What is B-BBEE?

B-BBEE (Broad-Based-Black Economic Empowerment) is a mandated ACT in South Africa that strives to increase the number of black people participating in the country’s economy, increasing the number of black people that manage, own, control or gain employment in South Africa. Though it is relatively new and does not meet all its intended demands through its teething stages, we see an ever increasing clamp down on fronting and misrepresentation. If your best practices are not up to standard, feel free to contact us for a strategy that’s by the book and set to get the best out of B-BBEE. More information can be found on the B-BBEE Commission website.

Do I need to be B-BBEE compliant?

Not all companies need to be B-BBEE complaint, however the Government has made B-BBEE the prominent means of trade and tender. Most companies will find the need to be B-BBEE compliant because suppliers are B-BBEE compliant and need to trade with other B-BBEE complaint companies. The short answer is no, but the long answer is yes, because if you are not BBBEE complaint you may be affected by other opportunities to trade or tender. More information can be found on the B-BBEE Commission website.

What is the difference between a Generic, QSE and EME when it comes to B-BBEE?

These terms are just B-BBEE classifications or groupings of companies according to annual turnover. (Smallest) EME’s (Exempt Micro Enterprise) – have a turnover of R10 million or less. (Medium) QSE’s (Qualifying Small Enterprise) – have a turnover between R10 million and R50 million. (Large) GEN (Generic Enterprise) – have a turnover above R50 million. These are just the classifications, however there are multiple factors that can affect these classifications. To find out more book a consultation with one of our consultants to get compliant today.

What qualifies my business as EME (Exempt Micro Enterprise)?

If your turnover is less than R10 Million you will qualify as an EME, and an automatic recognition level. All we need to know to help you get a compliant affidavit to use for tendering purposes is proof that your turnover is less than R10 Million and a copy of your share register. Depending on the ownership within your company you will receive a level of recognition between 1 and 4. More information can be found on the B-BBEE Commission website.

Who qualifies as a black person for purposes of B-BBEE?

B-BEEE seeks to advance access of black people in the South African Economy. The term “black people” is a generic term which means Africans, Coloureds and Indians— (a) who are citizens of the Republic of South Africa by birth or descent; Or (b) who became citizens of the Republic of South Africa by Naturalisation — (i) before 27 April 1994; or (ii) on or after 27 April 1994 and who would have been entitled to acquire citizenship by naturalisation prior to that date. More information can be found on the B-BBEE Commission website.

How can a measured entity obtain a B-BBEE Certificate?

EMEs: All EMEs are exempted from B-BBEE compliance and receive automatic B-BBEE Recognition Level 4. An EME which is at least 51% black owned automatically receive level 2 status and those which are 100% black owned receive level 1. EMEs only have to obtain a sworn affidavit or CIPC certificate. The sworn affidavit must be signed by a Commissioners of Oaths. QSEs: QSEs which are at least 51% black owned or 100% black owned are treated the same as EMEs, they receive automatic B-BBEE Recognition Levels 2 and 1 respectively and also have to only obtain a sworn affidavit. The rest of the QSEs (less 51% black shareholding) must be verified through an accredited verification professional. Large Enterprises (Generics): Large companies must be verified by an accredited verification professional.

More information can be found on the B-BBEE Commission website.

Who is Authorised to issue a B-BBEE Certificate?

A B-BBEE certificate can only be issued by a verification professional accredited with the South Africa National Accreditation Systems (SANAS).

More information can be found on the B-BBEE Commission website.

What qualifies my business as QSE (Qualifying Small Enterprise)?

If your turnover is less than R50 Million you will qualify as a QSE, and an automatic recognition level. All we need to know to help you get a compliant affidavit to use for tendering purposes is proof that your turnover is more than R10 Million less than R50 Million and a copy of your share register. Depending on the ownership within your company you will receive a level of recognition between 1 and 4, but if you are a majority white owned business (50% or more will need to go through a SANAS verification to get a B-BBEE certificate which we can help you with. More information can be found on the B-BBEE Commission website.

What qualifies my business as GEN (Generic Enterprise)?

If your turnover is more than R50 Million you would be a Large Generic Enterprise, and you will have to undergo a SANAS verification to get a BBBEE certificate which we can help you with. Contact us. More information can be found on the B-BBEE Commission website.

