March 2011
The
saying goes, “It’s an ill wind that blow no one any good”.
However, recent natural disasters, particularly in Japan, beg the
question, “Do we take advantage of every opportunity that is
presented to us in our business life?” Our business section
takes a deeper look at that issue. In
Excel, when you click on File, a list of recently used files will
appear at the end of the other menu options. Excel 2003 allows the
user to display up to 9 recently used files in this list. To
increase or decrease the number of displayed files, go to the
Tools menu and click on options and select the General tab. The
number may be changed by using the up or down arrow next to the
“Recently used list” box.
In the lower pane of the General Tab, there is the facility
to increase the number of sheets in the worksheet. Reducing the
number to the bare minimum is advantageous when one wishes to
optimise memory usage. EMP501
reconciliation and PAYE matters Presently, SARS is testing their computer system that issues income tax numbers to persons who are employed and whose particulars were recorded on the half-yearly tax certificates that were submitted with the August 2010 reconciliation. Once this procedure is complete, employers who submit their EMP501 via “EasyFile Employer” online will be provided with the reference numbers via that channel. That programme will also have a facility to create a file for importing to their payroll systems. Clarity on the procedure should be available shortly. The latest version of EasyFile Employer will be available on the SARS website on 4 April. However, this facility will not be available to employers who submit manual reconciliations. The tax registration numbers for their employees will be sent to each employee who must advise his/her employer accordingly. From the 2011 tax year, it will be mandatory for the IRP5 certificates to reflect the employee’s income tax number. Where these are omitted, the EMP501 will be rejected. A SARS official at the last Practitioners’ Stakeholders Meeting provided the latter statement. If not rectified timeously, penalties will be levied and, in the employee rendering their personal tax returns after due date, and thereby incurring personal penalties. However, a recent press release states that the reconciliation will not be rejected but a notification that penalties may be raised will be issued. The system will require the employer to assent to the levying of penalties before it permits the continued submission of the reconciliation. We have requested a SARS official to clarify this matter. SARS Branch Offices will no longer be allowed to issue pre-printed forms, used in the PAYE process, as each such form is required to have a tracking bar code. However, an employer may submit a request, at the branch office, for a manual return to be issued. The form will be sent via the post. Individual
Tax Returns - 2011 Employees earning below R 120 000 who have an IRP5 from one employer will not be penalised for non-submission of annual returns. However, some taxpayers may be in receipt of income from other sources that submit tax certificates via the SARS system, e.g., for annuity or pension income. In this instance, the taxpayer will be required to obtain and submit an income tax return. Failure to do so will result in penalties being rigidly enforced. You are reminded that the annual return of earnings was due for lodgement on 31 March 2011. Any employer who did not receive a form to complete is urged to request one from the call centre on 0860105350. When doing so, insist that you obtain a tracking number for the call. Voluntary
Disclosure Programme – 1 November 2010 to 31 October 2011 Annual
Duty – end
of the month following incorporation date Consumer
Protection Act – 1 April 2011 New
Companies Act – no new CC registrations – 1 April 2011 Disposal
of a residence from a company or trust – 31 December 2012 PAYE
Reconciliation 2011 – 3 June 2011 No
financial plan can be all embracing, as we can never predict
precisely what may happen. For example, a man, who throughout his
life, looked after his body through diet and exercise, may
suddenly drop dead from a massive heart attack at 40 years of age.
Such a possibility should be taken into account when considering
the needs of the family who is suddenly deprived of the
breadwinner. The amount of life assurance cover should be adequate
to meet the future needs of the family without detracting from the
members’ present lifestyle and future needs such as education. Most
assurance companies produce a needs analysis that takes into
account all these factors as well as making provision for estate
duty. For assistance with such an analysis, feel free to contact
our associate, Frank Kruger on 031-2019942. Another
requisite of sound financial planning is a well-constructed will.
Our consultants will happily assist you with this. Whilst
the rate of inflation remains steady, resulting in no change at
this time in the repo rate, it seems unlikely that this trend will
continue indefinitely. The fuel price impacts upon the price of
fertilisers and other agricultural inputs. Therefore, it is
reasonable to expect that food prices are likely to escalate. The
fuel price adjustment in April is due in part to the increases
announced in the budget. Basically, that component is a one-off
measure. However, unrest in the oil-producing nation may well
continue to push up the cost of crude. A solution in Libya will
not necessarily result in a relaxation of the pressure on oil
prices. Other Arab nations have a disenfranchised majority and
this, and poverty in those regions may result in civil
insurrection. Electricity
tariffs are set to rise by 25.8% in July. This too will impact on
the agricultural sector, in particular, and on the economy as a
whole. Depending
upon the extent of SA’s trade with Portugal, the pressure on
that country’s liquidity may have adverse affects on our
economy. Presently, the weaker rand is making this country less
attractive to investors who are shifting their funds offshore. These
trends have prompted one commentator to predict that the
rand/dollar rate is likely to reach R9.50 by the end of the year. The disasters in Japan and New Zealand, whilst tragedies on human level,
represent opportunities for entrepreneurs in other countries to
reap a benefit from the ill wind that blew over the victim
countries. The true entrepreneur will first analyse what aspect of
the victim country’s industrial capacity has been severely
affected. Some
of the questions to be answered are: ·
What production lines have been disrupted? ·
How long is that disruption likely to continue? ·
Who consumes the products of these incapacitated
factories? ·
Does the product consist of smaller components? ·
Have we the capacity to fill the gap in its entirety
or partially? ·
Is our product likely to be cost competitive? Only
once all the questions have been answered can the astute
entrepreneur determine whether he/she is able to profit from the
misfortune of others. However, despite rising costs of production
in the East, it is essential that South African producers obtain
optimum productivity from their labour force as high labour costs
are a significant component of the South African price structures. "In
everyone’s life, at some time, our inner fire goes out. It can
then burst into flame by an encounter with another human being. We
should all be thankful to those people who rekindle the inner
spirit." (Albert Schweitzer) |
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