JUNE 2011

INTRODUCTION

Statements emanating from the ANC Youth League and Cosatu do little to enhance the country’s status as an investment destination.

TECHNOLOGY

Instead of scrolling continuously to reach a range of cells that may be near the middle or end of a large spreadsheet, simply type the range in the name box and press enter. The name box is the box to the left of the screen and immediately above the row that displays the column letters.

Excel will allow you to enter fractions, as opposed to using decimals, in a cell. For example, if you wish to display 4 ¾ type 4 then a space and then ¾ .  The formula bar will still display 4.75 and Excel will recognise the fraction for calculation purposes. Excel will even convert the fraction to the lowest possible denominator, e.g., if you type 4 space 4/8, Excel will display 4 ½.

It can be frustrating when your column and row headings disappear as you scroll through a workbook. To avoid this, use the Freeze Pane function found on the Window menu. Place your cursor on the row below that which contains your column headings and in the cell to the right of the column that contains your row headings. Click on Window and then Freeze Pane or ALT+W F.

TAXATION

Filing Season

The filing season during which individuals and trusts must submit their 2011 tax returns commences on 1 July 2011. The deadlines for the various types of taxpayers are listed below.

A number of enhancements and changes to SARS procedures will occur during the 2011 filing season.

Among the changes to the 2011 tax returns will be additional questions and fields in respect of any capital gains transactions. The form requests the taxpayer to indicate whether the transaction relates to a primary residence and whether any other form of exemption or roll-over relief is applicable to the transaction.

A new general section enquires whether the taxpayer or his minor children made any donation during the year and, if so, the amount of the donation and whether donations tax was paid thereon. The return does not place any value range to be applied to these questions. However, it is doubtful that the drafter intended casual donations of relatively low amounts to be included.

Although the form makes no provision for this, taxpayers, who spend in excess of 183 days per twelve month period working outside of SA, of which 60 must be continuous, will be required, upon request, to submit proof of the periods of absence in respect of the current and preceding tax years.

The forms have not changed in respect of traveling allowances. However, if you did not keep a valid logbook, your claim will be disregarded. Further, as SARS has made available a stock of logbooks that conform to the SARS requirements, it is doubtful if logbooks that do not conform to the specimen will be acceptable. The new logbook is available at www.sars.gov.za/home.asp?pid=42105.

According to a previous announcement, no residential or postal addressed will be pre-populated on the forms. However, this appears to be incorrect. Nevertheless, you are urged to check these particulars and to submit any changes to them. A pop-up notice does state that these should not be the tax practitioners’ addresses. However, in our opinion, this will be contrary to the clients’ interest as we keep a control of when returns are submitted and assessed. If we are not aware of SARS notices, we will not be able to react promptly to such items as missing refunds, ensuring that the client meets his/her commitments on time without incurring penalties or mistakes in the assessments.

SARS has made it very clear that all bank details provided by the taxpayer will undergo a verification process and a pop-up notice to that effect appears when accessing the tax return. Should the verification process fail, practitioners will not be permitted to comply with the SARS requirements on their clients’ behalf. The client will have to present him/herself at the local SARS office and present the following documents:

Individuals

•           A certified copy of his/her identity document/passport together with the original. Where that document is not available, an affidavit explaining why together with a temporary identity document must be provided

•           An original bank statement bearing the bank’s stamp and reflecting the account holder’s name, account number, account type and branch code. Thus an internet statement is not acceptable nor is a letter from the bank confirming the details

•           An original municipal account in the name of the individual. The account must not be more than three months old.  Where the individual lives in rented accommodation a CRA01 form must be provided and is available at www.sars.gov.za/tools/Printbody.asp?pid=60300.

Companies, Close Corporations and Trusts

•           Certificate of incorporation , Founding Statement, Trust Deed (whichever is applicable). Where the verification process is related to obtaining a VAT refund , an affected partnership will be required to submit a copy of its partnership agreement.

•           A certified copy of the identity document/passport together with the original of the person who appears in SARS’ records as the representative taxpayer, i.e. the public officer. Where that document is not available, an affidavit explaining why together with a temporary identity document must be provided

•           An original bank statement bearing the bank’s stamp and reflecting the account holder’s name, account number, account type and branch code. Thus an internet statement is not acceptable nor is a letter from the bank confirming the details

•           An original municipal account in the name of the representative taxpayer. The account must not be more than three months old.  Where the individual lives in rented accommodation a CRA01 form must be provided and is available at www.sars.gov.za/tools/Printbody.asp?pid=60300.

•           An original municipal account in the name of the company, close corporation, trust or partnership, whichever applicable. The account must not be more than three months old.  Where the individual lives in rented accommodation a CRA01 form must be provided and is available at www.sars.gov.za/tools/Printbody.asp?pid=60300.

DEADLINES

Voluntary Disclosure Programme – 1 November 2010 to 31 October 2011

Annual Duty – end of the month following incorporation date

EMP 501 1st period  2012 – 31 October 2011

New Companies Act – no new CC registrations – 1 May 2011

Disposal of a residence from a company or trust – 31 December 2012

Income Tax Returns – 2011

Individuals:

Manual submissions – 30 September, 2011

 Efilers:

Non-provisional taxpayers – 25 November, 2011

Provisional taxpayers – 31 January 2012

ECONOMY

A recent comment in the national press echoes the sentiments of many South Africans. In essence, it stated that if the ANC was unable to teach children to read and write, how does its expect to run the mines that are the country’s main source of income. Whilst this statement may seem highly emotional and, to a degree inaccurate in the evaluation of our education system, it does illustrate just how sensitive the economy is to the rhetoric of irresponsible pollutions and trade unionists. Put simply, investors judge investment destinations based upon a number of factors, one of these is the stability of the country. Recent statements regarding nationalisation of mines and land do not contribute to stability and this is reflected in the stock exchange prices that, in turn, influence investor’s decisions. Further aggravating factors are the current wave of strikes and violent protests against a lack of service delivery. If offshore investors are scared off by these mouthing what wealth will remain for re-distribution and how many more jobs will be shed?

The focus of politicians and trade unionists at this time should be to do everything in their power to create jobs and products ad a labour force that can compete on the international markets. It is only in this way that this country can combat the impact of external economic events such as those that are occurring in Europe , our major trading partner.

TAILPIECE

“If you had to identify, in one word, the reason why the human race has not achieved, and will never achieve, its full potential that word would be 'meetings'.” (Dave Barry)