Insurance tips for accidents

A2The frantic aftermath of a vehicle accident can make it easy to miss those few critical steps that could determine the successful outcome of an insurance claim. If you are involved in a vehicle accident, remember these top tips that will help ensure that your claim is smooth and successful.

1. Make sure that your policy is up to date at all times.

Checking your insurance policy periodically is a good habit to get into. This is the first and most crucial step towards having your claim successfully paid out. If you are in an accident and your policy is out of date, a payout will more than likely be affected adversely.

2. Don’t allow anyone else to tow your vehicle except your insurer’s accredited supplier. So always have the call centre contact number available.

When getting authorisation for the vehicle to be towed from the scene of an accident, make sure you speak to your insurer yourself. What does happen is that tow operators sometimes offer to call your insurance company and then hand you the phone. It is possible that the person on the other end is not your insurer but just someone working with the tow operator. It’s understandable that you could fall for this in all the stress and confusion of the whole event.

3. Report the accident to the police within 24 hours and provide your insurer with the case reference number.

This is another key component of a successful claim. If there is another party involved in the accident, be sure to get their contact details and, if possible, their insurance information so that you can open a case with the police. According to road traffic rules they are obliged to provide you with this information. Your insurer will then need this case reference number to process your claim.

4. Report the accident to your insurer as soon as possible.

When you are involved in an accident, your insurer will highlight in your policy the window in which you have to report the incident. Be sure to include the case reference number mentioned in the previous point in your account of the accident.

5. Always tell the truth about the accident and the circumstances surrounding it.

Understandably their insurers because of the stringency of the assessments and policy wording often upset people, especially if the circumstances surrounding the claim are stressful or traumatic. However, considering the number of people that attempt to inflate their claims, it is necessary that the process is as meticulous as possible. These measures also allow insurers to make insurance as affordable as possible for everyone.

6. Provide your insurer with the necessary documents where required.

Examples of such documentation is the accident claims form and copy of ID and drivers license. Just one document missing at the claim stage means that your vehicle repair can be delayed by days or weeks.

7. Take your vehicle for an assessment as directed by your insurance company.

You will have a choice of panel beaters or drive-in centre’s where assessors appointed by your insurance company will examine your vehicle and estimate your claim. Do not try to avoid, sidestep or improperly influence this process. Following the rules gets your claim paid quickly and fairly.

8. Alternatively, should your insurer require quotations, the following process will apply.

Some insurers require you to get quotations from panel shops approved by the insurance company. Stick to this and you will be just fine. You need to be aware that the insurance company know exactly how some people try to undermine this process by getting made-up quotes on fictitious letterheads.

9. Ensure that you take your vehicle to the panel shop designated by your insurer.

Once the insurer has assessed and approved your claim, you will be informed of where to take your vehicle for the necessary repairs to be effected. The insurer will authorise the repairs with the approved panel beater.

10. Be very clear about what excess you have to pay.

The panel shop will not release your vehicle until you’ve paid the excess. The excess amount is specified in your policy document and you need to be sure about what you’re liable for. There is no other arrangement that will work and it is best to plan for paying the excess before you try to get your vehicle from the panel shop.

Most importantly stay in constant communication with your insurer. If you aren’t sure, just ask about the correct process to follow and the better you follow this process the easier and quicker you will have your claim approved and your vehicle fixed again.

This article is a general information sheet and should not be used or relied upon as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your financial adviser for specific and detailed advice. (E&OE)

Financial assistance and the Companies Act

A1One of the more significant changes that the “new” Companies Act, 71 of 2008, brought about was that a company may now provide financial assistance to prospective shareholders to subscribe for shares in that company. In other words, it may lend persons money to enable them to subscribe for shares in the lender (although other forms of financial assistance is also contemplated – see below). Previously, in terms of section 38 of the now repealed Companies Act, 61 of 1973, this was not allowed.

