SEPTEMBER
2011
INTRODUCTION A
recent Supreme Court of Appeal hearing ruled that trade unions
could be held liable for damage caused by striking workers. Of
course, there are conditions attached and we will have to wait to
see whether offending trade unions toe the line. However, any
decision that restrains the behaviour that detracts from South
Africa’s desirability as an investment destination is welcomed. TECHNOLOGY Occasionally,
in Excel, one needs to clear the formulae and formatting from a
range of cells. This can be achieved by highlighting the desired
range of cells and then selecting Edit, Clear, Formats. Alt E,
C,F. To
make a copy of a worksheet’s formulae and contents, first have a
blank workbook open and then, in the sheet to be copied, click on
the small square to the left of the Column A heading. This is
known as the Sheet Selection Square. Clicking on it will highlight
the entire sheet. Now you can click on the Copy icon or right
click and click copy (CTRL+C). Next move your cursor to the blank
workbook and, with the cursor on, the
first cell in the desired range, click the Paste icon or
right click and paste (CTRL+V). TAXATION Tax Amnesty
The
opportunity to apply for the Voluntary Disclosure Relief expires
on 31 October 2011. A successful application will result in the
applicant being granted relief from penalties, interest and
criminal prosecution provided certain conditions have been
observed. The
applicant must make a complete disclosure of all tax digressions
and, provided that SARS was unaware of the matters that were
disclosed and the taxpayer is unaware of a pending SARS audit,
he/she will be granted the relief from 100% of the penalties and
interest. If, despite
an audit being in progress or contemplated, the Commissioner is of
the opinion that the default would not have been detected, the
taxpayer may be granted relief from 50% of the penalties and
interest. However,
it should be noted that the liability to pay, the taxes arising
from the reported non-disclosure, would not be excused. In
order to gauge SARS’ response to an application it may be
submitted anonymously. SARS
will issue a non-binding opinion and allocate a case number to the
matter. If the taxpayer then wishes to continue will the
application, the matter will be dealt with by the same official
that rendered the opinion thus increasing the odds in favour of a
successful outcome. The
Tax Administration Bill, which is currently under discussion,
proposes a permanent framework that will provide for 100% relief
from penalties but not interest. However, from 1 November 2011
until the Bill is enacted, no relief measures will be available. Tax
Administration Bill The
object of this law is to provide a single act that regulates
common procedures, rights and remedies that presently are
contained in the various tax acts. The
Act will provide for an extension of the powers that are exercised
by SARS officials with regard to information gathering. One
proposal authorises SARS officials to conduct a search and seizure
exercise in relation to documentation without the necessity of
obtaining a search warrant as is currently the law. This proposal
is intended to prevent the destruction of evidentiary documents. It
is further proposed to increase SARS’ power to obtain third
party information in order to pre-populate returns and verify the
accuracy of information submitted by taxpayers. Another
provision will enable SARS to disclose taxpayer information to
other statutory agencies. The
creation of a Tax Ombud has been mooted in order to provide an
avenue of objecting to perceived unfair treatment by SARS.
However, in its present form, a ruling of the Ombud is not binding
on SARS thereby enabling their officials to conduct a business as
usual approach. Profession bodies are advocating giving the
Ombudsman the power to hand down decisions that are binding on
both parties. Log
Books In
order to reduce their tax burden upon submission of their annual
tax returns, clients who are in receipt of a travel allowance or
company car must maintain an accurate logbook. This tedious
exercise may be made easier by the use of an electronic device
called Little Logbook. It is available at www.littlelogbook.co.za. DEADLINES Voluntary
Disclosure Programme – 1 November 2010 to 31 October 2011 Annual
Duty – end of the month following incorporation date EMP
501 2012 1st period 1 September 2011 – 31 October 2011 Disposal
of a residence from a company or trust – 31 December 2012 Income
Tax Returns – 2011 Individuals: Efilers: Non-provisional
taxpayers – 25 November, 2011 Provisional
taxpayers – 31 January 2012 BUSINESS What
sets one business apart from another? For example, why is a
certain brand of fried chicken more successful than its
opposition? It is because the more successful outlet has become a
household name. How was this achieved? In one word, branding. What
is branding? It is the method whereby the business is kept in the
mind’s eye of the consumer. That can only be achieved by a
programme of advertising that reminds the consumer of the benefits
of using the product and ensuring that the product lives up to
those claims. A one-off advert won’t work nor will a fancy logo,
unless it is imprinted on the minds of consumers. The
logo should become an emblem for certain qualities; qualities that
are expressed in a short but descriptive logo. If I tell you that
my product is finger licking good, do you think of pork ribs from
a familiar steakhouse? No. You immediately salivate for a
particular brand of fried chicken; not any fried chicken but a
particular brand. Therefore,
keep the logo distinctive and the message simple and repeat the
exposure of the consumer to both as frequently as possible. Branding
will give your business the edge in a recessionary economy. So,
get your brand recognised but do not ignore the fact that
successful businesses convert the sales generated by successful
marketing into profits by competent financial management. ECONOMY The
average wage increase achieved by strikes, at 7.5%, is way below
that initially demanded by the Unions. In fact, it is closer to
the offers made by employers at an average of 6%. Both these rates
are significantly higher than the inflation rate during strike
season, which rose by between 3.5% and 5%. During the same period,
the wages lost due to the “no work no pay” rule amounted to
between 2% and 4% of the strikers’ annual income. This impact on
the strikers’ living costs is certainly not what they had hoped
for and was hardly worth the effort. Meanwhile, Archbishop Tutu is
urging the implementation of a wealth tax. This could well
motivate a decline in productivity. In
addition, the damage to public property, in some municipalities
amounted to millions. The impact of strike season through lost
production is immeasurable. When that impact on the economy is
compared with what the workers actually achieved, their action and
that of their leaders must be seen as totally irresponsible. When
the impact of the strike season filters through to the inflation
rate, all South Africans will pay the price of this
irresponsibility. Surely this should be sending a very loud
message to our legislators. The message is that our labour laws
are far too liberal to support the need to create jobs through the
invigoration of the business sector. That sector is already
feeling the pinch from the financial woes that the recession has
inflicted on our major trading partners. TAILPIECE
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