Please find below, our newsletter for this period.
The 2018 tax season is well underway as I compile this newsletter. Note that end of October is the deadline for non-provisional taxpayers only, while provisional taxpayers have until end January 2019 to file returns. Jacqueline and Gert are working hard to ensure all deadlines are met – if you can respond quickly to their requests.
Companies have a 12-month period from the end of their Financial year to file their tax return.
Please see attached notification from SARS re penalties for outstanding tax returns.
Tax Liabilities out of control –
Now is the time to apply for a Compromise
Falling behind with all types of taxes is happening more and more, and has the potential to close down your business. SARS is relentless when it comes to collecting tax liabilities due, and has the power to attach your assets or even withdraw monies owed in taxes from your bank account.
We have a specialized service in this regard to provide a key added value service to clients, arranging compromises (write offs) or repayment plans with SARS which allows the taxpayer to continue with their business and settle their (reduced) tax liabilities.
For more information in this regard, please call our office on 021 300 1230 and speak to Gert.
The 2018 Annual Financial Statements season is winding down as we wrap up the final statements. Steve and Sharon have been communicating with you regarding these statements. Please remember, to ensure that your CC or Company, has a compliant Asset Register, as we find SARS is requesting this more frequently, as they focus on wear and tear (ie tax depreciation) allowances.
See an article on the top 5 misunderstood accounting terms.
Another term to familiarise yourself with is that of EBITDA.
EBITDA – earnings before interest,
tax, depreciation and amortisation
A very relevant discussion attached on using EBITDA for valuations, as well as just using this to manage your business. From a valuation perspective, EBITDA is a “quick” if somewhat unreliable method of placing an estimated value on your business – read the attached document for some insight!
We are reflecting this figure on all our Annual Financial Statements (on the Profit & Loss statement) as we believe it does cut through some of the issues which cloud true performance – such as depreciation and interest charges, which tend to obscure how well or not, the business is doing.
By using EBITDA, you also show the reader of your financial statements, the underlying profitability of the entity, which can be very different from the reported profitability, especially when large depreciation charges are occurring, or the amortisation of goodwill is taking place.
Our webinar training sessions continue to be very popular. We have also launched a masterclass series – which are deep dive two-day training sessions with course specialists to really understand the issues facing businesses, such as vat, bookkeeping etc– check out our website for more details and ensure you stay current with vat, credit collection and many other topics. www.bizfacility.com
Bizfacility has just launched its twitter! Sign up and stay abreast of helpful tips. Go to the attached link and check out our tweets.
Estate planning and trusts
We remind all our clients of this offering – we have a highly experience lawyer working with us – Fanie Botha. Estate planning is vital for the protection of your wealth at time of your death, as the cost of estate management at time of death can be large.
Please contact us for more information and ensure you have a Will and required plans in place. Death can come very quickly and unexpectedly.
Content compiled by
Gavin Beretta – Financial Director
MBA, FCIS, CMT
FinSolve – Registered Accountants,
Business Valuation and Tax Practitioners