The global tourism industry is awakening to the need for sustainability, responding to increasing travel demand for eco-friendly options.
 
This article delves into the exciting sustainability landscape within the hospitality and leisure sectors across South Africa, the broader African continent, and the Middle East and North Africa (MENA) region—collectively known as the MEA region. We will discuss both the challenges and the opportunities within the tourism industry.

April 7th saw the celebration of World Health Day, headed by the World Health Organization [WHO]. This years’ World Health Day theme – “Healthy Beginnings, Hopeful Futures” – aims to focus on maternal and newborn health, pressuring communities and government to find ways to end preventable maternal and newborn deaths, while prioritising long-term health and wellbeing for women. This includes providing support to both women and families before, during, and after birth.
 
As Rebecca White elaborates below, this day serves not only as a reminder of the challenges we still face but also as a call to communities and governments to take meaningful steps toward healthier futures for all.

South Africa’s carbon tax is an important tool in the country’s efforts to reduce carbon dioxide (CO₂) equivalents of greenhouse gas emissions whilst combatting climate change. By placing a price on carbon emissions, carbon tax prompts entities to decrease their carbon footprint by investing in cleaner, more sustainable practices.

International Women's Day (IWD), celebrated annually on March 8th, is a global day dedicated to honoring the social, economic, cultural, and political achievements of women. It also serves as a call to action for accelerating gender parity and addressing ongoing challenges faced by women worldwide.

The International Financial Reporting Standard for Small and Medium-sized Entities, shortened to “IFRS for SMEs”, was initially released by the International Accounting Standards Board (IASB) in 2009 to provide a simplified and tailored financial reporting framework for small and medium-sized enterprises (SMEs). The IASB recognised that full IFRS standards were designed primarily for publicly accountable entities (e.g., listed companies and financial institutions), making them complex and costly for SMEs to apply.

The South African Government has prioritised redressing the inequalities created by the apartheid system. One of the key instruments used to achieve this goal is the Preferential Procurement Policy Framework Act (PPPFA), alongside its regulations, which direct how the government institutions are to prioritize the economic empowerment of historically disadvantaged individuals (HDIs) when these government institutions procure goods and services.

Economists are cautiously optimistic about South Africa’s economic prospects in 2025. The effects of structural reforms and increased investment in the South African economy have largely contributed to the positive economic outlook. While opportunities exist, geopolitical and international developments could pose significant challenges, creating additional economic headwinds.

The taxation of trusts in South Africa (“SA”) has long been a debated area of tax law, shaped by evolving legal interpretations. The recent case of Thistle Trust v Commissioner for the South African Revenue Service (CCT 337/22) [2024] ZACC 19 (2 October 2024) (“Thistle”) addresses the tax treatment of capital gains arising within multi-tiered trust structures.
 
This article briefly explores the taxation of different types of trusts in SA and examines the impact of the Thistle decision.

Over the recent past, the concept of the Just Energy Transition has gained considerable momentum globally as countries urgently seek to balance action on climate change with socio-economic equity.
 
With South Africa's heavy reliance on coal for energy and jobs, the JET presents immediate business challenges and opportunities. The implications of JET for South African businesses and social and environmental aspects are discussed and explored within this article in that it will look at the main drivers of transition, risk, and opportunities that businesses might encounter and cover the actionable takeaways for navigation in this urgent and complex landscape.

As 2024 draws to a close, we are reminded of a year that has truly been a roller-coaster for all South Africans. Amidst the challenges of load shedding and the jubilation of the Springboks' triumphant return as world champions, we look forward to a well-deserved break. As we recharge and set our sights on a hopeful 2025, it is crucial to take a moment for one last task this year: a financial health check.

Sustainable agriculture practices are gaining traction as a crucial strategy for ensuring the long-term viability of the sector.
The World Commission on Environment and Development's (WCED) definition of 'sustainable development' is "development that meets the needs of the present without compromising the needs of future generations to meet their own needs".

As cyber-attacks become more sophisticated, the need for comprehensive cybersecurity strategies is more pressing than ever. This article summarizes the common cyber risks, how the attack works and essential steps for transforming weaknesses into strengths.

The South African Revenue Service (SARS) has issued Interpretation Note 15 (issue 6) on 30 August 2024. Alison Gounden unpacks in detail.

We live in a time when “disruptive technologies” are transforming the business world by reshaping industries, creating new business models and challenging established market leaders.
 
In 1965, Gordon Moore predicted that “the number of transistors per silicon chip will double every year”. This became a theme for describing the pace of technological change ever since then. Moore’s Law, as it became known, could not, however, predict the impact of major sociological events, such as the Space Race, the Cold War and more recently, the COVID 19 pandemic. It can be argued that these events changed the pace of technological development and accelerated the pace of Moore’s Law.

In the fast-paced world of mergers and acquisitions (“M&A”), financial transparency and compliance are non-negotiable. Among the many complexities involved in an acquisition, Purchase Price Allocation (“PPA”) is a vital component that both companies and stakeholders must understand. In this article, we explore the intricacies of PPAs in South Africa, their regulatory framework, and why businesses particularly those listed on the Johannesburg Stock Exchange (“JSE”) — need to ensure they get this right.

Sustainability reporting has become a crucial aspect of business operations in South Africa and worldwide. It enables businesses to communicate their environmental, social, and governance (ESG) performance to stakeholders, such as investors, customers, employees, and communities. However, traditional sustainability reporting has often concentrated only on the financial impacts of ESG factors on the business. This approach, known as single materiality, overlooks the complete picture of a company's sustainability performance.

The South African legal profession has taken a significant step toward promoting equality and transformation with the gazetting of the Broad-Based Black Economic Empowerment (B-BBEE) Legal Sector Code.
 
This code, aligned with the B-BBEE Act, is set to address the persistent inequalities in the legal profession by promoting the inclusion of black practitioners, particularly women and those from previously disadvantaged backgrounds.

A study by McKinsey found companies with strong ESG practices outperformed their peers by 7%, provided they also outperformed on the fundamentals.
 
Several studies have indicated that firms with strong ESG performances tend to benefit from lower capital costs, increased return on investments and reduced risk profiles (Alduais 2023; Fulton, Kahn & Sharples 2012; Garcia, Mendes-Da-Silva & Orsato 2017; Nsibande & Sebasian 2023). For instance, a Morgan Stanley Capital International (MSCI), in an investment research company study, revealed that companies with high ESG ratings outperformed their low-rated counterparts by an average of 4.6% annually, between 2007 and 2017 (Vu, Lehkonen & Junttila 2022).

Tender Bid Validity refers to the period during which a bidder's offer remains open for acceptance by an organ of state.
 
This period is critical as it reflects the period during which the procuring entity must evaluate all bids according to the bid conditions as advertised, and also the period during which the ultimate contract is to be concluded with the successful bidder/s.

South Africa has been teetering on the edge of a recession, narrowly avoiding a technical one with a GDP growth of 0.1% in the final quarter of 2023.
 
Despite this, the nation remains in what economists call a "per capita recession." This unique economic phase reflects the fact that while the population is growing at around 1.5% to 1.6% per year, the GDP growth lags, indicating a stagnating economy where individual wealth is shrinking. For business owners and investors alike, the outlook for business valuations in such an environment is critical to understand, particularly as a full-blown recession looms on the horizon.

This article provides an overview of South Africa's natural gas supply and demand dynamics, potential economic impact of the shortage, and possible mitigation solutions and opportunities.

In the recent judgment in the "Tuna Bonds Scandal", the Republic of Mozambique won its $3.1 billion lawsuit at London's High Court against UAE shipbuilder Privinvest for allegedly paying over $200 million in bribes to, inter alia, Mozambican officials and key Credit Suisse bankers from 2013 to 2016.

Integrating Environmental, Social, and Governance (ESG) considerations into investment strategies has gained significant traction. In South Africa, Regulation 28 of the Pension Funds Act explicitly mandates retirement funds to consider ESG elements when formulating their investment policies. This regulatory requirement underscores the importance of sustainable investing and the need for transparency and accountability in the financial sector.

Why GRI 14 (Global Reporting Initiative) – the Mining Standard? Adaptability and focus on continuous improvement are crucial for navigating the dynamic challenges and expectations within the mining industry.

In today's digitally driven world, organisations rely heavily on their information technology (IT) infrastructure to conduct business operations, manage data and serve customers. However, with the increasing complexity and interconnectedness of IT systems, the risk of cyber threats, data breaches and system failures has never been greater. In this landscape, Information Technology General Controls (ITGC) audits emerge as a crucial mechanism for organisations to ensure the reliability, integrity, and security of their digital assets.
 
Recognition of this dependency on IT systems and related controls was encompassed in a shift in traditional audit and risk assessment approaches. This is codified in the revised International Standards of Auditing statement 315 (effective for financial statements for periods beginning on 15 December 2021).
 
Moore in South Africa’s team of experts can provide objective and independent support in the execution of evaluations within the ISA 315 framework or in specialised assessments in complex IT control areas.

The South African Revenue Service (SARS) has increased its focus on trusts both from a tax compliance perspective and also as a result of the new rules regarding the disclosure of beneficial ownership.

The construction industry in South Africa faces significant challenges due to the disruptive activities of criminal syndicates known as the "construction mafia”, with the emergence of this phenomenon in 2016 according to Daily Maverick “Rise of the new construction mafia” article published in 2019. These groups use intimidation and violence in an attempt to extort funds from successful bidders, creating barriers to market access, discouraging investment, and limiting competition.

The notable trends mentioned below, emphasize the importance of adopting comprehensive sustainability frameworks, like the Global Reporting Initiative Mining Standard (GRI 14).
 
These frameworks not only guide companies in managing their environmental and social impacts, but also enable them to navigate regulatory complexities, build resilience, and seize opportunities in a rapidly evolving sector.

The landscape of critical minerals is complex, presenting both significant opportunities and challenges. As global demand for these essential resources rises, it becomes imperative to understand key issues, seize opportunities, and execute effective policy recommendations.

In the rapidly evolving field of technology, certain minerals have become indispensable to the continued development and expansion of modern industry. These minerals, including cobalt, lithium, and rare earth elements, are crucial to the production of a wide array of consumer electronics, renewable energy technologies, and defence applications. But what exactly makes these minerals so critical, lending them such a significant name, and why should we care?

The Junior Indaba is an annual conference that is focussed on the Southern African Junior Mining and Exploration Sector, talking about challenges, opportunities, successes and failures – a good place to engage with government stakeholders, for informal peer review and support as well as a platform to present projects to potential funding partners.

Money laundering in South Africa is of significant concern, given the country's role as a financial hub in Africa and the prevalence of various forms of economic crime. Corruption is a major issue cited regularly in our media, often involving public officials and large sums of money. This creates opportunities for money laundering. The country has a notable presence of organised crime syndicates involved in drug trafficking, illicit tobacco smuggling, human trafficking, and other illicit activities, all of which generate large illicit and illegal proceeds. South Africa's developed financial sector provides various channels for laundering money, including banks, bullion dealers, casinos, real estate, and cross-border financial transactions.

World Environment Day, celebrated annually on June 5, encourages awareness and action for the protection of our planet. This day serves as a reminder of the urgent need to address environmental challenges and promote sustainable practices. For Moore, which specialises in corporate valuations, it is essential to understand the role that valuations can play in promoting sustainability.

In the wake of a significant rise in fraud-related incidents within South Africa over the past decade, the urgency for robust fraud prevention and detection measures has never been greater. The country has become a focal point for a shift in fraud patterns, characterized by an increasing frequency and sophistication in areas such as occupational fraud, banking fraud, and cybercrime.

The allure of Africa's hotel and leisure sectors has captivated the interest of multinational groups, sparking a flurry of expansion initiatives and cross-border transactions across the continent. This article explores the convergence of global players entering Africa's hospitality industry and the transformative impact of cross-border transactions within these sectors.

SARS has reaffirmed the role which all section 18A-approved Public Benefit Organisations (“PBOs”) must fulfil regarding the newly imposed IT3 reporting obligations.

The first reporting deadline: 31 May 2024.

In a world increasingly defined by environmental consciousness and corporate responsibility, the intertwining of sustainability and company value has become more apparent than ever.
 
On 23 March 2024 we will celebrate Earth Hour, casting a spotlight on the importance of energy conservation and environmental stewardship, solar companies emerge as beacons of sustainable innovation, illuminating the path towards a greener future while simultaneously enhancing their own value proposition.
 
This article explores the symbiotic relationship between sustainability and company value, delving into how solar companies embody these principles and the evolving landscape of Environmental, Social, and Governance (ESG) factors in business valuations.

As we approach the first quarter of 2024, it is safe to say that Environmental, Social, and Governance (ESG) reporting is firmly entrenched in organisations globally.
 
Wherever public disclosures are made and stakeholders need to rely on the disclosures, the need for independent audits arise—ESG auditing is no different. How an organisation collects, manages and reports ESG risks will directly impact their preparedness and reaction to ESG issues.

Running an organisation of any size comes with inherent risks—and taking risks in business is, sometimes, par for the course.
 
It is easy to see why corporate risk assessment is crucial. Not only does corporate risk assessment reveal the risks to which an organisation is exposed, it also analyses the size, likelihood and potential impact of each. In doing so, management can make better decisions about where to allocate resources to manage, if not mitigate these risks entirely.

Systems of checks and balances were implemented to maintain public accounting as early as the days of ancient Egyptians, Greeks and Romans.
 
Auditing evolved and grew rapidly after the industrial revolution in the 18th century where a need arose to provide credibility to the financial statements prepared by company management for their shareholders. In this article, Americo explores bridging the expectation gap: Building Trust with Stakeholders and External Auditors.

This article explores the relationship between stress, immune function, and health during the transition period of starting a new job.

In a global landscape marked by continual evolution, the logistics sector in Africa plays a pivotal role amidst distinctive challenges and growth prospects. Join Stan Whiting as he delves into the intricacies of logistics in Africa, addressing the imperative for strategic insights, the hurdles faced, and the promising opportunities for businesses in this dynamic landscape.

King IV Compliance is more than a check-box exercise, but the key to earning trust and credibility that contributes incalculably to brand equity. A surefire way to achieve the transparency, accountability, and ethical behaviour aspirations that King IV motivates organisations towards is through internal audits.
 
Here is how and why internal auditing underpins value realisation from King IV Compliance.

The concept of computer programs can be traced back to the 1830s, but it wasn't until World War II that electrical computers (as it is known today) were first developed. The devices we use today have a rich history, offering endless possibilities to enhance our lives. However, they also come with their own set of risks. 

