RSM South Africa

News

"Double-dipping" of government grants

5 September 2019
With the current downturn in the South African economy, many small and medium-sized businesses will turn to government to provide them with some sort of relief. This relief would come through the granting of government grants. These companies would then assume that the government grant they received will be exempt from normal tax, which is correct

The importance of a business plan

29 August 2019
Whether you are starting a small business or exploring ways to expand an existing one, a business plan is an essential tool to help guide your decisions. A business plan is the best way to test whether your idea is feasible without having to go out and do it, saving you a great deal of time and money in the process.

Proceeding with disciplinary measures following an immediate resignation

13 August 2019
We are often requested by our clients to provide advice in situations where an employee resigns with immediate effect to avoid any sanction in the instance that the employer has convened, or intends to convene, a disciplinary hearing to determine whether a misconduct has been committed by an employee, and if successful in proving misconduct, to determine an appropr

Tax returns 2019

12 August 2019
2019 tax season is here. Do you have all the correct documents ready?

When does interest paid by SARS accrue to a taxpayer?

7 August 2019
The “gross income” definition in the Income Tax Act, starts as follows: “in the case of any resident, the total amount, in cash or otherwise, received by or accrued to or in favour of such resident; or…”

Are global financial markets still in touch with reality?

6 August 2019
At the end of May this year, I wrote an article painting three scenarios for the global economy over the next five years.

An efficient accounting department

24 July 2019
Transactional processing is normally seen as a back office job and business owners place little priority on this important business function.  In many companies processing is rushed at month end to produce the required VAT reports or other ad hoc reports for management.  The problem with this method is that processing can at times fall behind and, due to the month

Payroll taxes and the related declarations

19 July 2019
While a key component of running a business is how much employees should be paid and what amounts must be withheld from their earnings, the buck definitely does not stop here. It is critical that employers understand their full responsibilities when it comes to hiring employees and the associated obligations that arise from paying them remuneration.

IFRS News in Brief - Issue 93

18 June 2019
This months IFRS News in brief issue summarises recent IASB discussions and decisions, highlights RSM thought leadership from around the world, and addresses an IFRS application question each month.

The Social and Ethics Committee - A bird's eye view

3 June 2019
An interesting feature in modern company law is that the Social and Ethics Committee (“S&E Committee”) of a company, as provided for in the Companies Act No 71 of 2008 (the “Companies Act”), creates an opportunity for such a company to consider its social footprint within a uniquely South African context.

The aftermath of Storm GDPR

28 May 2019
WHAT HAS BEEN THE IMPACT ON MIDDLE MARKET BUSINESSES IN THE AFTERMATH OF ‘STORM GDPR?

Enterprise and Supplier Development for B-BBEE

22 May 2019
Requirements & identification of suitable beneficiaries

The process and timeline for winding up a deceased estate

17 May 2019
The process and timeline for winding up a deceased estate could be overwhelming for the deceased’s family and, in some instances, beneficiaries of the estate do not always understand the administration process associated with a deceased estate.

IFRS News in Brief - Issue 91

15 May 2019
PUBLICATIONS AND ANNOUNCEMENTS

Agile employee lifecycle

14 May 2019
Traditional employee lifecycle

Basic rules for the administration of trusts

2 May 2019
Trusts have been in the spotlight in recent years, and SARS is imposing more stringent laws on trusts. It is therefore important to ensure that trusts are set up for the right reasons and that they are properly administered by the trustees to ensure the consequences of mismanagement are avoided.

Debt relief loopholes

24 April 2019
The Taxation Laws Amendment Bill of 2018 contains amendments that are designed to reduce certain loopholes that previously existed in the debt relief provisions that are contained in Section 19 of the Income Tax Act (“the Act”) and paragraph 12A of the 8th Schedule to the Act (hereinafter referred to as section 19 and paragraph12A).

What does mandatory audit firm rotation mean?

17 April 2019
The global financial crisis brought to the fore questions surrounding the scope and quality of external audit, market concentration and auditor independence. The crisis reopened concerns about auditor tenure and its consequences for auditor independence and audit quality.

RSM gives back to the community at Kingsway School

16 April 2019
In celebration of our 80th anniversary,  RSM South Africa adopted the Kingsway School as our social responsibility recipient for the year.

Religious institutions under the microscope with SARS

15 April 2019
In an effort to improve its revenue collection, the South African Revenue Service (SARS) has established an illicit economy unit that will be re-introduced in April 2019 to strengthen its tax collection process.

The generation of gamification

11 April 2019
Organisations are populated with employees from various generations often referred to as; the Silent Generation, the Baby Boomers, Generation X and the Millennials. At a certain point in time a generation gradually leaves the organisation.

An explanation of Alternate Directors

5 April 2019
Definition of an Alternate Director in terms of The Companies Act

RSM gives back to the community

3 April 2019
In celebration of our 80th anniversary, we have opted to give back to the community and have adopted the Kingsway School as our social responsibility recipient for the year.

IT meets Audit

29 March 2019
IT – Information Technology, the study or use of electronic equipment, especially computers, for storing, accessing, analysing and sending information ~ Oxford Dictionary

Sugar coated tax

14 March 2019
The 1st of April 2019 marks a year since the introduction of the Health Promotion Levy on sugary beverages, or “sugar tax” levy as it is commonly referred to.

