Deterioration, obsolescence and wear and tear are among the reasons why assets decrease in value. By realising a deduction on depreciation for tax purposes, your company can recover the costs of certain moveable assets that are used in the production
Efficient and cost-effective audits
An efficient audit is one that reduces the audit risk to the targeted level, ensures that there are no errors contained in the financial statements while completed on time and within the budget. To ensure an efficient and cost-effective audit,
Revised Standard on Auditing Accounting Estimates
During March 2016, the International Auditing and Assurance Standards Board (IAASB) released a project proposal with the intention to revise ISA 540, Auditing Accounting Estimates, Including Fair value Accounting Estimates and Related Disclosures. During April 2017, the IAASB released the
SimplePay – Frequently Asked Questions
Can SimplePay integrate with other systems? SimplePay currently integrates with Xero and Quickbooks Online. SimplePay has built an API that will allow other systems to integrate with the software. Is SimplePay able to post per pay point? You are able
Transitional rules for interest payable by SARS
The South African income tax system is not cash-based. This means that a person can effectively be taxed on amounts that they have not yet received in cash, but that merely accrued to them within a year of assessment. Cash
Taxpayers’ right to have disputes resolved
In a recent Tax Court decision[1], the Tax Court confirmed that taxpayers have a right to have their disputes resolved in a court of law as enunciated in section 34 of the Constitution. However, they cannot rely on this right
SARS scams
Education and awareness around identity theft, phishing and other frauds have become part of life globally. If nothing else, scamsters are innovative and keep trying new avenues of defrauding businesses and individuals. In South Africa, this is no exception, and
Recent court case on the imposition of understatement penalties
The Supreme Court of Appeal (“ZASCA”) delivered a judgment[1] on 26 February 2019 on the imposition of understatement penalties as provided for in the Tax Administration Act[2]. In this case, the taxpayer paid provisional income tax (“IT”) of R13.8 million
Thinking of selling an asset?
What happens when you sell an asset? When you sell or dispose of an asset, you either realise a profit or a loss from the exchange. When you realise a profit, you are subject to pay capital gains tax (CGT)
Section 24 – credit agreements and debtors’ allowances
Section 24(1) of the Income Tax Act[1] deals with an agreement between a taxpayer and another person in respect of movable or immovable property. In the case of immovable property, the effect of the agreement must be that transfer of