Which entities are measurable under the Codes of Good Practice (the Codes)?

The following Entities are measurable under the Codes: all Organs of State and Public Entities; all Measured Entities that undertake any economic activity with all Organs of State and Public Entities; any other Entity that undertakes any economic activity, whether direct or indirect, with any Entity that is subject to measurement under the Codes. More information can be found on the B-BBEE Commission website.

How is B-BBEE classification determined?

B-BBEE classify entities based on annual turnover, namely: Start-up Enterprise. This is a recently formed or incorporated entity that has been in operation for less than one (1) year. A start-up enterprise does not include any newly constituted enterprise which is merely a continuation of a pre-existing enterprise; Exempted Micro-Enterprises (EMEs). This are entities that generate an annual turnover of R0 and less R10 million. Qualifying Small Enterprises (QSEs). These entities have an annual turnover of above R10 million and less R50 million. Large Enterprises, are entities with an annual turnover of above R50 million. More information can be found on the B-BBEE Commission website.

Are organs of state and public entities required to be B-BBEE compliant?

Specialised enterprises are classified according to their annual turnover or allocated budget or gross receipts or discretionary spend. This means that a specialised entity with R0 and less R10 million annual turnover/allocated budget/gross receipts are regarded an as Exempted Micro Enterprise (EMEs), if annual turnover/allocated budget/gross receipts is R10 million but less R50 million it is called a Qualifying Small Enterprise (QSE), and those with annual turnover/allocated budget/gross receipts of R50 million above are regarded as large entities. This is how a B-BBEE Certificate is obtained:
Specialised EMEs are given an automatic level 4 but if it has 51% of black beneficiaries it will be level 2, and 75% black beneficiaries it will obtain a level 1. EMEs only have to obtain a sworn affidavit. See attached template for guidance. QSEs have to be verified by an accredited verification agency (http://www.sanas.co.za). But if it has 51% of black beneficiaries it will aromatically be level 2 and 75% black beneficiaries it is a level 1. Also has to complete a sworn affidavit. Large companies have to be verified by either a verification agency. More information can be found on the B-BBEE Commission website.

How is a start-up enterprise measured?

A start-up enterprise is regarded as an EME, and must obtain a sworn affidavit. However, start-up enterprise must submit a QSE scorecard when tendering for any contract, or seeking any other economic activity covered by Section 10 of the Act, with a value higher than R10 million but less than R50 million. For contracts of R50 million or more they should submit the Generic scorecard. More information can be found on the B-BBEE Commission website.

How can an EME enhance its B-BBEE status?

An EME that intends to enhance its B-BBEE status must be verified against the QSE scorecard. More information can be found on the B-BBEE Commission website.

Can a non-profit Organisation (NPO) be measured under the codes of good practice?

NPOs are already covered as a measured entity in terms of the Codes of Good Practice (the Codes) and are regarded as specialised enterprises (do not have ownership). Their B-BBEE compliance is measured in terms of statement 004 (starts on page 10 of the attached document).

Specialised enterprises are classified in terms of annual turnover, allocated budget or gross receipts. This means that a specialised entity with R0 and less R10 million annual turnover/allocated budget/gross receipts are regarded an as Exempted Micro Enterprise (EMEs), if annual turnover/allocated budget/gross receipts is above R10 million but less R50 million it is called a Qualifying Small Enterprise (QSE), and those with annual turnover/allocated budget/gross receipts of R50 million above are regarded as large entities.

Specialised EMEs are given an automatic level 4 but if it has 51% of black beneficiaries it will be level 2, and 75% black beneficiaries it will obtain a level 1. EMEs only have to obtain a sworn affidavit. See attached template for guidance.

Specialised QSEs have to be verified by an accredited verification agency (http://www.sanas.co.za) to obtain a B-BBEE certificate. But if it has 51% of black beneficiaries it will automatically be level 2 and 75% black beneficiaries it is a level. Also has to complete a sworn affidavit for QSEs.

Large specialised entities have to be verified by either a verification agency.

More information can be found on the B-BBEE Commission website.

When will a certificate expire in instances where a measured entity was re-verified prior to date of expiry.

In terms of the 2008 verification manual a measured entity which experienced a material change after a B-BBEE certificate was issued, must be subjected to re-verification. This process requires the withdrawal of the initial certificate, and the second certificate must indicate date of issue, date of re-issue and date of expiry.