In terms of section 44 of the “new” Companies Act, financial assistance by a company would include extending a loan, guarantee or the providing of security to enable a person to obtain funding for purposes of acquiring shares in that company. Section 44 seeks to regularise such instances of financial assistance however, and this would extend beyond the mere granting of a loan to a would-be shareholder. The wide definition of “financial assistance” makes it clear that the section covers various scenarios and also specifically where financial assistance by a company is provided to anyone not only for the purpose of enabling him or her to subscribe for shares in that company, but also if the assistance is to enable shares to be acquired in a related company.

The purpose of the provision is quite clearly to protect existing shareholders. For example: if a company were to lend money to a prospective shareholder who is subsequently unable to repay the assisting company, that company would have effectively diluted the shareholding interests of the existing shareholders (who would have paid cash for their shares), whilst the new shareholder who is unable to repay the company still has an interest left in the company (and indirectly therefore to the cash subscription proceeds of the other shareholders).

Notwithstanding the potential negative effect of allowing shares to be subscribed for in a company on loan account, it is foreseeable that such financial assistance may be required from time to time for genuine commercial purposes and transactions that would otherwise not have been feasible. B-BBEE transactions are an excellent example of this.

For a company to give financial assistance to a would-be shareholder, the directors of the company must be satisfied that the financial assistance is fair and reasonable to the company, and further that the company will be solvent and liquid thereafter. They must also ensure that this is not in contravention of the company’s Memorandum of Incorporation. If in breach of any of these conditions, the directors may potentially be held personally liable. Typically, the shareholders of the company must also approve thereof by way of a special resolution.

This article is a general information sheet and should not be used or relied upon as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your financial adviser for specific and detailed advice. (E&OE)

U testament – ‘n belangrike dokument

A6Die lewe is baie onvoorspelbaar en ons adviseer graag kliënte om erns te maak om ‘n testament in plek te hê en boedelbeplanning te doen. Hieronder is redes waarom dit een van u belangrikste prioriteite behoort te wees.


V:  Hoekom behoort ek ‘n testament te hê?

A:  ‘n Testament stel u in staat om erfgename volgens u keuse te benoem. Indien u sonder ‘n testament (intestaat) sou sterf, sal u bates volgens die Wet op Intestate Erfopvolging verdeel word. Dit mag dus die gevolg hê dat persone wie u nie as erfgename sou benoem nie, voordele by u afsterwe ontvang.

V:  Wie mag u testament as getuie onderteken?

A:  Die testament moet in die teenwoordigheid van twee getuies geteken word, wat ook in die teenwoordigheid van mekaar teken. Slegs persone 14 jaar en ouer kwalifiseer om as getuies te teken. 

V:  Wat beloop Eksekuteursvergoeding?

A:  Die maksimum vergoeding waarop ‘n Eksekuteur geregtig is, word deur Wetgewing vasgestel en beloop tans 3.5% van u totale bruto boedelwaarde. Eksekuteursvergoeding behoort egter onderhandel te word met die persoon wat as Eksekuteur van u testament benoem word.

V:  Hoe gereeld behoort ek my testament te hersien?

A:  Dit word aanbeveel dat testamente ten minste elke 2 jaar hersien word. Dit is egter ook belangrik om die hersiening van u testament met gebeurtenisse soos bv. ‘n huwelik, ‘n geboorte, ‘n egskeiding of die aankoop van eiendom te oorweeg.

Hierdie artikel is ʼn algemene inligtingsblad en moet nie as professionele advies beskou word nie. Geen verantwoordelikheid word aanvaar vir enige foute, verlies of skade wat ondervind word as gevolg van die gebruik van die artikel nie. Kontak altyd ʼn finansiële raadgewer vir spesifieke en gedetailleerde raad. (E&OE)

Financial assistance by companies to issue shares

A2_1Section 38 of the Companies Act, 61 of 1973 (now repealed) contained a prohibition against companies issuing shares to prospective shareholders on loan account. This was identified as one of the hurdles in the way of BEE empowerment deals specifically (which quite often involves BEE participants requiring funding to be able to subscribe for shares in a company). Consequently, this was addressed in the Companies Act, 71 of 2008, through the introduction of section 44 which now specifically provides for new share issues to be undertaken on loan account, subject thereto that this is not prohibited by the company’s memorandum of incorporation.

