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The idea of Tax Clearances was a master stroke by SARS. If you have traded, you can’t get one unless you’ve done your bookkeeping and your tax returns. Many creditors will not pay unless the supplier produces a tax clearance certificate. Whether or not that is just a ruse to delay payment, the effect is that we often get people coming to us for an urgent tax clearance so that they can get a payment from a debtor. That’s when they learn that we’ll first have to do their bookkeeping (usually for three or four years), then their Provisional Tax…

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Many people form a company and start a business without knowing what this really entails. So, here are the basics in FAQ format – What is a company? It is a legal entity (person, if you like) which is separate from those who own it and those who run it. Who owns a company? People, other companies, trusts or other legal entities buy shares in a company and the more shares they own the bigger their “shareholding” in the company. Who runs it? It is the Directors who run the company, not the shareholders. How does one get to be…

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