Where a certificate is re-issued, the second certificate must indicate date of issue, date of re-issue and date of expiry. The date of expiry remains the same date as on the initial certificate, because reissuing a certificate does not extend the validity period.

More information can be found on the B-BBEE Commission website.

Can bonus points be included when calculating the 40% sub-minimum for priority elements?

The inclusion or identification of priority elements in the Codes is an intervention to accelerate the achievement of an inclusive economy and decent job creation.

Inclusion of the bonus points to calculate the sub-minimums would undermine the objective of accelerating economic transformation, and reducing B-BBEE into a tick box exercise.

More information can be found on the B-BBEE Commission website.

Is it a violation of the Act or an offence, or both to split or divide an entity?

In terms of Para 2.5 Codes Series 000, if an entity splits itself to ensure eligibility as an EME or QSE such would constitute an offence and such will be dealt with in terms of the Act.

More information can be found on the B-BBEE Commission website.

Can you commission your own Sworn Affidavit?

No, a Sworn Affidavit must be commissioned by someone with no interest in the company to exercise objectivity.

More information can be found on the B-BBEE Commission website.

Who can commission Sworn Affidavits?

Anyone who qualifies as commissioner of oath in terms of Justices of the Peace and Commissioner of oaths Act can commission an affidavit.

More information can be found on the B-BBEE Commission website.

How can an entity apply the modified flow through to obtain 51% and 100% black ownership?

In terms of Code Series 100, an entity may apply the modified-flow through principle to determine black ownership, where in the chain of ownership structure black people have a flow-through level of participation of at least 51%, then only once in that entire ownership structure of the entity such black participation may be treated as though it were 100%.

More information can be found on the B-BBEE Commission website.

Can entities operate with consolidated sworn affidavits for purposes of a joint venture?

The codes do not have a provision for consolidation of Sworn Affidavits in joint venture.

More information can be found on the B-BBEE Commission website.

How to calculate the 40% sub-minimum for priority elements?

The 40% sub-minimum is applied as follows:

Ownership:

40% on the 8 points for Net Value based on time graduation factor.

Skills Development:

40% to the total weighting points for skills development (40% to 20 points).

Enterprise and Supplier Development:

40% sub-minimum targets for Code Series 400 apply to each category namely, preferential procurement, supplier development and enterprise development.

This is interpreted as 40% to the total points of each of the three categories, meaning 40% of 25 points for preferential procurement, 40% of 10 points for supplier development and 40% of 5 points for enterprise development.

More information can be found on the B-BBEE Commission website.

What do I need to supply for the Year End EMP501 Reconciliation?

There’s a few things that you would need, namely the following: 1. Employee Information sheets. 2. A salary & deductions schedule for all employees. 3. A test file as well as a live file should you have a payroll system e.g. Pastel or VIP Payroll Need some help getting this done, click here to get in contact with us and we’ll let you know what we need to get started.

What are all the annual returns I must submit as a business owner?

1. EMP501 return 2. CIPC Annual return 3. Tax Returns 4. Workmans compensation return of earnings submission

How long does a Compensation Fund Letter of Good Standing take to generate?

Once Final Payment has been made, it takes up to 5 working days to generate.

What is the difference between a TCC and a letter of good standing?

A TCC (Tax Clearance Certificate) is generated by SARS for Tax Type Compliance. A Letter of Good Standing is generated by the Compensation Fund for compliance with the Compensation for Occupation Injuries and Diseases Act.

What is COIDA?

COIDA (Compensation for Occupational Injuries and Diseases Act) provides for compensation for disablement caused by occupational injuries, death or diseases sustained or contracted by employees in the course of their employment.

Is another company able to assist me with Workmen’s compensation claims?

No, it is imperative that the company who registers for Workmen’s Compensation, appoints an officer (usually the HR department or Health and Safety officer) to oversee all processes involved with the claim. Another entity can only assist with annual return of earnings to maintain registration and assist with payment plans from an administrative perspective.

What is a tender?

A tender in South Africa is a bidding system in place to get the best deals with suppliers, Potential suppliers will apply for the opportunity to offer their services to the company or government entity that has issued the tender, the suppliers then offer their services in a tender application according to the specifications set out by the company issuing the tender. Once all tenders are in and the deadline has been reached, the company will then award the tender to the best candidate that is compliant to all their needs as well as the tenders needs issued.