In an era marked by unprecedented challenges, the global business landscape is continually shaped by an array of risks that extend far beyond traditional economic concerns. As we delve into the complexities of corporate valuations, it becomes imperative to recognise and understand the profound influence that global risks exert on the financial health and stability of companies. According to the World Economic Forum's Global Risks Report 2024, the top five global short-term risks—misinformation and disinformation, extreme weather events, societal polarisation, cyber insecurity, and interstate armed conflict—stand out as critical factors affecting corporate valuations.
 
In the article we expand on these risks and the effects they have on the corporate valuations landscape.

Given the recent headlines regarding Eskom or even how legislation dictates procurement in private companies (to an extent), probity audits are necessary in the public and private sectors. We could all do with renewed trust in procurement processes countrywide—and that’s what probity audits can provide.

During 2023 we noticed a surge in South African companies seeking growth opportunities by expanding their existing operations into the African continent. This upward trajectory can be attributed to the global transition towards renewable energy, intensifying the demand for Africa's abundant natural resources. With the continent showcasing the world's youngest and fastest-growing population, an unparalleled opportunity emerges for developing infrastructure and tapping into a burgeoning consumer base.

As the year draws to a close, it's time to reflect on what's been accomplished and start planning for the year ahead. In the corporate world, this includes getting your board, shareholders, and committee meetings in order for a successful 2024. The annual board calendar is a powerful tool to ensure that your organisation is well-prepared for the challenges and opportunities that lie ahead.
 
Let's explore why and how you should set up your board calendar to make 2024 a year of effective governance.

In the rapidly evolving landscape of corporate finance, the integration of Artificial Intelligence (“AI”) stands as a transformative force, reshaping the traditional paradigms of valuations and cybersecurity strategies. Corporate finance professionals, particularly those focused on company valuations, are embracing a new era where AI is not merely influencing financial analysis; it is becoming the cornerstone of redefining the strategies used to protect financial data against cyber threats.
 

In today's fast-paced digital landscape, businesses find themselves navigating an intricate web of cyber threats, data breaches and evolving regulations. The need to secure sensitive information and protect digital assets has never been more pressing. This article sheds light on why cyber risk assessments are an indispensable tool for organisations of all sizes and industries, offering five essential reasons to consider.

Joint ventures (JVs) are strategic partnerships formed for various reasons, such as tackling large or complex projects, leveraging specialised skills, and fostering the growth of emerging firms in developing countries like South Africa. In this article, we will explore the intricacies of joint ventures and delve into the specific requirements relating to JVs in the construction section as set by the Construction Industry Development Board (CIDB).

Mental health is a critical aspect of overall well-being, and the role of Human Resources in supporting employees mental health cannot be overstated. Megan Veldman, in her role as the HR Manager of the Moore Johannesburg office, understands the importance of addressing mental health within the workplace, especially during international mental health awareness month in October.

In the ever-shifting digital landscape, the terrain is as promising as it is perilous. For companies who prioritise their cybersecurity and well-being, navigating this dynamic environment is no casual stroll in the park—it's a serious task. Every click, every share, and every upload can open doors to unprecedented opportunities or unforeseen vulnerabilities. Thus, taking cyber risks seriously is not just a matter of precaution, but a fundamental principle for those who seek to thrive in this constantly evolving digital ecosystem.

Succession planning remains an often overlooked yet critical element of business sustainability. Whether you're leading a family business or an owner-managed firm, you can't afford to leave succession to chance. As your trusted advisor, we're committed to helping you thrive in a changing world. This comprehensive guide aims to empower you with actionable steps and cautionary tales to navigate this complex process effectively.

Artificial intelligence. The phrase has received a bad rap over the years. It conjures up images of uncertainty and discomfort for readers, encouraging them to ask the question, “What does artificial intelligence mean for me?”, “Am I going to lose my job?” Let us delve a bit deeper into the phrase.

National treasury proposed a diesel refund for manufacturers of foodstuffs during the 2023 Budget speech, with effect from 01 April 2023 until 31 March 2025.

In Part 3 of the series, we introduced and evaluated some of the possible opportunities relating to fraudulent behaviour. We now conclude this series with a brief exploration of fraud perpetrators’ rationalisations after the crime has been committed, or during the act.

Just as the digital revolution has transformed how we communicate, shop, and even bank, the realm of taxation is not far behind. The South African Revenue Services (SARS) recently unveiled a discussion paper aiming to revitalise and modernise our Value-Added Tax (VAT) system, offering both challenges and opportunities for all involved parties. This article provides a summary of the main points from the discussion paper.

Artificial intelligence. The phrase has gotten a bad rap over the years. It conjures up images of uncertainty and discomfort for readers, encouraging them to ask the question, “What does artificial intelligence mean for me?”, “Am I going to lose my job?” Let us delve a bit deeper into the phrase.

Since construction is an important factor in the social and economic development of South Africa, the Construction Industry Development Board (CIDB) was established via The Construction Industry Development Board Act 38 of 2000, to develop and regulate this industry to ensure optimal growth at globally competitive standards. The CIDB is a national public entity as listed in schedule 3A of the Public Finance Management Act (PFMA), with the focus of implementing an integrated strategy for the reconstruction, growth, and development of the construction industry in South Africa, and to provide for all matters in relation thereto.

The Companies Act 71 of 2008 (the “Act”) imposes a fiduciary duty on all directors of a company. Directors have a duty to act in good faith, exercise reasonable care, skill and diligence and act in the best interests of the company. The fiduciary duties of a director may be relinquished if they choose to resign, or if they are removed from the board.

On 30 June 2023 Public Notice 3631 in Government Gazette 48867 was released (Notice - request to register all Trusts​) which specifies which third-party data providers are obliged to report taxpayer information to the South African Revenue Service (SARS). The revised list now includes trusts and public benefit organisations (PBOs) but excludes solar panel installers.

As part of our commitment to keeping you informed and compliant with evolving legislation, we want to draw your attention specifically to the upcoming deadline regarding the Promotion of Access to Information Act 2 of 2000 (PAIA), specifically Section 83(4).
 
Section 83(4) of PAIA requires private bodies to submit an annual report to the National Assembly, detailing the number of requests for access to records received and granted in the previous year. This requirement underscores your legal obligation to promote transparency and good corporate governance within your organisation.

On 24 May 2023, the Companies and Intellectual Property Commission ("CIPC") issued Guidance Notice 2 of 2023, following the promulgation of the General Laws Amendment Act, 2022 ("The Amendment Act"). The Amendment Act introduced significant changes to several pieces of legislation, including the Financial Intelligence Centre Act 38 of 2001 ("FICA"), the Companies Act 71 of 2008, the Companies Amendment Regulations of 2023 and the Trust Property Control Act 57 of 1988 ("Trust Act"). These amendments have been swiftly implemented due to South Africa's grey listing status and the recommendations issued by the Financial Action Task Force ("FATF").

In recent years, a growing number of investors have become increasingly aware of the importance of Environmental, Social, and Governance (ESG) factors in assessing the value of a company. As such, ESG has become an increasingly important factor in business valuation.

In Part 2 of the series, we explored the “Why?” behind fraudulent behaviour by mentioning some of the potential motivations and pressures that could drive a perpetrator to commit fraud. We also proposed that should a potential fraudster lack the opportunity to commit fraud, then it would be likely that the act would go uncommitted. Therefore, we aim to provide some clarity on the “How?” that makes it possible for someone to commit fraud without getting caught.

As technology continues to advance, businesses around the world are required to adapt to remain competitive and compliant with regulations. In this article, Amé Smith explores what iXBRL is and why its conversion is a must for South African companies.

On 22 February 2023, the Minister of Finance introduced a tax incentive to encourage individuals to install solar panels and generate clean electricity. The incentive is designed to alleviate pressure on the grid and promote self-sufficiency in energy production. This article outlines the details of the incentive, including eligibility criteria and the claiming process.

On 24 April 2023, SARS announced changes to its Tax Compliance Status process, with immediate effect. The enhanced current tax clearance status (“TCS”) application form was introduced to consolidate Foreign Investment Allowance (FIA) and emigration applications into a single Approval International Transfer (AIT) application.
 
It is important to note that the new AIT process only applies for amounts in excess of R1 million for tax residents. Non-tax residents require the AIT for any amount to be remitted abroad. Here’s everything you need to know about how it affects taxpayers.

In the world of business, where change is the only constant, "Helping you thrive in a changing world" is more than just a tagline at Moore South Africa; it's our mission. As part of our commitment to supporting your success, we believe it is time to address a critical issue affecting a significant portion of our clients: the need to reassess the Public Interest Score (PI) in South Africa.

The Preferential Procurement Policy Framework Act (PPPFA) has played a significant role in driving economic transformation by addressing historical injustices in South Africa. Initially introduced in 2000, the PPPFA has evolved over the years with the latest amendments to the Preferential Procurement Regulations (PPR) being effective from 16 January 2023.

Mergers and acquisitions (M&A) have always been challenging, especially in the post-pandemic business environment. Current economic uncertainties necessitate redirecting and reshaping corporate strategy. Matthew Visser sets out helpful guidelines to formulate a successful acquisition strategy.

The recent decision by the Financial Action Task Force (FATF) to Grey List South Africa has led the government to introduce new measures to combat money laundering and financial crimes. The trust department in the Moore Cape Town office breaks it down in what this means.

In this article the Moore Forensics Due Diligence team focuses on what we will term the ‘do’s and ‘don’ts any tenderer is to be aware of when completing and submitting a tender/bid. Evidence obtained from having reviewed countless bid submissions points to the fact that tenderers - at times - make avoidable errors at the bid completion stage, with these errors resulting in the tenderer’s bid being considered non-responsive. By being mindful of – and applying the following do’s and don’ts when completing a bid document should provide additional comfort that the time invested when preparing a bid document will at least afford the tenderer an equal competitive opportunity, i.e. the tenderer’s bid will be evaluated by the relevant governance committee. This article therefore serves as a guide and tool for tenderers to not only complete tender documents correctly and fully, but also ensure a responsive tender is submitted.

The Financial Action Task Force's recent greylisting of South Africa has been widely reported as having significant implications. These include potential impacts on the country's economic growth, decreased global competitiveness and external reserves, as well as a potential decrease in capital inflows, foreign direct investment and the possibility of economic penalties imposed by international bodies. In this article, Nick Jobs unpacks this scenario.

The Monte Carlo Method was invented in the 1940’s by John von Neumann and Stanislaw Ulam during World War II to improve decision making under uncertain conditions. It was named after a well-known casino town, called Monaco, since the element of chance is core to the modeling approach, similar to a game of roulette. In this article, Dr. Steven Firer and Brandon Thompson explore the practical application of the Monte Carlo Simulation and how it is applicable to the valuing of options.

Should your business say “yes” to YES? Let us help you with your decision. This four-part series provides comprehensive clarity on the requirements for eligibility, registration, targets, scoring and results of the Y.E.S programme. Jesse Cloete covers everything you want to know about The Youth Empowerment Service Programme, in part one of four articles.

Corporate debt is an important aspect of the financial world, with businesses often taking on debt in order to finance their operations and growth strategies. However, too much debt can be a burden on a company's finances, potentially leading to financial distress and even bankruptcy. Metrics such as debt to EBITDA and interest coverage ratios are closely monitored by investors and analysts alike as a method of determining the debt carrying capacity of a company. These metrics have significant limitations however, which need to be taken into account. In the first article of this series, Nick Job elaborates on various aspects of the debt and treasury advisory business.

For all individuals, trusts and the majority of companies in South Africa, the second provisional tax return is due at the end of February. Here are some basic principles to bear in mind when attending to your provisional tax return for this period.

In following from Part 1 – An Introduction to the Fraud Triangle, Part 2 of the series aims to analyse one of the factors that constitutes the fraud triangle i.e., motivation/pressure. Perpetrators rationalise various motivations/pressures prior the commission of fraud¹. These motivations could either be external influences, i.e., environmental ‘push’ factors, or internal impulses, or a combination of both, that stem from the perpetrator’s psychological makeup. Please refer here for Part 1 of the series.

This has been a year like no other, but it’s not over yet. With a few more days left of 2022 there are still a few things you need to attend to before you can put your feet up and take a well-deserved break. Here are six smart things you should be looking at right now that will give you peace of mind and put you on the right track for next year.

Friday 25 November 2022 is the International Day for the Elimination of Violence against Women (and children). This date kicks off the important annual 16-day international campaign to try and end violence against women and children and concludes on Saturday 10 December 2022.
 
Pondering the above paragraph, one may have difficulty with the absurdity of dedicating a mere 16 days to the purpose of ending violence against women and children, a campaign which ends on a specific date. What about the other 349 days? But perhaps it is a start…

Many people get confused with this topic, as there are no clear-cut laws that govern non-credit facilities and their juridical status when it comes to charging interest on overdue accounts. The law does, however, make room for occasions when debtors fail to pay their debt in a timely manner. Megan Lilley elaborates further.

It’s no secret that the workplace can be a breeding ground for burnout. With long hours, demanding deadlines, economic downturn, cost of living and little room for error, it’s no wonder that so many people end up feeling overwhelmed and stressed out. Megan Veldman, HR Manager at Moore Johannesburg explores a few things you can do as an employer to prevent burnout and improve employee well-being. From creating a positive work environment to offering flexible work options, there are many ways to help your employees avoid burnout.

If you’ve ever wanted to rent a house, get a loan from the bank, or open a new clothing account, then you know that most of these institutions will want to run a ‘credit search’ on you. This means that the bank or clothing company, for example, will analyse the historical data surrounding your payment behaviour, from anywhere between two to five years. The goal is to try and gain some insight into whether or not you make timely payments on all of your accounts, as well as how often and how much you pay out every month.

Any person working in a commercial setting – be it financial, forensic, legal, or otherwise – has come across the term ‘fraud’ in one manner or another. This article is the first in a four-part series that aims to introduce the concept of fraud and the fraud triangle; later in the series, the three factors of the fraud triangle will be examined in more detail.

A question that frequents discussions among professionals nowadays, however, is whether the accountancy profession will, once more, be able to successfully navigate its survival route through the more recent onslaughts against it? Anton van Wyk shines a search-light on the profession which, of necessity, constantly evolves. Competency, ethics, and accountability are paramount in order to engender trust in the future.

In October 2011, the Supplementary Declaration (IT14SD) form was introduced by the South African Revenue Service (“SARS”) as a method to increase the analysis of company’s income tax, Value-Added tax (“VAT”), Pay-As-You-Earn (“PAYE”) and Customs information to ensure that they receive what they are legally due. Dau-Ming Ho elaborates further.

One doesn’t have to look far to see the significant impact of Covid-19 on South Africa’s economy. The pandemic has also left a mark on our work landscape as companies grapple with mask, vaccine, and remote work mandates.
 
