Monthly Archives: September 2015

Celebrating Birthdays at Newtons

IMG_2361Des Fairbairn 90th Birthday 20 September 2015

Congratulations to Desmond Fairbairn on his 90th Birthday. He celebrated it with the Partners at Newtons.

From left to right Brian Pienaar, Wayne Beelders, Neville Furmidge, Desmond Fairbairn, Cedric Peterson and Schalk Gouws.

Happy 40th Birthday Wayne Beelders & Happy 30th Birthday Inge Oehley

Newton’s Girls participated in the Diva Dash

Newton’s Girls participated in the Diva Dash held at Emoya on Saturday 19 September 2015. This is a 5km run with a couple of interesting obstacles. Thanks to Helensha Cilliers, Janeske Du Toit, Meggynne Paynter, Tineke Erasmus-Nell, Joelene van der Westhuizen for participating and being such great sports!

World cup cycling 2015

UCI Paracycling world cup Pietermaritzburg 2015 was held 11 – 13 September 2015. On Friday 11 September was the Time Trial (my favourite event) @ Midmar dam I finished in 12th place but had one of those days, where nothing worked for me. On Sunday 13  September was the  road race held in the city of Pmb, I finished in 12th place again (1h31) over a distance of 55.4 km I was about 5 – 6 min behind the winner .  The total number of cyclist were 166 (men and women) from all over the world. The first time the event was held on the African continent.

Die berekening van rente betaalbaar tussen belastingbetalers en die SAID

A5Die Wet op Belastingadministrasie (Engels: Tax Administration Act of TAA) skryf algemene beginsels voor wat toegepas moet word wanneer rente aan of deur die SAID betaalbaar, bereken word. Die doel hiervan is om ‘n meer regverdige en uniforme manier van renteberekening daar te stel vir beide belastingbetalers en die SAID. Soos met die meeste dinge is daar egter uitsonderings. Hierdie artikel bespreek die algemene rentebepalings en sekere uitsonderings.

Die volgende algemene konsepte word neergelê vir die berekening van rente betaalbaar tussen belastingbetalers en die SAID:

  1. Rente is vergoeding vir ‘n verlore geleentheid om geld te gebruik.
  2. Rente sal daagliks bereken word op die uitstaande bedrag en rente op rente word maandeliks bereken.
  3. Rente loop op vanaf die effektiewe betaaldatum tot die werklike betaaldatum van ‘n uitstaande bedrag. Die effektiewe betaaldatum is die datum waarop belasting verskuldig en betaalbaar raak volgens ‘n belastingwet.

Die volgende afdeling verduidelik vier van die uitsonderings op die algemene konsepte hierbo:

  • Terugbetalings deur die SAID

Indien die SAID ‘n terugbetaling aan ‘n belastingbetaler moet maak, word rente op die terugbetaling bereken vanaf die datum waarop die SAID die bedrag ontvang het wat terugbetaal moet word, tot op die datum wanneer die SAID die terugbetaling aan die belastingbetaler maak.

Waar die SAID ‘n terugbetaling teen ander belasting verskuldig deur die belastingbetaler verreken, word geag dat die terugbetaling gedoen is op die verrekeningsdatum.

  • Voorlopige belasting

In die geval van die verpligte eerste voorlopige belastingbetaling is die effektiewe datum die laaste besigheidsdag van die sesde maand na die einde van die belastingjaar. Rente sal bereken word vanaf die effektiewe datum, tot die betaaldatum of die effektiewe datum van die tweede voorlopige belastingbetaling, watter datum ookal eerste voorkom.

Vir die tweede voorlopige belastingbetaling (ook verpligtend) is die effektiewe datum die laaste besigheidsdag van die belastingjaar. Rente word bereken vanaf die effektiewe datum tot een van die volgende datums, watter een ookal eerste voorkom: die werklike betaaldatum of die effektiewe datum (soos voorgeskryf) van die opsionele derde voorlopige belastingbetaling.

  • Vertraagde BTW-terugbetalings

Geen rente word bereken op die tydperk van die vertraging van die terugbetaling indien die vertraging deur die belastingbetaler veroorsaak is nie. Die tydperk van ‘n vertraging word vasgestel vanaf die datum waarop die belastingbetaler verlangde inligting by die SAID moes indien (bv. bankdetails van die rekening waarin die SAID die terugbetaling moet maak) tot die datum waarop die belastingbetaler werklik die vereiste inligting indien.

  • Bedrae per abuis terugbetaal

Indien die SAID per abuis ‘n terugbetaling aan ‘n belastingbetaler maak, word die terugbetaling beskou as belasting wat verskuldig en betaalbaar is deur die belastingbetaler. Rente sal op die terugbetaling bereken word vanaf die datum waarop die SAID foutiewelik die terugbetaling gemaak het tot die datum waarop die belastingbetaler die bedrag aan die SAID terugbetaal.