Why do I need to register my Company with CIPC?

Simply put, you need to register a company because it becomes a registered entity, like when you are born, you are issued an Identity number, and with that Identity number you can purchase licences, properties, open bank accounts etc. like an individual, a company will have essentially the same rights as a person, but because it is not a human being that is self-sustaining, its owners, directors need to keep on updating CIPC (relate this to home affairs) regularly, pay annual fees, and abide by regulations set out in the Companies ACT.

Why do I need to pay to keep my company registered every year?

Fraud prevention.

What is the difference between a PTY LTD and a CC?

A Pty stands for Proprietary Limited which means it is a privately held company, and a CC which is a closed corporation are is usually chosen by smaller business owners.

How many directors can be on a company (Pty) (Ltd)?

A minimum of one natural person upon registration, and an unlimited maximum number of directors.

What is a sole trader?

A sole trader / sole proprietor is a person trading in their own name with no legal protection under the Companies Act, the person trades with the risk all in their name, all assets and liability falls on the sole proprietor. A sole proprietor has full control over decision making within their business, with minimal requirements to register and get trading. However the risks far outweigh the advantages of registering as a company.

How many directors can be on a Public Company / Non-profit Company?

Upon registration, three directors need to be appointed, and an unlimited maximum number of directors.

What types of directors are there in a company?

Normal Director, Non-Executive Director, Alternate Director.

What is a share certificate?

A share certificate is a certificate issued by a company certifying that on the date the certificate is issued a certain person is the registered owner of shares in the company. The key information contained in the share certificate is: the name and address of the shareholder. The number of shares held.

How do shares in South Africa work?

In order for you to buy shares, the current​owners of the company would agree to break the company into an example of 10 000 shares, each worth a certain amount. The value of the company remains at R500 000.00 (R50 share price x R10 000 shares), but you can now buy one share in the company at R50.00, or five shares at R500.

What is a company secretary?

Not to be confused with a receptionist or admin clerk, a company secretary just like a secretary of state, is responsible for compliance or legislative adherence, a person who sits in meetings of all kinds, advises on the legality of decision making, a company secretary does all the companies secretarial work, administering the Share’s, MOI’s, registrations and any other secretarial duties.

Do I need a company Secretary in my business?

Depending on the size of your business, you can outsource secretarial administrative work to be done, or you can employ an in-house secretary to maintain all legislative compliance.

How does an employment contract work?

This is a document that sets the terms of agreement for employment, these terms are binding, and can be bypassed if either of the parties do not adhere to the contract set out, the employment contract can protect both the employee or employer, but is mostly designed to protect the employer from insubordinate or unlawful employees who seek to tarnish the agreement of employment. To purchase an employment contract, contact us.

Do I need HR services?

Most definitely, employees are protected by regulations set by the CCMA and can take on any company for reasons that do not adhere the fair treatment of employees. Employers can be ahead of this by implementing good practices to ensure that they are getting the best out of their employees, if they are not getting the best, they are keeping good record of all attempts to better the employee, if employee persists and resists, then the employer has fair ground to dismiss.

What are the disciplinary actions required for fraudulent activity in the workplace?

Follow your disciplinary procedure and dismiss your employee; 1. Employers discretion 2. Call the police and have your employee arrested, as it’s a criminal offence to steal or commit fraud.

What do I need to supply to my accountant monthly?

Bank statements, creditor & debtor invoices and ledgers. (All financial records) the more supporting documentation, the better it is for accurate accounting. It has become good practice and legal standard to request all supporting documents within a business of any nature.

What are annual financial statements?

Annual Financial Statements are prepared annually to present the financial results of your business for the previous year ended, according to you yearend listed at CIPC.

Why do I need annual financial statements?

Each registered entity must prepare annual financial statements as per the Companies Act of 2008.This can either be reviewed or audited depending on the PIC score.

What is UIF?

UIF (Unemployment Insurance Fund) gives short-term relief to workers when they become unemployed or are unable to work because of maternity, adoption leave or illness.