Businesses countrywide are eager to return to “normal”, but does that have to mean the end of remote work? Ettiene Rossouw discusses in depth.

SMEs face many struggles that larger enterprises just don’t have. Janeska Wolvaardt walks us through an elegantly simple way to achieve business success.

ESG (Environmental, Social, and Governance) is making headlines globally, from record investments to accusations of greenwashing. We are seeing our National Treasury, stock exchanges and rating agencies placing greater emphasis on ESG. This begs the question, does ESG impact valuations and M&A transactions in South Africa, and to what extent? Leonard Roberts discusses a few factors to consider with regard to valuations, M&A and succession planning strategies. 

Business continuity in an ever-changing world is becoming harder to ensure. One of the most recent pressures on business owners is their alignment with sustainability issues and climate change requirements – better known now as Environmental, Social and Governance (“ESG”) reporting. Alexa-Rae Hicks discusses in detail.

The income tax implications of ETI income received by employers are commonly misunderstood. Moore Cape Town’s tax team takes a deeper look.

Public-Private Partnerships (PPPs) can fuel economic growth in South Africa. Navasha Moodley has a closer look into what the private sector gains from PPP participation.

As the techno-dexterous among us immerse themselves into the wonders that blockchain and crypto assets have to offer, one is required to consider the obligation to rightfully share any profits made with the South African government. Furthermore, with tax season fast approaching and the South African Revenue Service (SARS) tightening its tax collection procedures on crypto asset transactions, Stephanie Pepin lets you know how to avoid hefty penalties and remain compliant.

Keeping with the theme of Environment Month in June, we discuss the potential tax benefits available to taxpayers who invest in solar energy for the purpose of their trade.

Data Breaches have always been a prolific problem within corporate IT environments. The exact depth and severity of the problem has, of course, never been quite understood before the implementation of POPI. Craig Pedersen, in this article written exclusively for Moore, unpacks the nature and extent of breaches, how criminals use this data and the impact of breach data on the commercial environment.

The South African Revenue Service (“SARS”) announced that the 2022 tax return filing season will commence on 1 July 2022.

French multinational investment bank and financial services Group, Société Générale (SocGen) said in a recent report that the Nasdaq has lost more than US$7trn in market capitalisation over the past six months.

Understanding the difference between the measurement date and period can make your B-BBEE verification process smoother and faster. This article discusses what you need to know about the measurement period and date ahead of your on-site B-BBEE verification.

This article is the final part of our three-part series. In part two, we provided an overview of the most common and successful cyber-attacks and the vulnerabilities that are being exploited – refer here for part two. This part provides an overview of the most important measures to prevent cybersecurity incidents and how these should be prioritised. 

Do you need a PAIA manual for your business? In short – Yes. Spencer Cason, Moore Legal Durban, elaborates.

On 14 April, Tesla and SpaceX CEO Elon Musk made a final unsolicited bid for Twitter at US$54.20/share. The bid was made after Musk had acquired 9.2% of its shares and declined a seat on the company’s board. However, since then, Twitter has adopted a poison pill approach to prevent him from taking over the company. The details of poison pill approaches differ by company, but it is designed to give a company’s board the option to flood the market with so much newly created shares that a takeover becomes prohibitively expensive.

Failure to have a properly drafted shareholders’ agreement in place may have devastating consequences for your business. This article explores some practical examples where a properly drafted shareholders’ agreement will provide much-needed guidance.

With the emergence of blockchain technology and the powerful capabilities that this technology offers, the platform for financial innovation is here to stay and can no longer be left out of the conversation. Dale Russell elaborates further.

Protection of personal information (POPI) was a hot topic last year. Continued compliance is important and, if you have not taken any steps towards compliance, you should not delay any longer. This article provides a timely reminder of your POPI obligations.

Counting the Costs of Cybercrime is a three-part series. In part one, we highlighted the impacts of cyber related crimes on your organisation. The damage caused by a cyber incident can be reduced to the acronym: "CIA"(Confidentiality, Integrity, and Availability). Refer to the link here for part one.

This part provides an overview of the most common and successful cyber-attacks and the vulnerabilities that are being exploited.

Moore Johannesburg is excited to announce that they have established a cyber security centre of excellence led by a team of offensive and defensive cyber security specialists. In these dynamic times many of our clients have raised concerns regarding their IT security and cyber requirements. The need for a cyber resilience strategy is at the top of their list and we have assembled a team of security experts to develop comprehensive strategies and interventions to meet their needs.

Cybercrime is growing as the use of the internet and business networks expand. Today, more than ever, businesses of all sizes rely on their networks, data and internet connectivity to conduct business. In this three-part series, we look at cybercrime's impact, how it is perpetrated, and what you can do about it. In this part, David Cohen looks at the impact of cybercrime on your business. 

The Tax Administration Act (“TAA”) requires every company carrying on business or having an office in South Africa to be represented by an individual residing in the Republic. A Public Officer is responsible for all matters relating to Tax Act and serves as the face of the company. Mohamed Chopdat investigates further.

The Learnership allowance is a great incentive offered by Government to encourage job creation. How does this allowance work? Geeta Kalan explains.

On 31 January 2022, BHP Group finalised the unification of its dual-listed company corporate structure which has impacted South African shareholders. Shareholders who owned BHP Group shares on 28 January 2022, will be deemed to have disposed of their shares and acquired the new BHP Group JSE-listed shares and will have triggered a capital gains tax event. The effect of this transaction is likely to result in a realised capital gain. The taxable portion of this gain will be included in the shareholder’s taxable income for the year ended February 2022, even though no cash has changed hands.
 

For all individuals, trusts, and most companies in South Africa, the second provisional tax return is due at the end of February. Here are some basic principles to bear in mind when attending to your provisional tax return for this period

The Walt Disney Co. (Disney) released 4Q21 results on 10 November after the market closed, with the company missing consensus analyst estimates. This saw the group’s share price fall in after-hours trading, and on 11 November the share price was down 7% on the day.

It seems like we can’t go a day without hearing about the next big data breach. It appears almost normal to be at the will of cybercriminals. Lose everything or pay up. South Africa ranks third in the world for users experiencing the highest number of ransomware attacks, with 58% of these attacks being made against small-to medium-sized businesses. Carey Scott takes a closer look. 

A stable and reliable electricity supply is the lifeblood of economic activity and a crucial factor in production aiding a strong economic recovery. For South African companies slowly recovering from the enduring impacts of Covid-19 induced losses, the ongoing load shedding by state-owned power utility Eskom could not have come at a worse time. Rick Bwanya and Mitch Harris delve deeper into the role of renewable energy in South Africa’s energy mix and the surge of deals in the industry.

At Moore, we care deeply for our peers and unfortunately people suffering from a mental health disorder do not disclose this for fear of being discriminated against in general and especially in the workplace. There is very little education around this subject due to the various mental disorders such as depression, anxiety, substance abuse and job stress. Statistics show that many people have experienced  job stress or anxiety which can lead to a downward spiral should they not be caught and managed as soon as possible.

The need for greater diversity in the boardroom has never been greater than now, not because it is a hot topic, but rather for the sake of the relationship between the workforce and positive business performance. Jacqueline Cousins elaborates.

The southernmost state in Africa has been ‘yo-yo-ing’ between myriads of amended lockdown levels which has not only kept the economy in limbo, but our sanity too. We have all, to some extent, felt the impact of “covid fatigue” and the real estate and construction sector is no exception.

In our previous article we discussed the benefits of an antenuptial contract. In this article we delve deeper into the concept of excluded assets and how to keep them excluded throughout your marriage and in the case of divorce.

It has become the norm for most companies, even those not under some sort of regulatory obligation, to appoint non-executive directors. Indeed, most appoint a majority within the board. The notion of a non-executive director is brilliant - a provider of objective and wise mentoring from a strategic perspective, gently assisting in steering the boat in the right direction. Louw van der Merwe takes a closer look.
 

October is global ethics month, with Global Ethics Day being held on 20 October 2021. It is, therefore, a good time to focus on personal and business ethics and how ethically each of us is behaving through the pandemic. Being ethical means different things to different people, to me it means acting in the best interests of the most people, without harming yourself or others in the process.

Employment Equity in South Africa is regulated by the Employment Equity Act (no. 55 of 1998) (EEA) and governed by the Department of Labour. Read more as Moore Cape Town's HR Team unpacks Employment Equity, the legislation and beyond.

In July 2018, Revov Batteries was a two-person team with a few million rand in consulting fees and a plan to transform the alternative energy landscape in South Africa. Today, the business generates well in excess of R100 million in revenue and is one of the top 3 local suppliers of lithium-ion batteries. In this article, Moore Johannesburg takes a closer look at the key drivers to Revov’s success.

One of the biggest frustrations of an audit for both auditors and auditees alike is the fact that the audit of the financial statements of a small, simple company is treated the same as the audits of listed entities with a number of subsidiaries and divisions.

In the event that an individual passes away without a valid Will, their assets will be divided amongst their closest relatives, for example, their surviving spouse, children, parents or siblings in a specific order as determined by the Act. Moore Cape Town’s Estate Planning department offers their insight.

Maureen Penfold, Moore Kingston Smith’s Managing Partner shares the challenges of being a woman in business and reflects on playing the roles of both a parent and a professional.

2020 and 2021 have been years unlike any other and have challenged us in our personal, professional and business capacities – not only in South Africa, but also worldwide. 
 
As a network, Moore South Africa had to completely rethink how our businesses operate and find new innovative ways to achieve our goals. Our in-house learning and development academy, TAG Talent & Growth, together with its online learning portal, has been instrumental in guiding our network to transition to a remote workforce and build the required skillset to meet the new challenges, all whilst retaining the required level of compliance and excellence. This experience has highlighted the value that a well-developed, user-friendly and forward-thinking product such as our learning portal could bring to the new world of work.
 
As the Moore South Africa network was extending its in-house academy to external audiences, the Anchor Capital Group identified the need for a comprehensive, strategically developed online Continuing Professional Development (CPD) solution for, among others, SAICA and IRBA members.  To this extent, the Anchor Capital Group partnered with financial and management accounting learning and development professional, Anton van Wyk CA(SA), to spearhead their CPD venture. 
 
Based on the synergetic and complementary nature of their strategies, the Anchor Capital Group and Moore South Africa are proud to announce the amalgamation of their strengths, and existing products and platforms, to bring you the new development hub of choice for future-ready professionals: CPD Campus.

Over the past year, China has cracked down heavily on its technology (tech) sector in areas such as data security and anti-competitive practices, gaming, and fintech. On Friday (20 August), tech shares in China fell once again after the country passed strict data privacy legislation, adding to these tech counters’ compliance burden. Marco de Matos of Anchor Capital looks at the recent developments.

The Companies Act 71 of 2008 (the “Act”) imposes a fiduciary duty on all directors of a company. Directors have a duty to act in good faith, exercise reasonable care, skill and diligence and act in the best interests of the company. The fiduciary duties of a director may be relinquished if they choose to resign, or if they are removed from the board.

Following the recent unrest, destruction of public and private infrastructure and extensive business interruptions country wide, the president announced additional tax relief measures during his recent address to the nation. Subsequently, National Treasury has released draft Legislative Amendments to enact the proposed interim tax relief measures. Although not promulgated yet, these Bills provide the necessary Legislative Amendments required to implement the Covid-19 tax relief measures as proposed. Mark Hewitt takes a more detailed look.

If you are in the process of acquiring a business or have recently acquired a business then you’ll need to know this information. It is likely that the purchase of a business includes an element of Goodwill (i.e. the purchase price is greater than the net assets you acquired). In these circumstances, the International Financial Reporting Standards (IFRS) require you to assess the fair value of assets acquired and liabilities assumed. This process is referred to as a Purchase Price Allocation (PPA). In this article, Moore Advisory Johannesburg takes a closer look at what a PPA is, who needs to perform one and when it needs to be performed.

The Department of Finance has increased the UIF Contribution limit to R177.12 with effect from 1 June 2021. The result thereof is that UIF will now be capped at a maximum contribution of R177.12 per month (as opposed to the R148.72 previously). Megan Veldman unbundles UIF.

“How dare the Taliban take away my basic right to education?” … 11-year-old Malala Yousafzai as she delivered her first speech and spoke up against the closing of girls’ schools and education in Swat Pakistan.
 
Little did one know that her journey would be a testimony to the triumph of the human spirit … a story of Bravery, Strength, Courage and Defiance against the Taliban leading to a fight for greater peace, and becoming an advocator of free, safe and quality education for girls around the globe. Anusha Ramraj gives us insight into Malala Day.

Since 1984 there have been three marital regimes in South Africa:

• In community of property
• Antenuptial contract with accrual
• Antenuptial contract without accrual

Tarryn Wright and Karen Botha dive in deeper.

Approximately 70% of NPOs in South Africa are non-compliant. Holly Lawson looks at the ramifications of non-compliance and the affect that this may have on the country’s NPOs and communities at large.

Flexible work arrangements have become increasingly popular as the need of employers and employees change in response to the coronavirus (COVID-19) pandemic. In this article, Grant Ward discusses the specific circumstances that need to be met before workers can qualify for a home office deduction for tax purposes.
 

Amazon, the world's largest online retailer, is in talks to buy US movie studio MGM for c. US$9bn. MGM was forced into bankruptcy about 10 years ago, after piling up debt of c. US$4bn. Marco de Matos has a closer look.

June is Effective Communications Month. In the context of South Africa entering its third COVID wave, Anel Jacobs considers the impact of mask-wearing on communication, and shares tips on how to conquer the communication challenges caused by masks.

Cryptocurrency is a hot topic at the moment and in February this year, SARS commissioner Edward Kieswetter confirmed that undisclosed cryptocurrency holdings will be a big area of focus for SARS. Are your tax affairs in order or do you need to apply for a VDP? Grant Ward elaborates.

For many businesses, salaries and wages are one of the biggest overheads. Managing this non-core aspect of the business can be time consuming and complicated. Moore Johannesburg looks at why more and more businesses are choosing to outsource their payroll processing to professional payroll administrators.

The Companies Act does not set out what would be considered an independent director nor, for that matter, does it distinguish between executive and non-executive directors. Matthew Delaney looks at Independent Directors and SME's.

Electric vehicle (EV) and battery manufacturer, Tesla’s cars have been banned from military complexes and housing compounds in China due to concerns that sensitive data will be collected by the cameras built into Tesla’s vehicles.

At the end of March, we passed the one-year mark of the pandemic, and while it is easy to focus on everything lost and missed out on during these last 12 months, now more than ever it is important to celebrate that which is right in this world. LeadMe shares tips to shift your mindset from scarcity to abundance so you can move from surviving to thriving.

A year ago, when South Africa went into its national lockdown, we found ourselves in unchartered territory. Read more as Moore Cape Town's HR Team describes how companies can gain a competitive advantage in the new world of work.

