New rules for resolving tax disputes with SARS
MJ Minter Inc on 07/03/2023

New rules for resolving tax disputes with SARS

Taxpayers who have a dispute with the South African Revenue Service (SARS) can now benefit from new rules that aim to simplify and expedite the resolution process. The new rules, which came into effect on 1 July 2023, replace the previous dispute resolution rules that were in place since 2003.

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SARS permanent Voluntary Disclosure Programme
MJ Minter Inc on 12/05/2022

SARS permanent Voluntary Disclosure Programme

The South African Revenue Service (SARS), in terms of the Tax Administration Act No. 28 of 2011, has made provision for the Voluntary Disclosure Programme (VDP) to be permanently available to a qualifying individual, company or trust that seeks to voluntarily disclose and regularise their tax affairs. This step is aligned to the SARS’ strategic objective, which seeks to provide clarity and certainty as well as make it easy and seamless for taxpayers and traders to comply with their obligations.

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The Bounce Back Support Scheme comes into effect
MJ Minter Inc on 05/03/2022

The Bounce Back Support Scheme comes into effect

The Bounce Back Support Scheme, a loan guarantee mechanism of R15 billion which was first highlighted in the February 2022 budget speech, has come into effect in April 2022. The scheme aims to facilitate job creation and economic growth in the wake of shocks such as the Covid-19 lockdowns, the July 2021 civil unrest in Kwa-Zulu Natal and Gauteng, and the ongoing flood disaster.

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Fixing of Rate Per Kilometre in Respect of Motor Vehicles
MJ Minter Inc on 03/31/2022

Fixing of Rate Per Kilometre in Respect of Motor Vehicles

It is normal practice for the new rates for travel allowances for the ensuing year to be tabled in the Budget speech in February. For some odd reason the last two years SARS has only made this information available post-budget.

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2022/2023 Budget Highlights
MJ Minter Inc on 03/01/2022

2022/2023 Budget Highlights

The Minister of finance Enoch Godongwana tabled his Budget review on the 23rd February 2022. The following were the key tax issues arising.

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Implementing the 80/20 Rule in Your Business: A Game Changer
MJ Minter Inc on 01/15/2024

Implementing the 80/20 Rule in Your Business: A Game Changer

In the world of business, the Pareto Principle, also known as the 80/20 rule, is a guiding light that can lead to increased efficiency and success. The principle suggests that 80% of results come from 20% of efforts. Here’s how businesses can harness the power of this principle.

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VAT enhancements for estimated assessments
MJ Minter Inc on 12/12/2023

VAT enhancements for estimated assessments

VAT enhancements for estimated assessments are changes to the VAT Act and the Tax Administration Act that affect how SARS can issue estimated assessments for VAT vendors who do not submit their returns or supporting documents on time. These changes aim to improve compliance and reduce tax evasion.

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Two Pot Retirement System implementation delayed
MJ Minter Inc on 12/12/2023

Two Pot Retirement System implementation delayed

The two-pot retirement system is a new pension system was scheduled to be implemented in South Africa from 1 March 2024. This system allows for up to one-third of all retirement funds to be placed in a “savings pot” that will be available before retirement under the new scheme. The remaining two-thirds of a pension fund will thereafter be transferred to a “retirement fund” that can only be accessed upon retirement .

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Two Pot Retirement System Delayed
MJ Minter Inc on 11/07/2023

Two Pot Retirement System Delayed

The National Treasury has proposed a delay in the implementation of the ‘two-pot’ retirement system until 1 March 2025. This system is designed to allow people to access one-third of their pension savings before retirement. The delay is intended to provide the savings and investment industry with more time to administer the changes.

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SARS Digitilisation of Tax Administration
MJ Minter Inc on 09/07/2023

SARS Digitilisation of Tax Administration

The South African Revenue Service (SARS) has embarked on a digital transformation journey to modernise and enhance its tax administration capabilities. The aim is to improve service delivery, compliance, efficiency and effectiveness, as well as to combat tax evasion and fraud. Some of the key initiatives that SARS has implemented or is planning to implement include:

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Directors Role
MJ Minter Inc on 09/07/2023

Directors Role

In terms of the Companies Act, the business and affairs of a company must be managed by or under the direction of its board, which has the authority to exercise all of the powers and perform any of the functions of the company.

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SARS Reporting Requirements For Trustees 2023
MJ Minter Inc on 08/08/2023

SARS Reporting Requirements For Trustees 2023

SARS has increased the reporting requirements for trustees of resident trusts. As from the 1 September 2023, trustees, as representative taxpayers for a trust, are required to submit an IT3(t) form to SARS electronically – relating to the trust for which he or she acts as trustee. The IT3(t) will be due on the 30th September of each year in which the trust’s tax year ends. Trustees will be required to supply information about all distributions made from the trust to beneficiaries or other persons (in respect of any amount vested in a beneficiary including income (net of expenditure), capital gains and capital amounts distributed by 30 September during the preceding tax year of assessment, which ended at the end of February of the same year. In addition to the information about distributions, demographic information about the trust and beneficiaries will also be required to be submitted.

