Professional Documents
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How Ethical Are You Really?: What'S in
How Ethical Are You Really?: What'S in
I have to admit, that when I booked onto the course I We discussed this result in depth and one of the possible
was mainly doing it for the CPD points. To my surprise I conclusions we came to was that the audit profession
found the workshop most stimulating and Dr Kaufmann with all its rules, regulations and standards had forced
an excellent facilitator who encouraged attendee an ethical awareness on practitioners, whereas generally
participation and debate. in business the main objective is profit or gain with very
little regulated requirement for the way in which this is
To warm up we had to complete an exercise whereby achieved.
we had to rate eleven statements relating to ethics. We
had to rate each statement on a scale of 1 to 6, 1 being I somehow doubt that regulation is the only way to
total agreement and 6 being total disagreement with the make people behave ethically, but the thought that
statement. some people or organizations might only behave
ethically to avoid the consequences of laws and
I diligently spent 5 minutes completing the exercise regulations is scary.
and then compared my ratings to the person sitting
next to me, the financial director of an international Ethics is the way we determine values. It is the ability
company. In our profession dealing with audit risk in to discern right from wrong, good from bad, and to
terms of International Auditing Standards, ethics has choose freely and in an informed way to live by what
a high priority. Consequently my ratings were all 1’s or is discerned as right and good. If we need laws and
2’s indicating a high awareness of ethics. I was shocked regulations to do this for us then society is really in a
that the financial director sitting next to me had mostly bad state.
5’s or 6’s, indicating a very low awareness of ethics in
his business environment. Continued inside
WHAT’S IN
NO CGT FOR CERTAIN DISPOSALS
A legally sanctioned way
TAX-FRIENDLY CHANGES
To brighten your day
CASH IS KING
The oldest rule in the book
IN BRIEF
Tax on share transfers
With effect from 1 July 2008, the current laws relating to the payment
of stamp duties on the transfer of shares will be replaced by the Secu-
rities Transfer Tax Act. Transfers of listed shares, unlisted shares and
members’ interests in close corporations will be subject to a securities
transfer tax at the rate of 0.25% of the market value of the shares
ED’S DESK
or members interests transferred. In respect of unlisted shares and
members interests, the tax will have to be paid within two months of
transfer. Late payments of the tax will be subject to interest, at the
SARS official rate, and a ten percent late payment penalty.
By now, the end of year parties are
in full swing. Holidays are in view Annual returns for CC’s
and I bet the bags are packed. CIPRO announced earlier this year that, although 1 April 2007 was the
commencement date for the submission of Annual Returns by CC’s,
But wait, some of us are still they anticipated that annual returns for CC’s would only have to be
grafting away and making sure that lodged with effect from the latter part of 2007. It now appears that
the balance sheet balances, your CIPRO will not be enforcing the submission of annual returns for CC’s
VAT is what it should be and tax in 2007.
deadlines are met.
Secondary Tax on Companies Rate
Although we do shut our doors
As mentioned in an earlier issue of our newsletter, the STC rate was
over the festive season (which for
reduced from 12.5% to 10% with effect from 1 October 2007
Cameron & Prentice will be from
21 December until 2 January) UIF benefits increased
it’s work as usual at Cameron &
Prentice. It’s only a few months With effect from 1 October 2007 unemployment insurance fund ben-
away from end of financial year for efits have been increased by 7%. The maximum that may be claimed
many, which pretty much means our from the UIF has been increased from R11 662
days are busy.
At Cameron & Prentice we feel that there is a significant service gap that exists between simply following the
letter of the law (and doing the bare minimum), or going the extra mile to ensure that the financial statements
reasonably and accurately present the financial position of a client’s close corporation.
Often the reason for the withholding The good news is that with effect manner in which the duties were
of the Employees’ Tax was that from 1 March 2007, the regularity performed or their hours of work.
in terms of the definition of of payment will no longer be Also with effect from 1 March 2007,
“remuneration” in the Income Tax decisive in determining whether or this criterion is only to be taken
Act, a person was deemed not to not the contractor or company is into account where the services are
be independent if payments to independent. required to be performed mainly at
that person were made at regular the premises of the client.
monthly or other intervals. A further problem that was
experienced by independent In other words, where the services
This meant that these contractors contractors and personal service are not required to be performed
and companies, who were in reality companies was that they were also mainly at the premises of the client,
independent from their clients, deemed not to be independent control and supervision is no longer
were subject to the withholding of where the rendering of their decisive in determining whether or
Employees’ Tax as if they had been services was subject to control and not the contractor or company is
employees. supervision by the client as to the independent.
A WORD OF ADVICE
Going with
the cash flow
Whether you’re running a giant-
sized international corporation, or
a small one-man band business
concern, there is one thing that
both business owners struggle to
maintain: an adequate cash flow.
On divorce your will automatically assets may come to naught as valuable property such as Kruger
lapses. Ah, you say, that’s not your lapsed will is automatically Rands, antiques or artwork, it may
so bad as this will prevent my ex reinstated after 3 months and your be extremely difficult for a child
from inheriting in the event of ex may laugh all the way to the to prove that the deceased father
my untimely death. WRONG! On bank as he or she may very well did not donate the property in
divorce a will lapses and has no inherit everything. question to the stepmother during
force or effect for a 3 month period his lifetime.
only. Be warned, check the nominated
beneficiary on your life policies. So think carefully about estate
Should you fail to renew your Divorce may also affect a child’s planning in the event of divorce or
will, your pre-divorce negotiations inheritance. For example, when a re-marriage.
and battles over the division of man remarries, then dies leaving
Q: My personal tax return was not submitted to Q: When will the new Companies Act take
SARS before 31 October 2007, will I be penalised effect?
by SARS?
A: The Department of Trade and Industry has indicated
A: SARS will not be charging penalties on individual tax that the new Companies Act should be promulgated
returns that are submitted via their e-filing facility as before the end of 2008. It is however envisaged that
long as the returns are submitted before 31 January the new Companies Act will only be implemented with
2008. Cameron & Prentice is registered on the e-filing effect from 1 January 2010.
system and all personal income tax returns that are
Q: If I have not yet submitted my 2006 income
submitted by us to SARS after 31 October 2007, are
tax return, will I still be able to complete and
submitted via the e-filing channel.
submit the “old” form to SARS?
Q: When is an individual taxpayer required to
A: SARS has indicated that they will no longer be
submit a statement of assets and liabilities to
accepting income tax returns in the “old” format.
SARS?
Where tax returns for the 2006 tax year and earlier are
A: In terms of the 2007 tax return brochure a to be submitted, new forms will have to be obtained
statement of assets and liabilities is required from from SARS, either online or from a SARS office.
a director of a company, a member of a CC or any SARS has indicated that where it receives tax returns
individual in receipt of income from a business, trade for 2006 and earlier on the original forms, these
or farming activity. In 2006 a statement of assets and returns will be rejected and returned to the taxpayer
liabilities was also required from an individual whose concerned.
gross income from investments exceeded R100 000.
(overheard)