J D Hill & Company Newsletter

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June 2021 | Got Cryptocurrency? Here’s How Much SARS Wants…

Cryptocurrencies are not new, but recent developments, including the massive gains they experienced since last year, have placed them under the spotlight. South Africans’ notable interest in them, and SARS’ renewed focus on the wealthy’s undeclared assets, together with its improved capabilities to track taxpayers’ transactions, suggest SARS is intentional about tracking these activities and assets. It is not surprising then that SARS has turned its attention to crypt...
Posted: Tue 01 June 2021

May 2021 | Uncertain, Costly Power Supply: How to Mitigate Your Risk

As Eskom’s customers face their first electricity bills after the latest tariff increase of 15.06%, effective from 1 April, it is an opportune time to review reliance on an increasingly costly and ever-less reliable power supply and to consider alternatives that will support a difficult recovery from 2020: a year of not only lockdowns but also 859 hours of load shedding.   With Eskom itself expecting another five years of load shedding and further tariff increases on the card...
Posted: Sat 01 May 2021

April 2021 | Selected for SARS Verification or Audit? Here’s What to Expect… and What to Do

Most of us – even the most dutiful taxpayers - know the cold dread that accompanies receiving SARS correspondence, and it is never colder than when the notification states that you or your company have been selected for SARS verification or audit. Given some of the recent developments in terms of SARS’ powers and increased scrutiny of taxpayers, you will do well to remain prepared for the ever-greater possibility of being selected.  In this article, we take a look at what th...
Posted: Thu 01 April 2021

March 2021 | Budget 2021: What It Means to You

Faced with apprehension, the first Budget Speech of the “new normal’ was generally well-received, with the Rand holding steady, markets reacting positively, and South Africans breathing a collective sigh of short-term relief.  A surprisingly optimistic 2021 Budget provided funding for COVID-19 responses without hiking direct taxes, and previously announced tax increase proposals were withdrawn.  As Finance Minister Tito Mboweni called it, the 2021 Budget fiscal frame...
Posted: Mon 01 March 2021

February 2021 | Provisional Income Tax Due 26 February: Do’s and Don’ts for Companies

By the end of this month, the second provisional income tax payments for companies are due for a financial year that certainly ranks among the most difficult in recent memory – a year in which many business owners realised, as Thomas Dewar once put it, that paying income tax is in fact better than being unable to generate sufficient income to be liable for tax.   As companies face intensified scrutiny and more punitive measures from SARS in 2021, we take a look at the issues ...
Posted: Mon 01 February 2021

January 2021 | Companies: How to Manage Your Greater Tax Risk in 2021

South African companies are exposed to a significant tax risk. Companies are liable for a range of direct taxes, indirect taxes and employees’ taxes that are continuously subject to legislative changes and administrative improvements by SARS and National Treasury. This means not only great complexity and high cost in terms of compliance, but also high tax liabilities that could total 40% of turnover and more. In addition, tax compliance is increasingly becoming a corporate governance and ...
Posted: Fri 01 January 2021

December 2020 | A Remote Working Danger: Independent Contractor or Employee?

The move to a much greater level of remote working this year has reinforced the need for small businesses to ensure that they classify the people that work for them correctly. One of the biggest challenges for small businesses is to ensure that independent contractors, especially sole proprietors, do not drift into a position where the South African Revenue Service or the Department of Labour would classify such a person as an employee. The failure by a small company to manage the relatio...
Posted: Tue 01 December 2020

November 2020 | Leaving a Legacy: Ensure Your Business Survival with a Succession Plan

It is a sobering statistic that 70% of family businesses do not survive into the second generation - a significant loss considering the time, effort and investment required to start, manage, and grow a business in South Africa. Ensuring your business can survive beyond the loss of an owner, a partner or another key individual requires a well-structured succession plan that unlocks business value not only in the long term but also in the immediate future. Covid-19 contin...
Posted: Sun 01 November 2020

October 2020 | Employee Health and Wellbeing: A Strategic Priority for COVID-19 and Beyond

Employee health and wellbeing (HWB) is vital for a company to sustain itself during the lockdown. But making your employees’ HWB a strategic priority creates a competitive edge that will be crucial for success now and beyond COVID-19. Employee HWB not only delivers significant benefits, it also creates an opportunity to play a leadership role in our communities and in our country. In this article, you will find a list of key focus areas revealed by recent research t...
Posted: Thu 01 October 2020

September 2020 | How Chaos Sparks Business Innovation

The greatest innovation is created in times of chaos, when opportunity abounds. Many successful business stories began during times of recession, depression, chaos and crisis, such as Uber, Airbnb, WhatsApp, Slack, Pinterest, Square, Disney, Sony and iPod.  In the midst of the unprecedented chaos created by COVID-19 on a global scale, we have witnessed great and inspiring innovation, as local and global businesses innovate ways to stay relevant in industries completely disrupted, if not...
Posted: Tue 01 September 2020

August 2020 | Employees Working from Home: What Tax Deductions Can You Claim?