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Important laws affecting businesses in South Africa
MJ Minter Inc on 08/08/2023

Important laws affecting businesses in South Africa

Knowledge of and compliance with both the common law and legislation is essential for good governance. Not only do directors need to make sure that they are maintaining the highest standard in respect of their duties, but they must also ensure that they are complying with the administrative provisions of other legislation, such as the Income Tax Act. In addition, it is important that directors have a working knowledge of the guidance provided in King IV ™.

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Two Pot Retirement System
MJ Minter Inc on 07/03/2023

Two Pot Retirement System

The Ministry of Finance has published the draft legislation for the "two pot" retirement system for comment. The draft legislation aims to implement the reform of the pension system that was agreed upon by the government and social partners in 2020. The "two pot" system consists of a mandatory basic pension that covers the minimum subsistence level, and a voluntary supplementary pension that allows individuals to save more for their retirement. The draft legislation also introduces incentives for longer working lives, such as a gradual increase in the retirement age and a bonus for working beyond the statutory retirement age. The Ministry of Finance invites all interested parties to submit their comments and suggestions on the draft legislation by August 31, 2023.

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Duties of Trustees – Beneficial Ownership
MJ Minter Inc on 07/03/2023

Duties of Trustees – Beneficial Ownership

One of the duties of trustees is to maintain accurate and up-to-date records of the beneficial owners of the trusts they administer. Beneficial owners are those who have a direct or indirect interest in the trust property or who exercise control over the trust. The information that must be kept by trustees in relation to beneficial owners includes:

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Amendments to the Trust Property Control Act
MJ Minter Inc on 06/06/2023

Amendments to the Trust Property Control Act

The General Laws (Anti-Money Laundering and Combating Terrorism Financing) Amendment Act (no. 22 of 2022) came into force on 1 April 2023, and amends the Trust Property Control Act [as well as the Nonprofit Organisations Act (no.71 of 1997), the Financial Intelligence Centre Act (no.38 of 2001), and the Companies Act (no.71 of 2008)]. It is hereinafter referred to as “the Amendment Act”.

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Cybercrime and the role of Directors
MJ Minter Inc on 05/05/2023

Cybercrime and the role of Directors

The recent pandemic has seen a dramatic move towards the use of technology in the business world. While the use of technology has in some instances increased productivity and eased the way of doing business, cybercrime has become a global phenomenon with company data being hacked on an all to regular basis. The big question is who is responsible for the safety of data and privacy of information. South Africa has world class legislation which at times does not deter cyber criminals due to the lack of enforcement by authorities. Legislation clearly puts the onus on directors of a company to take all reasonable steps to protect sensitive data.

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EMPLOYER ANNUAL DECLARATIONS (EMP501):  Due 31 MAY 2023
MJ Minter Inc on 04/17/2023

EMPLOYER ANNUAL DECLARATIONS (EMP501): Due 31 MAY 2023

Employers are required to submit their annual reconciliation declarations (EMP501) that reflect accurate and the latest payroll information about their employees, monthly employer declarations (EMP201) for PAYE, UIF and SDL; payments made (excluding penalties and interest paid); and employee tax certificates (IRP5/IT3(a)s generated, covering the full tax year from 1 March 2022 to 28 February 2023.

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Two-pot retirement system
MJ Minter Inc on 03/06/2023

Two-pot retirement system

The first phase of legislative amendments to the retirement system is due to take effect on 1 March 2024. The intent of these amendments is to enable pre-retirement access to a portion of one’s retirement assets, while preserving the remainder for retirement. Retirement fund contributions will remain deductible up to R350 000 per year or 27.5 percent of taxable income per year – whichever is lower. Permissible withdrawals from funds accrued before 1 March 2024 will be taxed according to the lump sum tables. Withdrawals from the “savings pot” before retirement will be taxed at marginal rates. On retirement, any remaining amounts in the savings pot will be taxed according to the retirement lump sum table (for example, R550 000 is a tax-free lump sum on retirement).

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APPLYING 80/20 ANALYSIS TO YOUR BUSINESS
MJ Minter Inc on 01/09/2023

APPLYING 80/20 ANALYSIS TO YOUR BUSINESS

In 1897, Vilfredo Pareto, and Italian economist, observed that the distribution of wealth was unequal within every country. That is, 5% of the population might own 50% of the wealth, 10% of the population might have 65% and 20% might own 80%. Whilst this is not very remarkable (we see it all the time) what Pareto discovered was that this pattern repeated itself in almost every country he examined.[i] Consequently, he concluded that there was a predictable mathematical relationship at work that determined the distribution of wealth: in short, 20% of the population would hold 80% of the wealth.

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