Prepare for the 2024 Tax Filing Season with Professional Accountants and Tax Consultants

Tax Filing Season

As the 2024 tax filing season approaches, it is crucial to be aware of the key dates and necessary preparations to ensure a smooth and efficient process. At Professional Accountants and Tax Consultants (PATC), we are committed to helping you navigate the complexities of tax filing.

Key Filing Dates for 2024:
For individual taxpayers (non-provisional), the tax filing season will run from:

  • 15 July 2024 to 21 October 2024.
  • Auto-assessment notices will be issued from 1 to 14 July 2024.
  • Provisional taxpayers have until 20 January 2025 to file their returns, while trusts can file from 16 September 2024 to 20 January 2025.

Tax Filing Preparation Checklist:

Before you begin the filing process, ensure you have gathered all necessary documentation. This includes:

  • Your IRP5/IT3(a) form
  • Medical aid certificates
  • Retirement annuity fund certificates
  • Any other third-party data relevant to determining your tax obligations

Having these documents ready will help streamline the filing process and minimise any potential delays.

How PATC Can Help:

At PATC, we understand that tax filing can be a daunting task. Our team of experienced professionals is here to assist you every step of the way. Whether you have questions about your documents or need help with the filing process, we are here to support you. Don’t hesitate to reach out to us for assistance. Our goal is to make your tax filing experience as seamless and stress-free as possible.

Contact PATC Today

If you are looking for a reliable, cost-effective, and flexible accounting solution, look no further than PATC’. Contact us today to learn more about how we can help you achieve your financial goals. Take advantage of our one-hour *free consultation now.

If you need assistance in your business’ finances, from accounting to tax consulting and financial management, we can help you. Contact us today and let us know how we can help you.

Now read: Understanding IT3(d) Reporting: Navigating South African Tax Compliance for PBOs

Understanding IT3(d) Reporting: Navigating South African Tax Compliance for PBOs

IT3(d) REPORTING

In the ever-evolving landscape of South African tax law, keeping up with regulatory updates is vital for nonprofit organisations, particularly those operating under Section 18A. As the annual deadline for submitting IT3(d) certificates approaches, it’s crucial to understand the significance of these requirements and their implications for compliance.

IT3(d) Reporting: A Necessary Evolution

The requirement for PBOs to submit IT3(d) certificates to the South African Revenue Service (SARS) isn’t merely administrative; it’s a response to global imperatives aimed at combating money laundering and terrorist financing. The Financial Action Task Force (FATF), a global watchdog, highlighted the need for enhanced beneficial ownership transparency and improved detection of illicit financial flows. Consequently, South Africa, despite legislative efforts, found itself grey-listed by the FATF in February 2023.

PBOs and the Compliance Imperative

PBOs, including those approved under Section 18A, are not immune to these regulatory pressures. On April 9, 2024, SARS reiterated the responsibilities of PBOs in their Tax-Exempt Institutions Connect, Issue 4. This communication preceded the release of a report, scheduled for April 18th and 19th, evaluating the risk of South African NPOs being exploited for terrorist financing. In response, SARS introduced IT3(d) reporting as a mechanism to mitigate these risks, thereby expanding the scope of third-party data reporting to include Section 18A approved entities.

What This Means for Section 18A Approved PBOs

For Section 18A approved PBOs, the inclusion of IT3(d) reporting represents a significant shift in compliance requirements. These organisations are now obliged to submit IT3(d) tax certificates to SARS for the period between March 1, 2023, and February 29, 2024. Even if a PBO hasn’t issued any Section 18A tax-deductible receipts during this period, they must submit a NIL IT3(d) declaration. Failure to comply not only jeopardises their tax-exempt status but also risks their S18A approval with SARS.

Navigating Compliance: A Call to Action

As the deadline for IT3(d) submissions looms, PBOs must prioritise compliance to safeguard their operations and reputation. This entails understanding the reporting process, gathering requisite information, and ensuring timely submissions. Just as employers diligently approach their IRP5 reconciliations, PBOs must accord the same seriousness to IT3(d) reporting.

