IMPORTANT SARS DATES

There appears to be an increased focus recently by SARS in relation to tax compliance. We therefore want to highlight the below important dates again to our clients to ensure that they are always fully tax compliant. Non-compliance may lead to penalties being imposed against defaulting taxpayers, but also has wider potential implications. This includes that taxpayers may be unable to apply for a tax clearance certificate, or that SARS may be disinclined to favourably consider a request for the suspension of payment of an alleged tax debt while the taxpayer is engaged in a tax dispute with SARS.

VAT:

VAT registered businesses also registered on eFiling are required to file their periodic VAT returns on the last business day of the month following the end of the relevant VAT period. Payment is due by the same day if made by EFT or through the eFiling portal.

Where manual returns are filed, payment and filing is required to be made by the 25th of the month following the VAT period.

PAYE:

Businesses with employees (and from whose salaries PAYE is being deducted) is required to file the relevant EMP201 return by the 7th (or the last business day before the 7th if the 7th falls on a public holiday or weekend) of the month following the month in which the PAYE was deducted. The return must be accompanied by the relevant payment of PAYE too (i.e. on the same date).

Every employer who is registered for PAYE (and or UIF and/or SDL) is further also required to submit an EMP501 form by 31 October 2017, which essentially comprises an interim reconciliation of attendant employees related taxes and levies.

Dividends tax:

Dividends tax returns are required to be filed by the end of the following month after the relevant dividend declaration or receipt has taken place, and payment (if applicable) is required to accompany that return on the same date.

Provisional tax returns:

For those taxpayers who are also provisional taxpayers, provisional tax returns are due after the first 6 months of the relevant year of assessment has passed, and again on the last day of that tax year. Payment is required to be made by the same dates (if applicable). While a third payment of provisional tax is not required, this may be made within 6 months after the end of the tax year (7 months, if a the yearend falls on February) to avoid interest being levied on the underestimation of provisional tax, if it transpires to be the case.

Annual income tax returns:

We again wish to remind our (non-corporate) clients that annual income tax returns for non-provisional taxpayer individuals are due by 24 November 2017, while provisional taxpayers are required to submit their annual returns by 31 January 2018.

Companies are required to submit their annual income tax returns within 12 months after the end of the end of the relevant year of assessment.

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. Errors and omissions excepted (E&OE)

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NEW CODE EXTENDS ACCOUNTANTS’ ETHICAL OBLIGATIONS

A professional accountant’s obligation to report non-compliance with laws and regulations has become more stringent, thanks to a new section to the International Ethics Standards Board for Accountants’ code.

Non-compliance goes far beyond reportable irregularities, and includes non-actual or suspected non-compliance with data protection, securities trading, terrorist financing and environmental protection.

Section 360 in the code of ethics guides accountants to act in the public’s interest when they become aware, or suspect a Noclar (non-compliance with laws and regulations).

Roles and responsibilities

The code states that a distinguishing mark of the accountancy profession is its acceptance of the responsibility to act in the public interest (section 100.1 of the IESBA).

When responding to a Noclar, the professional accountant is required to comply with the fundamental principles of integrity, objectivity, professional competence and due care and professional behaviour.

Once they become aware non-compliance, they have to report it to their direct superior, and if they are the most senior person they have to consult with the board of directors or anybody who is involved in corporate governance in the organisation.

The responsible people must be allowed time to rectify, remediate or mitigate the consequences of the identified or suspected non-compliance, provided there is no urgency in the matter.

South African Institute of Professional Accountants (Saipa) advises accountants to follow the internal route first. If they feel there is insufficient action to rectify the non-compliance, they can approach the regional forums and their professional bodies. If they are still dissatisfied with the recourse taken, they should consult legal counsel.

The code acknowledges that a senior professional accountant is expected to apply knowledge, professional judgment and expertise. However, he is not expected to have a level of understanding of laws and regulations beyond that which is required for the professional accountant’s role within the employing organisation.

The new section provides accountants with an override to the principle of confidentiality when reporting the non-compliance is in the best interest of the public. Once they have taken appropriate action, they must feel comfortable that the non-compliance has been fully dealt with and remember to document everything.

Dealing with threats and intimidation

Professional accountants need to maintain their independence and objectivity, and not succumb to intimidation or threats when they encounter and report non-compliance.

South African legislation supports this professional duty in the form of the Protected Disclosures Act.