What not to do in a job interview

14 March 2019
Once your CV catches the eye of a recruiter, all you are really left with is to test that there is mutual compatibility. The problem with interviews, aside from being an inherently flawed way of selecting talent, is that it’s easy to get nervous, and it’s even easier to turn it into a complete social disaster.

Working with Millennials

12 March 2019
Youngsters of the Millennial generation (born between 1980 and 2000) have received bad press in the media with ‘experts’ detailing all that is wrong with this generation and how this will affect the future of business and leadership.

2019 Budget Speech - Tax Update

21 February 2019
Finance Minister Tito Mboweni delivered his maiden Budget Speech on 20 February 2019. This comes at a time when the country is grappling with issues of unemployment, corruption, and distress in State Owned Enterprises.

Section 24C - Allowance in respect of future expenditure

15 February 2019
The tax court recently ruled in the case of ABC (Pty) Ltd v The Commissioner for SARS on the application of section 24C of the Income Tax Act (ITA). The section allows a deduction for future expenditure in relation to any year of assessment by the taxpayer.

Shareholder vs Stakeholder approach

1 February 2019
How corporations should be maximising long-term sustainability

Changes to the Donations Tax threshold

22 January 2019
In the 2018 budget speech, the Finance Minister proposed a significant number of changes to address the revenue shortfall that the fiscus was facing. One of these proposals was to increase donations tax from 20% to 25% for any donations made by a resident in excess of R30 million. This change has been approved and comes into effect from 1 March 2018.

IFRS News in Brief - Issue 88

22 January 2019
INTERNATIONAL ACCOUNTING STANDARDS BOARD (IASB) LATEST DECISIONS SUMMARY The following is a summarised update of the main discussions and tentative decisions taken by the IASB at its meeting on 11, 12 and 13 December 2018.  

Financial metrics in the business world

11 January 2019
keeping an eye on kpi’s Monitoring sustainability and the condition of a company’s business model plays a key role in the overall performance and success of an organisation. If these are given the required attention, it would enable easy identification and corrective protocol to eliminate or curb potential problems or detriments.

How NOT to get yourself a salary increase

10 January 2019
I, like most HR professionals, have a natural interest in human behaviour and observing awkward conversations is like an ice-cream on a hot summer day - amusing but doesn’t usually last very long. I am often asked by friends, family and sometimes even by strangers, how to go about asking for an increase.

IFRS News in Brief - Issue 87

7 January 2019
PUBLICATIONS AND ANNOUNCEMENTS The IASB issued the seventeenth edition of the ‘Investor Update’ on 27 November 2018. The issue provides investors with information that helps them keep up to date with changes in the world of IFRS and how those changes may affect their work. 

New regulations imposing VAT on electronic services in South Africa

18 December 2018
On the 24th of October 2018, the National Treasury published new regulations for the purpose of “electronic services” as defined in Section 1 of the Value Added Tax Act (VAT) Act of 1991 but specifically relating to the supply of electronic services and which will come into effect from the 1st of April 2019.

South Africa tackles unemployment at the 2018 Job Summit

18 December 2018
The following article is a summary of the 2018 Job Summit

Adequate consideration - The risk in what you can't justify

18 December 2018
Whether the economy of a country is in a period of retraction or expansion, one element of commerce which remains relevant is the intermittent reliance of companies on its shareholders for the provision of adequate capital funding in conducting its business. The motivation for the provision of capital funding may well differ, i.e.

IFRS News in Brief - Issue 86

26 November 2018
PUBLICATIONS AND ANNOUNCEMENTS

Year end escapades - The final payroll run

16 November 2018
Christmas Carol? All I heard was Christmas payroll!

Oh no - The stat audit!

15 November 2018
As part of the independent audit of the financial statements of a company, the audit team needs to confirm that the company complied with the legal requirements that relate to the company secretarial records.  Secretarial records are minutes and resolutions, filings with the Companies and Intellectual Property Commission (CIPC), and other registers that are prescri

Proposed Amendments to the Doubtful Debt Provisions

2 November 2018
There has been a significant change from previous wording, with the old section 11(j) being repealed and replaced by an entirely new section. While the rate of allowance was not defined in Section 11(j), based on SARS practice, 25% of the provision for bad debts was granted as an allowance.

Getting the most from audit readiness

2 November 2018
In preparation for an audit some groundwork can be done to aid both the audit team and client staff, which could result in saved time and costs.

IFRS News in Brief - Issue 85

22 October 2018
PUBLICATIONS AND ANNOUNCEMENTS

The secret to growth for SMEs may be found in an audit

4 October 2018
An audit is an inspection of your business accounts, including accounting systems documents and invoices. The goal of an audit is to determine if the financial statements are representing an accurate view of the company.

Management can improve audit quality

27 September 2018
If the saying that “any publicity is good publicity” were true, auditors would have come very close to celebrity status lately.  After recent events like state capture, the SARS report, VBS Bank, Steinhoff, etc.

Reducing the cost of an audit

21 September 2018
The annual audit is never an event that our clients look forward to. It can be time consuming for the client and, of course, quite costly. The Companies Act introduced a “lighter” alternative to the audit in the form of the independent review, however many clients, understandably, are seeking ways to reduce the costs.