Ever since Elizabeth Candy Stanton and Lucretia Mott gathered a few hundred people in 1848 to take a stand against oppression and gender inequality, a movement was born... their nation’s first Women’s Rights Convention in New York. They demanded social, civil, political and religious rights for women. 
 
This battle continued into the 1900s where a group of women stood up against their working conditions - historically referred to as the “garment workers’ strike” leading to the Socialist Party dedicating the First National Women’s Day to honour these brave women. Anusha Ramraj delves in deeper at this year’s theme #ChooseToChallenge #IWD2021

“A leader’s job is to look into the future and see the organisation not as it is, but as it should be.” Jack Welch 
 
Megan Veldman, the Human Resource Manager at Moore Johannesburg in Parktown shares her views on how Human Resources should be the driving force in any organisation to ensure that employees and Management have the best resources to deal with the changing landscape.

Electric vehicle (EV) and battery manufacturer, Tesla has invested US$1.5bn in cryptocurrency, bitcoin and will have made a c. US$1bn paper profit from this investment, according to a report by Wedbush Securities. Marco de Matos has a closer look. 

Selling a business is a lot easier – and more profitable – if you know how. By following some practical tips, any businessperson can ensure that this milestone is a positive one. Read more about our six-part series, in a nutshell.
 

The Moore tax team responds to a reader's enquiry with regard to claiming a tax deduction for home office expenditure in the 2021 year of assessment.

By following a few basic principles you can create the kind of value that truly attracts buyers. To maximise value and sell at the price you want, you’ll need to demonstrate profitability, identify potential and reduce risk. Read on for our quick guide to creating value for buyers.

Electric vehicle (EV) and battery manufacturer, Tesla had an impressive 2020, with its share price soaring an unbelievable 720% for the year. This year its upward trajectory has continued with the share rising c. 20% YTD, closing at $850.45 on 20 January. In addition, Tesla delivered 499,550 EVs (+36% YoY) to customers last year, slightly below its own target of 500,000, with Wedbush expecting it to deliver 1mn plus vehicles p.a. by 2022.

Dorette van Deventer unpacks how companies are regulated in terms of Section 118 of the Companies Act 71 of 2008 (“the Act”) and in conjunction with Regulation 91 of the Companies Regulations in her latest article.
 

Companies are generally guided by their directors, who run the risk of personal liability in certain circumstances. Unlike directors, prescribed officers are not appointed or elected to the board but could also be held personally liable. Jacqueline Cousins guides us through the new regulations.

Alibaba’s annual online Singles Day (also called Double 11) shopping event, which usually takes place on 11/11, was this year extended to around two weeks. The event nearly doubled 2019’s record sales as China’s economy, unlike EU and Western economies, continued to recover from the ravages of the COVID-19 pandemic.

Audit committees have a critical role in assisting the Board in overseeing and monitoring an organisation’s principles and processes by which financials are recorded and disseminated, the hiring and monitoring of external auditors, ensuring regulatory compliance, assessing a company's internal financial controls, and reviewing risks with the senior management team. This role may also reach beyond financial performance monitoring to include a broader scope of the organisation's risk and control environment that includes operational processes and new technologies.

Be sure to keep SARS happy but take advantage of generous concessions and planning opportunities by thinking ahead.

Alibaba affiliate, Ant Group’s (Ant’s) listing could turn out to be the biggest initial public offering (IPO) in history as it chases a valuation that would rival the world’s biggest payment firms.

“Safety isn’t expensive, it’s priceless.” – Author Unknown. Megan Veldman, HR at Moore Johannesburg looks at Occupational Health and Safety measures in certain workplaces.

The share buy-back has long been an effective manner to consolidate ownership within a company. A share buy-back in many instances is also attractive from a tax perspective because it is considered a dividend and thus does not give rise to a capital gains event.

Share buy-backs are governed by Section 48 of the Companies Act 71 of 2008 (“the Act”), which allows the Board of Directors (the “Board”) of a company to determine that the company will acquire its own shares, subject to a solvency and liquidity test. Matthew Delaney Legal Consultant at Resolve Corporate Services takes a closer look.

Gender-based violence (GBV) is a profound and widespread problem in South Africa, impacting on almost every aspect of life. GBV (which disproportionately affects women and girls) is systemic, and deeply entrenched in institutions, cultures and traditions in South Africa. Karen Botha Wright delves into this subject a bit deeper.

The Moore Advisory Johannesburg team has partnered many entrepreneurs through the sale of their businesses. Based on this experience, the team have put together a six-part series of articles with advice on understanding the sales process. In part 3, they talk to you about who are you going to sell to?

In a rapidly changing business environment, businesses are constantly forecasting what the future may hold, whether strategically, operationally or when accounting for transactions, assets and liabilities in their accounting records. In accounting terms, we call those forecasts accounting estimates.

We are pleased to introduce Moore Debt Advisory, the most recent addition to Moore Johannesburg’s advisory offering. We aim to be a leading South African independent debt advisory firm within the Moore Global network, offering specialist debt advisory and debt raising services alongside and in partnership with our existing South African corporate finance advisory offering.

Known for its electric vehicles, expectations are that Tesla’s energy storage business segment has enormous growth potential. It is estimated that this segment’s revenue contribution could jump from FY19’s $1.5bn to an impressive $12.4bn by FY23, crossing the $200bn revenue mark by FY33.

Financial fraud is a major contributor to the widespread poverty plaguing South Africa. From SAA being looted - leading to job losses - to fraud and corruption in the management of SASSA grants, it seems that the poorest of the poor are always the unwilling losers. But whose responsibility is it to prevent and detect fraud? Sindy Pretorius looks into this.

The Moore Advisory Johannesburg team has partnered many entrepreneurs through the sale of their businesses. Based on this experience, the team has put together a six-part series of articles with advice on understanding the sales process. In part two, they talk to you about managing the ups and downs of the sales process.

October is ethics month and the question at the top of our minds this month is, “Is it possible for a person of questionable morals or ethics to do ethical business or lead a good company?” For the record, we believe that the answer is a firm “no”, but that the question warrants discussion. Tarryn Wright and Anusha Ramraj delve a bit deeper into this topic.

Apple has officially become the first US listed company to reach the $2trn market cap milestone. In this article, Marco de Matos gives a brief overview of Apple’s meteoric rise to the $2trn behemoth the company is today.

With the change in modus operandi for companies during these turbulent times, we look at Global Talent and how to acquire this locally. Megan Veldman, Moore Johannesburg, Human Resources Manager, takes a closer look.
 

Most organisations are currently looking at their internal resources and cost effectiveness in these turbulent times. Presumably, one of their conundrums will be whether or not to retain the internal audit function. Louw van der Merwe, Director of Moore Risk Services, takes a closer look.

South Africa's Protection of Personal Information Act of 2013 (POPIA), came into effect on 1 July 2020. Pike Law Attorneys in association with Moore CT Forensics take a closer look.

The Moore Advisory Johannesburg team has partnered many entrepreneurs through the sale of their businesses. Based on this experience, the team has put together a six-part series of articles with advice on understanding the sales process. In part 1, it asks: Is your business ready to sell?
 

During the course of the past few days, significant developments have taken place with respect to the UIF Temporary Employee/Employer Relief Scheme (“TERS”) as well as the Lockdown regulations.

Anél Jacobs, our L&D lead, brings us ten books by women to read this women’s month, covering everything from the power of passion and perseverance, to the gift of radical candour. Charge up your bookstand or kindle and be inspired.

In celebration of Women’s month, Moore Johannesburg Director, and mom, Candice Whitefield, looks at the increased challenges women are dealing with as a result of COVID-19, and shares some of her tips for creating balance.

The corporate governance principles contained in the King IV (King Code) are in general voluntary. However, from 31 December 2020, organisations will be compelled to disclose additional information regarding corporate governance practices in their annual reports. Henco Beukes of Moore Johannesburg, takes a closer look.

On the 5 May 2020 the South African Revenue Service (“SARS”) Commissioner, Edward Kieswetter, held a media brief in which fundamental changes were announced to the 2020 tax filing season in relation to personal income tax. To see the full media release, please click here.

Kieswetter stated “more than ever before, we need taxpayers to remain compliant!” and as such SARS have designed a three-phase approach for the filing season commencing in April 2020 and ending in January 2021. According to SARS the different phases will ensure a “seamless filing season”.

Earlier today the Minister of the Department of Employment and Labour (“DEL”) announced that applications for the Temporary Employee/Employer Relief Scheme (“TERS”), operated by the Unemployment Insurance Fund (“UIF”), will be extended until 15 August 2020.

As part of the government’s response to the negative economic impact of the COVID-19 Lockdown, the Unemployment Insurance Fund (“UIF”) has been managing the processing and payment of claims submitted in relation to the Temporary Employer/Employee Relief Scheme (“TERS”).

The total payments made to employers/employees, as confirmed by the Department of Employment and Labour up to and including the 19th of June 2020 is close to R 24 billion - R 6 billion of which solely relates to the month of May.

On the 12th of July 2020, the President announced further amendments to the Lockdown Level 3 Regulations in terms of the Disaster Management Act No. 57 of 2002. These amendments have been made in the wake of an exponential increase in positive COVID-19 test results throughout South Africa, specifically the Western Cape, Eastern Cape and Gauteng.

IFRS 16 Leases contains requirements that specify the accounting for changes in lease payments, including rent concessions, where entities are required to assess whether such rent concessions are lease modifications.

As part of the government’s response to the negative economic impact of the COVID-19 Lockdown, the Unemployment Insurance Fund (“UIF”) has been managing the processing and payment of claims submitted in relation to the Temporary Employer/Employee Relief Scheme (“TERS”).

The total payments made to employers/employees, as confirmed by the Department of Employment and Labour (“DEL”) on 26 May 2020, is just over R 15 billion. These payments, however, only relate to the month of April. UIF TERS relief for May has been long awaited by employers and employees.

The schedule hereunder illustrates the relevant EMP201 submissions and payments impacted by the deferral of payment of 35% of the PAYE liability as well as the submissions and payments impacted by the six-month instalment catch-up of the four-month 35% PAYE liability previously deferred.

On 13 May 2020, President Cyril Ramaphosa re-affirmed the government’s commitment to balancing the health of the South African people and the ability of those exact people to earn a living. He commented that the positivity rate has remained low and stable, allowing for a further relaxation of the regulations under Level 4. We have already seen some of these relaxations implemented during the course of May.
 
The take away from his latest speech was that the government will immediately begin a process of consultation with relevant stakeholders on a proposal that by the end of May, most of the country be placed on Level 3, but that those parts of the country with the highest rates of infection remain on Level 4. Minister of Health, Zweli Mkhize announced that the lockdown will be assigned on a district basis and not provincial as initially speculated.
 
The full speech of the president of 13 May 2020 can be located HERE.
 
An updated version of the regulations under Level 3 has not yet been released, but we will communicate as such when more information becomes available.
 
Since our “Moore: Alert” on the Level 4 Lockdown Regulations, which can be located HERE, additional information has been released by the National Treasury, the UIF and the government on various matters.
 
In this article we communicate the latest developments with respect to UIF TERS, Tax Relief and Level 4 Lockdown Regulations in order to ensure our client base remains informed and vigilant. We request our readers to read our article in conjunction with the relevant source documents, where referred to.

South Africa is entering Lockdown Level 4 on 1 May 2020. This has far reaching implications for employers, employees and the business community at large.
 
The regulations issued by the South African government (the “government”) on 29 April 2020 are very detailed and specific to each respective industry and employer. Due to the large volume of information we cannot communicate the intricacies of the regulations and have therefore elected to rather ensure our client base has access to the relevant source documents in order to investigate and conclude on their own.
 
The pertinent information is detailed below and must be read with the source documents referred to:

At approximately 8:30 pm on 21 April 2020, President Cyril Ramaphosa announced a government backed COVID-19 relief package of unparalleled magnitude never before seen – worth an estimated R500 billion. This roughly equates to 10% of the South African GDP.

To put this in perspective – it is roughly R50 billion more than the entire Eskom Debt to date, which has dominated the news headlines over the recent years. The majority of the R500 billion relief package will be funded by additional debt the government will bring onto the balance sheet of South Africa from various international financial institutions, with the minority of the relief package being funded via available government funds and a reallocation of the current budget

Subsequent to our previous article (click HERE) which discussed, amongst other topics, the intricacies of the COVID-19 Temporary Employee/Employer Relief Scheme (“C19 TERS”), the Department of Employment and Labour (“DEL”) have made numerous amendments to the relevant requirements and the application process.
 
We suspect that more amendments will inevitably be implemented by the DEL in relation to C19 TERS, but we are of the opinion that the material amendments have been made and that a form of ‘stability’ has been reached.
 
We would like to take this opportunity to point out that certain spokespeople have issued statements that are contradictory to the information published in the government gazette and/or in UIF/TERS Guidelines. Verbal statements by Ministers or similar Representatives on media platforms do not amend the published laws, regulations and guidelines and are non-binding.
 
In this article we delve into what the current format of C19 TERS entails, what the requirements as at 20 April 2020 are, who can apply and where to apply. Lastly, we answer a number of frequently asked questions.
 
Our specialist tax and advisory teams at Moore SA are committed to ensure our clients have access to accurate and relevant information at all times which supports the commercial decision-making process. We remain cognisant of the fact that information changes on a frequent basis. Our commitment to our readers during the Lockdown period, however, remains the unchanged:
 
Helping you thrive in a changing world
 
We have condensed the most pertinent information from lengthy and in-depth government sources, but request our readers to, where source documents are referred to in this article, read our article in conjunction with the source documents before making decisions.

Mark Hewitt CA(SA), a Tax and Advisory Consultant at Moore Cape Town with a Masters in Taxation (MTax), recently joined Dr Andy Brough and Dr Dennis Farrell as part of their webcast series produced in order to support South African businesses in the midst of the COVID-19 pandemic. Mark shared his thoughts on financial sustainability in the current business climate. He has also written and compiled some helpful articles for businesses, which can be found HERE.

In our previous article, released on 31 March 2020, we discussed the various tax relief measures, implemented by the South African Revenue Service (“SARS”) to curb the negative impact of the COVID-19 pandemic and the Lockdown. The article can be found HERE for reference.

In this article we analyse the various relief measures made public by the South African Government (“the government”) to date and aim to communicate how South African employers can access these funds and relief measures.

Considering the magnitude and severity of the COVID-19 outbreak, which has been declared a global pandemic by the World Health Organisation (“WHO”), the Minister of Coorperative Governance and Traditional Affairs on 15 March 2020 declared a National State of Disaster in terms of the Disaster Management Act No. 57 of 2002 (“the Disaster Act”) per Government Gazette No 43096.