When do I need to register my company with CIPC?

if you are planning to be your own boss (entrepreneur), register immediately, never register as a sole trader, it is not worth it because you are very limited to expenses, and the tax is a marginal tax bracket (the higher you earn the more tax you pay) if you register as a company, the highest tax you will pay is currently 28% tax. If you plan on starting a company and employing immediately, you need to register as soon as possible.

How do I know my lease agreement is legal?

To book a legal consultation, contact us.

Why do I need a will?

It is entirely up to the discretion of the person deciding to set the will up, but the benefits of setting up a will, include that you are leaving a clear legacy and instruction behind with details to your affairs and estate. You will need to appoint an executor that you trust to handle your affairs. A will can also leave instructions to set up a trust that will be able to maintain your assets and your dependants, so when you are gone, all your possessions or loved ones will be taken care of by either your will, or your will with a trust set up.

What is an executor/executrix of an estate?

The person or persons that you trust and nominate via your will to maintain your affairs as if you were still alive. There can be more than one nomination and a company such as TFS Trustees can be appointed to maintain your affairs in your best interests that are legal and set in writing. (TFS Trustees like an independent trustee should be, is an impartial third party that has no relation to the deceased and has only the best interest and sound advice on winding up estates, setting up long and short term setups for the benefit of dependents, it has become more and more necessary over time that the Master of the High Court requests or appoints an independent trustee to be a third party trustee or executor with no bias and sound advice to resolve disputes before they arise, leading to faster estate wind ups, and better trust management).

What is a trustee?

A Trustee a is a person who is nominated and has accepted the powers and rights that come with trusteeship, to administer properties, legal entities such as the welfare of dependants, investments, or assets and taxes. A trustee is a Legal representative of: 1. A Deceased person 2. A company 3. Body corporate 4. Or any entity that the trust set up was purposed for

What is a Trust?

A trust is a legal entity that can issue and create powers for the intention to act on behalf of whatever entity it was replacing.

Do I need to open a trust for a business?

That’s a tricky one, though a trust for a business adds measure of control to the heirs of the owner, it also stipulates actions to be taken to continue the legacy of the business, especially small business owners who have spent a lot of time building their legacy. The other benefits include; eliminating estate taxes upon death of the owner as part of the trust set up, the family business continues as per instruction, and the business won’t be sold to cover taxes and creditors.

When do I need to open a trust for a business?

As soon as you have realised that you want your success to continue in the form of your family legacy. Set up a trust that realizes your needs beyond your time left here as an entrepreneur.

What types of trusts are there?

1. Living Trust also known as an inter vivos trust (there are two types of Living Trusts) 2. Living Trust Type One – Vested Trust 3. Living Trust Type Two – Discretionary Trust 4. Testamentary Trust 5. Bewind Trust A Vested Trust Beneficiaries are set out in the trust deed, little control is given to trustees to do as they please. A Discretionary Trust, trustees have full discretion and control over the beneficiaries and welfare.
Testamentary Trust, is a trust set up through a will of a deceased person, usually created for the intention of maintaining minor children into their adulthood, if a trust is not set up in a will, the estate is sold off and monies will only be paid out when the minors come of age to benefit from the estate. Bewind Trust, created for the interest of trade, with very little liability for the trustees maintaining the trust, there are certain tax advantages to this type of trust, but is not to be confused with an ownership trust, the Bewind Trust clearly states it is used to purchase property, transfer ownership to the trustees, for the benefit of the beneficiaries, it may be transferred to the beneficiaries but ownership will remain the trustees and not the beneficiaries.

How long does an Import/Export registration take to finalise?

Should all documents be correct and no further documents are required by SARS, the registration should take up to 10 working days. Keep in mind that SARS more than often requires additional documentation therefore this process could take longer; but it all depends on SARS.

Do I have to register with The Compensation Fund?

It is compulsory to be registered with the Compensation Fund if you have one or more employees.

When should I register for VAT?

You may do an optional VAT registration once your turnover exceeds R50 000.00 in a 12 month period, but once your turnover exceeds R1 000 000.00, Vat Registration is compulsory.

Who must be registered as a Provisional Tax Payer?

Any person who receives income (or to whom income accrues) other than a salary, is a provisional taxpayer. A provisional taxpayer is defined in paragraph 1 of the Fourth Schedule of the Income Tax Act, No.58 of 1962, as any – 1. natural person who derives income, other than remuneration or an allowance or advance as mentioned in section 8(1); 2. company; or 3. person who is told by the Commissioner that he or she is a provisional taxpayer.