Labour Laws Amendment Bill - Parental, Adoption & Commissioning Parental Leave

20 September 2018
The Labour Laws Amendment Bill (“the Bill”), would allow for the amendment of the Basic Conditions of Employment Act of 1997 (BCEA).

Timing disruption: The stepping stone strategy

16 August 2018
There are times when everything changes in business – when this happens it is often sudden, surprising and sometimes overwhelming. These moments are the strategic inflection points that can result in a company rocketing to success or being left behind.

Training on-the-job in an organisation

16 August 2018
Training and development is a vital part of all businesses today. Training has also evolved with technology in areas such as customised online learning platforms developed for companies, as well as the knowledge trainers have gained with regards to how different employees and generations learn.

IFRS News in Brief - Issue 84

10 August 2018
PUBLICATIONS AND ANNOUNCEMENTS The following materials have been published to support the implementation of IFRS 17 Insurance Contracts:

People strategies for success in a rapidly shifting global climate

31 July 2018
One issue stands out for every middle-market business that operates internationally: the struggle to find and retain the most skilled and innovative employees — those who will drive growth and company performance.

Tax refunds - What you need to know

23 July 2018
Most taxpayers are not aware of the requirements for a tax refund to be facilitated and SARS very often will delay paying out the refund.

To thrive with machines, become more human: Four ways for business leaders to enable their workforce

19 July 2018
While some cry foul and worry about the woes of a ‘useless class,’ as the historian Yuval Noah Harari puts it, others welcome widespread automation because they consider most current human labour mind-numbing.

IFRS News in Brief - Issue 83

16 July 2018
PUBLICATIONS AND ANNOUNCEMENTS The following six IFRS for SMEs modules have been published on the IFRS Foundation website; https://www.ifrs.org/supporting-implementation/supporting-materials-for-the-ifrs-for-smes/modules/

Executive, Non-Executive and Independent Directors

11 July 2018
Section 1 of the Companies Act 71 of 2008 (Companies Act) defines a Director as “a member of the board of a company, as contemplated in section 66, or an alternate director of a company and includes any person occupying the position of director or alternate director, by whatever name designated”.

Tax deadline dates - Simplifying your obligations

2 July 2018
We all know that keeping track of your personal tax filing obligations can be difficult to track at times. To add to the complexity, it does not help that you could potentially be required to address filing obligations for 3 different tax years in one calendar year. We set out below the due dates for all tax return filings in a tax year:

What is SOX Compliance?

27 June 2018
During a time when names like Enron, WorldCom, Arthur Andersen, and Tyco were making headlines in the news, Maryland Democratic Senator Paul Sarbanes and Ohio Republican Congressman Michael Garver Oxley were working feverishly to come up the Sarbanes Oxley Act of 2002 (SOX).

IFRS News in Brief - Issue 82

13 June 2018
PUBLICATIONS AND ANNOUNCEMENTS

Tightening the ropes on your payroll control

5 June 2018
It may be time to outsource your company payroll

Tax Implications on foreign exchange differences

25 May 2018
International trading has become more and more customary for both individuals and companies, with imports and exports, as well as foreign investment becoming easier as the world becomes smaller with the help of internet, e-commerce, and so forth. This has led to more taxpayers having foreign currency assets and/or liabilities.

Secondment to the USA

3 May 2018
RSM South Africa provides international secondment opportunities to trainees. The qualifying candidates stand to benefit from the opportunity to work abroad for 3 to 4 months, with exposure to a different auditing methodology, while exploring a different country. This was one of the many reasons why RSM South Africa was my employer of choice.

Conversion of debt into equity

23 April 2018
South African Revenue Services (“SARS”) in their Tax Laws Amendment Bill of 19 July 2017, supported by the Explanatory Memorandum thereto, acknowledged that a common mechanism used in practice by taxpayers to enable a debtor to settle a debt is for that debt to be converted into equity.

The value added by external auditing

18 April 2018
An external audit provides reasonable (but not absolute) assurance that the financial statements of the entity being audited are free from material misstatement. However, external auditing is often seen as costly and of no practical value to businesses. This is particularly prevalent in small to medium-sized businesses.

The Threshold for Major B-BBEE Transactions

17 April 2018
From 9th June 2017, any Major B-BBEE Transaction is required to be registered with the B-BBEE Commission in the prescribed Form BBBEE 18, within 15 days of being concluded.

The effect of land expropriation without compensation on your business

13 April 2018
Land expropriation without compensation is a controversial topic in South Africa. Proponents of this topic mention the following benefits, amongst others: 

A changing nation: the effects of globalisation on China

13 April 2018
China is rapidly becoming the new champion of economic cooperation, trade and globalisation. As others retreat from the forefront, Chinese businesses are looking to expand and grow into all corners of the world.

XBRL and the filing of a company's annual financial statements

12 April 2018
Section 33(1) of the Companies Act 71 of 2008 (the Companies Act) states that every company must file an annual return in the prescribed form, with the prescribed fee, and within the prescribed period after the anniversary of the date of its incorporation.

POPI and its impact on direct marketing

9 April 2018
We live in a period where technology allows consumers to be contacted at any time via e-mail, phone calls and even through social media.

