How to manage your tax risk in 2021

Forward email




	22A Church Street DURBANVILLE 7550	Tel: 021 970 4600 Fax: 021 975 6780 Email: info@sdkca.co.za
Website: www.sdkca.co.za

January 2021 NEWSLETTER

Companies: How to Manage Your Greater Tax Risk in 2021

South African companies are exposed to a significant tax risk. Companies are liable for a range of direct taxes, indirect taxes and employees’ taxes that are continuously subject to legislative changes and administrative improvements by SARS and National Treasury. This means not only great complexity and high cost in terms of compliance, but also high tax liabilities that could total 40% of turnover and more. In addition, tax compliance is increasingly becoming a corporate governance and a reputational issue.

In this article, we look at recent developments that indicate that tax risk management will become even more critical in 2021; ways in which companies can manage their tax risk more professionally; and the benefits of tax risk management that can help companies re-build after a difficult past year.

Five Mistakes to Avoid When Investing Offshore

With Fitch and Moody's downgrading South Africa’s credit rating even further and the political and economic climate becoming increasingly erratic it's perhaps unsurprising that more and more people are electing to move their money offshore.

While this may seem to be a simple solution for those looking for stability it is also easy to make mistakes that could ultimately cost a lot of money and undermine the benefit of investing overseas.

We take a look at five of these potential pitfalls and share some tips on how to avoid them.

What Should You Do If a Creditor Tries to Liquidate Your Business?

One of the most stressful events that a small business owner can face is having creditors breathing down their neck demanding payment for overdue debts, threatening to liquidate their company and even applying to a court to have their company liquidated.

In this article, we provide expert advice about how to fend off the liquidation of a company and ensure a firm comes out better prepared to survive the brutal economic times that South Africa finds itself in today.

We also provide the options available for a small company that is struggling to survive and having to fight off aggressive creditors.

The Way Forward: More Virtual Meetings?

If there was ever a protocol-challenging year in recent memory, it has to be 2020. Due to its challenges imposed as a result of Covid-19, improvisation and ingenuity were required. Some of the results of these will remain with businesses long after the pandemic is over as they have proved to be as convenient and effective as, if not more than, the methods used before.

As result of the recent lockdowns around the worlds, business has generally engaged in more virtual meetings and less time-consuming conventional face-to-face meetings.

The time and resources used driving to and from meetings, as well as hosting them, could be put to better use going forward. The order of the day is cost cutting, effectiveness, and safety.

Your Tax Deadlines for January 2021

7 January - PAYE submissions and payments
25 January - VAT manual submissions and payments
28 January - Excise Duty payments
29 January - VAT electronic submissions and payments
29 January - CIT provisional payments

“Have a Healthy,
Happy and Successful
2021!”

Disclaimer

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 us for professional, detailed and appropriate advice.

A Client Connection Service by DotNews