The board of directors of a company may now authorise financial assistance to be provided by the company by way of a loan, guarantee or the provision of security to any person for the purpose of subscribing for shares issued in that company. However, and despite any provision of a company's memorandum of incorporation, the company’s directors may not authorise any financial assistance unless the financial assistance is for either an employee share scheme, or has been authorised through a special resolution by the shareholders of the company. (A special resolution involves a resolution adopted with the support of at least 75% of the voting rights exercised on the resolution, or a different percentage which may potentially be allowed for in the company’s memorandum of incorporation.) In addition, the company’s directors must be satisfied that the terms of the loan (or other form of financial assistance) is fair and reasonable to the company, and that the company would, after providing the financial assistance, still be both solvent and liquid. If the company’s memorandum of incorporation specifically imposes certain further conditions on the company granting financial assistance for the issuing of its shares, these requirements too need to be adhered to.

Any agreement to provide financial assistance which would be contrary to the requirements set out above in terms of either section 44 of the Companies Act, or the memorandum of incorporation of a company, would be void. Directors in breach of this may be held personally liable for damages caused.

The new regime in the ‘new’ Companies Act is enabling for business, but directors should caution against applying this without due consideration to the above requirements. Of specific relevance would be if for example the recoverability of a loan granted to enable the borrower to subscribe for shares is doubtful. If this is the case, the duty of care of the directors towards the company may be called into question by other shareholders prejudiced as a result, potentially leading to delictual claims against the directors in personal capacity for not displaying the statutory required duty of care towards the company.

This article is a general information sheet and should not be used or relied upon as professional advice. No liability can be accepted for any errors or ommissions nor for any loss or damage arising from reliance upon any information herein. Always contact your financial adviser for specific and detailed advice. Errors and omissions excepted (E&OE)

10 Wenke hoe om uitgawes dop te hou

A3_1Hou jy behoorlik boek van jou klein onderneming se besigheidsuitgawes (operasionele koste)? Dit sal onnodige koste besnoei en jou meer voorbereid vir belastingtyd maak as jy jou uitgawes gereeld aanteken en aanpassings maak.

Probeer hierdie wenke om jou besigheidsuitgawes beter te bestuur:

  1. Gebruik sagteware.Rekeningkundige sagteware soos Quickbooks en sigblaaie van MS Office maak bestuur van uitgawes makliker. Kies dieselfde program as jou boekhouer of ‘n versoenbare een; sodoende kan jy inligting direk na jou belastingopgawe oordra.
  1. Wees gereed vir belastingtyd.Wees noukeurig wanneer jy aftrekbare uitgawes soos voertuiggebruik vir besigheidsdoeleindes, reis- en onthaalkoste, voorraad en toerusting, en bydraes aan verenigings en liefdadigheidsorganisasies aanteken. Die SAID-webtuiste voorsien  details oor hierdie uitgawes.
  1. Hou persoonlike en besigheidsrekeninge apart.Moenie persoonlike kontant, kredietkaarte of tjeks vir besigheidsuitgawes aanwend nie. Maak seker jy debiteer die korrekte rekening wanneer jy jouself of werknemers vergoed, om verwarring en navrae van SAID te vermy.
  1. Stadig met die kontant.Betalings uit die kleinkas moet beperk word – skep eerder ‘n kleinkas-rekening in jou boekhouding om effektief hiervan boek te hou.
  1. Bewaar alle kwitansies.In geval van ‘n oudit gaan jy alle kwitansies benodig om jou eise te staaf. Skryf dus die doel van die uitgawe op elke kwitansie, en neem foto’s daarvan of skandeer dit in die rekenaar in om bergplek te spaar en moeite te verminder.
  1. Teken inligting dadelik aan.Teken uitgawes dadelik aan sodat dit nie ophoop nie en jy in beheer van die boekhouding bly.
  1. Gee jouself krediet.Kredietkaarte maak dit makliker om tred te hou met jou besigheidsuitgawes, aangesien die state besonderhede van jou uitgawes volledig uiteensit. Kredietkaarte is ook veiliger en geriefliker om te gebruik as kontant.
  1. Gebruik tegnologie. Sekere draagbare toepassings stel jou in staat om jou uitgawes dop te hou en na die korrekte kliënt of rekening te allokeer. Kry produkte wat versoenbaar is met jou bestaande rekeningkundige sagteware.
  1. Monitor resultate.Skep weeklikse en maandelikse terugvoering met jou rekeningkundige sagteware om jou inkomste en uitgawe te monitor. Gebruik ‘n maandelikse, kwartaallikse en jaarlikse begroting gebaseer op spandering in die verlede om jou uitgawes met jou begroting te laat klop.
  1. Sny oortollige uitgawes.Spandeer jy meer as wat jou begroting toelaat? Wil jy ‘n groter wins maak? Analiseer jou uitgawes en begin deur die onnodige uitgawes te sny.

