Ombuds – Why and How to Use Them
“Who you gonna call?” (Ghostbusters) An “ombud” (often called ombudsperson, ombudsman or ombudswoman, and sometimes not referred to as an “ombud” at all) is an independent and impartial person or office who will investigate any complaint you may have against a business, government agency, or public or private institution falling under their authority. Ombuds seek […]
Creditors: How to secure your claim with a notarial bond
You should always take as much security for your claims as you possibly can before advancing credit or lending money to a debtor. That’s because if your debtor fails and is “liquidated” (if a corporate) or “sequestrated” (if an individual), without security you will have only a concurrent claim in the estate. And with a […]
Buying and selling property: Who pays what costs?
“Risk comes from not knowing what you’re doing” (Warren Buffett) Don’t risk not knowing what you’re doing when you either sell or buy property. Avoid nasty shocks by budgeting properly for the costs you will incur – some of them can be substantial, and some are less obvious than others. The checklists below are of […]
Property developers beware: Deemed accruals can seriously disrupt your cash flow
“Never take your eyes off the cash flow because it’s the lifeblood of business” (Richard Branson) A recent Supreme Court of Appeal (SCA) judgment has confirmed that when a property developer enters into an agreement with a buyer to transfer the property, even if the developer only actually gets paid in a subsequent tax year, […]
Making money with Airbnb? Tax and other issues
Airbnb is an increasingly popular and lucrative way for residential property owners to earn extra income from short-term rentals of spare rooms, holiday houses, apartments and the like. Bear in mind these 3 factors – You need to provide for taxes. SARS has recently confirmed that your Airbnb earnings (after deduction of allowable expenses) are […]
BUYING AND SELLING PROPERTY: WHO PAYS THE TAXMAN?
Note: What follows is of necessity just a general summary of some complex provisions, there are various exemptions and exceptions (such as possible zero-rating of going concern sales), and many traps for the unwary. So take specific advice on your particular circumstances. Whether you are the buyer or the seller of property, one of you is […]
SARS: (TAX) CRIME DOESN’T PAY!
“The income tax created more criminals than any other single act of government” (Barry M. Goldwater) SARS it seems retains a much higher enforcement capability than some recent media speculation has suggested. It has announced a 92% conviction rate in cases handed over for prosecution in tax and customs-related crimes, mostly involving high net-worth individuals, […]
TAX PENALTIES: WHAT MUST SARS PROVE?
SARS has the power to impose severe penalties on any taxpayer failing to declare or pay taxes in accordance with law. For example, in a case recently before the Tax Court, a corporate taxpayer was audited by SARS and found to have overstated input VAT. It was assessed (after partial allowance of an objection) for: […]
THE OCTOBER WEBSITE: HOW TO REDUCE THE PAIN OF QUEUING AT SARS
You can these days make your life a lot easier by interacting with SARS online for many things, but occasionally a personal visit to a physical branch is unavoidable. Reduce the pain by checking SARS’ website page “Find the Shortest SARS Branch Queue Near You” and following these steps: Click on this link: http://www.sars.gov.za/Contact/Pages/Check%20the%20shortest%20queue.aspx If […]