Avoid penalties, submit tax returns

The closing date for tax return submissions is fast approaching. With 31 October a mere six weeks away, the South African Revenue Services (SARS) is urging companies and individuals with outstanding tax returns to comply. Stefani du Preez, director of Innovative Accounting Solutions, a subsidiary of the Innovative Solutions Group, says non-compliance can translate into significant Administrative Penalties (Admin Penalties). “Levied under Section 210 of the Tax Administration Act, these [...]

SMME’S: HOW TO AVOID FIRST-YEAR PITFALLS

Small and medium enterprises (SMEs) are crucial to South Africa’s growth, but many of them fail in the first year of business, says Innovative Accounting Solutions director, Stefani du Preez.   According to the Global Entrepreneurship Monitor (GEM) 2015, SMEs contribute 36% to South Africa’s GDP, but starting a new business in not an easy task, especially in a country which has a World Bank ‘Starting a Business’ rating of [...]

GOVERNMENT’S PROPOSALS TO BOOST SMALL BUSINESS ARE POSITIVE, BUT MORE IS NEEDED

“Government needs to show that it is serious about creating an enabling environment for small and medium enterprises (SMMEs) in South Africa, by increasing the R2.1 billion it has allocated to assisting them. Alternatively, the fund must be used as a guarantee that will allow the private sector to provide funding on top of this,” says Stefani du Preez, Director at Innovative Accounting Solutions.  Responding to Finance Minister Malusi Gigaba’s [...]

SMMEs: A 2018 BUDGET WISHLIST

While small, medium and micro enterprises (SMMEs) will be keeping a close eye on today’s budget speech, the news is already promising following President Cyril Ramaphosa’s maiden State-of-the-Nation address (SONA). Ramaphosa committed to investing in small business incubation; establishing a small business and innovation fund targeted at start-ups; and reducing the regulatory barriers for small businesses. Stefani du Preez, Director of Innovative Accounting Solutions, says the reduction of regulatory barriers [...]

Measures to ease pressures on small-business owners

President Cyril Ramaphosa, in his State of the Nation Address last week, boosted the hopes of small business owners by promising to create a more conducive environment for them by, among other things, removing regulatory hurdles. Stefani du Preez, the director of Innovative Accounting Solutions, which offers accounting, payroll and tax services to small businesses, says although the Budget has not provided anything concrete regarding reduced regulation, it contains a [...]

SARS PENALISES TAX-PAYERS

In a scandal-weary nation such as South Africa, the latest revelations in the Gupta state capture saga, the implication of key South African Revenue Services (SARS) employees, and the delivery of Finance Minister, Malusi Gigaba’s, mid-term business speech have shocked even the most jaded of South Africans.   The admission by Gigaba that SARS is facing a R50 billion tax shortfall was nothing short of bleak.  These sentiments were echoed [...]

Penny pinching habits for your business

Some of the world’s richest people have penny-pinching habits. Warren Buffet is one of them. He lives in the same house he bought in 1958, which only cost him $31,500 (about R416 000). The same applies to some of the most successful companies. Many have frugal habits, placing almost the same amount of focus on reducing their costs as they do on driving revenue growth. Master Tax Practitioner and the [...]

Accountants Need to Adapt to Changing Needs of SME’s

As many SME’s move towards cloud accounting, accountants servicing the sector need to remain relevant by becoming more technologically savvy and expanding their offerings to include operational or financial consulting. This is according to Renier Nell, Master Tax Practitioner and Director of Innovative Accounting Solutions, a subsidiary of Innovative Solutions Group, which provides outsourced services and solutions in staffing, finance and administration, broad-based black economic empowerment and guarding. Nell says [...]

Three steps to choosing the right tax practitioner

While the introduction of E-filling by the South African Revenue Service (SARS) has slightly eased the burden of taxpayers from making mistakes on their annual tax returns, just one error in entering information on your forms could still end up costing you -- in the form of a larger tax bill or a smaller refund. Even if a mistake, whether on your computer or paper forms, doesn't cost you cash, [...]

Fiscus opts for hidden taxes to hide tax increases

South Africa has a new ‘sin’ tax on sugar, which can be henceforth expected to automatically rise every year by 6% to 10%, along with tobacco and alcohol duties. South Africa experienced GDP growth of about 0.3% last year, and with inflation creeping up above 6% salaries aren’t keeping pace with inflation. The government has to recover the deficit in tax from somewhere and it therefore opts for these types [...]

Your tax bill is about to become more than a little taxing

Wealthy taxpayers were left gasping when Finance Minister Pravin Gordhan announced in parliament during his 2017/18 Budget Speech an increase in their marginal rate of tax by four full percentage points. However, Master Tax Practitioner and Director of Innovative Accounting Solutions, Renier Nell, says there are steps that wealthy small business owners can still take to reduce the tax blow. The announced increase takes the marginal tax rate for people earning in [...]

Is there a need for small businesses to fear the 2017/18 Budget?

High and middle income earners are hearing a stream of bad news as the 2017 – 2018 Budget Speech by finance minister Pravin Gordhan approaches. Accoridng to Renier Nell, Master Tax Practitioner and Director of accounting and tax firm Innovative Accounting Solutions, analysts are predicting high earners will bear the burden of tax increases in order to plug the R28-billion funding gap in the fiscus that was highlighted in Gordhan’s medium-term [...]

Trusts are still the best solution to protect your assets

Every day hundreds of people around the country get an unwelcome visit when a court Sheriff arrives at their home with the intent of removing their property – in most cases unlawfully so. Renier Nell, a director of accounting and tax firm Innovative Accounting Solutions, says that people can avoid this prospect by having all their assets placed in a family trust. “In the past, claiming that your assets were [...]

Keep your business afloat in a tough economy

Smart importers could reduce their cost of goods by as much as 40%, thereby undercutting competition while growing their own profit margin.   According to Renier Nell, a master tax practitioner and director of accounting and tax firm Innovative Accounting Solutions, this is possible through business process outsourcing. He regularly assists clients to do just that with a dynamic hands-on approach when it comes to consulting with small and medium [...]

Save your company from Business Rescue

Many small business owners are paying about 18 percentage points more income tax than they need to, according to Renier Nell, the director of accounting and tax firm Innovative Accounting Solutions (IAS). This stems from ignorance of tax law. “Tax is our bread-and-butter and we relish taking on SARS on behalf of our clients. For instance, the average owner is often not aware that his business may qualify for the [...]