The Profmark team share a concise summary of the tax implications of Wednesday’s Budget speech by Minister of Finance, Tito Mboweni.

2019 recorded the highest ever box office revenue, globally.  In an article written exclusively for Moore, Anchor Capital looks at how the movie industry is performing.

Effective 1 March, Moore Johannesburg is pleased to announce the expansion of its cloud-based accounting services by joining forces with BKF Accountants.

Next week, the annual Investing African Mining Indaba kicks off in Cape Town. The industry’s global stakeholders will gather to discuss the issues and opportunities at play. 

Moore is once again pleased to be attending this prestigious event. If you have any questions, or would like to find out more more information, please contact our South Africa Leaders in Energy, Mining and Renewables, Olivier Barbeau (Managing Partner, Moore Johannesburg) and Leonard Roberts (Managing Partner, Moore JHB-East Rand).

Olivier and Leonard will be joined by global sector leaders, Jeff Blackbeard (Regional Director Africa and Middle East) and David Tomasi (EMR Global Sector Leader). We look forward to seeing you there.

Moore Stellenbosch Partner, Izak du Plessis, and five other cyclists will cycle a distance of 1904 km, from Johannesburg to Cape Town, in 11 days to raise awareness of child abuse. Izak is no stranger to the bike. He has been cycling for 26 years, he has completed 22 Cape Argus cycle tours and 4 Epics, alongside various other multi-stage cycling events, too many to mention! But this will be a tour unlike any other in South Africa. It will not only impact Izak’s life, but it will change the lives of many others.
 
Support him by making a donation towards this extraordinary fundraising effort. #ProudlyMoore
 
Click here to donate and pledge.

In an article written exclusively for Moore, the team at Anchor Capital looks at the impact the spread of the Coronavirus, originating in Wuhan, China, may have on markets, and what it means for investors.

The tax year ends on 29 February 2020. Our national tax advisory experts share their tips for reducing your tax liability, preparing for tax year-end, advice for avoiding penalties and some thoughts on how to #GetOrganised.

In an article written exclusively for Moore, the team at Anchor Capital looks at the Fourth Industry Revolution, and how this era of technological disruption and social change is rapidly changing the way we create and distribute value.

Mike Hathorn, Chair, Global Quality Standards Board discusses the changes in the audit industry he has seen over his 50-year career and why the industry is at a crossroads.

The holiday season is almost upon us, and it's an excellent time to get your financial house in order. Olivier Barbeau, Managing Partner at Moore Johannesburg, suggests that a pre-holiday financial to-do list should a top priority for anyone looking to kick off the new decade with some peace of mind. Most of these tasks can be accomplished quickly, but the benefits can last a lifetime.

The release date of the Estate Agency Affairs Act 112 of 1976 (EAAA) clearly indicates that it is outdated. A lot has changed in the last 43 years and now, so has this act. The Property Practitioners Act 22 of 2019 (PPA), which replaced and repealed the EAAA, was promulgated in the Government Gazette on 3 October 2019. National Technical Director of Moore South Africa, Sindy Pretorius, takes a closer look.

On 13 August 2019, CIPC issued Notice 52 of 2019 confirming that it is now implementing a new method to monitoring compliance with the Companies Act 71 of 2018 with the so-called Compliance Checklist. As of 01 January 2020, the submission of the compliance checklist will be compulsory and needs to be submitted to CIPC as part of the annual return submission process. Nadia Van Der Merwe, Cosec Manager at Moore Johannesburg-East Rand, looks at what is required in the checklist, and what companies need to do to ensure compliance.

Have you ever considered the individual and corporate tax risks of your increasingly mobile and global work force? If you or your employees travel internationally for work, those trips may have tax implications, presenting compliance risks that need to be actively managed. In other words, their presence in another country can create a tax reporting requirement.

As part of the recent rebrand from Moore Stephens to Moore, the brand refreshed its brand pillars – the traits we hold as key to who we are and the working environment we seek to create for both clients and our team. Matt Budden, a trainee in the Moore Cape Town firm, shares his thoughts on what these pillars - access, passion, community and care - actually mean in industry, traditionally defined by just the numbers.

We are proud to announce the launch of the Moore mobile app which gives you access to the Moore Global directory, latest insights and news at your fingertips. To download the app to your mobile, please click on the link relevant to you below.
 
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With the enactment of the Carbon Tax Act No.15 of 2019 and the first reporting deadline for Carbon Tax liability during July 2020, Moore Cape Town and Global Carbon Exchange (“GCX”), an environmental resource advisory firm, have partnered to offer service in relation to NGER and Carbon Tax-compliance and liability assessments.

In a recent Supreme Court of Appeal case, BMW South Africa (Pty) Ltd v Commissioner for the South African Revenue Service (No. 1156/2018), the court unanimously ruled that services provided by professional tax advisors to expatriate employees of BMW constituted taxable fringe benefits in the hands of the employees, on which PAYE should have been withheld. Moore Cape Town’s Grant Ward looks at the implications.

The velocity at which today’s global marketplace is changing requires organisations to continuously re-assess risks or events that may affect the achievement of their strategic business objectives. Henco Beukes of Moore Johannesburg explores the fundamentals that are key to managing your risk environment.

As Brexit turmoil continues to plague the UK market, the team at Anchor Capital looks at the possible outcomes for the country in an article exclusively written for Moore.

SARS is in the process of implementing a secure electronic Tax Compliance Status (TCS) system. This has implications for how taxpayers share their tax compliance status.
 

Are you looking at selling your business? If you think that agreeing on the business’ value is the hard part, think again. Many owners overlook the question of the purchase price’s net working capital adjustments, let alone how much cash to leave in a business at the point of sale. Colin Prasad, Associate Director of Corporate Finance in Melbourne, takes a closer look:

The Manufacturing Industry in South Africa is full of opportunities for investment, and the SA Department of Trade and Industry has ensured that there are a number of attractive incentives to do so. Kai Reuning, Director at Moore Johannesburg, takes a closer look.
 

On 11 September 2019, Naspers Limited (“Naspers”) successfully listed its international investments, through a newly-established company called Prosus N.V (“Prosus”), on the Euronext Amsterdam Exchange. Grant Ward, tax expert with Moore Cape Town, provides insight into the tax implications of the Prosus listing for Naspers shareholders.
 

Spring traditionally brings with it the promise of hope and renewal – things in short supply in South Africa at present. Olivier Barbeau, Managing Partner of Moore Johannesburg, looks at the challenges facing our nation and notes that now, more than ever, businesses need ethical leadership, rock solid advisors and the will to stand and be counted.

In a world defined by change, everyone must adapt. Today Moore Stephens demonstrates that philosophy with a global rebrand as ‘Moore’, bringing a fresh perspective to the increasingly complex challenges faced by both their local and global clients.

For the last eight months, we’ve shared 16 of our most inspiring reads for business leaders. If you missed any of them, here’s a recap of the books we’ve been reading and why we love them.

In this month’s Market Outlook, written exclusively for Moore Stephens by Anchor Capital, the team looks at the recent 1H19 results for Nedbank, Standard Bank and ABSA, and what they indicate for the banking sector.

The Carbon Tax came into effect 1 June 2019. Moore Stephens Cape Town’s tax experts look at what the Carbon Tax entails and ask whether it is the break of a new dawn or the straw that breaks the camel’s back.

Each month, our Moore Stephens L&D team brings you its top picks for essential reading. Ahead of Women’s Day on 9 August, we look at two books focussed on Women in Leadership.
 

In this month’s Market Outlook, written exclusively for Moore Stephens by Anchor Capital, the team reviews China’s new answer to the Nasdaq.
 

The International Accounting Standards Board (IASB) issued IFRS 16 Leases on 13 January 2016. Revising the lease accounting requirements was first added to the IASB’s agenda in 2006. Since then, several exposure drafts have been issued and hotly debated. Now that IFRS 16 has been released, our team looks at the key implications for leases and lessees.
 

Each month, our Moore Stephens L&D team brings you its top picks for essential reading. This month we look at two books published in 2018 on legacy and leadership – one about what makes ordinary people into extraordinary leaders and one about how to build a long-term legacy in a short-term world.

In this month’s Market Outlook, written exclusively for Moore Stephens by Anchor Capital, the team takes a look at the recent Naspers results and NewCo listing delay.
 

We received an overwhelming response to our March newsletter article on Section 12J and how it is delivering growth for South Africa. To answer just some of your questions, we have put together a list of FAQs related to Section 12J and Section 12J Venture Capital Companies (VCC). Kai Reuning and Hans-Dieter Hillermann of Moore Stephens Johannesburg share their insights.

Transport to and from work is a daily struggle for many South Africans and as a result, many businesses provide transport for their employees. In recognition of this necessity, SARS has introduced Paragraph 10(2)(b) of the Seventh Schedule to the Income Tax Act to provide this service at “no value” for tax purposes. Lynn Alaraju of Moore Stephens Johannesburg takes a closer look.

The National Mauritian Budget 2019/2020 themed “Embracing a Brighter Future Together as a Nation” was presented earlier this month by the Mauritian Minister, the Hon. Pravin Kumar Jagnaugth. Our colleagues at Moore Stephens Mauritius share their insights into the budget and what it means for individuals and companies with interests in the country.
 

In these tough economic times, more and more taxpayers are struggling with cash flow and are unable to settle tax debt due to SARS. Moore Stephens Cape Town’s Grant Ward takes a closer look at the compromise arrangements available to individuals, trusts, close corporations and companies.

SARS Commissioner, Edward Kieswetter, has announced changes to the tax return threshold, as well as the dates for the 2019 tax filing season. Moore Stephens Cape Town’s Grant Ward looks at what you need to know.

The Double Taxation Agreement (“DTA”) between The United Kingdom (“UK”) and South Africa (“SA”) has been enforced since December 2002.  In terms of Articles 11,12 and 17 of the DTA interest, royalties and pensions, other than Government pensions, paid to a South African tax resident is only taxable in South Africa meaning HM Revenue & Customs (“HMRC”) do not have taxing rights on these sources of income.

Each month, our Moore Stephens L&D team brings you its top picks for essential reading. This month we look at two books that challenge conventional approaches to management, from decision-making to strategic approach.

In this month’s Market Outlook, written exclusively for Moore Stephens by Anchor Capital, the team looks at India, one of the world’s fastest-growing economies, as an increasingly attractive investment destination.

Each month, we’ll be profiling a different firm in the Moore Stephens South Africa network. Moore Stephens Cape Town was one of the first firms in South Africa to negotiate the use of the Moore Stephens name. The merger of two dynamic accounting firms in 2003, Bush Kohlberg Inc and Van der Westhuizen Andersen Inc, joined forces and together with Moore Stephens Johannesburg were the first firms to practice under the Moore Stephens banner. 

Now centrally located at Northgate Park, along the N1, Moore Stephens Cape Town is a significantly expanding accounting and auditing practice with professionals, trainee accountants and support staff servicing a wide array of industry sectors.

Each month, our Moore Stephens L&D team brings you its top picks for essential reading. This month we look at two books that explore how to live a more effective life, both personally and professionally.

If you are a Moore Stephens Alumnus, we’re delighted to invite you to Moore Connect – a Moore Stephens Alumni group for South Africa. No matter how long you have worked at Moore Stephens, we believe that the relationships forged at our firms reach well beyond your time with us. Make the most of this network of exceptional individuals and join our LinkedIn Group or subscribe to our Moore Connect Alumni newsletter. We look forward to finding out what you have been up to.
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In this month’s Market Outlook, written exclusively for Moore Stephens by Anchor Capital, the team argues the case for diversification in the face of increasing risk.

Blockchain technology is not only in vogue. It is starting to disrupt the incumbent payments industry by delivering enhanced speed, security and transparency. Moore Stephens International, in conjunction with our Global Blockchain Leaders, outline the key consideration for Audits with Digital Assets in a fascinating new downloadable report.

Read more here

Each month, our Moore Stephens L&D team brings you its top picks for essential reading.

It is no secret that one of the key motivators in performance is recognition. Anel Jacobs, Head of L&D at Moore Stephens, takes a look at how to give recognition authentically and with impact.

Many employers may be unaware that they can take advantage of a tax-deductible education benefit for their relatives. Marisa du Plessis from EdNVest, takes a closer look

In recent years, companies listed on the JSE have faced substantial changes in the manner that they report, and increasingly they need specialist partners who understand these reporting, audit and assurance needs.

Section 12J was introduced into the Income Tax Act in July 2009 to provide individuals, companies and trusts with a significant tax incentive to invest in certain qualifying companies. With expert insight from Westbrooke Alternative Asset Management, our team takes a closer look.

Most of us dread giving feedback – whether it’s at work, at home or any other area of our lives!  Our in-house academy, TAG Talent & Growth, explains what feedback is, why it is important and shares some tips for giving feedback with impact.

It’s no secret that one of the key motivators in performance is recognition. Anel Jacobs, Head of L&D at Moore Stephens, takes a look at how to give recognition authentically and with impact.
 

Each month, our Moore Stephens L&D team brings you its top picks for essential reading.
 

In this month’s Market Outlook, written exclusively for Moore Stephens by Anchor Capital, the team looks at the highlights from Warren Buffet’s annual letter to shareholders.
 

Our Energy, Mining and Renewables team reflects on its experiences at the recent 25^th annual Mining Indaba, and the opportunities the sector presents for the future.

The 2019 tax year ends on 28 February 2019. Our tax advisory team in Cape Town shares some tips for reducing your tax liability and advice for avoiding penalties.

Moore Stephens Johannesburg is delighted to announce the promotion of Matthew Visser to Partner. Matthew has been an integral part of the team for many years and this long and dedicated service, along with his commitment to quality and his focus on customer service, makes him a natural fit for the firm’s leadership team.

Moore Stephens’ in-house academy, TAG Talent & Growth, run by our L&D team, explains why goals are important and shares some tips for successful goal setting in 2019.

In this month’s Market Outlook, written exclusively for Moore Stephens by Anchor Capital, the team look at how to approach the buying and selling of shares in the context of so much noise and volatility in the market.

The holiday season is almost upon us, and it's an excellent time to get your financial house in order. Olivier Barbeau, Managing Partner at Moore Stephens Johannesburg, shares 6 smart planning tasks that will give you peace of mind.

If you’re looking for some summer reading, our Moore Stephens L&D team share their top two book recommendations. Steinheist: Markus Jooste, Steinhoff & SA's biggest corporate fraud written by Rob Rose and Shoe Dog: A Memoir by the Creator of Nike, written by Phil Knight.

Maternity benefits are often misunderstood and the process of claiming them can be a daunting one. Moore Stephens Johannesburg’s HR specialist, Megan Veldman, takes a closer look.