In an era of heightened regulatory scrutiny, compliance is non-negotiable for PBOs. By embracing IT3(d) reporting, these organisations contribute to global efforts to combat financial crime while preserving their tax-exempt status. Professional Accountants and Tax Consultants are the choice for people to consider if they want help. As trusted partners in navigating South African tax compliance, we are ready to support PBOs in meeting their obligations and securing their future.

Contact PATC Today

If you are looking for a reliable, cost-effective, and flexible accounting solution, look no further than PATC’. Contact us today to learn more about how we can help you achieve your financial goals. Take advantage of our one-hour *free consultation now.

If you need assistance in your business’ finances, from accounting to tax consulting and financial management, we can help you. Contact us today and let us know how we can help you.

Now read: Navigating Beneficial Ownership Regulations at CIPC in South Africa

 

 

Navigating Beneficial Ownership Regulations at CIPC in South Africa

CIPC Beneficial Ownership regulations in South Africa

As of December 11, 2023, South African businesses must include Beneficial Ownership information in annual returns filings with the Companies and Intellectual Property Commission (CIPC). Here’s what you need to know to ensure compliance and safeguard your business.

Comprehending CIPC’s Beneficial Ownership Mandate

Avoiding the risk of company deregistration is paramount. Ensuring that your Beneficial Ownership information is up-to-date is now a prerequisite for submitting annual returns to the CIPC. This requirement will be gradually implemented across all annual return platforms, with full enforcement starting on April 1, 2024.

Actions to Safeguard Your Business:

  1. Complete your Beneficial Ownership information.
  2. Once completed, proceed with filing your annual returns at CIPC.
  3. Timely submission of annual returns will protect your business from deregistration.

For detailed insights into the requirements and processes regarding Beneficial Ownership at CIPC in South Africa, please refer to the corresponding CIPC Notice 67 of 2023.

Defining Beneficial Ownership under CIPC Guidelines

Understanding the Regulatory Background:

In March 2023, South Africa found itself on the Financial Action Task Force (FATF) “grey list” due to identified deficiencies in its anti-money laundering and counter-terrorist financing (AML/CTF) frameworks. This prompted legislative amendments, including the General Laws (Anti-Money Laundering and Combating Terrorism Financing) Amendment Act 22 of 2022, which came into effect on April 1, 2023. These amendments introduced the requirement for maintaining an updated register of Beneficial Owners at CIPC, alongside standard compliance obligations.

What Constitutes Beneficial Ownership at CIPC?

Beneficial ownership pertains to individuals who either directly or indirectly own a company or exert effective control over it.

Reasons behind Beneficial Ownership Regulations:

Previously, companies weren’t obliged to disclose their Beneficial Ownership details to entities like CIPC, handling such matters internally. However, in response to governmental regulations, CIPC has established mechanisms for collecting and cross-referencing Beneficial Ownership information with relevant regulatory and law enforcement bodies such as the South African Revenue Service (SARS), the Financial Intelligence Centre (FIC), and the Financial Sector Conduct Authority (FSCA).

Deadline and Consequences:

The deadline for initial Beneficial Ownership register submissions was six months after the regulation announcement. Failure to comply may result in penalties, including a court-ordered administrative fine equivalent to 10% of the non-compliant company’s turnover or R1 million, whichever is higher.

These regulatory changes pose significant challenges to South African businesses. However, our specialist team can assist in filing Beneficial Ownership registers with CIPC efficiently and cost-effectively.

Stay compliant and safeguard your business against regulatory risks with proactive adherence to Beneficial Ownership requirements at CIPC.

Contact PATC Today

If you are looking for a reliable, cost-effective, and flexible accounting solution, look no further than PATC’. Contact us today to learn more about how we can help you achieve your financial goals. Take advantage of our one-hour *free consultation now.