Working from home is part of our “new normal” and home offices are predicted to remain a permanent feature of many employment relationships in the future. Both employees and their employers should be familiar with the tax angles, in particular the opportunity to claim tax deductions. When and how do you qualify for deductions? What expenses can you deduct? We discuss the various ins and outs with a simple practical example to illustrate. If you own your own home, read our tail...
Posted: Sat 01 August 2020

July 2020 | Tax Season 2020 will be Easier Thanks to SARS’ New Approach!

SARS has announced changes to this year’s tax filing season, driven partly by its ongoing innovation program and partly by the Covid-19 pandemic. Whilst as author Margaret Mitchell pointed out there never is a convenient time for “death, taxes and childbirth”, SARS’ new changes offer time-saving benefits to taxpayers, and it is important to understand how they will impact on us in practice. To that end we set out how Tax Season 2020 is now split into three time frames...
Posted: Wed 01 July 2020

June 2020 | Technology, COVID-19 and How the World Will Change

We must all adapt to the rapidly-changing world thrown at us by the pandemic. We have no alternative - both our businesses and our personal lives are already deeply dissimilar to what they were only a few short months ago, and there is no sign that things will start stabilising any time soon. What part is technology playing in this process, what part will it play in the future, and will it be used as a weapon or as a helpful tool? What will our post-pandemic world look like? Who better to as...
Posted: Mon 01 June 2020

May 2020 | COVID-19 and Directors: Your Duties and Liabilities in the Coronavirus Crisis

Your focus as a director right now will no doubt be on keeping your business afloat through these trying times. Don’t lose sight however of the fact that the onerous obligations and duties placed on all directors by the Companies Act still apply. Failure to live up to the required standards exposes you not only to a significant risk of personal liability for company debt, but also to criminal prosecution. We recap in summary what the Act requires of you, we discuss the impact of Kin...
Posted: Fri 01 May 2020

April 2020 | COVID-19 Lockdown: Relief Programs for Businesses and SMMEs

The National Lockdown, due to end on 16 April, presents businesses of all sizes with an unprecedented set of existential challenges.  Of course sooner or later this crisis will end, but for now it is a case of survival for many businesses, and particularly for those smaller enterprises forced now to close for 21 days. Don’t despair, help is at hand! We list the various relief initiatives announced to date. The list will change, as will the details of and processes for accessing...
Posted: Wed 01 April 2020

March 2020 | Budget 2020: Some Tax Relief!

The good news is that taxpayers have been given some money back with the Income Tax tables and there are no significant tax increases. Hopefully, this will help the economy to grow as it will encourage consumers to increase expenditure (about 60% of GDP depends on consumer spending).  Company tax has also not been increased and some reforms are mooted ahead of a plan to reduce corporate tax rates.   We end off with some tax tables conveniently summarising what’s new...
Posted: Sun 01 March 2020

February 2020 | Take Advantage of the Venture Capital Company Allowance While You Can

Here's some good news in the form of a way to save tax (a lot of tax), make a good investment, and directly boost both our economy and our SMEs - all in one go. That's where the VCC (Venture Capital Company) Allowance comes in. We'll have a look at the substantial savings you (or your trust or company) can achieve by using the allowance correctly; at how it works both initially and subsequently; at the need to beware of costs; and at how "finding a gem" could give you a (very) substantial af...
Posted: Sat 01 February 2020

January 2020 | What Will The Next Decade Bring Us?

As we settle into 2020 let’s all, with the wise old saying “Failing to plan is planning to fail” in mind, start thinking about not only what the next year or so holds for us, but about what our world could look like in 2030. Of course that means predicting the future, a notoriously difficult exercise at the best of times and perhaps a particularly challenging one in these days of increasingly frenzied change. We can however identify a number of global trends emerging whi...
Posted: Wed 01 January 2020

December 2019 | Sometimes the Best Management Is To Take a Back Seat

Will your business prosper, or will it fail? Your management style will always be a critical factor in deciding that, and the art of successful management requires that you understand when to get actively involved in an issue; and when to take a back seat while your staff team get on with it. But that’s not always easily achieved. Should you join the current fad for “Management By Walking Around”? What do you do about hostile employees? How should you handle criticism?&nbsp...
Posted: Sun 01 December 2019

November 2019 | 5 Reasons To Never Overlook Your Business Plan

Not preparing a comprehensive business plan for your business, and not updating it frequently, is a recipe for disaster.  In fact John Cleese’s “How can I be so stupid?” when recalling his pitch to the BBC for the launch of Monty Python’s Flying Circus – without having a business plan in place - says it all.  Next month we’ll share some thoughts on how to prepare a business plan, but let’s start off this month with a discussion of why th...
Posted: Fri 01 November 2019