‘n Senior beampte van die SAID mag opgelegde rente kwytskeld indien hy/sy tevrede is dat die rente gehef is weens omstandighede buite die beheer van die belastingbetaler. Daar is slegs drie gevalle waar omstandighede beskou mag word as buite die beheer van die belastingbetaler: ernstige siekte of ongeluk, natuurlike of mensgemaakte rampe, of burgerlike oproer of ontwrigting van dienste.

Die Wet op Belastingadministrasie poog om voorsiening te maak vir ‘n gelyke aantal dae waarop rente betaalbaar tussen belastingbetalers en die SAID bereken word, en om uniforme reëls vir die berekening van rente van toepassing te maak op al die soorte belasting wat deur die SAID geadministreer word.

Verwysingslys:

Toegang tot die volgende bron is verkry op 21 Junie 2015:

  •  SARS Kort Gids tot die Wet op Belastingadministrasie, 2011 (Wet Nr. 28 van 2011), Hoofstuk 12

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&EO)

 

The calculation of interest due between Taxpayers and SARS

A5The Tax Administration Act (TAA) introduces general principles to be applied when calculating interest due to or due by SARS. The aim is to create a fairer, more uniform calculation of interest for both the taxpayers and SARS. As with most things in life, there are exceptions. This article will discuss the general interest rules and some of their exceptions.

The following general concepts are laid down for the calculation of interest due between taxpayers and SARS:

  1. Interest is compensation for the lost opportunity to use money.
  2. Interest will be calculated daily on the outstanding balance and compounded monthly.
  3. Interest accrues from the effective payment date until the actual payment date of an outstanding amount. The effective payment date is the date when a tax becomes due and payable under a tax Act.

The following section explains four of the exceptions to the general concepts above:

  • Refunds due by SARS

If SARS must refund a taxpayer, interest on the refund is calculated from the date that SARS receives the excess amount which must be refunded to the date that SARS pays the refund to the taxpayer.

Where SARS sets off a refund against other tax owing by a taxpayer, the deemed date of payment of the refund is the set off date.

  • Provisional tax

In the case of the compulsory first provisional tax payment the effective date is the last business day of the sixth month after the end of the tax year. Interest will be calculated from the effective date, until the payment date or the effective date of the second provisional tax payment, whichever of the latter two comes first.

For the second provisional tax payment (also compulsory) the effective date is the last business day of the tax year. Interest is calculated from the effective payment date until the earlier of the actual payment date or the effective date (as prescribed) of the optional third provisional tax payment.

  • Delayed VAT refunds

No interest will be calculated on the refund for the period of the delay if the delay is caused by the taxpayer. The period of the delay is determined from the date that the taxpayer was required to submit information to SARS (e.g. bank details for the account into which SARS must pay the refund) until the date by which the taxpayer actually submitted the requested information.

  • Amounts refunded by mistake

If SARS refunds a taxpayer by mistake, the refund is deemed to be tax due and payable by the taxpayer. Interest will be calculated on the refund from the refund date until the date that the taxpayer pays the refund back to SARS.

A senior SARS official may remit imposed interest if he/she is satisfied that the interest was imposed as a result of circumstances beyond the taxpayer’s control. There are only three cases where circumstances might be regarded as beyond the control of the taxpayer: serious illness or accident, natural or man-made disaster, or civil disturbance or disruption of services.

The TA Act strives to provide for an equal number of days to be used for calculating any interest due between taxpayers and SARS, and to create an opportunity to apply the same rules for the calculation of interest on all the different types of tax administered by SARS.

Reference List:

Accessed on 21 June 2015:

  • l SARS Short Guide to the Tax Administration Act, 2011 (Act No. 28 of 2011), Chapter 12

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)

Ek het geld gesteel – Moet ek belasting daarop betaal?

A3Al ooit daarvan gehoor dat ‘n dief gesteelde geld verklaar vir inkomstebelastingdoeleindes? Dink u dat diewe gesteelde geld behoort te verklaar as deel van hul belasbare inkomste? Volgens verskeie hofsake in dié verband is gesteelde geld wat verkry is deur diefstal, verduistering of bedrog belasbaar in die hande van die dief. Nog ‘n vraag: Kan koste aangegaan vir die doel van diefstal en enige terugbetaling van die gesteelde geld afgetrek word van die gesteelde inkomste?