If you need assistance in your business’ finances, from accounting to tax consulting and financial management, we can help you. Contact us today and let us know how we can help you.

Now read: Why You Need to Outsource Your Bookkeeping to PATC

 

Important Reminder: SARS Income Tax Deadline For 2023

As we approach the end of the financial year, we would like to ensure that you are well-informed about the upcoming deadlines for filing your income tax returns with the South African Revenue Service (SARS).

Deadline for Individual Taxpayers (Non-Provisional): October 23, 2023

For individual taxpayers who are not on the provisional tax system, please be reminded that the deadline for submitting your income tax returns for the 2023 financial year is 23 October 2023. It is crucial to ensure that all relevant documents and information are gathered and submitted before this date to avoid any potential penalties or delays.

Deadline for Provisional Taxpayers: January 24, 2024

For those who fall under the provisional tax category, the deadline for filing your income tax returns is slightly later. You have until January 24, 2024, providing you with additional time to organise your financial records and complete the necessary paperwork accurately.

We understand that the tax season can be a demanding period, and we are here to assist you every step of the way. Our team of experts are ready to help you navigate the complexities of the tax filing process, ensuring that you meet all the requirements and deadlines set by SARS.

How We Can Assist You:

  • Professional Guidance: Our experienced team is available to provide you with expert advice and guidance on the latest tax regulations and deductions, helping you optimise your tax position.
  • Document Preparation: Let us handle the meticulous task of preparing and organising your financial documents, ensuring that all necessary information is accurate and up-to-date.
  • Timely Submission: We will work diligently to ensure that your tax returns are submitted well before the deadlines, reducing the risk of penalties and ensuring compliance with SARS requirements.

Should you have any questions or require assistance with your tax preparations, please do not hesitate to contact us. We are committed to supporting you in achieving a smooth and hassle-free tax filing experience.

We would also like to remind you about our referral incentive, which you can read about here. All recommendations that are successfully referred to PATC are eligible for a referral fee.

Contact PATC Today

So, if you are looking for a reliable, cost-effective, and flexible accounting solution, look no further than PATC’. Contact us today to learn more about how we can help you achieve your financial goals. Take advantage of our one-hour *free consultation now.

If you need assistance in your business’ finances, from accounting to tax consulting and financial management, we can help you. Contact us today and let us know how we can help you.

Now read: Why You Need to Outsource Your Bookkeeping to PATC

 

Why You Need to Outsource Your Bookkeeping to PATC

bookkeeping service

Maintaining accurate and up-to-date financial records is a crucial aspect of running a successful business.  Bookkeeping is the process of recording all financial transactions, including purchases, sales, payments, and receipts.  It is essential to have good bookkeeping services to ensure that your business finances are well-organised, accurate, and compliant with legal requirements.

PATC’s bookkeeping services can help you keep track of your expenses, income, and cash flow, which is essential for making informed decisions about your business.  By having a clear picture of your financial situation, you can make better decisions about budgeting, investing, and managing your cash flow.

In addition, our bookkeeping services can help you identify areas where you can cut costs, reduce expenses, and increase profitability.  We can also help you prepare financial reports, such as income statements and balance sheets, which are essential for securing loans, attracting investors, and complying with tax regulations.

Outsourcing your bookkeeping to PATC can also save you time and reduce the risk of errors or fraud.  We allow you to focus on running your business while leaving the financial management to experts such as ourselves who you can trust.

Outsourcing your bookkeeping services to a specialist such as PATC is crucial for the success of any business.  It can help you make informed decisions, increase profitability, and ensure compliance with legal requirements.

Contact PATC Today

So, if you are looking for a reliable, cost-effective, and flexible accounting solution, look no further than PATC’. Contact us today to learn more about how we can help you achieve your financial goals. Take advantage of our one-hour *free consultation now.

If you need assistance in your business’ finances, from accounting to tax consulting and financial management, we can help you. Contact us today and let us know how we can help you.