The code states that where it is not possible to reduce the threat to an acceptable level, a professional accountant shall refuse to remain associated with information that is considered misleading or may cancel their mandate to ensure that the code is upheld.

The letter of engagement should reflect clearly that the client’s information will be held confidential, but if there is a legal or professional duty to disclose non-compliance the professional accountant will not hesitate to do so. This sets the ground rules for the client to understand that the professional accountant will not tolerate non-compliance if it impacts on the public’s best interest. The accountant has a trained eye, and can determine if something seems untoward.

Meticulous record-keeping

It is critical for the professional accountant to meticulously document what he has done to address the non-compliance. This will act as proof that he adhered to the requirements and responsibilities set out in the new section of the code.

It is advisable to document the nature of the matter, the results of discussions with a superior or, and where applicable, those charged with governance.

It is important to document the response of the accountant’s superior, the courses of action taken by the professional accountant and the judgments made and the decisions that were taken.

[12 Sep 2017 11:04]

About the author2

Ragiema Thokan-Mahomed is the legal, ethics and compliance executive, South African Institute of Professional Accountants (Saipa)

biz

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. Errors and omissions excepted (E&OE)

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WHAT IS EMPLOYEE ENGAGEMENT?

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What makes one company or firm more successful than another? Better products, services, strategies, technologies or, perhaps, a better cost structure? Certainly, all of these contribute to superior performance, but all of them can be copied over time. The one thing that creates sustainable competitive advantage – and therefore ROI, company value and long-term strength – is the workforce, the people who are the company. And when it comes to people, research has shown, time and again, that employees who are engaged significantly outperform work groups that are not engaged. In the fight for competitive advantage where employees are the differentiator, engaged employees are the ultimate goal.

Employee engagement can be defined as:

“The commitment to and passion for one’s work and role within a company. Engagement, as opposed to satisfaction, translates directly into discretionary effort-the willingness to do more than only meet job requirements and customer needs.”

“Employee engagement is the emotional commitment the employee has to the organisation, something or someone in their organisation and how hard they work and how long they stay as a result of that commitment.”

Employee engagement is the emotional connection or extent to which employees are motivated to contribute to business success, and are willing to apply discretionary effort to accomplishing tasks important to the achievement of stated business goals.

An engaged workforce can have a significant effect on financial and operational results and in most cases without an engaged workforce, customer relation efforts will flounder. Businesses with highly engaged employees see higher customer satisfaction, have lower turnover rates, and outperform in terms of customer relations impact and ROI, than businesses with lower levels of employee engagement. One of the most interesting aspects of employee engagement is that it can serve as a barometer for the health of the company at large.

“Companies that engage and empower their workforce are better positioned to anticipate and adapt to changing market conditions.”

A company’s engagement efforts are a tangible manifestation of its company culture and if that culture is one that is defensive, unbalanced, or inflexible, it spells long-term doom. Importantly, as cycle rates of change continue to become shorter and shorter, the ability to adapt, innovate, and continually improve is crucial.

“To win in the marketplace you must first win in the workplace.” Employee engagement is the key to activating a high performing workforce.

The most recent survey results indicate that:

  • Only 29 percent of employees are actively engaged in their jobs. These employees work with passion and feel a profound connection to their company. People that are actively engaged help move the organisation forward.
  • 54 percent of employees are not engaged. These employees have essentially “checked out,” sleepwalking through their workday and putting time – but not passion – into their work. These people embody what Jack Welch said several years ago. To paraphrase him: “Never mistake activity for accomplishment.”
  • 17 percent of employees are actively disengaged. These employees are busy acting out their unhappiness, undermining what their engaged co-workers are trying to accomplish.
  • Employees most committed to their organisations put in 57 percent more effort on the job-and are 87 percent less likely to resign-than employees who consider themselves disengaged.

http://succeedgroup.co.za/2017/08/02/what-is-employee-engagement/#.WafEJea7qM9

Ben vd Westhuyzen
Succeed Group Strategic Marketing Consultants

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. Errors and omissions excepted (E&OE)

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BEWARE OF CAPITAL GAINS TAX WHEN YOU EMIGRATE

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While many people immigrate to South Africa, we also see many of our clients emigrating from South Africa. And while formal migration-status is not necessarily linked to tax residency, the time of tax migration often coincides with formal emigration linked to passport or visum status. Many are surprised to learn (often after the fact) that emigration for tax residency purposes gives rise to tax consequences in South Africa, and specifically to capital gains tax (“CGT”) consequences in the form of so-called “exit charges”.

