Category Archives: tax

Ombudsman South Africa – Tax

Ombudsman South Africa. Tax is a financial charge or levy imposed upon a taxpayer  by the state. The ramifications or consequences of not complying with legal tax obligations as an individual or even institution can be severe. Tax authorities have been empowered by law to impose heavy sanctions if need be and in worst case scenarios even institute court proceedings which can result into imprisonment for those found guilty. In a huge and complex economic structure like the South African one, It is not surprising that a good number of tax payer complaints are recorded and sometimes not even resolved by the South African Revenue Service (SARS). In a bid to provide an alternative in resolving these complaints from taxpayers, the tax ombudsman’s office was established.

The South African tax ombudsman’s office has been created  to handle tax related complaints which can not be resolved through the governments internal system. This office is expected to provide simple remedy for taxpayers who have legitimate complaints that relate to administrative matters, poor service or the failure by SARS to observe taxpayer rights. While the tax ombudsman is not expected to review legislation or tax policy, the office will review complaints and if necessary resolve them through mediation or conciliation with SARS officials.

The tax ombudsman will indeed provide taxpayers a fair hearing.
Tax Ombudsman

Deloitte Touche

Deloitte Touche Tohmatsu Limited has had a commanding presence in the financial services industry for many years. This is not just because of the excellence associated with it  but for establishing business units and fundamental financial principles which have been universally embraced.

In South Africa, Deloitte has established a strong footprint in every corner of the country with an enviable list of clients.

Deloitte Touche Tohmatsu Limited commonly known as Deloitte is one of the big four professional services firms in the world. With its global headquarters located  in New York and Occupying position number two in that line with 193, 000 employees in more than 150 countries, Deloittes firm grip on the industry has never been this strong with a wide range of services from audit,  tax,  consulting,  enterprise risk and financial advisory services.

Perhaps one of  the most significant services that have impacted the South African economy is the broad range of fully integrated taxation services provided. These taxation services address organisational tax requirements allowing businesses to focus on business objectives.

The main critical areas under the taxation services include global business tax services, cross border tax, indirect tax, global employer services, Deloitte school of tax and tax publications.

Under the global business tax services, Deloitte addresses clients needs with regards to business tax, private company services, research and development and government incentives as well as tax management consulting.

With regards to cross border tax, Deloitte advises companies on a broad range of inbound and outbound tax, including structuring initial overseas investments, financing international operations, cross border transactions, international tax services, mergers and acquisitions and transfer pricing.

Deloittes expertise and knowledge on matters of indirect tax extend to a wide range of indirect taxes including value added tax and goods, sales and use tax, custom duties, exercise duties, insurance premium tax and more. In this regard, issues of compliance and reporting, dispute resolution, consultancy and opportunity identification and implementation are addressed.

As organisations grow, issues of employment, multifaceted tax laws and labor regulations become more challenging. To mitigate these challenges, Deloitte offers international assignment services, compensation and benefits, international human resources, risk talent rewards and web based tools in form of technology.

Imparting the necessary skills to needy groups and individuals remains a core value of Deloitte. It is for this reason that national seminars are run with a special focus on hands on practical training. Client customised training is also offered where custom built and delivered tax training curriculum based on specific organisational needs is offered. e-learning modules are also offered which enhance the learning experience of clients.

From the wide range of services offered and its international profile, its clear to see that Deloitte Touche Tohmatsu is indeed a global power house.

Deloitte can be contacted on 011 806 5000.

Taxation in South Africa

A tax is a financial charge or levy imposed upon a taxpayer who could be an individual or business entity by the state. The logic behind taxation by many governments is that paying tax is the way individuals and corporate organisations contribute towards the much needed social services like transport, education, health etc.

South Africa has a progressive income taxation system which is based on the premise that the wealthy should contribute a greater proportion towards supporting the state than the poor. This means the more a person earns the higher percentage of tax they pay. The semi autonomous government body charged with this responsibility is the South African Revenue Authority(SARS). There are different types of taxes some of which are;

Normal tax-This is a levy imposed on all persons in the form of an annual tax which is calculated by applying predetermined rates to a persons taxable income. This kind of tax is divided into individual income tax and company income tax.

Donations tax-this is the tax paid on transfer of wealth rather than on income but it differs from estate duty because it specifically taxes gifts and donations as opposed to inheritance.

Estate duty is duty charged on the death of a person and is based on the value of the deceased estate on the date of their death. It is 20% on the amount remaining in the deceased estate over R1.5 million.

Capital gains tax-this is a portion of the net gain added to the taxpayers taxable income from the increase in value of an asset that was disposed off for more than its base cost.

Value Added Tax-is a broad tax paid  by vendors on the supply of goods and services that is charged upon purchase. People who are not South African passport holders and are not resident in South Africa are eligible to claim back VAT on movable goods purchased in South Africa provided they present a tax invoice in form of a receipt for the goods.

