May 2011
INTRODUCTION
Recently,
one of our clients had her laptop stolen. This lead this to revise
an article contained in one of our back issues. The revision is
displayed below. The importance of backing up your hard drive
cannot be over-emphasised. The losses incurred are not limited to
the hardware and data recovery costs but extend to penalties
imposed by various statutory bodies, SARS included, as a result of
the data loss resulting in missed deadlines.
TECHNOLOGY
Backups
are copies of your system and should be made at regular intervals.
The more frequently the data changes, the more frequent should be
the backup. The medium on which to save the backup may be dictated
by volume of data to be backed up. For the average SME, a
removable hard drive will be the best option as they are available
in various sizes and are reasonably priced. Larger enterprises
will consider options such as tape streamers or web hosting.
Regardless of the medium used, in order to minimise the
possibility of loss due to fire or theft, the backup copy should
not be kept at the same location as the source hard drive. The
original software should also be stored at an alternative
location. Some programmes, such as Adobe and AVG, are updated
regularly via an Internet link. Most such programmes offer the
option to save the update file to disk rather than updating live.
Wherever possible, that option should be selected as you can then
include all update files in your backup set. This will save time
and money when it comes to reconstructing your system after a
loss.
Outlook
Express
If
you conduct a large amount of correspondence using this programme,
it is useful to know that you can define how and where emails are
stored. For example, if you conduct regular correspondence with a
particular person, you can create a folder for that person and set
up a message rule to instruct the programme to store all messages
from or to that person’s folder. To do this click on Tools and
select Message Rules and then click on Mail and then the New tab.
Place a tick in the box next to the Where the From Line contains
People. In
Box
3
, click on Contains People. Click on address book and select the
name of the person concerned; then click on Add. The, in
Box
2
, place a tick in either the Move it to or Copy it to box. Another
rule may be set up to automate the sorting of your sent items, By
following the above steps but substituting a tick in the box next
to Where the In Line contains People for that in the box next to
Where the From Line contains People.
TAXATION
VAT
Returns
VAT
vendors are reminded that from April 2011, the VAT201 forms will
no longer be issued automatically. Therefore, it is incumbent on
vendors to request a copy timeously so as to ensure that their
submission and payment are made on time. It is suggested that they
diarise to do this at the beginning of the month in which payment
has to be made. This will provide a buffer for SARS delays in
issuing the return.
Returns
may be requested as follows:
-
For
manual submission, from a SARS branch or from the call centre
0800 00 7277
-
EFilers,
via their eFiling profile
Submissions
on old forms will not be accepted; neither will photocopies of
forms printed from eFiling and used for manual submissions.
Efilers
are permitted to submit and make payment on the last working day
of the applicable month whereas manual submissions and payments
have until the working day closest to the 25th of the month.
VAT
Refunds
According
to one source, SARS has targeted 10% of VAT refunds for
investigation. How the selection is made is unknown. However, we
are aware of a number of refunds being withheld without the vendor
being informed of the intent to withhold. In these cases, we were
informed of the investigation only when we enquired as to why the
refund had not been received. In some instances, no documents have
been requested. Therefore, we are at a loss to understand how an
investigation can be conducted. SARS is obliged to pay interest on
any refund that is not made within 21 working days from the date
on which the relative return was lodged with SARS. However, the
21-day period may be interrupted where:
-
A
vendor’s return is incomplete. In this case, the 21 day
period will run from the date on which a corrected return is
received by SARS
-
The
vendor is in default in submitting any return (not just VAT
returns) – the 21 days will run from the date that all
returns are received
-
The
vendor has been requested to provide documents and information
to assist in an investigation of the refund. Here, the 21 days
will commence on the date that SARS is satisfied that the
request has been complied with.
Accordingly,
we urge all vendors to keep track of when a refund is due and
ensure that SARS complies with the regulations with regard to
payment dates. Alternatively, keeps them informed on the progress
of any investigation so that the payment date may be anticipated.
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
ECONOMY
Weakening
oil prices should result in lower fuel price and this, in part,
may help to ease the burden that is likely to result from the
increase in Escom tariffs. However, currency considerations and
escalating fuel prices may impact upon the inflation rate. The
SARB has indicated that a close watch is being kept on that
statistic and that any significant change will result in an upward
revision of interest rates. One commentator predicts that this
could happen as early as September.
A
slight recovery in housing prices augers well for the property
sector. Improvement has also occurred in vehicle sales. However,
there has been no improvement in the unemployment rate that still
hovers around 25%.
THE COMPANIES ACT
In
our previous issue, we alluded to the public interest score (PI
Score) that is used in determining whether an entity requires to
be audited. These provisions apply to Close Corporations as they
are regarded as private companies for the purposes of the
financial reporting standards imposed by the Act.
All
public companies and state-owned companies must be audited. So too
do entities that hold assets in a fiduciary capacity where those
assets are worth more than R 5 million and are held on behalf of
persons who are not related to the entity and as an integral part
of the entity’s primary activity.
All
entities with a PI Score that exceeds 350 points must also be
audited.
Entities
with a PI Score between 100 and 350 points require an independent
review of their financial statements. The review may be conducted
by an accounting professional who is a member of the Independent
Regulatory Board for Auditors, (currently only Chartered
Accountants). If the financial statements are prepared internally
and not by an independent third party, an audit is required.
Entities
with a PI Score of 100 or less, do not require an audit or
independent review unless:
The
entity holds assets in a fiduciary capacity as outlined above,
and/or
The
entity is not owner managed.
The
PI Score is the sum of the following scores:
The
average number of employees for the financial year multiplied by
one
One
point for each million, or part thereof, of third party debt
One
point for each million, or part thereof, of turnover
One
point for each person who has a beneficial interest in the entity.
TAILPIECE
“Mediocrity
knows nothing higher than itself, but talent instantly recognises
genius.” (Sir Arthur Conan Doyle through Sherlock Holmes.) |
