locations in Porto and Lisbon, CNCM provides comprehensive legal services to clients throughout Portugal and beyond.

MSI’s chief executive, Tim Wilson, commented, “I am delighted CNCM have joined MSI Global Alliance. They are a highly professional firm of lawyers with strong Portuguese and international clients, and they will be a real asset to our organisation.”

A total of 14 professionals and three equity partners join MSI including Luísa Curado, Teresa Nogueira and Pedro da Costa Mendes, as well as Carla Malhão, industry partner, based in Porto. CNCM provides a wide range of legal services to businesses and individuals including business and corporate law, labour and tax law, litigation, IP, banking and financial services law, as well as mergers and acquisition services.

Pedro da Costa Mendes, partner at CNCM, said, “We are delighted to be part of such an exquisite group of firms and are eager to contribute to the network and assist fellow MSI members and their clients.”

CNCM was recently named “Leading Firm 2014” by the Legal 500 and recognised by Acquisition International as “Mid-Size Commercial Law Firm of the Year 2013”.

With the addition of CNCM, MSI Global Alliance now has 83 legal and accounting firm members across Europe.

About MSI Global Alliance

MSI is an international association of independent legal and accounting firms. With over 240 carefully selected member firms in more than 100 countries, MSI is one of the world’s leading associations. MSI was formed in 1990 in response to the growing need for cross-border co-operation between professional services firms.

In 2013, MSI Global Alliance was awarded “Association of the Year” by the International Accounting Bulletin, the leading authority of the global accounting industry which regularly analyses firm performance and best practices. For more information on MSI and its member firms, please visit www.msiglobal.org

MSI Global Alliance (MSI)
London, 13 January 2015

 

 

 

 

MSI Global Alliance adds accounting firm in Romania

A4MSI Global Alliance, a leading international association of legal and accounting firms, is pleased to announce the appointment of accounting firm Contabilul Tău as its new member firm in Romania.

Established in 2007, Contabilul Tău provides a full range of accounting, tax and HR services as well as financial and business advisory services. The firm’s client base comprises domestic and international clients from a wide range of industries sectors including manufacturing, construction and transport with operations across the UK, Japan, Greece, Turkey, Poland, Italy, Cyprus and Macedonia.

Contabilul Tău’s managing partner, Otilia Raianu, said, “Romania is and has been a melting pot of emerging business possibilities. Choosing the right partner to embrace these opportunities is vital and joining MSI will place us in a strong position to do so. Not only will we be able to offer a wider range of services to our clients, but we will also have access to the knowledge and resources of MSI’s network of members and its capable professionals worldwide enabling us to better assist our clients.”

Tim Wilson, chief executive of MSI, commented, “I am delighted that Contabilul Tău is joining MSI. Not only are they a strong firm, which provides MSI with an additional presence in the increasingly important area of Eastern Europe, but they also have great ambition for business development throughout the region and globally. They are an excellent addition to our Alliance and I look forward to working with them.”

Contabilul Tău is based in Romania’s capital Bucharest.

About MSI Global Alliance

MSI is an international association of independent legal and accounting firms. With 240 carefully selected member firms in more than 100 countries, MSI is one of the world’s leading associations. MSI was formed in 1990 in response to the growing need for cross-border co-operation between professional services firms.

In 2013, MSI Global Alliance was awarded “Association of the Year” by the International Accounting Bulletin, the leading authority of the global accounting industry which regularly analyses firm performance and best practices. For more information on MSI and its member firms, please visit www.msiglobal.org

MSI Global Alliance (MSI)
London, 07 January 2015

 

 

 

 

 

 

Awards Congratulations

Congratulations to Karien Theunissen for receiving the Apple Award for September 2014 for her Dedication, Excellence and Commitment to Newtons.

4. IMG_6930

Congratulations to Vaughn Healy for receiving the Apple Award for December 2014 for his Dedication, Excellence and Commitment to Newtons.

3. IMG_6931

Congratulations to Jason Rothman for committing his face to a worthy cause by growing a moustache for the entire month of November to raise awareness for men’s health!

5. IMG_6932

Congratulations to Heleen Scorrano on her 5 Years Long Service Award.

6. IMG_6934

Congratulations to Thelma Crossman on her 5 Year Long Service Award.

7. IMG_6935

 

 

 

 

Christmas 2014

Year End Casino Christmas Party

 

Christmas 2014

10. Xmas 2014