Hierdie artikel is ʼn algemene inligtingsblad en moet nie as professionele advies beskou word nie. Geen verantwoordelikheid word aanvaar vir enige foute, verlies of skade wat ondervind word as gevolg van die gebruik van die artikel nie. Kontak altyd ʼn finansiële raadgewer vir spesifieke en gedetailleerde raad. (E&OE)


Minutes of board meetings

A5Board meetings and the decisions made during these meetings may be determining for the effective functioning of a company. Clients are therefore reminded of the legal requirements relating to board meetings as stipulated in Article 73(6), (7) and (8) of the Companies Act 71 of 2008, which should be strictly adhered to.

The Act requires a company to keep minutes of meetings of the board and of any of the board’s committees, and that a majority of the directors must be present before a vote may be called at a meeting of the directors. Each resolution taken by the board and also any statement made by a board member must be recorded in the minutes. A board resolution takes effect on the date that the resolution is made unless another date of implementation is recorded in the resolution. Attention is drawn in particular to the requirement that resolutions must be dated and numbered sequentially.

Providing that a company’s Memorandum of Incorporation allows therefor, a board meeting may also be held by means of electronic communication, or one or more directors may participate in a meeting by means of electronic communication. This is conditional on the electronic communication facility enabling all participants in the meeting to communicate with each other without an intermediary.

Minutes of a meeting, or a resolution, signed by the chair of the board meeting or by the chair of the next meeting is evidence of the proceedings of that meeting or adoption of the particular resolution. It is therefore important that all minutes be signed and dated by the chairman before sending them to all relevant parties and filing them.

This article is a general information sheet and should not be used or relied upon as professional advice. No liability can be accepted for any errors or ommissions nor for any loss or damage arising from reliance upon any information herein. Always contact your financial adviser for specific and detailed advice. Errors and omissions excepted (E&OE)

Tax rates for 2016

A8With the fiscal year-end for individuals on 29 February 2016, it is useful at this stage to be reminded of the various tax rates applicable for the 2016 tax year.  These were enacted by the ​Rates and Monetary Amounts and Amendment of Revenue Laws Act, 13 of 2015 and promulgated on 17 November 2015 (to the extent that these rates were amended).

Below we set out some of the more relevant rates and tables that may be applicable to our clients.

Income tax rates for individuals for the 2015/2016 tax year:

Taxable income (R) Rates of tax (R)
​0 – 181 900 ​18% of each R1
​181 901 – 284 100 ​32 742 + 26% of the amount above 181 900
​284 101 – 393 200 ​59 314 + 31% of the amount above 284 100
​393 201 – 550 100 ​93 135 + 36% of the amount above 393 200
​550 101 – 701 300 ​149 619 + 39% of the amount above 550 100
​701 301 and above ​208 587 + 41% of the amount above 701 300

Interest Exemptions from Income Tax:

​Person younger than 65 ​R23 800
​Person 65 and older ​R34 500

Medical credits available to be deducted against an income tax liability:

Per month (R) 2016
​For the taxpayer who paid the medical scheme contributions 270
​For the first dependant ​270
​For each additional dependant(s) ​181

The following rebates will apply for individuals against their tax liability calculated in accordance with the above:

Cumulative Rebates from Income Tax for Individuals:

Tax Rebate​​
​Primary ​R13 257
​Secondary (65 and older) ​R7 407
​Tertiary (75 and older) ​R2 466

Income Tax for companies is levied at 28%, whilst the rate is increased from 40% to 41% in the case of trusts.

