Between 1 July and 31 October, anyone who earns a salary or whose salary is structured with benefits such as a travel allowance, provident fund or medical aid have to complete and submit their annual tax returns.
No matter whether you earn a salary from your small- or medium-sized business or are an individual contract worker or employee, you have the responsibility of submitting correctly completed and SARS compliant tax returns on time and make the necessary payments. Late submissions, incorrect completion of returns, inaccurate calculations, late payments and incorrect deductions can all lead to severe penalties.
High Net Worth Individuals need High Tax IQ
Indicators show that High Net Worth Individuals (HNWIs) with more than one income stream or complex portfolios are moving away from the corner accountant to non-traditional specialists who can provide them with financial IQ beyond tax.
According to the South Africa 2017 Wealth Report, SA’s approximate 40,400 High Net Worth individuals have a combined wealth of $171bn. SARS has identified these individuals as a strategic risk, stating that it will “develop and acquire capability to effectively tackle HNWIs and their related trusts, and redefine taxpayers in this segment.” Additionally, SARS has embarked on increased and targeted audits in this category.
In addition to SARS’ clampdown on individuals who are not meeting their tax obligations, new legislation such as the Taxation Laws Amendment Act 15 of 2016 redefines the forgone interest on low-interest or interest-free loans to a trust as a donation, thereby making the lender liable for donations tax.
It is clear that HNWIs should get their financial affairs in order as a matter of urgency, which is exactly where The Tax Shop accountant’s financial IQ beyond tax strategy lies – keeping careful track of our clients’ finances and not neglecting the numbers…or compliance.
The Tax Shop’s value lies in our strategic contribution to your personal wealth – not just completing and submitting your tax returns but administering revenue contribution and evolving tax planning while maintaining the integrity of the tax system. Our tax practitioners deal with SARS on a regular basis, keep up to date with changes in legislation and ensure full compliance with all tax regulations, minimising the risk of late submissions, late payments, and incorrect calculations.
The bottomline maintains: your business is in the hands of smart, analytical, intellectual, hard-working and organised people. People whose DNA demands precision and whose professional pride necessitates results.
That is financial IQ beyond tax.