Harbour & Associates

The old B-BBEE affidavit was just a few words and we fitted it neatly into the body of a certificate by myself as a Commissioner of Oaths. It looked pretty good, but now they’ve gone completely overboard, making life for the small businessperson far more complicated than it needs to be. Here’s the original – And here’s the new one – So what have thay achieved? Now you have to state what percentage of your shareholding is held by – Black youth Black disabled Black unemployed Black people in rural areas Black military veterans…

It has happened so often now that I am no longer shocked when I hear from an entrepreneur that his accounting professional failed to bring any one of these four things to his attention. 1) In terms of the new Companies Act, if your company is doing less than about R400 million a year turnover, it doesn’t need an auditor. 2) And it does not need an audit. The auditing industry suffered very badly when the new Companies Act introduced these new requirements (or lack of them), so let’s break it down. I’ll assume that yours is not a company…

One of my clients has a company with branches in Jhb, CT and Durban. The turnover is about R25m and he has three adult children. This is how and why we decided to restructure the business. His intention was to pass shares on to his children as he approaches retirement. We figured that we should form three new companies, one for each branch and each owned by one of his children, but with him as the sole director of all of them. He can relinquish the directorships when he retires. The existing company has certain accreditations which require additional specialised…

I pulled out of B-BBEE auditing over a year ago because I couldn’t work with the rubbish manner in which the new codes have been drafted. Well, now the Independent Regulatory Board for Auditors has also pulled out. In a sudden announcement on 4 August, the IRBA advised that they have withdrawn as the designated sole regulatory body for B-BBEE auditors and verification agents. Not surprising at all – it just took them more than a year longer than me, but then they would have had to jump through quite a lot of hoops to come to the final decision.

B-BBEE

New B-BBEE Affidavit

Four things your accounting professional didn’t tell you

Splitting up your company for B-BBEE and Small Business tax perks

IRBA pulls out of B-BBEE

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