August 2009 Archives

"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...