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CIPC have a website called BizPortal which is intended for people who wish to register their own company. It is not intended for the likes of us who register companies for other people. They’ve tried to make it simple and we know of a few people who have navigated their way through the process, but most people give up and take the easy way out by contacting us. Those who succeed in registering their own company often end up paying more for the finished article because they have no idea what a share register is all about, nor what…

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Everywhere you look, even on SARS’ website, you will see that you can make a third (voluntary) provisional tax payment by 30 September for February year end entities and six months after the tax year end for other entities. Why would you want to do this? The tax for the previous year ending February falls due on 30 September even though the tax return does not have to be submitted until after that (end February the following year for companies). Any tax not paid by 30 September is subject to interest charges, currently at 7%, until paid. This…

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Whenever we form or amend a trust for a client, we write a Will for the client and their spouse at no charge. This is essential because the trust and the Wills are closely linked and refer to each other. I am usually appointed as the executor and should, therefore, be holding the originally signed Will. Yet I estimated that 80% of the Wills that I prepare and send for signature are never returned. Let’s look at the consequences – The client will die intestate. That means that his or her assets will be distributed according to the rather complicated…

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With the change in company tax rate from 28% to 27%, the question again arises whether to pay yourself in salary or in dividends. Salary is straightforward, but you need to bear in mind the additional cost of monthly payroll services. This totals about R14 000 per year, or R10 500 net of tax. The total annual cost in tax and payroll services for a sole director/shareholder who earns R2m gross is R760 191 and the net salary is R1 250 321 If no salary is drawn, but the R1 250 321 is lent to the director in…

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I get numerous WhatApps like these – Hi can you assist to register a constraction canpony or where is the best place to go? Evening i should like to register my company how do I do to go through? Hello hoeveel om te registration Hi my name is Tebogo john M I need ck what r Way’s to follow How do you hep people start a business I wannna know wt ur campany do you can help me by receiving ck certficate Hi ineed to start the business Am will to registere a business Let’s start by acknowledging that this…

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Trusts are taxed at 45% and their CGT rate is 36%. That’s why I so often hear that “SARS is targeting trusts”. So, how is it that trusts are one of the main instruments for saving tax? Firstly, no properly structured trust should ever earn income tax or capital gains, so the above two taxes are totally irrelevant. How is that? A trust should only own shares in companies, and it is the companies that make the profits and pay the taxes, not the trust. So we’re dealing with 27% Income Tax (when the new rate kicks in) and 21,6%…

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I had an interesting meeting with a guy who’s failed three Board papers on the trot. They were – Ethics Wills and Estates Bookkeeping He’d passed Court Procedures because that’s what he does for a living. I started out by saying a few basic things – An exam is not an opportunity to show the examiner what you know. It is a mark scoring exercise, no more, no less. There’s no right and wrong in law, only strong and weak arguments. Give the examiner what he asks for – a letter, an opinion, a Will State the obvious – A…

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We had already made the decision to relocate to Knysna. We based it on the beautiful coastal scenery and the forests. Then, before we moved, we started taking an interest in air quality. There’s an American standard that measures AQI, the Air Quality Index, on a scale from 0 to 500. Things start getting bad above 100. We compared Knysna with Berea in Durban, where my daughter lives, and with Johannesburg. Here’s what we found – Wow! That’s was amazing. Since we moved, we check the AQI every day and, whilst it goes up and down, it stays within…

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I read a paid-for article this morning. It was advertorial by Sanlam Private Wealth and written by one of their trust “experts”, Christine Bornman. It was all about how a discretionary trust protects a legacy through succeeding generations by preventing the future beneficiaries from “looting” the legacy. It cites the well known fact that wealth bequeathed to your children is unlikely to survive beyond about two generations. So build it in a trust and bingo! problem solved. Not so, say I. As the article points out, your succeeding trustees are most likely to be your descendants (along with a few…

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I’m getting a lot of calls lately, because SARS is hitting more and more dormant companies with monthly administrative penalties for each annual tax return outstanding. Here’s a summary of my response – It is the company that becomes liable to SARS for the penalty The directors cannot be held liable The shareholders cannot be held liable The public officer cannot be held liable The only time that SARS can recover the penalties is if the company starts to trade If your company is not trading, I suggest that you ignore all correspondence from SARS relating to the penalties If…