Key strategies for business leaders in the changing global economy

27 March 2018
Protectionism and populism are on the rise in the global economy. Businesses are starting to ask: has globalisation, which has helped to expand the world economy and raise millions out of poverty, had its day? For company leaders, this is one of the biggest challenges of our times – with serious implications for how they lead their businesses.

IFRS News In Brief - Issue 79

23 March 2018
PUBLICATIONS AND ANNOUNCEMENTS IAS 19 amended for plan amendment, curtailment or settlement 

Giving globalisation meaning: re-emerging markets and the road to reglobalisation

16 March 2018
Any globalisation definition should include more than just the ever-expanding technological advances in transport and communications.

Distributions by companies to shareholders

15 March 2018
Requirements of the Companies Act and tax effects

Amendments to the Unemployment Insurance Contributions Act and the effects on learners and foreign nationals

9 March 2018
The Unemployment Insurance Fund (“UIF”) allows contributors to receive benefits from the fund in the event that they become unemployed, or are unable to work as a result of maternity leave, illness or the adoption of a child. UIF also provides benefits to the dependants of a deceased contributor.

The benefits of internal audit to a company's performance

6 March 2018
Internal audit can play a vital role in improving the performance of a company. Internal auditors assist companies in identifying key risk factors. This enables the company to anticipate potential future concerns as well as identifying current weaknesses.

Financial Emigration vs becoming a non-resident for tax purposes

12 February 2018
This article intends to highlight the basic differences between financial emigration and the process of becoming a non-resident of South Africa for tax purposes. There is often confusion between the two concepts, and individuals sometimes incorrectly assume that neither, only one or both may apply to them.

IFRS 16 – Leases

6 February 2018
IFRS 16 comes into effect for periods commencing on or after 1 January 2019. All businesses that have contracts which are currently treated as operating leases in their financial statements (i.e. any business who pays rent) will definitely be affected by the forthcoming changes.

What is deglobalisation?

22 January 2018
 

The Promotion of Access to Information Act

4 December 2017
The Promotion of Access to Information Act (“PAIA”) was enacted to give effect to the constitutional right of access to information. PAIA came into operation on 9 March 2001. Every company, business and organisation, irrespective of their nature, size or the industry they operate in, has information that is confidential and must be protected.

Further tax consequences on disposal of shares by companies

23 November 2017
The release of the Taxation Laws Amendment Bill (TLAB) on 25 October 2017 includes a proposal which could have a significant tax impact for companies.  The proposed amendments to Section 22B of the Income Tax Act No.58 of 1962 and Paragraph 43A of the Eighth Schedule to the Income Tax Act No.58 of 1962 aim to inflate the proceeds on disposal of shares by a company

Tax debt compromise - the last resort

17 November 2017
We live in hard times. Economic downturns, rising inflation, unemployment rates and the tightening of purse strings by companies all increase the financial stresses that are synonymous with our times.

King IV - creating an ethical culture

14 November 2017
With recent events scarring the appearance and reputation of chartered accountants, the King IV movement cannot have been implemented at a better time. Replacing King III, King IV only further builds and introduces the need for better corporate governance and transparency.

IFRS 9 – Financial instruments (allowance for credit loss)

6 November 2017
On 24 July 2014, the International Accounting Standards Board (IASB) published the complete version of IFRS 9 which becomes mandatorily effective for periods commencing on or after 1 January 2018.

The challenges of registering a trust as a taxpayer

3 November 2017
To get onto the SARS register nowadays has proven to be quite challenging and time consuming, even more so for a trust.

Public notice - Transfer Pricing record keeping requirements

23 October 2017
In July of 2016 South African Revenue Services (SARS) issued a draft notice in terms of Section 29 of the Tax Administration Act. The draft notice sets out additional record keeping requirements for transfer pricing transactions.

IFRS News in Brief - Issue 74

9 October 2017
PUBLICATIONS AND ANNOUNCEMENTS Proposed narrow-scope amendments to IAS 8 open for comment until 15 January 2018

Requirements for Employment Equity Reporting

26 September 2017
Prior to 1994, South Africa was governed by apartheid regime, a system in which people were discriminated based on the colour of their skin, gender, disabilities, etc. As a result of apartheid, companies had unequal racial and gender representation of people in different levels of the organisations.

Cloud computing - a real solution for many

22 September 2017
Cloud computing has certainly benefited many businesses by reducing costs of administration and also by allowing them to concentrate on their core business activities rather than IT and infrastructure issues. In today’s competitive environment, the choices offered by this highly scalable technology are far too attractive for businesses to ignore.

National Treasury cancels plan to scrap 183-day exemption

18 September 2017
South African Tax Law currently stipulates that if a South African resident works outside the Republic for more than 183 full days (in aggregate) in any 12 month period and for a continuous period exceeding 60 full days during that 12 month period, the foreign employment income earned is exempt from income tax within the Republic irrespective of whether the residen

"Most favoured nation" clause and dividends withholding tax

1 September 2017
The advent of dividends withholding tax (DWT) on 1 April 2012 shifted the liability for tax on dividends from the company to the shareholder.

Transfer Pricing Documentation requirements and country-by-country reporting - The goalposts keep moving

25 August 2017
In October 2016 South African Revenue Services (SARS) issued regulations obligating taxpayers who met certain criteria to maintain and retain specific documentation, as detailed in the regulations, with regards to cross border connected party transactions. Following on from this, they have issued two further documents.

