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                *     Registered Professional Accountants in practice since 1982

             *     Registered Tax Practitioners

            

 

Accounting Officer .......  Management & Financial Accounting ...... Management Accounting for Profit ...... CC Formations and registrations...... Strategic Planning ...... Wills & Trusts ....... .

Deadlines

Annual Duty one calendar month to the day after the incorporation date

Promotion of Access to Information Act manual 31 December 2015

Provisional tax returns for 2nd period 2015 27 February 2015

Submission of Company and Close Corporation tax returns 12 months after their financial year-end

The secret of getting ahead is getting started - Mark Twain

Provisional Tax returns

As stated above the deadline for the submission of the second return for the 2015 tax year is 27 February 2015. Preparation of the data that is required to do this in many instances can be time consuming. However, of greater concern is the accuracy of any estimates that a taxpayer uses in the calculation of the tax due which is an advance payment of the liability that will be determined once the annual tax return is assessed.

Persons over sixty-five years, other than directors of companies or members of Close Corporations whose taxable income is derived from employment, interest or foreign dividends and does not exceed R 120000 are exempt from rendering provisional tax returns. Persons under sixty-five years, who are directors of companies or members of Close Corporations or derive income from business operations, or rental income, are required to submit returns.

The degree of accuracy of estimates depends upon the taxable income of the taxpayer. If the taxable income is no greater than one million rand, the basic amount that is shown on the provisional return (IRP6) may be used without fear of attracting penalties for under-estimation. However, if the taxpayer chooses to use his/her/its own lower estimate and that estimate is not within 90% when the taxable income is finally assessed upon submission of the annual tax return (IT12/IT14), penalties will be levied.

If the taxable income is greater than one million rand, the basic amount that is shown on the provisional return (IRP6) may not be used and estimates must be made. In this instance, the estimated taxable income, excluding retirement fund lump sums, should be within 80% when the taxable income is finally assessed upon submission of the annual tax return (IT12/IT14).

Failure to meet the above degree of accuracy will result in penalties equal to 20% of the provisional tax that is underpaid.

 

Accounting 4 Financial Services

 

Financial Planning ....... Investments ........ Assurance