The National Treasury has revised and clarified anti-avoidance rules on share buy-backs and dividend stripping. Moore Stephens Cape Town’s tax advisory team takes a more detailed look.

CIPC has confirmed that even companies undergoing a voluntary audit are required to disclose their directors’ remuneration, and by name, and that failure to do so would be tantamount to a contravention of The Companies Act. 

South Africa has entered a technical recession. We can expect an increase in merger and acquisition activity. Often the Takeover Regulations contained in the Companies Act No. 71 of 2008 are overlooked. Failing to adequately consider these implications could have dire consequences for shareholders, particularly those of small to medium private companies.

Moore Stephens is once again pleased to be attending the Investing in African Mining Indaba 2019. If you have any questions, or would like to find out more information, please contact:
 
Olivier Barbeau: South Africa Sector Leader – Johannesburg
David Tomasi: Global Sector Leader - Australia
Jeff Blackbeard: Strategy Advisor – Africa
Margie Alt: Director – Africa
Leonard Roberts: Managing Director – East Rand

As you may be aware, SARS currently imposes administrative penalties only in respect of the non-submission of individual income tax returns. As from 7 December 2018, administrative penalties for late Corporate Income Tax (CIT) returns will be imposed. These penalties will be raised in terms of section 210 of the Tax Administration Act and the required gazette will be issued in terms of section 210(2) of that Act.

Did you know that all companies and close corporations are required to submit either Annual Financial Statements or Financial Accountability Supplements when filing their Annual Return?

As South Africa heads into a recession, good tax planning is essential for companies in order to manage their tax liabilities against cash flow. Janine Bamber of Moore Stephens Durban looks at five ways to be more tax efficient.

Statutory Annual Employment Equity Reports will shortly fall due for submission to the Department of Labour.  Non-compliance can result in prosecution, so it’s advised that designated employers prepare and submit their reports on time.

Building a property portfolio could add an exciting dimension to your investments. In our Sensible Soundbite slot, Izak du Plessis, the head of the property team at Moore Stephens, gives his top tips for surviving, and hopefully thriving, in the property world.

SARS has had a busy month, issuing news of a shorter 2018 tax season, an update on Customs requirements and a reminder about changes to Value-Added-Tax.

Growing your capital and bringing in income is a major drawcard for property investors. But there could be tax benefits along the way, if you are in it for the long haul.

Positive political change is good news for property in South Africa. But this has been tempered with debates over land expropriation and some jitters about the economy. We asked our Moore Stephens property team for their views on property trends and opportunities in South Africa.

For supplies made on or before 31 March and subject to VAT at 14%, the VAT amount should be calculated manually and included in Field 12 in the VAT201 return which is marked as ‘other’.
 
Supplies made on or after 1 April are subject to VAT at 15%, the the VAT201 return will automatically calculate the VAT on consideration. The consideration must be encountered for in Field 1 of the VAT return and the 15% VAT automatically calculated in Field 4.

The recommendations made in the final Davies Tax Committee Reports have clarified some questions relating to the general policy direction most likely to be followed by Treasury, but until these recommendations become law, they create more questions than answers and introduce unneeded uncertainty into the financial regulatory space. In other regulatory news, our team share updates on NOCLAR declarations and increases in estate duty.

It is well-known that sole proprietors who work from home are able to claim back certain expenses related to a home office, but individuals who are formally employed – and even those who don’t have a contract - can also claim back home office expenses, provided they can prove that these expenses were bona fide for the “more efficient performance of their duties”.

The fact that fewer than ten percent of South Africans can afford to retire comfortably raises an interesting question about whether employers have a moral responsibility to ensure that their employees are provided for when they retire.

The introduction of the Protection of Personal Information (PoPI) Act later this year will make the outsourcing of payroll functions an even more attractive and viable option for businesses.

The annual employer reconciliation for the 2018 financial year has opened and returns are due to the South African Revenue Services (SARS) by 31 May 2018.

Few people ever embrace change, but the new XBRL requirements that come into effect on 1 July promise to make submitting your financials faster and quicker in the long-run. In addition, smaller pension funds may soon be required to have their financial statements audited. Find out more:

Regardless of your industry, there is one theme that is true of every business and that is: change happens. Irrespective of the size and nature of your business, you will always have to react to outward forces — political interference, volatile exchange rates, labour unrest and changes in technology. 

Resilience may be the new corporate buzzword, but even small and medium-sized businesses can put systems in place that help them to bounce back faster from setbacks. In a world where uncertainty is the new normal and disruption is a constant threat, the best way to manage risk is to build resilience into your business – and it’s much easier than you think.

Savings and investment; demography; policy and institutions; education; health and openness are the six common ingredients which can catapult an economy to prosperity, Chief Executive of Cannon Asset Managers, Adrian Saville, has outlined in an address to Moore Stephens partners and clients in Cape Town.

A boost in commodity prices, an improved political outlook for South Africa and Zimbabwe and a greater appetite for investment in the mining sector have prompted new leads and partnerships since the Investing in African Mining Indaba.
 
The winds of change blowing across parts of southern Africa have also held promise.

Property developers who let out residential units have been dealt a blow, as relief provided for in the VAT Act has come to an end.
 
In terms of current legislation where a VAT vendor acquires assets for the purpose of making taxable supplies and this application changes, whether it be a periodic or permanent change, they are required to make a change of use adjustment and effectively repay to SARS the input tax they would have previously claimed.

In an attempt to curb the avoidance of estate duty and donations tax National Treasury introduced Section 7C of the Income Tax Act with effect from 1 March 2017. This anti-avoidance section focuses on natural persons who have transferred growth assets (tax free) to a trust through the use of an interest free loan or a loan with interest below market rates.

A boost in commodity prices, an improved political outlook for South Africa and Zimbabwe and a greater appetite for investment in the mining sector has prompted new leads and partnerships for Moore Stephens. This follows the successful Investing in African Mining Indaba in Cape Town.

It was indeed a relief that we had a budget speech as scheduled and without major disruptions. Although not being the main focus point of the post budget media discussions (the increased VAT rate won that prize), there is a strong emphasis in the budget proposals on increased enforcement of rules and regulations governing transfer pricing and cross border transactions, that may result in profit shifting.

The Financial Sector Regulation Act (FSR Act) was signed into law by the President on 21 August 2017. The Act aims to consolidate the regulation and supervision of the financial sector and its various subsectors - namely banking, insurance, financial products and services and market infrastructure - to ensure that each subsector is subject to financial regulation. This regulation requires financial firms to control risks and hold adequate capital as defined by capital requirements (Prudaential requirements) and consumer protection rules in the form of market conduct supervision.
 

Global

2017 turned out to be a buoyant year on the global economic front. Leading indicators in most developed economies were trending up and talk about a synchronised global recovery has been widespread. This was evident in capital market performance over the last twelve months.
 
The manufacturing PMI lead indicators have been particularly strong towards the end of 2017: the ISM indicator in the US rose to its highest level since 2004, the Chinese official PMI is the highest since 2012, and the European composite is its highest since 2011.

There is no question that we are living in uncertain economic times, but that doesn’t mean that you can’t feel financially secure. For most people, financial security means having a reliable source of income, but there are other ways to ensure that, even during tough times, you won’t feel the crunch. We recommend committing to these five resolutions to ensure that in 2018 your financial well-being is in the best shape possible.

Thanks to the recent publicised outbreaks of ransomware, cybersecurity is suddenly a hot topic amongst most C-level executives. Most are scrambling to understand the impact of cybercrimes, what cybersecurity means and what they should be doing to protect themselves and their companies. But is the threat real?
 

Global

Real global economic growth has tilted up and is approaching the long-term trend of 3.5% per annum, and yet global interest rates remain at depressed levels. At 1.25%, the Federal Reserve’s Fed funds rate is high when measured against its peers (Bank of England’s clearing bank rate at 0.25% and the European Central Bank’s repo rate effectively at 0%). Yet it is by no stretch of the imagination high when measured against historical levels. 

Monetary policymakers, especially outside of the US, are particularly dovish and very careful not to stifle economies with near-term interest rate increases. There are, however, pockets of strong growth around the world – the aggregate real GDP growth of emerging markets averages nearly 5% at the moment. Sadly, South Africa is the worst performing of these markets at around 0.5%.

Did you know that alien abduction insurance has been available in the USA since 1987? Today, it would be unusual to find someone who has not purchased some form of insurance, whether it be for his/her car, home, life or business. Insurance gives us the financial security against unforeseen, calamitous and sometimes tragic events, with insurers providing policies for these risks, and many, many others.

It may be called the “Land of the Free”, but the ability to live and work in the USA as a freedom citizen of another country is largely denied – and increasingly coveted. So much so, in fact, that the uptake of various federal visa programmes administered by the United States Citizenship and Immigration Services (USCIS) has skyrocketed in recent years. Among the most popular of these are the EB-5 and E2 programmes.

Andrew Pitt a Director of Moore Stephens Cape Town Inc. wrote a simple email to George Stylianou of Moore Stephens Nicosia on the 3^rd October 2016 introducing himself and asking whether MS Nicosia would be interested in taking part in a due diligence project for an acquisition which would potentially take place in Cyprus. Within minutes of receipt George responded positively and an hour later an NDA was sent by Andrew to establish confidentiality in place.

It is that time of year again, when sick leave may impact staff attendance and in turn, impact productivity, reducing staff morale and costing your company money. The key to combating the effects of sick leave in the workplace, is to understand what the sick leave entitlement covers, and have policies in place to manage sick leave.

MPC Announces 25bps Interest Rate Cut

The Monetary Policy Committee (MPC) of the South African Reserve Bank (SARB) announced a 25 basis point (bps) cut in the benchmark interest rate at its 20 July meeting, thus dropping the repo rate from 7.00% to 6.75%.

We are regularly asked this question by clients who are looking to establish an internal audit function.

As professional service providers of internal audit services on an outsourced basis, there is obviously a case to be made that we are not in a position to provide independent advice, as it relates to this question. We do, however, like to think that we put our ethics before our wallets.

In a distant kingdom, many years ago, the International Accounting Standards Board (IASB) wanted to achieve consistent accounting for all insurance contracts by all companies around the world (although the US has opted out and US GAAP will persist), to enable comparability with non-insurance products. In May 2017, the International Financial Reporting Standard (IFRS) 17 on Insurance Contracts was released with an effective date of 1 January 2021, with prior-year comparative reporting required.

The level of disruption in the Insurance Industry has highlighted insurance companies’ need for affordable, efficient and high quality advisory services.

Continuing pressure to be efficient, reduce costs and increase profitability are an ongoing challenge for the market. As the insurance sector has evolved, so has our service offering. With the breadth and depth of our insurance expertise and experience, we are ideally positioned to help our insurance clients overcome their challenges.

For those concerned about new regulations regarding the cross-border sharing of financial information, an alternative residence can provide peace of mind.
 

South Africa plunged into its second recession in eight years during the first quarter of 2017. Africa’s most industrialised economy contracted by 0.7% in the first three months of the year after a 0.3% drop at the end of 2016.

IRBA published the Mandatory Audit Firm Rotation rule on Friday, 2 June 2017, implementing firm rotation on a rotation period of ten consecutive years, and a cooling off period of five financial years. The effective date is financial years commencing on or after 01 April 2023.

On 7 October 2016 the Sectional Titles Schemes Management Act, No 8 of 2011 and the Sectional Titles Schemes Management Regulations, 2016, became effective. Together with the Act and Regulations, the Community Schemes Ombud Service Act, 2011, and the Regulations also became effective.

On 15 June 2017, the Minister of Mineral Resources published the reviewed Mining Charter.  In theory, the Charter seeks to address the issue of black economic empowerment within the mining sector. In practice, though, the Charter has already induced panic in the financial markets and is likely to discourage investment, complicate shareholding matters and reduce employment within the mining sector.

As the world becomes ever more globalised and people live and conduct business on a progressively more international scale, freedom to move within the global market provides a decided edge. Increasingly, a valuable asset in the portfolios of wealthy investors has become a second passport.

Some of these are rather simple. You are engaged by the shareholders of a business and asked to value the business, as the shareholders wish to take out buy-and-sell cover.

It appears straightforward. However, at times there is an acrimonious split or a sale situation where the buyer and seller have very different values in mind. Emotions of the parties are running high and you are under pressure by one party to achieve a certain result.

Greeting cards, for example, are received via e-mail and seem to be from a friend. When the e-mail and greeting card are opened, malicious software is downloaded and installed on the receiver’s operating system.

The appraisal remedy, found in Section 164 of the Companies Act, is a novel concept in our corporate law. It is derived in large part from the equivalent provision in the Canada Business Corporations Act.

Feedback on the Risk Management Process to Oversight obviously depends on the level of oversight required. In most organisations, the Risk and Audit Committees are combined. Feedback would, therefore, come from both these bodies.  

Phishing e-mail scams

Phishing is defined by Wikipedia as “…the attempt to obtain sensitive information such as usernames, passwords, and credit card details (and sometimes, indirectly, money), often for malicious reasons, by masquerading as a trustworthy entity in an electronic communication.”

Currently, if a South African resident is employed and works abroad for more than 183 days of which 60 days are continuous within a 12 month period, the employment income earned is exempt from tax in South Africa. This is commonly called the section 10(1)(o) exemption. Following the Budget announced on 22 February, this is now under attack.

For many years, there has been uncertainty on how to treat fees paid to Non-Executive Directors (“NED”) in relation to value –added tax (“VAT”) and pay as you earn (“PAYE”). Following the issuing of two binding general rulings by SARS, certainty is now created for taxpayers.

Many of us, especially those who have a significant number of assets and want some form of protection, have created Trusts over the years to benefit and administer our estates in such a way to minimise risk and as a consequence of common law and legislation, draw on the tax benefit it offers.
 
At the beginning of the year, the presidency signed into law the Taxation Laws Amendment Act, No. 15 of 2016, noted in the government gazette number 40562 on 19 January 2017 (the “Act”) which will change estate planning and how trusts are used.

From cellphone threats and malware, to organizations, innumerable numbers of threats exist across the cyber landscape. Because you can commoditize cyber crime, it is making it easier and cheaper to launch attacks on a global scale. Cyber security has become a buzzword in the business environment, due to the numerous breaches reported. In Part 3 of this series, we discuss fake technical support scams you may come across.

​The upswing in the mining industry, which was reflected at the 2017 Investing in African Mining Indaba in Cape Town in February, has opened up exciting opportunities for Moore Stephens. 
 
Michael Simms, Moore Stephens Mining and Energy leader, based in London, was upbeat about projects which had survived the downturn cycle. Together with the more optimistic outlook for a number of commodities, he expects the expansion of Moore Stephens firms and increased presence in African countries to lead to wider opportunities.