Fuel Levy-This is the tax paid at the pump on fuel like petrol and diesel. 5% of the total fuel price paid at the pump in South Africa goes to the Road Accident Fund which is a state insurer that provides insurance cover to all drivers of motor vehicles in respect of liability incurred or damage cause as a result of traffic collision.

From the above tax categories, its clear to see that South Africa has broadened its tax base which has resulted in a broad pool of financial resources which are utilised to build and maintain a great South Africa.

Daberistic Financial Services

Accounting and Taxation matters  can be quite a burden on many firms in South Africa. Quite frequently many organisations have ignorantly fallen victim to the law because of lack of understanding and absence of critical expertise to handle matters of this nature.

The above was the motivation behind the formation of Daberistic Financial Services. Daberistic Financial Services is a member of the Masthead Financial Advisers Association, the largest network of independent financial advisers in South Africa. Damberistic provides the following services, company registration, bookkeeping,VAT registration and returns, PAYE, UIF, financial reporting, auditing, management accounting, tax planning personal and company income tax returns etc.

Daberistic helps small and medium sized business owners in achieving growth and success through enhanced financial discipline, cash flow management and internal controls. In addition, they have partnered with small audit firms who provide independent audit services at a competitive price should need arise.

With many years of experience and tested expertise in the field of tax, Daberistics tax consultants act fairly and with a higher degree of responsibility with Internal revenue service. They also have knowledge of all prevailing tax laws and advising the clients regarding the accuracy of their documents and related penalties. Daberistic can be counted on for advice on the best practices when preparing and submission of documents to Internal Revenue Service.

Damberistic tax consultants also check for standard of practice of company or individual’s tax documents, evaluation of reasonableness of assumptions made in tax calculations and determining the relevant facts and arriving at conclusion supported by the laws, clear communication with the client regarding the terms of the engagement, etc

For reliable Accounting  and tax consulting services, Daberistic Financial Services is indeed the name to remember.

Tax Returns

The tax returns season in South Africa is now open and it is that time when individuals in particular income brackets are under obligation by law to file in their tax returns with the South African Revenue Authority(SARS).

A tax return is a declaration of ones income and it is also a way in which tax payers claim a tax refund from the revenue authority if they paid more tax than due. It also proves quite handy when an individual has to seek a loan, buying property or even taking a huge insurance cover.

An individual can file the returns either online or off line. The off line filling of tax is where an individual physically walks through the doors of the South African Revenue Authority to complete the necessary documents to complete the process. e-filling is the facilitation of electronic submission of tax returns and payments by tax payers and tax practitioners. Once you have filed your return,  if your tax affairs are straightforward, you will receive the outcome of your assessment almost instantly via an SMS message. Your formal assessment and any audit letters will be sent via the post or email.

The South African Revenue Authority has this year raised the income threshold in which one doesn’t have to file a return from R120, 000 to R250, 000 a year. Also an individual may not file in a tax return if a salary they earn is only paid by only one employer, if an individual doesn’t have any other income such as taxable interest or rent income or they don’t have any tax deductions, such as medical expenses, retirement annuity contributions or travel expenses to claim.

While the tax filing process may be seen to be demanding by many, it’s a worthwhile process that ensures tax compliance by those involved.

For those who may struggle to get a firm grip of it, they can contact the South African revenue authority on 0800 00 7277 or even seek the services of a professional chartered accountant.

tax returns

Grant Thornton – GTC

Grant Thornton is the worlds sixth largest professional services network of independent accounting and consulting member firms. Grant Thornton is incorporated in London, United Kingdom and has no share capital. Member firms under this global organisation operate in over 120 countries. There are over 2,500 member firm partners with a total firm personnel of over 35,000.

In South Africa, Grant Thornton has a national presence with offices in every corner of the country in cities like Cape Town, Bloemfotein, Durban, Johanburg, Nelspruit, Polokwane, Polokwane, Port elizabeth, Pretoria and Rustenburg.

Grant Thornton has been a reputable authority in the world of business when it comes to Audit and assurance, Business risk services, corporate compliance services, corporate finance, tax, property consulting and general tax and advisory services.

Grant Thorntons resolve over the years has been to unlock corporate and individual potential. This potential is unlocked by supporting strategic ambitions using the Grant Thornton business and commercial advise. The desire to expand and grow internationally is always inevitable in business, this is where Grant Thornton steps in to help businesses entering new markets and help them understand tax liabilities across multiple jurisdictions, this is also coupled with Grant Thorntons ability to help organisations anticipate and mitigate key risks facing dynamic growing business. Grant Thornton also helps  businesses by ensuring that their business models are well tested and recommended improvements are done. These recommendations include how to reward and incentivise key employees in a tax efficient way.

To enjoy world class fiancial advisory services, Grant Thornton can be contacted on 011 322 4500.