Daar is vier vereistes waaraan voldoen moet word vir gesteelde geld (ongeag of dit deur diefstal, verduistering, bedrog of op enige ander onwettige manier bekom is) om belasbaar te wees in die hande van ‘n dief:

  1. Die geld moet deur die dief “ontvang word of aan hom toegeval het”.

Die frase “ontvang deur” is deur die howe geïnterpreteer om te beteken dat die geld “deur/namens ‘n belastingbetaler ontvang is vir sy eie voordeel”, terwyl die woorde “aan hom toegeval” geïnterpreteer is om te beteken “waarop die belastingbetaler geregtig is”. Daar word nie vereis dat ‘n persoon ‘n bedrag geld moes ontvang het om daarop geregtig te wees nie, maar wel dat die persoon ‘n onvoorwaardelike reg het om dit te ontvang. Aangesien ‘n dief nie geregtig is op die geld wat hy steel nie, word daar nie aan die vereiste van “aan hom toegeval” voldoen nie. Aangesien die geld egter wel deur hom ontvang is, word aan die eerste vereiste voldoen en moet die gesteelde geld dus in die belasbare inkomste van die dief ingesluit word.

  1. Die geld deur die dief ontvang moet van ‘n “inkomste aard” wees (teenoor ‘n “kapitale aard”).

Aangesien die daad om geld te steel voorneme, aktiewe en doelgerigte beplanning en organisasie, sowel as uitvoering deur die dief vereis, is daar aktief gewerk vir die gesteelde geld en word dit dus beskou as van ‘n inkomste aard.

  1. Normaalweg word ‘n belastingbetaler belas op inkomste in die belastingjaar waarin hy/sy die inkomste ontvang het.

Daar is egter geen tydsbeperking op die periode waartydens die SAID ‘n aanslag mag uitreik indien hul sou bevind dat ‘n dief nagelaat het om gesteelde inkomste in die verlede vir belastingdoeleindes te verklaar nie.

  1. ‘n Bedrag/geldwaarde moet bepaal word waarteen die gesteelde geld in die belasbare inkomste van die dief ingesluit kan word.

Die metode waarvolgens ‘n bedrag bepaal word, hang af van die unieke omstandighede van elke geval. Twee van die metodes wat die SAID kan gebruik, is:

  • Om die bedrag van die geld wat in die dief se bankrekening inbetaal is, vas te stel.
  • Om die toename in netto batewaarde te vergelyk met die inkomste wat deur die dief verklaar is. Om ‘n netto batewaarde te bereken, neem die SAID die bedrae van inkomste, belasting-aftrekbare uitgawes, bates en laste in ag wat deur die dief verklaar is. Indien die verklaarde inkomste nie die groei in netto batewaarde regverdig nie, sal die SAID ‘n waarde aan die inkomste hertoewys wat volgens hulle wel die groei in netto batewaarde regverdig.

Die howe het bepaal dat uitgawes aangegaan deur ’n dief vir die doel om geld te steel of enige terugbetalings van gesteelde geld nie aftrekbaar is van die belasbare bedrag van die gesteelde “inkomste” wanneer die dief se aanspreeklikheid vir inkomstebelasting bereken word nie.

Is dit lonend om inkomste te verdien deur middel van diefstal? ‘n Dief het ‘n wetlike verpligting om “inkomste verdien” deur diefstal te verklaar en is verantwoordelik om inkomstebelasting te betaal op die volle gesteelde bedrag. Geen aftrekking vir koste aangegaan in die voortbring van gesteelde inkomste of vir enige terugbetaling van gesteelde bedrae word toegelaat as aftrekkings vir inkomstebelastingdoeleindes nie. Wanneer ander potensiële kostes soos regsfooie en stresmedikasie bygevoeg word, word die winsgewendheid van diefstal as bron van inkomste aansienlik minder aantreklik – indien die dief deur die SAID uitgevang word. Andersins mag diefstal moontlik steeds ‘n winsgewende beroepskeuse wees.

Verwysingslys:

Inligting verkry op 21 Junie 2015:

  • SARS Interpretasienota: Nr. 88, Afdeling 5

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&EO)

I stole money: Must I pay income tax on it?

A3Ever heard of a thief declaring stolen money for income tax purposes? Do you think thieves should declare stolen money as part of their taxable income? According to numerous court cases on this issue, stolen money obtained by way of theft, embezzlement or fraud is taxable in the hands of the thief. Another question: can costs incurred for the purpose of stealing and any refunds of the stolen money be deducted from the stolen income?