In essence, section 9H of the Income Tax Act, 58 of 1962, determines that when a person ceases to be tax resident in South Africa, that person is deemed to have disposed of all his or her assets on the day that the individual emigrates for income tax purposes. In other words, in calculating their income tax exposure, individuals emigrating for tax purposes are regarded as having sold all of their assets at market value on the day before that on which they leave the country. As a result, a capital gain is realised on this deemed disposal that is subject to CGT at the prevailing tax rates. Currently, 40% of capital gains so realised by individuals are included in their annual taxable income, which amount may be subject to tax at rates of as high as 45%.

The policy justification for taxing individuals upon emigration is that taxes are to be levied on all capital growth achieved on assets owned by South African residents while they were tax resident. Once an individual will have emigrated, limited mechanisms would exist whereby capital gains may only be realised upon eventual actual sale of assets subsequently once the individuals are no longer tax resident in South Africa. (It is for this reason that South African immovable property is excluded from the “exit charges” regime; section 35A of the Income Tax Act provides for a withholding tax mechanism whereby CGT may be recovered from non-residents when they sell South African immovable property.)

While one may have sympathy for the policy justification for the levying of “exit charges”, it must be recognised that any deemed disposal of assets necessarily creates a cash flow conundrum for the individuals affected, quite often proving prohibitive for wealthy individuals seeking to emigrate. It is quite possible that assets of individuals emigrating may consist mainly of illiquid assets such as share investments. Upon emigration, these very assets may need to be actually disposed of in order to raise sufficient cash resources to be able to pay the resultant CGT that would have been payable on a deemed disposal of those assets at emigration.

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. Errors and omissions excepted (E&OE)

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HOW FINANCIAL STATEMENT AUDITS DELIVER KEY BUSINESS INSIGHTS

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Financial statement audits are not just a compliance exercise, but also an opportunity to gain knowledge that can generate positive business results.

In many cases, though, companies are not taking full advantage of the insights that audits provide, a recent survey of 300 executives and 100 audit committee members by Deloitte’s U.S. audit practice revealed. According to the survey report, which was published in March:

  • More than three-fourths (79%) of executives and 91% of audit committee members say financial statement audits identify opportunities to improve business performance.
  • Almost half (46%) of executives and even more audit committee members (62%) say it’s at least somewhat likely that they would have missed important insights if the audit had not occurred.
  • Companies that regularly capitalize on information received from the audit are more likely to have achieved growth over the past three to five years that survey respondents consider “good” or “great.”

“Obviously, quality is the foundation here. We’ve always got to do a good, quality audit to start with,” said Adam Weissenberg, CPA, the national managing audit partner­-Clients & Industries for Deloitte & Touche LLP. “If we’re also providing insights and using that as a way to help the company know about some things they didn’t know about, that should be a valuable piece of the audit, and our client would value that.”

Through audits, companies may learn new information about their industry and market, discover shortcomings in processes and policies, and identify inefficiencies and risks. Increased use of data analytics is helping auditors look at large pools of data in a variety of areas to find information that could be helpful to clients.

Whether it’s journal-entry testing, analyzing contents of many leases across a company, or gleaning information from multiple contracts, data analytics is giving auditors the ability to find anomalies and discover inefficiencies that might have remained hidden in the past. These insights can provide important information for audit clients to act on.

Nonetheless, financial statement audits often represent a missed opportunity for companies. More than one out of every three companies (35%) rarely or never uses the information received from their financial statement audits to improve their business, according to the Deloitte survey. About half of executives (45%) and audit committee members (48%) whose companies don’t always use information from their audits do not have processes in place to make use of the insights that can be taken from an audit.

Weissenberg suggested that auditors, management, and audit committees can use the following tactics to make sure the client derives maximum value from the audit:

  • Communicate. Management, audit committees, and auditors benefit from communicating frequently to make sure the company is aware of and taking advantage of the insights that auditors discover. By following up and checking in with management and the audit committee, auditors can make sure that their insights have been understood.
  • Train auditors on judgment and communication. “We have to continue to work on [developing] the skills in our teams so that they can deliver on this, they have the ability to communicate effectively, they have the ability to take all these analytics and innovation that we’ve done and discern from that what kind of information is important to share with the audit committees,” Weissenberg said.

The survey offers good news for those who continuously strive to make the quality of audits as high as possible, as 83% of executives and 83% of audit committee members rated the reliability of information provided during an audit as good, very good, or excellent.