To will a testamentary trust or not

23 August 2017
As part of one’s Estate planning, it should be considered if a Testamentary Trust, also known as a Will Trust, should be written into the Will.

Effective board meetings - the role of board packs

17 August 2017
Board meetings are a requirement of the Companies Act 71 of 2008 (the “Act”), as envisaged in section 73 of the Act. Section 73(1)(a) and (b) of the Act reads as follows: 73(1) A director authorised by the board of the company-

Estimates and uncertainties in financial statements

14 August 2017
Users of financial statements are often surprised at the extent of estimation involved in the preparation of financial statements.  One would think that accounting is more of an art than a science and that the world of reporting consisted of measurables – prices, percentages, debits, credits, etc.   Sadly, that is not the case anymore.  As business has become more

IFRS News in Brief - Issue 73

11 August 2017
INTERNATIONAL ACCOUNTING STANDARDS BOARD (IASB) LATEST DECISIONS SUMMARY The following is a summarised update on the main tentative decisions taken by the IASB at its meeting on 18-19 July 2017.

Cutting the fat on annual financial statements

10 August 2017
If you have been working with financial statements for longer than a year or two you would have noticed how these have become thicker with every passing year. Some of us can remember a simpler time when a full set of annual financial statements could fit into less than ten pages.

SARS - Know your rights but also your responsibilities

28 July 2017
There has been much ado of late regarding taxpayer refunds that have been delayed by the South African Revenue Service (SARS). Whether this delay has sinister implications is a discussion for another time. Practically the taxpayer must understand what his or her rights are in terms of their refunds.

An employee's guide to understanding your IRP5

19 July 2017
Another tax year has come to an end and the 2017 tax filing season for all individuals opened on 1 July 2017. This is the time when each individual who has received income during the period of 1 March 2016 to 28 February 2017 will need to submit their Income Tax Returns to SARS, either via eFiling or by means of going in to a SARS branch.

NOCLAR - Not just for auditors

12 July 2017
Auditors, especially in South Africa with its “Reportable irregularities” requirements, are painfully aware of their duties to report irregularities. These duties are well defined in the Auditing Professions Act, International Standards on Auditing, etc.

IFRS News in Brief - Issue 72

10 July 2017
PUBLICATIONS AND ANNOUNCEMENTS Release of IFRIC Interpretation 23 Uncertainty over Income Tax Treatments

Prescribed officers - Tag! You're it!

6 July 2017
During consultation with clients, the question often arises as to which individuals in a company would be considered to be a Prescribed Officer in terms of the Companies Act 71 of 2008 (“the Act”), and what does this mean for such an individual?

The unknown value of auditors to an SME

23 June 2017
Running a small or medium-sized enterprise (SME) requires you to wear a number of hats, but there are certain areas that are unlikely to fall within your expertise and may require a third party expert. Your auditor is one such third party expert service that is especially important to give a view on your performance and management.

Bad debt on a foreign loan

15 June 2017
Section 24I requires that a gain or loss on a foreign exchange transaction be included in or deducted from the income of a taxpayer carrying on a trade within the Republic. In essence, section 24I taxes all gains and losses, whether it is realised or not relating to any foreign exchange transactions.

The importance of knowing your provisional tax status

13 June 2017
This article is intended to assist individual taxpayers in understanding their status as a provisional taxpayer. To fully comprehend who qualifies as a provisional taxpayer, we will look at the definition of a provisional taxpayer. A provisional taxpayer is:

IFRS News in Brief - Issue 71

7 June 2017
PUBLICATIONS AND ANNOUNCEMENTS Release of the final standard on insurance accounting

RSM participates in the CA Charter

30 May 2017
The CA profession gathered at SAICA’s offices on 23 May 2017 for the official signing of the CA Charter.  In the words of Chantyl Mulder, Executive Director Nation building, this was a red-letter day.  Amidst the interesting times we are facing politically and in the auditing profession, this is a huge accomplishment.

A look at the basics of cybersecurity

29 May 2017
Cybersecurity is the body of technologies, processes and practices designed to protect networks, computers, programs and data from attack, damage or unauthorised access. Thus security includes both cybersecurity and physical security.

Public officers and their duties

24 May 2017
In the Tax Administration Act, South African Revenue Service (“SARS”) sets out the requirements for the public officer of a company. A public officer is an individual who is residing in South Africa and must be a registered taxpayer with SARS. The individual representative who is approved by SARS must be a senior official of the company.

Mandatory audit firm rotation – the debate continues

18 May 2017
The principle of Mandatory Audit Firm Rotation (MAFR) was discussed in a previous article, when the parliamentary Standing Committee on Finance had just finished their first round of hearings on the subject and we were anxiously awaiting the second round of public hearings.

Issue 70 - IFRS News in Brief

10 May 2017
PUBLICATIONS AND ANNOUNCEMENTS Proposed minor amendments to IFRS 9 open for comment until 24 May 2017

SARS and the taxpayer's rights

9 May 2017
SARS has the power to remove money out of your bank account. What are your rights as the taxpayer? The Tax Administration Act No. 28 of 2011 (TAA) came into effect on 1 October 2012, the main objective of which was to align the tax administration provisions of most of our tax Acts and consolidate these into one piece of legislation.

