May 2011

MJ Esterhuizen Accounting Services CC

NEWS FROM SARS
Submission of personal tax returns (IT12)

Submission for all taxpayers opens of 1 July 2011. From this date all taxpayers can submit their tax returns either via e-filing of manually at the nearest SARS office. The following documentation is needed to complete your tax return:

1. IRP5 (s) from your employer (s)
2. If you received a travel allowance – a logbook of all business travel. If you did NOT keep a logbook, no deduction will be allowed against the travel allowance
3. Medical aid certificate obtained from the service provider as well as any medical expenses paid from out pocket (called out of pocket expenses)
4. Certificate of any income from investments
5. Certificate of any contributions made to Retirement Annuities

There could be more documentation, but this is the basic requirements. The deadline for MANUAL submission is 30 September 2011. Submissions via e-filing will close on 25 November 2011 for non-provisional taxpayers and 31 January 2012 for provisional tax payers.

Change of banking details

SARS announced that there has been an alarming increase in bank fraud via the internet. Taxpayers have fallen victim to such scams and SARS deemed it necessary to tighten up procedures relating to the amendment of bank account particulars.

SARS confirmed that under no circumstances will they ever request taxpayers' bank account details over the phone or accept bank account detail changes via facsimile, post, drop-box or e-mail.

Furthermore, a power of attorney, appointing a person as the taxpayer's duly authorised agent will no longer be accepted for the changing of bank account details.

In future, the only channels (for changing bank account details) accepted by SARS, will be as follows:

1. in person at a SARS branch office
2. via SARS e-Filing (i.e. submitting IT12)

COMPANIES ACT 71 OF 2008
Solvency and liquidity

An interesting change to the Companies Act deals with solvency and liquidity, which will change the way accounting officers, must approach reporting on companies. The accounting officer or independent reviewer now has a LEGAL responsibility to report any "reckless trading" to the CIPC. Section 22 prohibits reckless trading:

1. "22. (1) A company must not—(a) carry on its business recklessly, with gross negligence, with intent to defraud any person or for any fraudulent purpose; or(b) trade under insolvent circumstances.(2) If the Commission has reasonable grounds to believe that a company is engaging in conduct prohibited by subsection (1), the Commission may issue a notice to the company to show cause why the company should be permitted to continue carrying on its business, or to trade, as the case may be."
2. Insolvent circumstances means: (1) that a company is unable to pay its debts as they become due and (2) the value of the liabilities of the company exceeds the value of the assets.
3. This is aligned with the Close Corporation Act 1984, with the exception the Close corporation is not prohibited from trading, but the accounting officer needs to bring this to the attention of the members.
4. A handy, but often neglected, tool to assist with the timely detection of any solvency issues is a "cash flow budget". This forms part of the service we can provide to our clients.

Sureway Financial Insurance Administrators CC will provide you with a cost effective funeral plan for all your employees for as little as R50 per month per family.

Call: Petro Els (011) 958-0131, e-mail: petro@sureway.co.za

PLEASE VISIT OUR NEW WEBSITE at www.mjeaccounting.co.za