“There’s an inherent trust that the auditors are doing their job,” Weissenberg said, “and that the auditors are doing a good, quality audit, and that audit committees would look at us as an independent source in doing what we’re supposed to do.”

By Ken Tysiac (JofA editorial director)
June 1, 2017

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. Errors and omissions excepted (E&OE)

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CREATING A WILL: A FEW THINGS TO CONSIDER

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Talking about a last will and testament sometimes feels like giving health or dental advice.

People listen to your advice and suggestions with the kind of guilty unease of someone who is listening to the dentist talk about the necessity to floss regularly. You know that the advice is important, but you feel like it is something you can worry about later.

But just imagine the implications on your spouse or living partner if you leave him or her behind with no will. Apart from dealing with the grief of having lost a beloved, the person has to deal with hordes of unexpected claims and requests from anyone and everyone that you owe money to or have done business with.

The implications can be even more dire. Consider a recent case of a couple who passed away in two separate incidents, only days apart. Without a will, the state decides what happens with their assets and, importantly, with their children.

If you pass away without a will, not only will the state handle your affairs, but your spouse may lose out on unclaimed insurances and benefits that he or she has no idea about. Leaving your final affairs to the state will also incur additional costs that could have been avoided by giving clear instructions in a will.

These should be kept up to date and should be revised at least once a year.

Apart from ensuring that your next of kin get the best possible assistance and all the assets due to them, creating and maintaining a will has the additional benefit of forcing you and your financial advisor to review your affairs and to make sure that it serves your best interests.

Reviewing your will before you leave on holiday, for instance, may give you new ideas as to how best to invest or spend your money or it may highlight some preferences or ideas that you had in the past and that you, in retrospect, may not agree with anymore.

While creating your will, you should also consider filling in an Estate Directory. This directory is a comprehensive catalogue of every part of your life, including items often not thought about. Think about any club memberships, special friendships and even social media accounts that would need to be notified or closed if you pass away.

Wouter Fourie  /  26 February
Ascor®

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. Errors and omissions excepted (E&OE)

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GONE ARE THE DAYS OF TAX-FREE SALARIES ABROAD

Blog images-01-04Many South African taxpayers earning a salary abroad have for many years been able to benefit from so-called “double non-taxation”. This would be the case where salaries are earned in countries where the employer country would not tax salaries earned in that country, and where a domestic South African income tax exemption would also be available to such South African employees. The UAE for example is renowned therefore that it levies very little, if any, taxes on non-resident employees employed in that jurisdiction. This regime interacts quite well with the South African exemption from income tax provided to South African employees working abroad and in terms of which South Africa would in many cases also not levy income tax on salaries so earned abroad. In other words, a salary earned abroad may potentially not be taxed in either the country of source or residence (i.e. South Africa).

In terms of section 10(1)(o)(ii) of the Income Tax Act[1] salaries earned abroad would be exempt from South African income tax if the salary is earned for services rendered outside of South Africa, and the employee would be absent from South Africa for at least 183 days in a tax year, of which at least 60 are consecutive.

In the annual national budget speech earlier this year, Government warned of its intention to withdraw relief for South African individuals working abroad and effectively achieving double “non-taxation” on salaries so earned. This threat has now been borne out by the proposed withdrawal of the exemption in section 10(1)(o)(ii) of the Income Tax Act, proposed in terms of the draft Taxation Laws Amendment Bill published on 19 July 2017. As is explained by the draft Explanatory Memorandum to the Bill,

“It has come to Government’s attention that the current exemption creates opportunities for double non-taxation in cases where the foreign host country does not impose income tax on the employment income or taxes on employment income are imposed at a significantly reduced rate.”

The draft Bill proposes that section 10(1)(o)(ii) be deleted effectively for tax years commencing on or after 1 March 2019. This would effectively mean that South African residents will be taxable in South Africa on salaries earned abroad to the extent that the source country does not levy tax on the income so earned. To the extent however that income is taxed abroad too, South Africa should grant a credit against taxes payable here in terms of either an applicable double tax agreement or the provisions of section 6quat of the Income Tax Act.

[1] 58 of 1962

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. Errors and omissions excepted (E&OE)

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FIVE TIPS FOR MANAGING YOUR SMALL BUSINESS PAYROLL

Blog images-01-03Payroll is typically the number one concern for many small business owners worried about getting it right. But it needn’t be difficult – here are 5 top tips to make payroll easier.