Many South African farmers are suffering due to the effects of the severe drought that recently hit South Africa. Although fellow South Africans are trying to help farmers reduce the drought’s side effects, the taxman is not so sympathetic should the farmer not follow the correct procedures.
 
More often than not, livestock farmers pay more tax in a year that is hit by a severe drought than in a year with an above average rainfall. The reason for this is that, in a dry year, grazing pastures are limited which leaves farmers with no other option than to sell a portion of their livestock. Should the rain not arrive early enough to provide sufficient grazing before the end of his tax year, farmers will be unable to purchase replacement livestock.

For the majority of South African investors, these four numbers represent a year that most are quite happy to see at its end. The proverbial punches started in December 2015 with Nenegate, and in January last year, global financial markets produced their worst start in decades, preceded by a tumbling oil price.  Locally, a sovereign credit ratings downgrade plagued markets as our economy continued to slow down. 

Moore Stephens International member firms are once again attending the Mining Indaba conference in South Africa, taking place between 6th - 9th February 2017. With over 6,000 delegates from organisations across the globe including mining and exploration companies, international investors, mining services providers, law firms and investment banks, the conference provides a great opportunity to network with key clients and targets.

Moore Stephens Johannesburg Managing Partner, Olivier Barbeau, gives sound advice on being financially prepared for 2017 on The Lifestyle Show on SAFM.

POPI was signed into law by the President on 19 November 2013. Only certain parts of the Act have since come into operation, mostly the parts dealing with the establishment of the Information Regulator which, when the Act comes fully into operation, will be the governing body that will deal with any or all complaints in connection with personal information. The Act is expected to come into full operation within 12 months, being middle to end of 2017.

The enduring partnership between King James advertising icons, Chief Creative Officer, Alistair King and Chief Executive, James Barty, is almost legendary on the advertising scene in South Africa. As a client Moore Stephens is proud to call its own, we set out to find out more about this dynamic duo.  

The holiday season is almost upon us, and it's an excellent time to get your financial house in order. One of the keys to stress-free living in the holiday season is to make a financial checklist, suggests Olivier Barbeau, Managing Partner at Moore Stephens Johannesburg. While all the festive detail is being sorted, serious financial elements can go adrift and target dates missed. A pre-holiday financial to-do list is a top priority, or should be, for many of us. Most of these tasks can be accomplished quickly, but the benefits can last a lifetime.

Cyber security has become a buzzword in the business environment due to the numerous breaches reported. In Part 2 of this series, we discuss telephonic scams you may come across.

Cyber security has become a buzzword in the business environment due to the numerous breaches reported. In 2016 alone, there were reports about breaches in LinkedIn and MySpace. The Bangladesh Bank was robbed of $81 million via a SWIFT transfer, IRS, and the true extent of the Yahoo breach in 2014 is being reported. Hospitals and other healthcare organisations suffered ransomware attacks. In addition to attacks on companies, cyber criminals also target individuals with various different scams. In this series, we discuss more common scams you may come across, not only while browsing the internet or doing banking, but also in your everyday use of computers and other mobile devices. In this, Part 1, we cover Business Email Compromise, commonly known as Whaling.

Bearer plants related to agricultural activity are classified as property, plant and equipment under IAS 12 in the current financial period. (Effective date: For annual periods beginning on or after 1 January 2016). Previously, these would have been classified as biological assets along with the produce they bear, and valued at fair value per IAS 41. Produce continues to be classified as biological assets.

Polygraphing and its application can be a contentious issue. There are many reasons for this, but ultimately, as in all things, the level of input is equivalent to the resultant product.
 
The bulk of research done over the years, irrespective of personal opinion, is indicative of the fact that properly conducted polygraph examinations produce findings significantly better than chance. As such, this investigative tool has significant potential in the conventional investigative field.

Investors have identified opportunities to develop renewable energy in rural areas in several African countries, bringing power to small and medium-size businesses and the communities that surround them.
 
Together with technical partners, consulting and advisory firm, Moore Stephens Africa Advisory (MSAA) has a strategy to facilitate assisting rural communities and private developers to own and operate their own renewable energy farms.

The issue of refunds remains of great concern to all involved. (See also the SAIT Member Alert 1 September 2016). We are sending this alert once again to inform you that you are not alone in your concerns. The issue of refunds is a widespread issue, based on the myriad of complaints that we receive daily, as well as on our discussions with other key recognised controlling bodies. The most urgent concerns relate to ITR12’s, with VAT refunds being an ongoing issue.

We never like talking about death and taxes, but ensuring that you have a valid and current will can alleviate further hardship for the loved ones whom you leave behind. In this way, some unintended consequences are avoided, not to mention the unnecessary hardship for surviving family members during an already difficult time. 

South Africa’s transfer pricing legislation came into effect on 1 July 1995 and was followed by Practice Note 2 and Practice Note 7. These provided taxpayers with guidance on how the South African Revenue Service (“SARS”) intended to apply the legislation, including certain guidelines on transfer pricing documentation, which was largely based on the Organisation for Economic Cooperation and Development (“OECD”) transfer pricing documentation guidelines. This remained the only point of reference for taxpayers and transfer pricing service providers until recently.  

We are often asked about the difference between inherent and residual risk ratings within the risk management process, and why this “academic” distinction is important to anyone other than a risk management practitioner or an internal auditor.

Owing to recent changes in the BEE environment, our regulating body, the IRBA, has decided to withdraw from the regulation of B-BBEE assurance services with effect from 30 September 2016. All assurance engagements entered into prior to 30 September 2016, will be allowed a transitional period of three months until 31 December 2016 to complete these engagements.

The Institute of Directors in Southern Africa (IoDSA) and the King Committee have arguably been at the forefront of redesigning and institutionalising the corporate governance landscape in South Africa. King I was introduced in 1994, together with two further editions - one in 2002 (King II) and another in 2009 (King III)[1]. In 2014, taking into account local legislative and economic changes and international trends, IoDSA and the King Committee began the work of drafting a new report, King IV. This aimed at speaking to the aforementioned challenges, as well as concerns and issues faced by many private companies, non-profit companies and other juristic entities which had faced difficulties in implementing King III.

Acquiring a business can be a complex, resource-intensive and time-consuming process, yet attaining the right business can generate substantial value. We have highlighted some key issues that should be taken into account when acquiring an energy and mining company. In the final of our three-part series, we consider points 11 to 15:

After being with us for a little more than six years in its current form, the IASB has published amendments to the International Financial Reporting Standard for Small to Medium-sized Entities (IFRS for SMEs). Amendments become effective for annual periods beginning on or after 1 January 2017. Earlier application is permitted, in which case all amendments must be adopted.

In today’s economy it can be a smart business move to invest your funds in a growing company. Along with the benefits and the rights this affords you as a shareholder, there are accompanying responsibilities you need to be aware of. 

Two weeks after the United Kingdom voted to leave the European Union (EU), the focus of attention is in three different areas: the political turmoil that has erupted in UK politics, the widespread speculation about the response of the remaining members of the EU and the reaction of global equity, bond and currency markets. 

The Presidency proclaimed 01 May 2011 as the implementation date of the Companies Act, No. 71 of 2008, as amended by the Companies Amendment Act, No. 3 of 2011 (“New Companies Act”) and the Companies Regulations. This Act replaced the Companies Act, No. 61 of 1973 (“Old Companies Act”) on 01 May 2011, other than the provisions relating to liquidations and winding-up.

Should you need, from time to time, to make confidential cellphone calls and wish to ensure integrity from your side of the conversation (there can be no guarantees that the recipient is secured), then the best option remains a satellite phone such as InMarSat (available locally from EvoSat). 

Acquiring a business can be a complex, resource-intensive and time-consuming process, yet attaining the right business can generate substantial value. We have highlighted some key issues that should be taken into account when acquiring an energy and mining company. 

There is no doubt that technology brings with it many advantages. However, there are also attendant risks which need to be carefully managed, to ensure that all its advantages can be enjoyed with the risks minimised as far as possible. Nowhere is this, perhaps, more important than in the case of mobile phones, where data can be accessed and compromised with relative ease.

We have seen many organisations implement an Enterprise-wide Risk Management Process during the last few years.  Yet very few have derived any practical value from this process.
 
The most common reasons why most ERM processes effectively fail during the first year, are discussed below.

​Acquiring a business can be a complex, resource-intensive and time-consuming process, yet attaining the right business can generate substantial value. We have highlighted some key issues that should be taken into account when acquiring an energy and mining company. In part one of our three-part series, we consider the first five:

The recent crackdown on the cash and carry sector in the South African economy seems to be bearing fruit.
 
The South African Revenue Service (SARS) has raised assessments worth R600 million in the past financial year, following on-site inspections and audits of non-compliant businesses.

The implementation of the Companies Act, Act 71 of 2008 as amended since 1 May 2011, included the requirement for all companies (including external companies) and close corporations to file either their audited or reviewed financial statements. Owing to the CIPC system limitations, CIPC could not accommodate the uploading of documentation and subsequently waived filing of financial statements for all entities, except Public and State-owned companies until 31 March 2013.

The term “Combined Assurance” has been very popular over the last few years, and we have fielded many queries as to what exactly this concept entails.  Much like Risk Management, the removal of the capital letters somewhat demystifies the notion. 

VIPA Holdings is on a mission to save the agricultural industry, one field at a time. This fully independent manufacturer and distributor of sustainable agricultural products embraces a humanitarian ethos and is committed to improving the foundation of food - our soils - and ensuring the longevity of our planet.
After more than a decade of proven success in the agricultural sector, VIPA Holdings is a force to be reckoned with in the SADC region and the rest of the world. A principal trading company, VIPA is owner-managed by CEO David Smillie, who has entrenched his passion for sustainability, quality and service excellence in his reliable team. VIPA’S head office is based at Durban’s Point district, near its state-of-the-art manufacturing and coating facility, both situated close to the harbour for shipping and transport convenience.

The Skills Development Act and Skills Development Levies Act require businesses with yearly payrolls of R500 000 and over to register for Skills Development Levies (SDL).
 
The purpose of the Skills Development Act is to develop the skills of the South African workforce and to improve the quality of life of workers and their prospects of work.

South Africa’s uncertain economic and political climate has put unprecedented pressure on the Rand. From February to December 2015, the Rand weakened against the US Dollar from R12.50 to R17, more than 35%. This has resulted in an increased number of people who wish to diversify their assets in offshore safe haven markets, and therefore an increase of outflows of personal wealth.

The slump in commodity prices over the past year has jolted the mining industry out of its comfort zone. The industry is in a different place right now, where everything is under scrutiny. The fittest and most well-managed companies will be those that survive.
 
So where are the opportunities and how do companies in the mining industry rise above harsh times that have affected them? Mike Simms and Olivier Barbeau offer some advice.

The Companies Act 2008 introduced the key concept that a provision in a shareholder’s agreement that is inconsistent with the Companies Act and the company’s memorandum of incorporation (MOI) is void to the extent of the inconsistency. This was an about turn from the position under the previous Companies Act and the previous practice of shareholders, including a number of substantive provisions in a shareholder’s agreement, with little regard to the company’s memorandum and articles of association.

On 24 February 2016 the National Treasury released a Media Statement announcing a Special Voluntary Disclosure Programme (SVDP). According to the media statement, the purpose of the SVDP is to give non-compliant taxpayers an opportunity to voluntarily disclose offshore assets and income. The Common Reporting Standard (CRS), formally referred to as the Standard for Automatic Exchange of Financial Account Information, is an information standard for the automatic exchange of information (AEoI), developed in the context of the Organisation for Economic Co-operation and Development (OECD). The legal basis for exchange of data is the Convention on Mutual Administrative Assistance in Tax Matters and the idea is based on the USA Foreign Account Tax Compliance Act (FATCA) implementation agreements.

An HR audit is a review of all existing documentation regarding employment, including employment policies and practices, to ensure legal compliance. Labour legislation changes periodically, so it is important to ensure your HR audits are done regularly and are updated where necessary.

“To support skills development, government proposes to increase the fringe benefit tax exemption thresholds for bursaries provided to employees or their relatives. The income eligibility threshold for employees to access the relief will be increased from R250 000 to R400 000. The value of qualifying bursaries will be increased from R10 000 to R15 000 for National Qualifications Framework levels 1 to 4, and from R30 000 to R40 000 for levels 5 to 10.”

In his recent budget speech, Minister Gordhan made the following proposal:
 
“An important role of the tax system is to reduce inequality. Some taxpayers use trusts to avoid paying estate duty and donations tax. For example, if the founder of a trust sells his or her assets to the trust, and grants the trust an interest-free loan as payment, donations tax is not triggered and the assets are not included in his or her estate at death."

Three aspects of the retirement reform project have been postponed:
 
1.       The annuitisation of provident funds;
2.       The increase of the de minimis threshold; and
3.       The tax neutral portability from a pension to a provident fund.
 
This postponement is made possible by the Revenue Laws Amendment Bill, 2016, that was tabled in Parliament on 24 February 2016.  

Are you a small to medium-sized business owner? Selling your business is possibly not your priority right now, but in order to achieve a successful sale, you should start preparing early in order to optimise the value that you could receive. Let’s run through ten practical steps to help you achieve the best value on the ultimate sale of your business. Please note that this article is not in any way intended to be a technical treatise.

We are often asked the above question by organisations. Much like the answer to any business endeavour, the short and easy answer is when the value exceeds the cost. 
 
However, the value is not always very easy to measure. Contrary to, for example, the value derived from starting a new manufacturing line or upgrading a key piece of equipment which is visible in the short term, the value derived from appointing a top non-executive director, strengthening the finance function to enable meaningful data analysis or establishing an internal audit or risk management function, is over a longer term. In addition, value derived from establishing an internal audit or risk management function is much more difficult to quantify. 

BACKGROUND TO THE RISKS
 
The mining industry is a complex integration of many disciplines, all of which, when aligned, contribute towards achieving the commercial targets of the enterprise. The risks are enormous but the rewards are satisfying. Amongst these risks, there are two fundamental issues that can have a fatal impact on the success of the operations – complications related to tenure and inaccurate databases.

Bartering, the ancient and original form of trading used before the introduction of legal tender, allows parties to dispense with cash but still be able to acquire the goods and services they require. Tough economic times across the globe have seen an increase in trading by bartering. Bartering is making a comeback!

We are often asked about the operational responsibilities of directors. There is a large degree of subjectivity associated with the answer, and therefore no short, definitive answer that applies to all.  The importance of getting it right, however, cannot be overestimated.  Ask any executive about the frustrations and inefficiencies of a director getting it wrong towards the heavy end; and then ask any shareholder about the disappointments in a well-paid director being on the barely asleep side of involvement.  So how do some get it right, and what constitutes “right”?