Small Business Corporations are not taxed at a flat rate of 28%, but according to the below table for tax years ending between 1 April 2015 and 31 March 2016:

Taxable income (R) ​Rate of tax (R)
​0 – 73 650 ​0%
​73 651 – 365 000 ​7% of the amount above 73 650
​365 001 – 550 000 ​20 395 + 21% of the amount above 365 000
​550 001 and above ​59 245 + 28% of the amount above 550 000

Capital gains tax is calculated by including 33.3% of an individual’s net capital gains (less R30,000) in their taxable income to be used for calculating their income tax liability (see table above).  The inclusion rate for ordinary trusts and companies are set at 66.6%.

The VAT rate is retained at 14%.  The same applies to donations tax and estate duty, both still levied at 20%.

Transfer duty applicable to individuals:

​Value of the property (R)
​0 – 750 000 ​0%
​750 001 – 1 250 000 ​3% of the value above 750 000
​1 250 001 – 1 750 000 ​15 000 + 6% of the value above 1 250 000
​1 750 001 – 2 250 000 ​45 000 + 8% of the value above 1 750 000
​2 250 001 and above ​85 000 + 11% of the value above 2 250 000

Turnover tax rates:

​Taxable turnover (R) ​Rate of tax (R)
​0 – 335 000 ​0%
​335 001 – 500 000 ​1% of the amount above 335 000
​500 001 – 750 000 ​1650 + 2% of the amount above 500 000
​750 001 and above ​6 650 + 3% of the amount above 750 000

This article is a general information sheet and should not be used or relied upon as professional advice. No liability can be accepted for any errors or ommissions nor for any loss or damage arising from reliance upon any information herein. Always contact your financial adviser for specific and detailed advice.

Finansiële risikobestuur vir u klein besigheid: Weet u wat om te doen?

A3Is dit werklik nodig om te weet hoe om finansiële risiko te bestuur? Die antwoord is ‘n besliste “Ja!” Dit kan die verskil beteken tussen ‘n suksesvolle besigheid en ‘n besigheid wat gedwing word om sy deure te sluit. Maak seker dat u u besigheid die beste moontlike kans gee om te oorleef en te floreer deur finansiële risikobestuur te verstaan en dit te implementeer.

Finansiële risikobestuur kan in die volgende stappe verdeel word:

  1. Verstaan wat finansiële risiko beteken

‘n Finansiële risiko is enige gebeurtenis of omstandigheid wat potensieel ‘n negatiewe impak op die finansies van ‘n besigheid kan hê.

  1. Identifiseer finansiële risiko’s van toepassing op die besigheid

Identifiseer al die finansiële risiko’s waaraan u kan dink wat moontlik ‘n impak op die besigheid kan hê. Oorweeg dit om ‘n dinkskrum en/of SWOT-analise saam met werknemers te hou ten einde so veel as moontlik potensiële risiko’s te identifiseer.

‘n Voorbeeld van ‘n finansiële risiko is wanneer kliënte wat op krediet by u koop nie meer in staat is om hul uitstaande rekeninge te betaal nie.

  1. Assesseer elke finansiële risiko individueel

Bepaal so goed as wat u kan, met behulp van die beskikbare inligting, hoe waarskynlik dit is dat elke risiko die besigheid kan affekteer en wat die moontlike bedrae van die skade (negatiewe impak) kan wees indien die risiko realiseer.

As ons die voorbeeld kan neem van kliënte wat nie meer hul uitstaande rekeninge kan vereffen nie, is die volgende matriks handig om die waarskynlikheid en omvang van die skade te bepaal indien die risiko sou realiseer. Aanvaar dat die waarskynlikheid en potensiële skade van kliënte wat nie meer hul uitstaande rekeninge kan betaal nie hoog is, soos op die matriks met ‘n “X” aangedui.