  1. Know your big deadlines

Dealing with accounting deadlines and employee returns is much less stressful when you know what you need to action well in advance. Make sure you have a good system in place that alerts you to important dates and if you need to do anything. Working ahead gives you time to sort out any concerns or problems.

  1. Invest in a payroll software

Payroll systems such as Sage Instant Payroll or Sage One Payroll will automate the whole process for you, taking care of things like NI and tax calculations, generating payslips for employees, keeping up with legislation and providing information for end of year tax returns.

  1. Keep up with payroll legislation

Changes in regulation may affect how you need to run your payroll, so it pays to keep abreast of major new laws. Benefits and tax change frequently and while you don’t necessarily need to know all the details, it’s worth staying informed and getting advice when you’re not sure.

  1. Have a financial back-up plan

Keeping on top of payments is crucial in any growing business. Setting up a good credit control system, sending out invoices promptly and always chasing late payments firmly as soon as they become due will help avoid cash flow disruption.

  1. If all else fails… outsource

If managing payroll yourself is proving a real headache, consider outsourcing to a payroll company. They’re experts at what they do, and can save you the hassle of managing everything yourself and staying on top of regulations and paperwork.

Reference:

“8 Tips For Managing Payroll | Small Business Advice | Sage Singapore”. Sage.com. N.p., 2017. Web. 29 June 2017.

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. Errors and omissions excepted (E&OE)

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HOW YOUR MARITAL REGIME AFFECTS YOUR ABILITY TO BEQUEATH YOUR ESTATE

Blog images-01-02Limitations on freedom of testation can vary.

South African law values people’s ability to bequeath their belongings in a will as they see fit, but marital and other relationship regimes could limit a testator’s ability to freely pass on wealth.

“Drafting a will can be a complex affair and can be made even more complex by the presence or absence of a marriage, and by the choice of marital regime in the case of a marriage,” Louis van Vuren, CEO of the Fiduciary Institute of Southern Africa (FISA), says.

Due to historical developments and the move to a constitutional democracy, various marital regimes and life relationships exist in South Africa. These include civil marriages (solemnised under the Marriage Act of 1961), customary marriages (solemnised under the Recognition of Customary Marriages Act of 1998), civil unions (solemnised under the Civil Union Act of 2006), religious marriages and co-habitation.

Prior to the constitutional era, a civil marriage was the only marriage recognised by law. Customary marriages existed, but were only accepted in indigenous law before 1998. A civil union was created to recognise the constitutional rights of homosexual couples, but heterosexual couples may also choose to formalise their relationship in this manner.

After 2006, civil marriages, customary marriages and civil unions all have the same legal consequences. However, religious marriages and co-habitation arrangements are not recognised as marriages under any legislation, except tax legislation.

The sections below highlight how each marital or life relationship regime could affect an individual’s testamentary freedom:

Marriage in community of property

The biggest limitation on an individual’s ability to deal with any asset in a will is in a marriage in community of property. In such instances, both spouses own everything in equal shares, Van Vuren says.

In practice, this means that one party cannot bequeath what belongs to a partner without that spouse’s permission.

Van Vuren says the “sting in the tail” is that these individuals will likely have a joint will and although they may bequeath their assets as they see fit, the surviving spouse still has the right to reject the will after the death of his or her spouse.

“If the person rejects then that spouse will not receive anything from the joint will but will retain his or her half of all the assets. So in that instance the joint will then becomes completely ineffective.”

If the surviving spouse accepts the will, the assets will be divided as provided for in the will.

In the absence of an ante-nuptial contract, a marriage will automatically be regarded as in community of property.

But even if would-be spouses decide to marry in community of property, they could still enter into an ante-nuptial contract and exclude certain assets from the joint estate, Van Vuren says.

Assets may also be excluded from the joint estate where one spouse receives a donation or inheritance subject to a condition that it should not form part of the joint estate.

Marriage out of community of property

Van Vuren says because “in community of property” is the default regime, marriages and civil unions will only be out of community of property if an ante-nuptial contract exists in which community of property is excluded.

These marriages can be with or without the application of the accrual system.

With accrual

All marriages entered into after November 1, 1984 and all civil unions subject to an ante-nuptial contract are by default subject to the accrual system unless it is explicitly excluded in the contract, Van Vuren says.

