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IN THIS ISSUE
Companies: How to Manage Your Greater Tax Risk in 2021 • Provisional Income Tax Due 26 February 2021: Do’s and Don’ts for Companies • Independent Non-Executive Directors: A Value-Add for Your SME? • How to Find and Secure Tenders for Your Small Business – 5 Expert Tips • How 2020 became the year of digitisation for MGI Bass Gordon • Tax Deadlines for February
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Companies: How to Manage Your Greater Tax Risk in 2021
South African companies are exposed to a significant tax risk. Companies are liable for a range of direct taxes, indirect taxes and employees’ taxes that are continuously subject to legislative changes and administrative improvements by SARS and National Treasury. This means not only great complexity and high cost in terms of compliance, but also high tax liabilities that could total 40% of turnover and more. In addition, tax compliance is increasingly becoming a corporate governance and a reputational issue.
In this article, we look at recent developments that indicate that tax risk management will become even more critical in 2021; ways in which companies can manage their tax risk more professionally; and the benefits of tax risk management that can help companies re-build after a difficult past year.
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Provisional Income Tax Due 26 February 2021:
Do’s and Don’ts for Companies
By the end of this month, the second provisional income tax payments for companies are due for a financial year that certainly ranks among the most difficult in recent memory – a year in which many business owners realised, as Thomas Dewar once put it, that paying income tax is in fact better than being unable to generate sufficient income to be liable for tax.
As companies face intensified scrutiny and more punitive measures from SARS in 2021, we take a look at the issues around the provisional tax payments for companies, due on 26 February, to find out what companies should - and should not - be doing to minimise their tax liability and to avoid the hefty penalties and interest that can apply.
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Independent Non-Executive Directors:
A Value-Add for Your SME?
Most, if not all, entrepreneurs are passionate about their ideas or concepts for a new product or service offering. Frankly, they need to be.
Once the business is up and running it is easy, and quite natural, to be so focused on your idea and business and the busyness of the operations and activities, that emerging risks or opportunities may not be seen or anticipated – ‘not seeing the wood for the trees’.
Having an advisor or advisors may, of course, help. However, an independent non-executive director has, by virtue of their responsibilities on the board, a stake in the survival and growth of the business. Furthermore, as they are not involved in the day-to-day operations, they can bring valuable perspectives to the table.
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How to Find and Secure Tenders for Your Small Business –
5 Expert Tips
There is a new lane for tendering and an urgent need for assistance from government that has been created by COVID-19 PPE tenders, as well as other tenders used to fight the pandemic that have increased the scope of tender targets for SMMEs. The government is seemingly incapacitated by the pandemic and the PPE tenders that have been advertised since the outbreak, by themselves, present new opportunities for SMMEs.
Finding the relevant public, or even corporate, tender for a small business depends on a number of factors including the actual task, trading licenses, certification like BEE, the competitiveness of the pricing and most importantly, according to experts, experience.
Here are some tips on how small businesses can go about finding relevant tenders.
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"How 2020 became the year of digitisation for South African accounting firm MGI Bass Gordon"
The last twelve months have been challenging for accountants. They’ve been stepping up to guide small businesses through COVID-19 challenges and support the wider economy. Technology has been key in helping them to do this.
Our firm, MGI Bass Gordon, made the move to the cloud last year. Xero spoke to Susan van der Valk, Partner at the firm, about how we adapted during COVID-19 and why moving to Xero helped the business adapt to the ‘new normal’.
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