Waarskynlikheid van skade (kliënte wat nie rekeninge kan betaal nie)




Geskatte omvang van skade

Groot skadebv. R100 000


Medium skade
bv. R30 000
Klein skadebv. R5 000
  1. Gee aandag aan risiko’s om die negatiewe impak op u besigheid tot die minimum te beperk

Identifiseer en gee aandag aan daardie risiko’s waaroor u die meeste beheer het en fokus u finansiële risikobestuurspogings daarop. Beheer in hierdie konteks sal die vermoë wees om die waarskynlikheid en potensiële skade te minimaliseer indien die risiko sou realiseer.

Skep en implementeer ‘n aksieplan om elk van die geselekteerde risiko’s tot aanvaarbare vlakke te verlaag.

Oorweeg die uitneem van versekering om die besigheid teen eksterne risiko’s te beskerm waaroor die besigheid nie veel beheer het nie, bv. natuurrampe.

Om verder uit te brei op die voorbeeld: die matriks toon dat dit hoogs waarskynlik is dat kliënte nie hul rekenings sal kan betaal nie, en die gevolglike bedrag van slegte skuld kan aansienlik wees. Daar is maatreëls wat die besigheid kan implementeer om die waarskynlikheid en bedrag van skade weens slegte skuld te voorkom, of minstens te verlaag. Dis implementering van hierdie maatreëls waarop die besigheid behoort te fokus ten einde die risiko van slegte skuld tot aanvaarbare vlakke te verminder. Voorkomende maatreëls kan die nagaan van kliënte se kredietrekords voordat goedere op krediet aan hulle verkoop word, insluit, sowel as die implementering van ‘n voorafgoedgekeurde kredietlimiet per kliënt.

  1. Monitor die finansiële risikobestuursplan

Hersien die finansiële risikobestuursplan gereeld om te verseker dat dit tred hou met die veranderende omstandighede van die besigheid en steeds effektief is in die vermindering van huidige finansiële risiko’s.

As die bostaande voorbeeld van potensiële slegte skuld gebruik kan word, kan gereelde ondersoeke van die debiteure se ouderdomsanalise ‘n toename in uitstaande bedrae toon wat daarop kan dui dat die kredietbeleid vir kliënte hersien en opgedateer moet word.

Behoorlike finansiële risikobestuur kan ‘n besigheid se kanse op sukses en winsgewendheid aansienlik verbeter. Indien u ‘n finansiële risikobestuursplan wil implementeer of vermoed dat die huidige finansiële risikobestuursplan verouderd is, kontak gerus u finansiële raadgewer vir professionele bystand.


Hierdie artikel is ʼn algemene inligtingsblad en moet nie as professionele advies beskou word nie. Geen verantwoordelikheid word aanvaar vir enige foute, verlies of skade wat ondervind word as gevolg van die gebruik van die artikel nie. Kontak altyd ʼn finansiële raadgewer vir spesifieke en gedetailleerde raad. (E&OE)

Incentivising non-retirement savings in South Africa through Tax free savings accounts

A5National Treasury introduced the Tax free savings account and these accounts have been available since 1 March 2015, available through a variety of providers.

These accounts are intended for discretionary non-retirement savings and have certain distinct features which should make them very appealing to investors. Even though the intention is that they will be used for non-retirement savings, many investors will invariably use them to accumulate wealth for their retirement. The reason for this is that the longer term allows an enhanced compounding effect since you can earn returns on the tax saved.

The better known mechanism to incentivise non-retirement savings in South Africa is the annual interest exemption. Even though this exemption will still be available going forward, it will not be increased in future and will effectively be inflated away over time. This makes the Tax free savings accounts the primary long-term mechanism to incentivise savings.

As part of this incentive, investment companies must ensure that the account which they offer must be simple to understand, transparent, flexible and should not levy undue penalties.

The primary features of the Tax free savings accounts

The Tax free savings accounts allows you to contribute a total of R30,000 per annum into your Tax free saving accounts, whether you have one or many.

