Ten Often-Overlooked Ways Your Accountant Can Help Your Business

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


	2023 INCOME TAX SEASON – OPENS 7 JULY 2023 SUBMISSION DEADLINES OF 2023 INCOME TAX RETURN The deadlines for the submission of the 2023 Income tax returns have been published in the Government Gazette No. 2130 dated 14 June 2023, and are as follows: Electronic submission of Individual - non-provisional taxpayers \| 23 October 2023 at 7pm Electronic submission of Individual – provisional taxpayers \| 24 January 2024 at 7pm Electronic submission of Trust’s tax returns \| 23 October 2023 at 7pm Electronic submission of Companies/Close Corporations tax returns \| 12 months from year end SARS “AUTO-ASSESSMENTS’ SARS will once again be issuing “auto-assessments” to a significant number of individuals this year, with this process commencing between 1 July 2023 and 7 July 2023. Taxpayers, who are selected for “auto-assessments” will be contacted by SARS via SMS/e-mail. The taxpayer may then either accept the “auto-assessment” or file a tax return to edit the “auto-assessment”. If you do not agree with the SARS auto assessment, you must file a income tax by 23 October 2023 at 7pm to amend the tax declaration for the year. INDIVIDUAL TAXPAYERS - NEW PENALTY RULE An Administrative Penalty (Admin Penalty) is a penalty levied under Section 210 of the Tax Administration Act (TAA). The Act prescribes the various types of non-compliance which are subject to fixed administrative penalties. Currently the penalty is imposed in respect of individuals for the following types of non-compliances: Once-off administrative penalties for – Taxpayers that were selected for auto assessment but failed to accept, decline or edit and then file their and All provisional and non-provisional taxpayers that were not auto assessed and submitted a return after the deadline date. Recurring administrative penalties for – This type of penalty will be imposed where the taxpayer has failed to submit a return as and when required under the Income Tax Act for years of assessment commencing on or after 1 March 2006 and where that person has two or more outstanding income tax returns for such years of assessment; The penalty will be levied for every month the return(s) remains outstanding for a maximum of 35 months. The administrative non-compliance penalty for either the failure to submit a return, or late submission of a return comprises fixed amount penalties based on a taxpayer’s taxable income and can range from R250 up to R16 000 per month for each month that the non-compliance continues. REQUIRED INFORMATION FOR THE YEAR 1 MARCH 2022 to 28 FEBRUARY 2023 In order to facilitate us in the completion of your income tax return we require certain information such as: IRP5 Certificates IT3(b) and (c) Certificates Vehicle logbook for the year: 1 March 2022 to 28 February 2023 Medical Aid Tax Certificate Invoice and Receipts for Medical expenses not paid by medical aid Donations S18A certificates Retirement Contributions Tax Certificates Rental and/ or other Business activity income and expenses Disposals of fixed property or investments during the year The above list is not comprehensive, and additional information may be required based on your unique tax affairs. Kindly forward the information as soon as you are able to, to the manager responsible for your portfolio at SDK or to tax@sdkca.co.za, to reduce the risk any late submission penalties. PLEASE TAKE NOTE If you are a provisional taxpayer and do not remit your third top up payment to cover your 2023 tax liability by 30 September 2023 interest will be imposed from 1 October onwards until date of payment. If any of your details have changed during the past year, such as address, bank account etc. kindly include the new details when providing your current tax information. Should you require further clarification, please do not hesitate to contact us at tax@sdkca.co.za.

July 2023 NEWSLETTER

Ten Often-Overlooked Ways Your Accountant Can Help Your Business

Anyone who is starting a new business knows that your accountant is who you go to when you need to do your taxes at the end of the year. Most will know that they can also do the books or offer financial advice. However, many won’t be aware of just how much more your accountants are able to do for your business and how much value can be accrued from speaking to a professional.

From assisting with HR, to streamlining cashflow and getting involved with your business software, accountants can provide a wide range of services. We take a closer look at a number of the lesser-known abilities of accountants and reveal just how they may be able to help you more than you expect.

Directors: Prepare and Submit Your Company’s Beneficial Ownership Register

Company directors face further responsibility and administrative burdens resulting from legislative changes earlier this year, following South Africa’s grey listing by the global financial watchdog, the Financial Action Task Force. Directors are now obliged to implement a detailed Beneficial Ownership Register for their companies and submit the register to CIPC, along with a list of supporting documents.

Such a register must also be maintained, with beneficial ownership changes recorded timeously and the validity of the information confirmed on an annual basis. In addition to the added legal obligation and the time-consuming process, failure to comply is an offense in terms of the Companies Act and may incur penalties – providing ample reason to seek the assistance of your accountant in this matter.

How to Prepare for a Possible Electricity Blackout

Despite some plans finally taking shape, the risk of high-level loadshedding over the next few years is still very much in place. For now, there isn’t a business in the country that needs to be told of the massive negative impact the lack of electricity can have on their productivity with lost sales, decreased production and missed deadlines being just a few of the downsides on a long list.

While the chances are low, many economists and politicians are even advising business leaders to prepare for the worst and make sure they are prepared for potential countrywide blackouts lasting weeks. Here are our tips for preparing your business to face days without electricity.

Is Your Information Safe With SARS?

The confidentiality of taxpayers’ information has been a cornerstone of tax systems, globally and in South Africa, as it provides taxpayers with peace of mind that the sensitive financial and highly personal information, they are obliged to disclose to tax authorities will not be made public. However, recent developments have raised questions about this, with the public disclosure of President Cyril Ramaphosa’s tax status and a Constitutional Court ruling that re-evaluates the absolute confidentiality of tax information held by SARS.

In this article, we look at what information SARS can collect about taxpayers, how POPI and PAIA come into play, what protection is available for taxpayers’ information, and how to ensure compliance, while only providing relevant information to the tax authority.

Your Tax Deadlines for July 2023

7 July - Monthly Pay-As-You-Earn (PAYE) submissions and payments
28 July - Excise Duty payments
31 July - Value-Added Tax (VAT) electronic submissions and payments & CIT Provisional payments where applicable.

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