In March 2016, the global version of the United States’ Foreign Account Tax Compliance Act (FATCA), also known as the Common Reporting Standard (CRS), will come into effect in South Africa. Both FATCA and CRS affect individuals, entities and financial institutions globally.

In essence, FATCA aims to combat US offshore tax evasion and recoup US tax revenues. It requires non-US financial institutions to provide the US Internal Revenue Service (IRS) with information relating to its clients who are US citizens (in South Africa this information flow is facilitated via SARS). 

Moore Stephens receives regular requests for Voluntary Disclosure assistance. Candice Olivier and Brett Abramowitz from Investec outlines some key points. 

The Zuma Policy Error

The policy error made by President Jacob Zuma in December last year, when he fired Finance Minister Nene and replaced him with unknown Desmond van Rooyen, is still priced into our investment markets.  

The rising number of governments committing to the Extractive Industries Transparency Initiative (EITI) is a sign that they are getting more serious about transparency in their mining, oil and gas industries, as well as being more proactive about weeding out corruption in the sector.  

We recognise the many challenges faced by businesses focused on the mining of coal, gold, iron ore and other natural resources.

Fluctuating commodity prices and currency values add greater complexity to the process of planning future operations. Persistently rising operating costs, not least through wage inflation in many regions, have increased pressure on margins and the need for efficiencies. Meanwhile, predicting demand has become more difficult with the slowdown in manufacturing growth in China, on the one hand, and continued growth of other developing nations on the other. 

In today’s increasingly evolving technological world, it is virtually impossible to commit fraud without evidence being stored on electronic devices of one kind or another.
 
These include : computer workstations or servers, CDs and DVDs, laptops, Notebooks, hard drives, cell phones/PDA’s, iPads/tablets, SIM cards, USB flash drives, printers, cameras and so on. 

Following the 2015 / 2016 Budget Speech, it may well be that there will be changes in the rules regarding ‘Integrated Resort Scheme’ (IRS). My understanding is that the IRS concept will be modified because it is considered a ‘ghetto for the rich’ by the new Government. Government policy is shifting towards a more inclusive concept of ‘smart cities’, accessible to all. Parliament has passed the Finance Act, concise copies of which will be made available.

The holiday season is almost upon us, and with it an excellent opportunity to get your financial house in order. One of the keys to stress-free living in the holiday season is to make a financial checklist, suggests Managing Partner, Olivier Barbeau.
 
While all the festive detail is being sorted, serious financial stuff can go adrift and target dates missed. A pre-holiday financial to-do list is a top priority, or should be, for many of us. Most of these tasks can be accomplished quickly, but the benefits can last a lifetime.

In terms of the Promotion of Access to Information Act No 2, 2000 (herein after referred to as “PAIA”), all private and public bodies must appoint an Information Officer and prepare a Section 51 Manual before 31 December 2015. All previous exemptions granted will expire on 31 December 2015. 

An HR audit is a review of all existing documentation regarding employment, including employment policies and practices, to ensure legal compliance. Labour legislation changes periodically, so it is important to ensure your HR audits are done regularly and are updated where necessary.

Whilst the concealing, and uncovering, of assets is certainly not limited to divorce cases, it is one of the areas where issues commonly arise. A spouse/partner may be severely prejudiced if she/he is not aware of what is happening to her/his joint financial affairs.

Although the Namibian tax legislation is source based, its Income Tax Act does not define the term ‘source’. The meaning of the source is determined with reference to case law, which establishes the meaning to be ‘originating cause’. Thus where an ordinary resident of Namibia or a non-resident of Namibia receives income where the ‘originating cause’ is services rendered within Namibia, the income will be subject to Namibian tax.

Back in the early 1990s, a student was writing his Oxbridge General Paper (Oxford and Cambridge Entry Examination). There was just one question typed on the paper: 

​In March/April 2015, Jeff Blackbeard received a special invitation by the Prime Minister of Cameroon, Mr Philemon Yang and was requested to identify potential investors in the Energy, Construction, Agriculture, Retail and Manufacturing sectors for specifically identified opportunities.

As forensic practitioners, we are often asked: Why do people commit fraud? We understand “fraud” as including a range of criminal and unethical behaviours and we will use it in that sense in this article, too.

The drop in oil prices over the past 12 months to levels in the vicinity of 50 USD is expected to have a major impact on Africa, which during 2014 and the first two quarters of 2015 has already been grappling with poverty, food shortages, HIV/AIDS, regional conflict and the Ebola virus in West Africa. These low prices are impacting economies that depend on exports, such as Nigeria and Angola where Moore Stephens network member firms and clients are experiencing various aspects of the pricing levels.  It is likely that financial institutions in countries across Africa are stress testing for operations in countries at 40 USD per barrel.

The deadline for the Employment Equity Reports to be submitted to the Department of Labour is approaching fast.

All reports that are manually submitted (by hand or post) need to be in by 1 October 2015. The deadline for online submissions via the Employment Equity Online Reporting System is 15 January 2016.

The investment universe can be complex to navigate without a good grasp of what your needs are. But once you understand why you're investing and what you'd like to achieve, the process becomes far simpler.
 
July is savings month, an initiative aimed at encouraging South Africans to adopt a savings culture and ultimately save more. To help you sort through the clutter, we have outlined key questions you should be asking yourself before choosing an investment.

Dear All,
 
Please find attached a copy of the MOU signed recently between the Government of Mauritius and South Africa with regards to the issue of ‘dual residence’ for DTA benefits under the revised Mauritius/RSA DTA. Your comments and views are most welcomed.

Moore Stephens China Africa Desk takes delegation to Beijing, China

A delegation from accounting and consulting firm, Moore Stephens, has been on a breakthrough visit to Beijing, and has signaled strong prospects of attracting more trade and investment between African countries and China.
 
The delegation of partners and clients from South Africa and Cameroon met with Moore Stephens Da Hua in Beijing, and interacted with partners and clients on business opportunities in Africa.
The visit is the largest ever undertaken by Moore Stephens (MS) partner firms in Africa to China.

Trusts remain a valuable part of most long-term wealth management solutions. The estate planning opportunities and protection from creditors that they offer remain a compelling proposition for most clients.
 
During 2014, SARS overhauled the Trust Tax return. This is a clear indication of its intention to scrutinise trust affairs more closely.  We have embarked on a new project to assist you in proactively managing your trusts’ affairs with regard to administration, compliance and taxation. 

1.       Consult a professional
2.       Make a list of your assets
3.       Liquidity
4.       Select guardians and trustees carefully
5.       Be specific about what your wishes are

The revised SA/Mauritius Treaty will take effect from 1 January 2016. A Mutual Agreement Procedure (MAP) between the two countries will determine a single residency in cases of dual residency for legal persons other than individuals. The new Memorandum of Understanding (MOU) (see below) provides further guidance in terms of process.

Many internal audit functions within organisations fail to add practical value that exceeds their costs.  Why is this?
 
Firstly, it is our experience that an internal audit function is hard pressed to demonstrate and deliver value if not underpinned by a robust Enterprise-wide Risk Management (ERM) process.  In fact, where there is no ERM process in place, it is our recommendation that internal audit resources should first be applied in establishing an ERM process.  

In the February Budget Review, National Treasury indicated that as from 1 April 2015 a South African resident’s (individuals only) foreign capital allowance would increase from R4 million to R10 million per calendar year.

In order to take funds offshore, individuals would have to obtain a foreign tax clearance certificate from SARS before they could transfer the funds offshore.

A TFSA is a long-term investment vehicle which can be a valuable addition to your existing plan, due to its significant tax advantages. Since the introduction of the TFSA legislation on 20 February 2015, you've probably been faced with a myriad of TFSA-related news and marketing messages. It may be tempting to make a decision hastily, but it's worth taking a step back and ensuring these decisions are fully informed and costs are fair, especially since high fee charges within some of the available options on the market could erode some of its tax benefits. We'd like to help you understand more about what to consider when making your selection.

To Protect or Not to Protect
 
Whilst the role of a trust protector is more often raised in connection with offshore trusts, he/she may be appointed in domestic trusts both inter vivos and will trusts. His/her role and responsibility are often misunderstood or unclear.
 
A trust protector has nothing to do with nor has any connection with the “Public protector”, set up in terms of South Africa’s Constitution to investigate complaints against government agencies or officials.

The preparatory steps, even if the thought hasn’t crossed your mind yet!
 
Are you a small to medium-sized business owner? Selling your business is possibly not your priority right now, but in order to achieve a successful sale, you should start preparing early in order to optimise the value that you could receive. Let’s run through ten practical steps to help you achieve the best value on the ultimate sale of your business. Please note that this article is not in any way intended to be a technical treatise. 

On 16 March 2015 a public notice was issued by the Commissioner for SARS which listed a number of new transactions which would be regarded as reportable arrangements from the said date.

The deadline for the 2014 Return of Earnings form (W.As.8) has been extended to 29 May 2015.
 
The 2014 assessment period will be opened for transacting on the ROE website from 1 April 2015.

What is a Tax-Free Savings Account?
 
Tax-free savings accounts were introduced by National Treasury to encourage individuals to save with the benefit of the account being 100% tax free. These accounts came into effect on 1 March 2015. The investment account is exempt from income tax, capital gains tax (CGT) and dividend withholding tax. Individuals are allowed to contribute R30 000 per year to a tax-free savings account and there is a lifetime maximum contribution limit of R500 000. 

Top Management Tool or Administrative Nightmare?
 
We have seen many organisations implement an Enterprise-wide Risk Management Process during the last few years.  Yet very few have derived any practical value from this process.

Mauritius has a fully operative and extensive double tax treaty network with some 42 countries across the globe, with 6 more treaties awaiting ratification. Below is a highlight of the DTAs already in place:

In recent years, there has been increasing concern internationally about bribery and corruption. As a result, many countries have passed laws (or have sought to implement existing laws more actively) that target bribery and corruption, both inside and beyond their national borders. Apart from any reputational risk management issues, penalties for non-compliance are potentially very severe for offending parties, so it’s not just a case of “doing the right thing” from an ethical standpoint.

Do you hold general managerial and executive decision making powers in your current position?  Do you lead from the front, instituting changes that affect the way your business functions and the systems it operates? Do you ever assist and advise in the legal affairs of the Company? If so, you could be a Prescribed Officer. Why is this important? Simple. You can and will be held at the same level of responsibility and liabilities to that of a registered director for any gross negligence and mismanagement.  As such, it is imperative that you are aware of your corporate positioning. 

South Africans at the top of the corporate ladder are unlikely to suffer much from increases in personal income tax, but they could be affected by a range of other changes which affect retirement annuities, rebates for foreign taxes and property transfer tax.

The preparatory steps, even if the thought hasn’t crossed your mind yet!
 
Are you a small to medium-sized business owner? Selling your business is possibly not your priority right now, but in order to achieve a successful sale, you should start preparing early in order to optimise the value that you could receive. Let’s run through ten practical steps to help you achieve the best value on the ultimate sale of your business. Please note that this article is not in any way intended to be a technical treatise. 

In recent years, there has been increasing concern internationally about bribery and corruption. As a result, many countries have passed laws (or have sought to implement existing laws more actively) that target bribery and corruption, both inside and beyond their national borders. Apart from any reputational risk management issues, penalties for non-compliance are potentially very severe for offending parties, so it’s not just a case of “doing the right thing” from an ethical standpoint.

Insider trading is famously prohibited but prosecution is uncommon. The judgement in Zietsman and Another v Financial Services Board and Another (A679/14) [2015] ZAGPPHC (24 August 2015) has shown that this form of market abuse can be easy to detect and prove and the financial sanctions imposed are a strong deterrent besides the risk of criminal prosecution.

David Crosoer, our Executive: Research and Investments answers some pertinent questions about our investment perspectives for 2015 and what happened in 2014. He shares insight into the broader global economy, the local picture and just how PPS Investments has diversified its portfolios to minimise risk for clients and help to generate long-term wealth.

Dividends tax was introduced into the South African tax regime on 1 April 2012 and replaced secondary tax on companies (STC). STC was levied on dividends distributed by companies at the flat rate of ten percent. In terms of the dividends tax regime, a 15% tax is levied on the amount of any dividend paid by a company. The company is liable to withhold the amount of the tax in respect of cash dividends and pay it over to the South African Revenue Service (SARS).

Have you ever wondered why, at this time of the year, you receive a plethora of emails from investment businesses recommending that you top up your retirement annuity (RA)? The short answer is that the 2014/15 tax year closes on 28 February and you’re able to reap significant tax advantages by making an additional RA contribution before the tax year-end. Generally speaking, an additional investment into an RA is beneficial, provided that you have not yet reached your maximum tax deductible retirement annuity contribution for the year and provided that all money returned from SARS in future is reinvested into your RA portfolio.

Before addressing the topic of this article, it is appropriate to look at the proposed changes to the double tax agreement between Mauritius and SA announced in May 2014 and what the impact will be for investment by non-residents into SA and SA companies expanding offshore via Mauritius.

Increasingly, companies are realising the value of sharpening up their business branding and marketing. But with fierce competition and rapidly changing ways of communication, it’s becoming just as vital to build your own personal brand.

David Crosoer, PPS Investment Executive, answers some pertinent questions about his investment perspectives for 2015 and over the past quarter. He shares insight into the broader global economy, the local picture and just how PPS Investments has diversified its portfolios to minimise risk for clients and help them generate long term wealth. 

Areas that could be of significance to entities that receive finance from abroad, are Sections 50A – 50H that came into effect on 1 January 2015.

These sections deal with withholding tax on interest paid to or for the benefit of any foreign person, to the extent that the amount is regarded as having been received or accrued from a source within South Africa.  According to the new regime, withholding tax amounting to 15% of the interest payable will be required to be withheld and paid by the South African resident entity to SARS by the last business day of the month, following the month in which the interest is paid.

We recognise the many challenges faced by businesses focused on the mining of coal, gold, iron ore and other natural resources.

Durban-based company, VIPA Holdings, is set to become a leader in the fertiliser business into Africa and the Middle East after entering into an alliance with Cargill, the largest grain-rading company in the world.
 
VIPA’S partnership with Cargill will enable it to import bulk fertilisers such as UREA, KCL as well as MAP for distribution into the regions.  These three products form the base of the standard Nitrogen, Phosphates and Potassium (NPK) which is widely used in agriculture.

The holiday season is almost upon us, and with it an excellent opportunity to get your financial house in order. One of the keys to stress-free living in the holiday season is to make a financial checklist, suggests Olivier Barbeau, senior managing partner for audit and advisory firm, Moore Stephens South Africa.