  • Your contributions will not be tax deductible
  • All the return within your accounts (whether it is in the form of dividends, a capital gains or interest) will be free of tax in your hands and in the hands of the life assurer (if the Tax free savings account is housed in an endowment policy)
  • Withdrawals from a Tax free savings account will not be taxed in the hands of the individual or in the hands of the life assurer (if applicable)
  • The funds within the Tax free savings account will be accessible (even if the Tax free savings account is housed in an endowment policy)

Additional features

  • You will have a lifetime contribution limit of R500,000 (It is not intended that the lifetime limit will be increased by inflation in the short term). It is also a reasonable assumption to make that the limit won’t be increased for a very long time period, otherwise it would be of no use
  • Once a withdrawal has been made, the amount cannot be placed back into the account (it has to be invested as a new contribution and will count towards the R30,000 annual limit and the lifetime limit)
  • The ability to transfer these accounts between product providers (without impacting on the contribution limits) will be made available at a later stage
  • The accounts should offer adequate asset class diversification
  • The accounts should not have complex pay-off structures, complex guarantees and performance charges
  • The remuneration and disclosure on the accounts should comply with KIID’s and RDR
  • Any contributions in excess of R30,000 is highly inadvisable and will be heavily penalised (40% on excess contribution)
  • Transfer between individuals could lead to penalties (by breaking the contribution limits) which may force investors to rather disinvest and transfer the actual money
  • When housed in an endowment policy
    • The untaxed portfolio under the four fund taxation approach will be used
    • No risk benefits included such as contribution waivers and/or contingency benefits
    • The 5 year rules related to withdrawals and the 20% contribution increase rules will not be applicable

Choosing the tax free wrapper

A Tax free savings account should probably now be one of the primary product wrappers to consider when making an investment. Before making a decision however, factors such as the investor’s Tax free savings account limits, the investor’s accessibility requirements, his tax situation, his total wealth and his expected future investable income should be considered.

Additional considerations that should be taken into consideration could include factors such as flexibility, potential early termination charges, the available fund choice and restrictions, fees and product bonuses, features specific to a product, estate planning benefits and the level of protection offered against creditors.

The Rule of thumb

Each year, your first R30,000 should probably be invested into a Tax free savings account (up to the lifetime limit) and money withdrawn from this account should be done as one of your last resorts

Whilst this may seem straightforward, care needs to be taken not to be wasteful of both the annual limit and the lifetime limit if you expect that these limits may affect you over the long term

Please be aware that there are many instances where it will be to your disadvantage to follow the rule of thumb. One example will be when an investor intends to use a Tax free savings account to accumulate wealth for retirement purposes. In this instance, the investor’s circumstances may be such a retirement annuity would be a far better option. It is therefore crucially important that an investor’s individual circumstances must be taken into account before a decision is made

An example of a person trying to maximise his benefit

Jane invests exactly R30,000 into a Tax free savings account at the start of each year. (Even if it happens that the annual limit is increased every year.)

In the first year, her car breaks down and she has to use R20,000 for the repairs. Jane won’t be able to reinvest this R20,000 into her Tax free savings account that year. Had she built up an emergency fund before investing into her Tax free savings account, she would not have been forced to withdraw from the account.

In the following years, she withdraws R10,000 per year from his account to use for holiday purposes and for some minor renovations to her house.

After about 17 years, Jane has reached her Tax free savings account lifetime limit and she won’t be able to benefit on the tax free growth on any future contributions.

Jane could rather have saved R20,000 per year into her Tax free savings account. She could have saved the other R10,000 into a different investment which offers accessibility. This way she would not have wasted her lifetime contribution limit.

When using this approach, the tax liability on the R10,000 investment each year would have been rather small due to the short period of the investment (if the return was not already offset by her tax exemptions).

Should it happen that the R500,000 limit is increased in later years, she would be able to invest into a Tax free savings account again. If this only happens after 25 years, she would have missed the opportunity to contribute for about 9 years.

This article is a general information sheet and should not be used or relied upon as professional advice. No liability can be accepted for any errors or ommissions nor for any loss or damage arising from reliance upon any information herein. Always contact your financial adviser for specific and detailed advice.