“The accrual system aims to equalise the increase in wealth of the two spouses to the marriage or union during the subsistence of the marriage, by giving a claim to the spouse with the smaller increase, or accrual, against the spouse with the bigger accrual. Upon divorce or death of one of the spouses, the increase in the real value (after adjustment for inflation) of the estate of both spouses, is added up and divided by two.”

Not enforcing the claim amounts to a donation and could have donations tax implications, he says.

Where the first dying party has the smaller accrual, the claim will be against the survivor who will have to pay the claim unless he or she inherits more than the amount of the claim. Should the entire estate be bequeathed to someone else (e.g. children), administration can become quite complicated if the surviving spouse does not have sufficient cash to settle the claim. This can be a particularly thorny issue in a second or third marriage if the surviving spouse has to pay a claim to the estate, but the beneficiaries are not his or her own children, Van Vuren explains.

In a marriage out of community of property with the accrual system, legislation excludes all inheritances or donations received during the course of the marriage from the accrual.

Without accrual

A marriage out of community of property without the accrual system is the most simplistic regime with regard to the administration of the estate, because there is no accrual claim and parties will generally be able to dispose of their assets as they please. One exception is where the survivor is left with insufficient support, in which case there may be a claim under the Maintenance of Surviving Spouses Act.

Religious marriages

Since religious marriages do not legally recognise the partners in the relationship as spouses (except under tax law), there is no community of property and each party has the right to bequeath assets as he or she sees fit. Our courts have also extended the claim under the Maintenance of Surviving Spouses Act to parties in religious marriages, Van Vuren says.

Co-habitation

Unless the partners in a co-habitation arrangement had a formal agreement there is no protection under law, and partners won’t have any claims against each other’s estates.

“In the case of partners in same-sex co-habitation arrangements, however, there is an anomaly. Despite the existence of the Civil Union Act and the fact that same-sex couples can now enter into a civil union with the same consequences as a marriage, the courts have extended the right to inherit in intestacy to such partners in co-habitation arrangements. Because unmarried, heterosexual couples do not qualify under the Maintenance of Surviving Spouses Act it is unclear how a court will deal with the issue of one homosexual life partner disinheriting another in a will,” Van Vuren says.

Ingé Lamprecht  /  2 August 2017 00:10

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. Errors and omissions excepted (E&OE)

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WHAT ARE THE VERY BEST WAYS TO SAVE MONEY FOR YOUR COMPANY?

Blog images-01-01Every serious businessman in the world understands that money needs to be spent in order to make a profit, but this does not actually mean that you can go all out and expect things to be good. Saving company money is a necessity since it is so easy to lose control of everything. The company can easily end up losing control as uncompromising customers have to be dealt with and expenses are simply way too high. Bad decisions are really common but the good news is there are many ways in which a company can save money. We will highlight some of the very best, those that can be respected right now.

Developing ownership mentality in employees

Out of all the things that companies can do, this is probably the most important practice that can help save a lot of money. When employees understand how important it is to save money, various unnecessary expenses are going to be naturally eliminated. For instance, let’s say that a firm uses research chemicals. The employees that have an ownership mentality will look for the best prices and save a lot by buying affordable chemicals.

As the employee feels empowered and trusted, he/she will pick up work ownership. This is something that sounds simple but that can only happen through trust. Trusting employees is definitely something that is going to help a lot at the end of the day but this is only possible through proper training.

Optimising expenses

Optimising expenses is a necessity for every single company but this is not something that is done with ease, as some managers think. Expense optimisation identifies business efficiency, pushes it one step further and identifies strategic partners that are going to save a lot of money on the long time through opportunity, focus and time cost.

Every single company has expenses but how they are managed is what can increase or decrease profits. As an example, instead of getting new staff, the company might want to allocate that budget to improve marketing efficiency and overall business operation efficiency. Having a company that runs better and uses tools better can help save money much faster than other options.

Using partners

When the company grows expenses can easily get out of control. This is when it is a really good idea to find some partners that you can quickly grow with. That can save a lot of cash but only in the event the right partner is found. The idea is to locate someone that has access to tools that the company needs in order to grow. However, even if the partners look as if they are great, this may not be the case. You want to be sure that the interested partner will also be interested in company growth.

Conclusion

Generally speaking, there are hundreds of things that you can do in order to save money for your company. The options mentioned above may be the most important in most cases but you should never underestimate all the other ones. Sometimes, something as simple as leading by example can help.

www.bizcommunity.com

Boris Dzhingarov

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. Errors and omissions excepted (E&OE)

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