When do I need to register my company with CIPC?

if you are planning to be your own boss (entrepreneur), register immediately, never register as a sole trader, it is not worth it because you are very limited to expenses, and the tax is a marginal tax bracket (the higher you earn the more tax you pay) if you register as a company, the highest tax you will pay is currently 21% tax. If you plan on starting a company and employing immediately, you need to register as soon as possible.

How do I calculate SDL?

SDL (Skills Development Levy) is an optional Tax that the employer will be held liable for, one percent of every employee’s salary is matched by the employer and paid in the form of tax to SARS, SARS then issues the SDL spend to the Department of Higher Education who then oversees each sector of business known as a SETA. There are 27 SETA’s in South Africa, these SETA’s are the appropriate channels to secure that you get your spend back to develop skills in your company. See it as tax that can be spent later on development (HOT TIP: you can use SDL to better your BBBEE score rating). However, SDL becomes Mandatory if your Annual payroll exceeds R500 000. Not Registered for SDL? Click here to purchase a PAYE Registration (which can include SDL if requested).

How do I calculate PAYE (Pay as You Earn)?

Use Tax Tim. Tax Tim is a regularly updated Tax calculator that covers, PAYE (Pay as You Earn), UIF (unemployment Insurance Fund), SDL (Skills Development Levy).

What is PAYE?

PAYE (Pay as You Earn) is a Salary Tax that employers need to pay over to SARS on a monthly basis, if you are a business owner you have to be drawing a salary from the business in order to pay PAYE. This is a compulsory tax that needs to be paid over to SARS on a monthly basis in order to avoid penalties. If you avoid this tax it is a criminal offence. Not Registered for PAYE? Click here to purchase a PAYE Registration.

How do I calculate UIF?

UIF is calculated at 1% of the salary you pay your employee but is capped at R14 872, you deduct 1% from your employee’s salary, and pay another 1 % over to SARS as your cost and contribution towards UIF.

What are all the annual returns I must submit as a business owner?

1. PAYE in the form of an EMP 501 submission. 2. CIPC annual return to keep your business registered to keep trading. 3. Tax Returns. 4. Workmen’s Compensation Return of Earnings.

Where do I apply for a tax clearance certificate?

TFS BizHub.

What is the difference between a TCC and a letter of good standing?

A TCC (Tax Clearance Certificate) is generated by SARS for Tax Type Compliance. A Letter of Good Standing is generated by the Compensation Fund for compliance with the Compensation for Occupation Injuries and Diseases Act.

Will I be asked for supporting documents on my tax return?

Not always, only if you have been selected for audit, or if you have submitted less tax than the previous year. If you are submitting less tax, and get selected for an audit, SARS needs to know why there is less income, and is it something permanent or just for the current year. SARS systems look for consistencies, and also select randomly as well.

How does the audit process work when selected for an audit by SARS?

You can expect the following: 1. The Notification of the audit will indicate the initial scope of the audit; 2. The SARS Auditor will produce an Authorisation Letter where a field audit is conducted; 3. Progress reports of the stage of the audit will be issued at intervals of 90 calendar days from the date of the notification of the audit; If you have a refund due, the refund will not be paid out during the execution of the audit. The progress reports may not apply if SARS is of the view that it will impede or jeopardise the outcome of the audit. By its nature, an audit is a more intrusive process than a verification and the scope could be extensive. The audit could be completed within anything from 30 business days to 12 months, or even longer, depending on the complexity of the matter, the volumes of transactions involved and the level of co-operation by the taxpayer. SARS can request additional or further relevant material throughout the audit. If you do not respond by submitting the relevant material when requested, SARS will raise an assessment based on information readily available or obtained from a third party. Should you require any further assistance, contact the SARS official mentioned in the Notification of audit letter. Top Tip: It is better to respond to all queries straight away. Taxpayers whom are obstructive could face higher penalties should it be found that an understatement occurred.

What is an IT3 or IRP5 certificate?

This is your annual Tax Certificate which summarises your annual earnings and deductions and is used to file your income tax return.

What is an IT34?

An IT 34 is a notice of Assessment from SARS, which summarises that specified year’s taxable income and deductions. Should you not agree with SARS’s assessment, you can dispute it and submit supporting documents for your claim that SARS is in error.

