"KZN pilot held in Dubai on debt claim" ...This was the headline of a local newspaper recently. 1 In summary the pilot signed surety for his son's debt and found himself in a jail cell as a result.
All too often people needing to raise finance are presented with a suretyship document to sign. A suretyship is an agreement to take on the responsibility of another's debt or obligation.
DO YOU REALLY WANT TO PAY SOMEONE ELSE'S DEBT?
"Those boxes at the back of the garage marked Accounting Records: ABC CC 1995...can I thow them away?"
How long do you need to keep those dust filed, moth eaten records that one has ever or will ever look at?
As part of SARS' recent media release emphasising the implementation of its new tough penalty regime, SARS is threatening to take the money from your bank or your employer. 
On 14 October 2009, SARS issued a media release indicating that it would be enforcing the new penalty regime with effect from 23 November 2009. In summary, non-compliant taxpayers will attract a monthly penalty based on their income of at least R250 per month for EACH outstanding return. The details of these penalties can be found here.
With the introduction of Annual Returns for both Companies and Close Corporations, comes the threat from CIPRO that entities who do not submit their annual return may be deregistered. What you probably do not know is the potentially severe cost to you of this...
Chances are, you are guilty on at least one these:
Any of the above will result in SARS levying a penalty of between R250 and R768 000.
SARS's deadline for the submission of individual tax returns done manually is the 18th September 2009. If use is made of the electronic system 'e-filing', this deadline is extended until the 20th November 2009. Not meeting this deadlines will likely result in SARS imposing a penalty on you.
For assistance in completing your tax return, please contact Wayne on 033 330 7333.
"The members of a corporation shall within nine months after the end of every financial year of the corporation cause annual financial statements in respect of that financial year to be made out in one of the official languages of the Republic." Close Corporation Act, 1984 (No. 69 of 1984) s58
As a member of a close corporation, it is YOUR responsibility to ensure that the financial staments are prepared within this 9 month period. Failure to do so is a contravention of The Act, which amongst other things, your accounting officer is required to report to the registrar.
Bottom line: Make sure that your financials are prepared within the 9 month period.
With effect from March 2010, the proposed minimum threshold for Vat is R50,000. Any vendors who do not meet this threshold will be required to deregister for VAT. As with all Vat registrations - forced or voluntary, any assets which you have claimed a deduction against will attract VAT on deregistration.
This could have significant cashflow implications which should be planned for.
I'm proud to pay taxes
I could be just as proud for half the money
Arthur Godfrey
Many businesses manage their VAT cashflow by altering invoice dates or misrepresenting their output & input taxes. This is illegal and SARS is likely to impose heavy penalties - up to 200% - if discovered.
There are legitimate ways to manage your VAT cashflow...