IFRS News in Brief - Issue 69

21 April 2017
PUBLICATIONS AND ANNOUNCEMENTS Proposed amendments to IFRS 8 open for comment until 31 July 2017

Transfer Pricing - New record keeping requirements

11 April 2017
In July of 2016 South African Revenue Services issued a draft notice in terms of Section 29 of the Tax Administration Act. The draft notice sets out additional record keeping requirements for transfer pricing transactions.

Should a non-executive director register for VAT?

7 April 2017
As indicated in a previous article published on 17 June 2016, it was uncertain whether or not a non-executive director needs to register for VAT? SARS has now issued Binding Private Ruling 40 and Binding Private Ruling 41 that deals specifically with this question.

Tax considerations surrounding cross border loans

6 April 2017
With the almost non-existent growth in the economy in the last few years, it has become a common practice for taxpayers with foreign shareholding to receive financial assistance from their holding companies. This assistance is generally in the form of loans, with favourable repayment and interest terms.

Sections 22 and 23 of the Basic Conditions of Employment Act

3 April 2017
All employees are entitled to sick leave. However, if this is not managed carefully to identify whether employees are taking advantage, companies can suffer tremendously due to abuse thereof.

The Value of Professional Tax Advice

30 March 2017
In this day and age, with tax legislation becoming more complex and the process of applying the law ever more onerous, professional tax advice is valuable.

Time of Supply for Output VAT Deposits

15 March 2017
A fair bit of uncertainty surrounding deposits and the VAT implications would be removed, had the concept been defined in the VAT Act separately. However, the definition of “consideration” in the VAT Act sets out the output tax implications of deposits.

Mandatory Audit Firm Rotation

3 March 2017
Independence is the cornerstone of the auditing profession.  Independence is just another, slightly stronger, word for objectivity. If an auditor is to add any value to the client, investors, lenders, the economy or even the world, he/she must be objective, or “independent” of the information and the entity being audited.

A Look at IFRS 16 - Leases

1 March 2017
The implementation of IFRS 16 (Leases) is around the corner, while IFRS 15 (Revenue from Contracts with Customers) is already in place. It is important that companies start evaluating what impact the introduction of these two accounting standards will have on the Annual Financial Statements as well as on the business as a whole.

A look at IFRS 15 - Revenue from Contracts with Customers

1 March 2017
The implementation of IFRS 15 (Revenue from Contracts with Customers) has come into effect, while IFRS 16 (Leases) is around the corner. It is important that companies start evaluating what impact the introduction of these two accounting standards will have on the Annual Financial Statements as well as on the business as a whole.

King IV Report – The Importance of Corporate Governance

24 February 2017
I attended a Corporate Governance conference in September 2016. Judge Mervyn King was one of the speakers presenting on the King IV report which replaces King III and was officially released on 1 November 2016. It is effective for financial years commencing 1 April 2017.

IFRS News in Brief - Issue 67

10 February 2017
PUBLICATIONS AND ANNOUNCEMENTS Annual Improvements to IFRSs 2015-2017 Cycle open for comment until 12 April 2017 On 12 January 2017, the IASB published an exposure draft covering narrow-scope amendments to:

Nature and Location of Company Documents

20 December 2016
It is becoming more apparent that many foreign owned companies are keeping their company statutory records as well as their accounting records overseas, and they are therefore not accessible within the Republic of South Africa, as required by Section 25 of the Companies Act No 71 of 2008. Section 24(1) of the Act states that records must be kept:

Share Buybacks - Section 48(8) of the Companies Act

14 December 2016
The Companies Act 71 of 2008 (“the Act”), provides that a company may acquire its own shares, to the extent that it is solvent and liquid, as more fully described in Section 4 of the Act.

Developing a website - The Requirements of IAS 38 and SIC-32

30 November 2016
Following the recent “Black Friday” sales, sales data from the United States showed that the amount being spent on online purchases continues to increase each year with an increase in online sales of over 20% in the current year while sales at stores actually decreased from the previous year as more consumers take advantage of the convenience of shopping online.

Business and Trading Names

28 November 2016
Prior to the promulgation of the Consumer Protection Act, 2008 (Act No.68 of 2008) (CPA), companies could have a registered name with the Companies and Intellectual Commission (CIPC or CIPRO as it used to be known) and trade under a separate name (trading name) as long as the official company stationery included the registered name with the Companies and Intellectu

Section 12H Proposed Amendments

21 November 2016
While boasting the second largest economy in Africa, we as South African citizens cannot hide from the reality of our unequal society. With unemployment hovering around the 25% mark and not being aided by a volatile economy, much has been made of the private sector’s role in uplifting and “saving” the economy.

It's more than a Fixed Asset Register

9 November 2016
My experience with fixed asset registers varies depending on the significance and complexity of fixed assets. Most entities do not update their fixed asset registers when their accounting records are updated. This is generally because the fixed asset register is a manual document maintained as an Excel spreadsheet.

Special Voluntary Disclosure Programme: Exchange Control Relief

8 November 2016
The 2016/2017 Budget Speech by the Minister of Finance, Pravin Gordhan saw the announcement of a Special Voluntary Disclosure Programme (“SVDP”), which is aimed at encouraging South African residents with undisclosed offshore assets and income to regularise their affairs through the SVDP.

