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What are the tax implications of Debt Restructuring?

What are the tax implications of Debt Restructuring? In my previous article “Dealing with debt in your Business” I discussed 3 options for dealing with debt in your business. In this article we look at one of the tax implications that may result from restructuring debt. Changing the terms and conditions of debts may have unintended tax implications. Tax payers that find themselves in financial distress should thus be aware of the consequences debt restructuring could result in. One of these consequences is “Recoupment under Section 8(4)(a)” If you sell an asset on which you have claimed wear & tear, the [...]

What are the tax implications of Debt Restructuring?2020-09-01T17:24:21+02:00

Need to verify your bank details with SARS?

Need to verify your bank details with SARS? If you receive a request from SARS to verify your banking details: You can submit the supporting documents electronically on eFiling or the SARS Website. Simply provide an image of yourself holding your proof of identity, as well as a written note containing the case number and the date on which the documents are uploaded to SARS. It is important that your face, proof of identity and the note are clearly visible in the same picture. This should be accompanied by the necessary supporting documents. For a list of required supporting documents for changing banking details, click [...]

Need to verify your bank details with SARS?2020-08-19T16:23:02+02:00

What you need to know about tax and work travel allowance in South Africa during Covid-19

What you need to know about tax and work travel allowance in South Africa during Covid-19 Staff Writer2 August 2020 Covid-19 has far-reaching effects for the South African taxpayer and, unbeknown to many, may be silently increasing their tax liability for the 2021 year of assessment. There is a causal link between travel allowances (and the same applies to company vehicles) received by employees in the current tax year, and for which business travel was not possible. In this article Thamsanqa Msiza, head of individual tax returns, and Taritha Oosthuizen, tax consultant, revisit the general taxing principles of a travel allowance [...]

What you need to know about tax and work travel allowance in South Africa during Covid-192020-08-04T12:39:42+02:00

Tax for Small Business

Tax for Small Business Last week I presented a webinar on preparing a budget as a small business. During the Q&A I fielded several questions about tax. As the saying goes, of two things you can be certain: death and taxes. So, for this article I decided to demystify tax for small businesses. As a business there are several different types of taxes that may apply to you. These include: Corporate Income tax (CIT) Corporate income tax is the tax imposed on all resident companies. CIT is levied at 28%, but there are exceptions: Registered Micro Businesses pay turnover tax as [...]

Tax for Small Business2020-08-04T13:00:46+02:00

Fatal Mistakes for Small Business

Fatal Mistakes for Small Business Let’s face it, business is by no means child’s play and mistakes can be costly and detrimental. But then there are those mistakes that can be absolutely fatal to your business. In this article I address 5 tax mistakes that could proof fatal to otherwise successful businesses. Over the last number of years much has been done to give small businesses some preferential treatment, which include immediate write-offs for equipment used in the business and special treatment when it comes to depreciation and wear-and-tear allowances, as well as efforts to simplify tax concessions available. Despite this [...]

Fatal Mistakes for Small Business2020-07-21T10:50:15+02:00