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For me, a day without a meeting is like a day without sunshine. I love to help people with their businesses, their marketing, their plans to form a trust and anything else they want to talk about. I have currently had 82 Google reviews, all but 2 of them are 5 star and those 2 were 4 star. Why? Because I care. Booking a meeting is as simple as clicking on the link on our home page, or you can click here. The link takes you directly to my diary, where you will see that I am available…

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After the most testing four years of my life, I qualified as a CA(SA) and Registered Auditor at the age of 54. Now, many years later, I have resigned the auditor part. Why? Well, firstly, engineers are not born to tick boxes and, by golly, that’s what auditing is all about. The modern standards focus so heavily on procedural issues and reporting that I found that they missed the point entirely. In an entrepreneurial environment, a true professional could sniff out malfeasance that no amount of box ticking would uncover. Secondly, under the new Companies Act of 2008, very few…

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As many of you know, we are nomads. We rent penthouse style and move about once a year. The first two moves were with Biddulphs and they went smoothly and efficiently. The packers came in, wrapped, packed and loaded our belongings, and delivered them to our new apartment all without fuss or bother on our part. Then came the third move. Ouch! Helen’s jewelry was stolen and every small box that might contain something of value was opened, like the empty cellphone boxes that we all keep when we upgrade. When we phoned Biddulphs to advise them that some of…

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No-one in the company has more interest in making it succeed than you, so it’s your energy that makes things happen. Energy is not about huffing and puffing, scrambling around putting out fires, yelling on the phone at delinquent suppliers. No. Energy is so much more subtle, and so much more powerful. The Asian nations understand this so much better then us Westerners. They call it Chi, Qi or Ki and they treat it with the utmost respect. The arts of kung-fu, Reiki, chi-gung, karate, acupuncture, yoga, tai chi, feng shui, all rely on the control and channeling of this…

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Call me stupid, but I think that Debt to GDP is a meaningless measure of our ability to repay borrowings. Why? Because it’s quite possible for a country to have a massive GDP and be unable to pay foreign debts and equally, a country could have a relatively small GDP and be able to comfortably repay them. In order to understand this, we need to look at what GDP is. In a nutshell it’s total production of goods and services, including trade surplus or deficit. So, let’s say that a country had a GDP (like South Africa) of $350bn a…

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I’ve talked about the the main two types of marketing strategy – The billboard approach. Put yourself out there and hope to be remembered when somebody wants your offering The search approach. Be where people will look when they want what you’ve got. Both are valid methods and the choice should depend upon your offering and your target market. But just diving willy nilly into one or the other is almost certainly going to result in a waste of your marketing spend. I was in George recently and was struck by the inappropriateness of this advertisement – I mean,…

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I remember being taught in school that older people are likely to suffer from high frequency deafness. Lord knows why they taught us that or why it stuck in my sieve-like brain. But stick it did, so when it happened to me, I knew what it was. Off to the audiologist and yup! you’ve got it mate. So now I wear hearing aids, which thankfully, are almost invisible. But they do block one’s ears and that means I can’t hear my smart phone so well. Now, if I had an iPhone, I could download an app that would link my…

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I have never professed to understand investment instruments. You know, those mysterious things that Financial Service Providers talk about so glibly? So I was delighted to hold a Google meeting with a real professional. His name is Halvar Mathiesen and he’s one hell of a clever guy. Here’s his website. He’d read some of my blog articles but had only bought my book the day before. He wanted to discuss some points where he had a “slightly different perspective”. This was going to be fun! All the more because he has a First Class Honours in Electrical Engineering and…

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I did it! I am terrified of heights. We stopped by at the bridge and I knew I had to do it. This was a battle of the brains. Front brain battling left brain, right brain and old brain. I am fascinated by my brain, and I have gone a long way to making it my best friend, but this was an incredible challenge. Could I bring myself to dive off a bridge over a 216 metre drop? For three nights, I hardly slept. I rehearsed that moment 5,4,3,2,1 Go! I was going to dive, not jump. I was ready.

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