Now read: The Benefits of PATC’s Remote Accounting Services

 

The Benefits of PATC’s Remote Accounting Services

remote accounting servicesThe benefits of PATC’s remote accounting services continues to grow and adapt as the world gears towards a more remote working environment. In recent years remote accounting services have revolutionised the accounting industry as the world has witnessed a tremendous shift in the way businesses operate, thanks to technological advancements. The accounting industry has embraced remote accounting services, which has made it easier for companies to handle their finances, regardless of where they are located.

Typically, companies used to approach accounting services that are close to them, largely owed to the fact of collecting information or for important face-to-face meetings. Technological advancements in how meetings are conducted through online platforms, leveraging cloud-based software and remote accessibility, now means that companies can benefit from accounting expertise throughout the country.

Virtual accounting services involve using technology to provide accounting services remotely, without the need for face-to-face interactions. This has revolutionised the accounting industry, making it easier for businesses of all sizes to access expert accounting services regardless of their location. Now companies throughout South Africa can access PATC’s expertise through its remote accounting, bookkeeping and tax services.

Helps Save You Time

One of the primary benefits of remote accounting services is that it saves businesses a lot of time. In the business world, time is money, and with remote accounting services you don’t have to worry about the additional time that is often lost preparing for physical meetings, or travelling to these meetings. Thanks to tools such as Teams, Zoom and Google Meet, meetings are now structured with minimal disruption to your business operations, giving you more time to focus on running your day-to-day operations.

Benefit From Access To Expertise

Remote accounting services give companies access to highly skilled and experienced accountants from around the country. This means that businesses can access expert advice and guidance on complex accounting issues, even if they are not in the same geographic location as their accountant. PATC provide services to small, medium, and large companies across South Africa. In fact, we have been providing our remote accounting services even before Covid-19, which means we are well-experienced in dealing with customers across the country. Our teams can assist in helping you, regardless of the complexities of your business.

Remote Accounting Services Helps You Save Costs

Outsourcing your accounting needs can save you money on office space, equipment, and employee salaries, which means that you only pay for the services you need, without the overhead costs. Our team of experienced accountants is trained to handle a wide range of financial needs. From basic bookkeeping to complex financial analysis, we have the expertise to help you succeed.

Better Flexibility with Remote Accounting Services 

Added flexibility means that the unique needs of each business can be met with tailored solutions. Virtual accounting services are highly flexible and can be customised to meet the unique needs of each business. This means that businesses can choose the services they need, whether its bookkeeping, tax preparation, or financial reporting – all of which can be scaled based on need. So, whether you are a small bakery in Bloemfontein or a large manufacturer in Gauteng, our wide range of services means that we can help in all areas of your business. In addition, our secure data handling procedures means your business is in safe hands – no matter where you are.

Contact PATC Today

So, if you are looking for a reliable, cost-effective, and flexible accounting solution, look no further than PATC’. Contact us today to learn more about how we can help you achieve your financial goals. Take advantage of our one-hour *free consultation now.

If you need assistance in your business’ finances, from accounting to tax consulting and financial management, we can help you. Contact us today and let us know how we can help you.

Now read: Why you shouldn’t ignore financial year end

 

Why You Shouldn’t Ignore Financial Year-end

financial yearendYou’ve probably heard the term “financial year-end” used by businesses, particularly in the business world. But what does it all mean, and why is it important? In this blog, we’ll look at the concept of a company’s fiscal year end and how it affects businesses.

What exactly is the end of the financial year?

A financial year-end is the end of a company’s accounting period, which is typically a 12-month period. During this time, a company keeps track of all its financial transactions and prepares financial statements that show the company’s financial health and performance. The financial year end is the date on which these financial statements are prepared, and it marks the end of the accounting period.

For most companies in South Africa, the financial year-end falls on the last day of February or the last day of March. However, some companies may have a different financial year-end depending on their specific industry or business needs.