Empowering Supplier Status Revised

1 November 2016
One of the most significant changes in the Codes of Good Practice for Broad-Based Black Economic Empowerment (“the New Codes”) that came into effect on 1 May 2015 was the requirement to be an Empowering Supplier.

The Fundamental Difference Between Section 6quat(1) and 6quat(1C) of the Income Tax Act

13 October 2016
Globalisation and foreign trade has been a most relevant and complex issue within the finance world since the dawn of technology. A great deal of services are being provided by South African companies to foreign companies which inherently has brought with it a risk of exposure to double taxation.

Section 20(7) and Section 20(8) of the Companies Act – When will a company be bound by contract?

4 October 2016
Much has been written in the past as to the doctrine of Constructive Notice and the application of the Turquand rule.

Fraud by the numbers

9 September 2016
The risk of fraud in organisations has been the topic of several articles on this and other websites (read, for example Cybersecurity takes centre stage, Fraud on deceased estates and

Withholding Tax on Interest

6 September 2016
Should withholding tax on interest (WTI) be deducted from a distribution of interest income to a non-resident beneficiary of a South African discretionary trust?

Are your company statutory records up to date?

2 August 2016
Many businesses do not consider compliance as part of their core function and, quite often, this item can be overlooked when so much energy is spent in order to make sure that the bottom line of the business is maintained.

Transformation through education

1 August 2016
The gender gap between the education levels is a much researched topic. RSM in South Africa is taking action to make a difference and get involved. The socioeconomic impact of the education of women has far reaching consequences, increasing gender diversity in the workplace being just one of them.

Trusts and interest free loans

19 July 2016
The 2016 Budget Speech contained a proposal to introduce new tax laws targeted at the prevention of estate duty and donations tax avoidance by making use of interest free loans to a trust. National Treasury recently released the Draft Taxation Laws Amendment Bill that contains the measures intended to give effect to the proposal.

The Consumer Goods and Services Ombudsman: How it affects you

11 July 2016
The Consumer Protection Act makes provision for a Consumer Goods and Services Ombudsman to deal with complaints by consumers. In March 2013 this body was formed and a compulsory code of conduct was signed by the Minister.

An Introduction to the New Revenue Standard: IFRS 15

21 June 2016
IFRS 15 Revenue from Contracts with Customers was issued by the IASB on 28 May 2014 with a planned introduction for periods beginning on or after 1 January 2017. The effective date was delayed to 1 January 2018 to allow for extended clarification and public consultation.

Non-Executive Director and His Home Office

17 June 2016
If you are appointed on a board of directors as a non-executive director, it pays to think twice before you claim any expenses you believe are incurred in the production of your income.

Investing in South Africa: The "Non-Resident" Endorsement

13 June 2016
When attending to investing in a South African entity as an offshore shareholder, it is important to understand the requirements of the Exchange Control Regulations of 1961 (promulgated in terms of the Currencies and Exchanges Act, 9 of 1933), hereinafter referred to as “the Regulations” and its application as regards to any person or entity in South Africa.

Changes to the Permanent Establishment Definition

8 June 2016
Business profits of a foreign enterprise are taxable in a State only to the extent that the foreign enterprise has a Permanent Establishment (PE) in that state. The definition of a PE in tax treaties is therefore critical in determining if the profits of a non-resident will be taxable in another State.

NPOs, PBOs and Section 18A receipts in a nutshell

25 May 2016
NPO’s (Non Profit Organisations) As the name suggests, an NPO is an organisation which operates in a non-profit manner. The entity may be a trust, company or other association where income and property are not distributed to its members or office bearers, except as reasonable compensation for services rendered.

VAT Registrations - Not as easy as 1, 2, 3

6 May 2016
We as a firm have recently seen an influx of new companies registering with the Companies and Intellectual Property Commission (“the CIPC”). This is good news as it means that South Africa is seen as a viable investment platform for both foreign and local investors and businesses.

Special Voluntary Disclosure Programme

3 May 2016
The time has come! From 2017 there will be an automatic exchange of information between tax authorities. This means that the tax authority in Mauritius will have to inform the tax authority in South Africa (SARS) about that interest you have earned in your Mauritian bank account.

Accounting for SMEs with IFRS for SMEs

29 April 2016
Small and Medium Entities (SMEs) operate in simpler and less complex environments compared to larger companies. Although SMEs are small in size and capacity, they account for around 95% of all companies around the world.

Update: Tax Clearance Certificates

25 April 2016
On 18 April 2016 the Tax Clearance Certificate application process as we know it was amended by the South African Revenue Service (SARS). This is good news as your Tax Clearance Certificate may now be obtained online via e-filing immediately.

Development of the CA(SA) and RSM in South Africa

22 April 2016
The history and development of accounting can be traced back for thousands of years to ancient civilisation, although I do not wish to go back that far. The story of this constantly evolving profession begins in the late 1800’s.

Making informed decisions: Human Resources

18 April 2016
Who to Employ? The question of who to employ in order to achieve the business’s goals is absolutely fundamental. Who a business employs will influence the business’s structure, procedures and profit.

IRP5 and EMP501 Submissions made easy

14 April 2016
SARS has announced that the annual Pay-As-You-Earn (PAYE) Employer Annual Reconciliation submission season will be open from the 18th of April until the 31st May 2016. During this time the EMP501 reconciliations that cover the period of 1st March 2015 to 29th February 2016 must be submitted.