There are four requirements that must be met for stolen money (whether obtained by way of theft, embezzlement, fraud or any other illegal means) to be taxable in the hands of a thief:

  1. The money must have been “received by or accrued to” the thief.

The phrase “received by” has been interpreted by the courts to mean that the money has been “received by a taxpayer on his own behalf for his own benefit” while the words “accrued to” has been interpreted to mean “to which the taxpayer has become entitled”. For a person to be entitled to an amount of money, does not require the person to have received that amount, but it does require that the person has an unconditional right to receive it. As a thief is not entitled to the money he/she steals, the requirement of “accrued to” is not complied with. However, as the money has been received, the first requirement is met and the stolen money must be included in the taxable income of the thief.

  1. The money received by the thief must be of an “income nature” (as opposed to being of a “capital nature”).

Because the act of stealing money requires intention, active and purposeful planning and organisation, as well as execution by the thief, the stolen money has been actively worked for and is deemed to be of an income nature.

  1. Normally a taxpayer is taxed on income in the tax year in which he/she received the income.

However, there is no time limitation on the period during which SARS may issue an assessment if SARS finds out that a thief neglected to declare stolen income for income tax purposes in the past.

  1. An amount/monetary value must be determined at which the stolen money can be included in the taxable income of the thief.

The method to determine an amount depends on the unique circumstances of each case. Two of the methods that SARS can use are:

  • Tracing the amount of money that has been paid into the thief’s bank account.
  • Comparing the net amount of the growth of the thief’s assets with the income declared by the thief. To arrive at a net growth amount, SARS takes into account the value of income, tax-deductible expenses, and assets and liabilities declared by the thief. If the declared income does not justify the net growth in assets, SARS will reassign a value to the income which can justify the net growth in asset value.

The courts have determined that neither expenses incurred by a thief for the purpose of stealing money nor any refunds of stolen money are deductible from the taxable amount of the stolen “income” when calculating the thief’s income tax liability

Does it pay to earn income by stealing? A thief has a legal obligation to declare “income earned” by way of stealing and is liable to pay income tax on the full amount of the stolen income. No deduction for costs incurred in the production of stolen income nor any stolen amounts refunded will be allowed as deductions for income tax purposes. Include other potential costs like legal fees and stress medication, and the profitability of stealing as a means of generating income becomes considerably less attractive – if the thief gets caught out by SARS. Otherwise, stealing might still be a profitable career choice.

Reference List:

  • Accessed on 21 June 2015:
  • l SARS Interpretation Note: No. 88, Section 5

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 accounting firm in Lebanon

A2MSI Global Alliance, a leading international association of legal and accounting firms, is pleased to announce the appointment of accounting firm HBK Hobeika & Co (HBK) as its new member firm in Lebanon.

HBK was founded in 1995 by Dr Antoine Hobeika and has gained a strong reputation in the Lebanese market. Based in Beirut, HBK provides a full range of accounting, audit, tax and business advisory services to a wide variety of clients.

Tim Wilson, chief executive of MSI, commented, “HBK are a great addition to MSI. They have worked closely with our law firm member in Beirut and have interests throughout the Middle East – particularly in the Gulf, where MSI wishes to strengthen its presence. I look forward to them working closely with our member firms.”

HBK’s managing partner, Dr Antoine Hobeika, said, “We believe that our membership with MSI is an investment that will yield valuable benefits for us and our clients. We are convinced that the MSI conferences, the exposure to a trusted association of reputable member firms and practice management resources will support us to compete in both the local and the Middle Eastern marketplace. We are looking forward to being an active member of MSI.”

HBK joins MSI with three Partners.

For further information 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 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

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)

Private bodies PAIA (Promotion of Access to Information Act) manuals required by 31 December 2015

A1The Promotion of Access to Information Act, 2000 require all juristic persons and all businesses, small to large as well as individuals and partnerships carrying on business to compile manuals on how to access their records. These manuals must be submitted to the South African Human Rights Commission (SAHRC) and must be available at the business offices. Material changes in the manuals must also be updated regularly.

The Act specifies what information these manuals must contain and include inter alia:

  • contact details
  • information that the business keeps in compliance with other legislation
  • a description of the subjects on which the private body holds records, and the categories of records held on each subject

Exemption of certain private bodies no longer applicable

The Minister of Justice has exempted certain private bodies in the past from compiling these manuals. However this exemption is no longer applicable. Therefore all businesses should review their submitted PAIA manuals and update where necessary. Private bodies, which were exempted, must now also submit their manuals by 31 December 2015.

We strongly recommend that all entities resubmit their manuals if they submitted the previous manual prior to December 2007, even if there is no changes to the manual.

We can assist you with compiling your manuals. Our fees will be R750 (excl. VAT) per manual where all information is readily available. Should you have more than 2 business/entities for which manuals must be prepared, we will reduce this fee to R500 (excl. VAT) per manual.

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)