What are the implications of not submitting my SARS returns?

Administrative penalties and interest is charged on non-compliance, non-compliance is a criminal offence and could lead to legal action or imprisonment, and could be seen as evasion.

What is Provisional Tax?

Provisional tax is not a separate tax. It is a method of paying tax due, to ensure the taxpayer does not pay large amounts on assessment as the tax liability is spread over the relevant year of assessment. It requires the taxpayers to pay at least two amounts in advance during the year of assessment which are based on estimated taxable income. A third payment is optional after the end of the tax year, but before the issuing of the assessment of Final liability, however, this is worked out upon assessment and the payments will be off-set against the liability for normal tax for the applicable year of assessment.

What is COVID-19?

Human Coronaviruses are common throughout the world. There are many different coronaviruses identified in animals but only a small number of these can cause disease in humans. On 7 January 2020, ‘Severe Acute Respiratory Syndrome Coronavirus 2’ (SARS-CoV-2) was confirmed as the causative agent of ‘Coronavirus Disease 2019’ or COVID-19. The majority of the case-patients initially identified were dealers and vendors at a seafood, poultry and live wildlife market in China. Since then, the virus has spread to more than 100 countries, including South Africa.

Who is most at risk?

Currently, travellers to areas where there is ongoing sustained transmission of COVID-19 including Mainland China (all provinces), Hong Kong, Japan, Republic of Korea, Singapore, Vietnam, Taiwan, Italy and the Islamic Republic of Iran are at greatest risk of infection. Furthermore, the elderly, individuals with co-morbidities and healthcare workers have been found to be at a higher risk of death.

How is it transmitted?

While the first cases probably involved exposure to an animal source, the virus now seems to be spreading from person-to-person. The spread of the disease is thought to happen mainly via respiratory droplets produced when an infected person coughs or sneezes, similar to how influenza and other respiratory pathogens spread. Thus far, the majority of cases have occurred in people with close physical contact to cases and healthcare workers caring for patients with COVID-19.

What are the symptoms of COVID-19?

Current symptoms reported for patients with COVID-19 have included mild to severe respiratory illness with cough, sore throat, shortness of breath or fever. The complete clinical picture with regard to COVID-19 is still not fully clear. Reported illnesses have ranged from infected people with little to no symptoms to people being severely ill and dying.

How is COVID-19 treated?

Treatment is supportive (providing oxygen for patients with shortness of breath or treating a fever, for example). To date, there is no specific antiviral treatment available. Antibiotics do not treat viral infections. However, antibiotics may be required if a bacterial secondary infection develops.

How can you prevent infection?

The following can provide protection against infection from Coronaviruses and many other viruses that are more common in South Africa: 1. Wash your hands often with soap and water for at least 20 seconds. If soap and water are not available, use an alcohol-based hand sanitiser. 2. Avoid touching your eyes, nose, and mouth with unwashed hands. 3. Avoid close contact with people who are sick. 4. Stay at home when you are sick and try and keep a distance from others at home. 5. Cover your cough or sneeze with a flexed elbow or a tissue, then throw the tissue in the bin. 6. Clean and disinfect frequently touched objects and surfaces.

What we are doing in South Africa?

On 23 March 2020, President Cyril Ramaphosa announced a new measure to combat the spread of the Covid-19 coronavirus in South Africa – a three-week nationwide lockdown with severe restrictions on travel and movement, supported by the South African National Defence Force – from midnight on Thursday, 26 March, to midnight on Thursday, 16 April. The President said more needed to be done to avoid “an enormous catastrophe” among the population. In essence, this meant people would only be allowed to leave their homes to buy food, seek medical help or under other extreme circumstances. The lockdown follows government regulations that limited public gatherings, travel from high-risk countries and the sale of alcohol. In addition, borders were closed to reduce the rate of infection from those travelling into South Africa from other countries. A quarantine was also enforced on inbound travellers and returning citizens.

What should you do if you think you have the coronavirus disease?

If you have fever, cough and difficulty breathing, seek medical care early. Stay home if you feel unwell. If you have a fever, cough and difficulty breathing, seek medical attention and call in advance. Follow the directions of your local health authority. Emergency Hotline: 0800 029 999
WhatsApp Support Line: 0600-123456