How does a government increase its income without adding new taxes? After all, there are important local elections this year and reassuring the public that you REALLY will do your very utmost ‘bestest best’ NOT to pull the tax noose tighter, the Government needs more money.
Your company has a pension scheme – a good one, you are told – and you have savings in the bank. However, people are living much longer these days – generally 30 years past retirement. And life keeps getting more expensive – inflation is outpacing the interest you receive on the savings in your bank account…
Our previous blog post dealt with two practical implications of the 2012 Budget, which aims to cut deficits by limiting spending and increasing government revenues through various forms of taxation. Having covered the issues of the interest rate exemption and tax thresholds, we discuss some more important implications of the Budget. Continue reading “Practical Implications of the 2012 Budget – Part 2”
With the 2011 tax season in full swing, people around the country are scrambling to file their returns on time.
If you are a provisional taxpayer, the process is a little more complicated since you will need to calculate how much provisional tax you are required to pay. While calculating your provisional tax may take a little time, the process is not as complicated as some may think. We have provided a quick guide to provisional tax that will help you file your returns on time and with the minimum inconvenience and frustration. Continue reading “How to Calculate Provisional Tax”
Many companies use fringe benefits as a means of maximising cash flow and providing staff and directors with extra benefits as part of their packages. While this practice frees up cash that would otherwise be paid out, many fringe benefits are taxable. With fines and penalties for failure to declare and non-payment of company taxes becoming increasingly harsh, all business owners should take note of the following taxable fringe benefits:
Giving assets to an employee
This fringe benefit allows a company to transfer ownership of any asset to a member of staff. However, since the value of the asset is normally discounted there may be tax payable on the difference between that value and the normal value of the asset. Continue reading “Fringe Benefits: Some Are Taxable”
Recently, Finance Minister Pravin Gordhan made his annual budget speech at parliament. This annual event, which draws special guests from the realms of business and government as well as the media, allows the Minister to address the nation and update all of us on the government’s finances. Continue reading “The National Budget”