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Criteria For Being Considered A Person With A Disability For Tax Purposes
First, the ‘Confirmation of Diagnosis of Disability’ form (ITR-DD) needs to be completed. This is used to determine whether the person is eligible per Section 6B of the Income Tax Act.

The form is divided into three parts. Part A needs to be completed by the person with the disability’s parent/guardian, which include the details of the person with the disability. Part B and C needs to be completed by a qualified medical practitioner specifically trained to deal with the applicable disability. Parts B and C includes questions to confirm that the person with the disability has a ‘moderate to severe’ disability for either vision, communication, physical, hearing, intellectual or mental disability.

The form only needs to be completed every five years for taxpayers whose child has a permanent disability.

Tax Benefits For A Person With A Disability

A taxpayer who, or whose child, has a disability confirmed by the submission of the ITR-DD form, can claim 33.3% of qualifying out-of-pocket medical expenses, which include disability related expenses paid during the relevant year of assessment.

SARS has prescribed a list of qualifying disability expenditure, which might qualify if incurred and was necessary for the alleviation of the restriction of a person’s ability to perform functions of daily living. Therefore, not all listed expenditure would qualify, but should be considered based on the applicable disability of the person.

Examples include the following:
  • Personal attendant care expenses
  • Training for person who care for the person with a disability
  • Special education schools
  • Tutoring services

Supporting Documentation Requirements

Invoices, statements and proof of payments for all qualifying expenses must be kept on record to substantiate the credit in the taxpayer’s tax return. 

Additional documentation is required for special education school expenses, as only the excess of the fees that would have been payable if the person attended the closest fee-paying public school not specialising in learners with special educational needs forms part of the qualifying expenses.

How You Can Detect Fraud in Your Business
ArticleImage Running a business brings many rewards, but also a host of risks and challenges. One of the more common of those is internal fraud. It can devastate your business and its reputation, undermine staff morale and jeopardise relationships with your suppliers, your investors and the compliance authorities. 

The danger is that it can happen to anyone, at any time – no one is immune. Fortunately every business, from the largest corporate to the smallest SME, can reduce its risk of fraud substantially with just a few basic system changes.

Let’s discuss some of them, plus we’ll share a tip on using good judgment and common sense to keep your business safe and your livelihood secure.
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Companies: What is an Alternate Director? A Curious Role…
ArticleImage Inevitably, there will be times when one or more of a company’s directors are absent and have to miss board meetings – perhaps through illness, frequent travel, taking of leave etc. But the company’s operations must continue regardless, and to provide for those situations the Companies Act provides for the appointment of an “alternative director” to fill in for a particular director when need be. 

Such an alternate director is included in the Act’s definition of “director” and that means a host of consequences for both the company and the appointee. 

Read on for some thoughts on the roles, duties and risks that an alternate director takes on in accepting such an appointment…
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Worker Burnout: Too Much Work and Unclear Goals
ArticleImage Employee burnout is a major problem worldwide. In the USA, for example, it is estimated to cause 120,000 deaths and to cost $120bn in healthcare annually. No doubt in a local context individual businesses also suffer substantial direct and indirect costs. The good news is that research has shown that we can all do something about it.

So have a look with us at the two factors that have been particularly highlighted as causes of burnout and at the reasons behind them. Most importantly, on the principle that prevention is always better than cure, we’ll also discuss three key recommendations from researchers on how to address the problem. 
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Small Business Owners: Don’t Overlook Your New Compliance Requirements!
ArticleImage Compliance requirements for businesses are becoming more onerous. Small businesses in particular increasingly have to perform a balancing act between optimising their limited resources on the one hand, and weighing up the consequences of non-compliance on the other. 

Now we are faced with new accounting reporting standards – standards you should both know about and prepare for. We’ll focus on one particularly important one, the “Revenue from Contracts with Customers” requirement.

Another crucial development is a recent CIPC warning about non-compliance with disclosure requirements relating to remuneration of directors and prescribed officers.  
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Your Tax Deadlines for July 2019 and Good News for Taxpayers
ArticleImage Firstly, there are no major deadlines in June but tax season opens in July, so make sure you have all your documentation ready for your 2018/2019 Income Tax Return.

Then there is some good news - a Memorandum of Understanding (MOU) has been entered into between SARS and the Office of the Tax Ombud (OTO). 

In recent times, the OTO has been critical of SARS particularly in the area of tax refunds. The recent Nugent Commission of Enquiry into SARS was told of refunds being held back at year end to bolster revenue collections. In the last tax year, SARS increased VAT refunds by R38 billion to address this problem. SARS also released a Service Charter in 2018…  
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The information provided herein 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 professional adviser for specific and detailed advice.

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