Section 6quin amendment – Foreign tax credits no longer deductible

14 April 2016
As per Amendment 7 of the Taxation Laws Amendment Act, 2015, Sections 1 to 4 of Section 6quin of the Income Tax Act 58 of 1962 have been deleted.

Individual tax deduction for amounts previously included in gross income

6 April 2016
A person may receive remuneration benefits such as maternity leave or retention bonuses by virtue of their employment contact. However, due to unforeseen circumstances the contractual obligations may not end up being fulfilled. The result is that the individual may be required to repay a portion of the benefit received back to the employer.

RSM South Africa New Appointments

1 April 2016
We are very pleased to announce the following appointments to the leadership of RSM in South Africa. These appointments coincide with the celebration of the 77th anniversary of the formation of our firm. RSM South Africa – Partners Eckard Bergh B Com (Hons), CA(SA)

The effect of the new Auditor's Report on smaller entities

14 March 2016
The new auditor reporting requirements are not just going to affect the audits of listed entities. This article highlights some of the considerations for smaller entities in terms of the requirements applicable to all entities and those that may be applied on a voluntary basis.

Confidentiality - a reminder

9 March 2016
In light of the recent events surrounding the Assessment of Professional Competence (APC) exam*, it has become apparent that we need to remind ourselves what confidentiality entails and the repercussions of a breach thereof. In its shortest form, confidential information is information that must be kept secret.

Estate planning: Peace of mind or unplanned headache

2 March 2016
We meet with a number of clients annually to sign off their annual financial statements and taxes. In this meeting we usually ask, “Have you got a Will?” Mr and Mrs Client then often look at each other and turn to us saying, “Do we need one? We’re both still young.” 

Highlights from the 2016 Budget Speech

25 February 2016
On 24 February 2016 we had the welcome sight of Pravin Gordhan back on centre stage to deliver the 2016 Annual Budget Speech. What was keenly anticipated from this speech was an indication of Government’s plans on how to achieve greater revenue collections to fund the budget deficit.

Hidden value in an audit engagement

12 February 2016
It sometimes happens that we as auditors arrive to meet a new client and one of the first things they say is, “I hope you’re not as scary as the previous auditor’’.

Is your payroll ready for the retirement reform changes?

11 February 2016
Employers, are you ready for the changes that need to be made in your payroll systems for the retirement reform legislation? In terms of this legislation, contributions made to pension and provident funds by employers on behalf of their employees will be taxed as a fringe benefit, currently effective 1 March 2016.

Happy New (Financial) Year

9 February 2016
Each entity must, for tax and other reasons, report its results on an annual basis. For individuals this “year” normally ends on 28 February, which is the tax period prescribed in South Africa.

Another Transfer Pricing Dilemma

5 February 2016
As all multinational groups of companies should be aware Transfer Pricing is a significant tax issue when operating cross border in multiple tax jurisdictions. Transfer Pricing legislation exists in most established tax regimes and is becoming more and more prevalent in countries previously considered less tax sophisticated.

Trust Property Control Act 57 of 1988 - The role and responsibility of a trustee

25 January 2016
What is the role and responsibly of a trustee?

Directors approval of the annual financial statements

11 December 2015
Section 30(3)(c) of the Companies Act, No 71 of 2008 requires every company to prepare annual financial statements and these annual financial statements must be approved by the board of directors.  This is often evidenced by the signatures of two directors (or one director, if that is the case) who have been authorised to do so by the board of directors, on the “Di

RSM Reporting - Issue 25

1 December 2015
In this issue we report on the IASB’s endeavour to publish a new Conceptual Framework, which is approaching a successful completion.

South African Exchange Control Regulations

19 November 2015
A Look at the Disposal of Intellectual Property Owned in South Africa to an Offshore Purchaser It often occurs that a company established in South Africa has developed a specific software program or other processes and/or applications upon which it basis its particular service offering or product.

Director's resolution - The devil in the detail

5 November 2015
Directors’ resolutions are common place in commerce as a convenient and effective manner in which the Directors of a Company can make a decision on behalf the Company.

Investing into africa – foreign direct investment requirements

29 October 2015
Global business is increasingly showing interest in expanding their business operations into the African continent.

The growing concern behind the reasons for forming an Inter-vivos trust

15 October 2015
Gone are the days of waking up to a large pile of IFRS books and Acts by my bedside. I wake up, in the early hours of the morning, to the screeching sounds of all types of motor vehicles, increasing traffic and different individuals walking to work. This is all driven by the need to survive, provide for families and aid in bettering the crisis faced economy.

Companies Act – business’ best friend or worst enemy?

15 October 2015
So many articles have been written on the Companies Act, 2008 starting years before its implementation in May 2011, and still continuing up to this day.  When our clients read these articles or consult with us on the “new” Act we are often asked what the purpose of all of this is and where all of this regulation is going. 

Importance of independence in Assurance engagement

25 September 2015
What is an assurance engagement? The relevant quote from the Oxford online Dictionary defines an assurance as “a positive declaration intended to give confidence; a promise.” From the same source, engagement is defined as “An arrangement to do something or go somewhere at a fixed time.”