Aftreefondse en Egskeiding: Die belasting-implikasies

A7Hierdie artikel ondersoek die belasting-implikasies waar ‘n lid van ‘n aftreefonds en sy/haar gade skei en die lidgade se aftreevoordele tussen hom-/haarself en die nie-lidgade verdeel moet word.

Waar die nie-lidgade ‘n deel van die lidgade se aftreefonds ontvang volgens die egskeidingsbevel, moet die tipe fonds vasgestel word aangesien die lidgade se belang in die aftreefonds (die fondsbelang) verskillend bereken word afhangende van die tipe fonds waaraan die lidgade behoort.

In die geval van pensioen- en voorsorgfondse word die lidgade se fondsbelang vasgestel as die bedrag waarop die lidgade geregtig sou wees indien hy/sy uit die fonds sou bedank op die datum van egskeiding.

Waar ‘n uittree-annuïteitsfonds betrokke is, word die bedrag van die lidgade se fondsbelang volgens die volgende formule bepaal:

Totale bydraes tot uittree-annuiteïtsfonds tot op datum van egskeiding


Jaarlikse eenvoudige rente* op die bedrag van die totale bydraes tot op datum van egskeiding

* teen SAID se voorgeskrewe rentekoers op die datum van egskeiding

Die deel van die fondsbelang wat die nie-lidgade toekom, word gewoonlik as ‘n persentasie bereken, bv. 30% van die bedrag van die lidgade se belang in ‘n aftreefonds.

Wanneer die nie-lidgade hul deel van die fondsbelang ontvang, word die belasting-implikasies in terme van die Wet op Inkomstebelasting geaktiveer. Volgens die Wet op Inkomstebelasting is die lidgade verantwoordelik vir die betaling van Inkomstebelasting op die bruto deel van die pro rata fondsbelang wat deur die nie-lidgade ontvang is asof dit deur die lidgade ontvang is.

Die Wet op Inkomstebelasting bepaal verder dat die pro rata deel van die fondsbelang toeskryfbaar aan die ni-lidgade reeds in die hande van die lidgade belasbaar is al het dit bloot aan die nie-lidgade toegeval – die pro rata bedrag hoef nie werklik deur die nie-lidgade ontvang te word voordat die belasting-implikasies vir die lidgade realiseer nie. Die lidgade sal dus verantwoordelik wees vir betaling van Inkomstebelasting op die nie-lidgade se pro rata deel van die fondsbelang wanneer dit toeval aan of ontvang word deur die nie-lidgade, welke gebeurtenis ook al eerste plaasvind.

Volgens die Wet op Inkomstebelasting het die lidgade ‘n outomatiese reg om die Inkomstebelasting wat aan SAID betaal is, van die nie-lidgade te verhaal. Die netto bedrag wat die nie-lidgade gaan ontvang, sal dus soos volg bereken word:

Bruto bedrag van pro rata fondsbelang toegedeel aan nie-lidgade


Inkomstebelasting verskuldig daarop

Die belasbaarheid van die nie-lidgade se deel hou wesenlike gevolge vir albei gades in. Daar is kontantvloei implikasies vir die lidgade indien hy/sy die belastinguitgawe moet dra totdat dit van die nie-lidgade verhaal kan word. Die grootste finansiële gevolg vir die nie-lidgade is dat die netto bedrag van die fondsbelang wat hulle in werklikheid ontvang nadat die lidgade die belasting van hul verhaal het, aansienlik minder kan wees as die bruto bedrag van die fondsbelang.

Dit is van kardinale belang dat albei gades professionele advies inwin rakende die belasting-implikasies van hul egskeidingskikking voordat die skikkingsooreenkoms gefinaliseer word ten einde wesenlik nadelige finansiële implikasies vir albei gades te verhoed.



Toegang verkry op 29 September 2015

Hierdie artikel is ʼn algemene inligtingsblad en moet nie as professionele advies beskou word nie. Geen verantwoordelikheid word aanvaar vir enige foute, verlies of skade wat ondervind word as gevolg van die gebruik van die artikel nie. Kontak altyd ʼn finansiële raadgewer vir spesifieke en gedetailleerde raad. (E&OE)