Why is a financial year-end important?

The end of the financial year is an essential time for companies because it allows them to review their financial performance over the past year and plan for the future. During this time, companies will often conduct an internal audit to ensure that their financial records are accurate and up-to-date. They will also review their financial statements to identify any areas for improvement or potential risks.

The preparation of financial statements is one of the most important tasks at the end of the financial year. These statements include the income statement, balance sheet, and cash flow statement, which provide a snapshot of the company’s financial health. The income statement shows the company’s revenue, expenses, and profits or losses, while the balance sheet shows the company’s assets, liabilities, and equity. The cash flow statement shows how the company’s cash position changed over the year.

The financial statements are essential for a company’s stakeholders, including investors, creditors, and regulators. These stakeholders rely on the financial statements to assess the company’s financial health and make informed decisions. For example, investors may use the financial statements to decide whether to buy or sell shares in the company, while creditors may use the statements to determine whether to lend money to the company.

The end of the financial year is an important time for companies because it marks the end of the accounting period and allows them to review their financial performance over the past year and plan for the future. The preparation of financial statements is a crucial part of the financial year-end process, as these statements provide a snapshot of the company’s financial health and are relied upon by stakeholders. By understanding the concept of a financial year end, businesses can ensure they are well-prepared for this crucial time in their financial calendar.

If your company is nearing the end of its fiscal year and you need help preparing financial statements or conducting an internal audit, you should seek the assistance of professional accounting services. A qualified accountant can assist you in the process, ensuring that your financial statements are accurate and in accordance with South African regulations.

Don’t leave your financial year-end preparations to chance. Contact us today to ensure that your business is well-prepared for this critical time. A professional accounting service can help you streamline your financial reporting, optimise your tax position, and identify areas for improvement.

Keep in mind that a well-prepared financial year-end report can provide valuable insights into your company’s financial health and help you make informed future decisions. So don’t wait until the last minute—contact us now to ensure that your financial year-end is a success.

Contact PATC Today

If you need assistance in your business’ finances, from accounting to tax consulting and financial management, PATC can help you. Contact us today and let us know how we can help you.

Now read: Gavin Bacon Reappointed to Tax Court

 

Gavin Bacon Reappointed as Tax Court Member

Gavin Bacon, member of tax court

Gavin Bacon, PATC Owner

Tax Court Member Reappointment

Professional Accountants and Tax Consultants (PATC) is proud to announce the reappointment of Gavin Bacon as an accountant member of the Tax Court of South Africa. This prestigious appointment was recently made on the 4th of January 2023. Gavin is no stranger to the Tax Court having been a previous Commercial Member of the Tax Court of South Africa from 2017 to 2022.

What does it mean to be a member of the tax court?

The Tax Board is established by the Minister of Finance under section 108 of the Tax Administration Act. It is not a court as referred to in section 166 of the Constitution, but an administrative tribunal created under the Tax Administration Act. The Tax Board hears tax appeals involving tax in dispute that does not exceed the amount determined by the Minister.

When taxpayers are aggrieved by an assessment or not satisfied with a decision taken by SARS if the decision is subject to objection and appeal, they have a right to dispute the assessment or decision. Once a dispute with SARS gets to a certain point, it becomes clear that the matter will require judicial intervention. Where alternative dispute resolution (ADR) is not successful or is otherwise not suitable, the next stage is for the taxpayer to take the matter on appeal to either the tax board, or the Tax Court.

What does a tax court do?

The tax board has jurisdiction over tax disputes that do not exceed R1 million, unless otherwise agreed to between SARS and the taxpayer (for example, where the matter is complex). An appeal before the Tax Court is heard by a panel which generally includes a judge or acting judge of the High Court (as the president of the Tax Court), an accountant member and a commercial representative member.

To be considered as a member of the Tax Court one must:

  • possess appropriate experience;
  • perform their functions independently, impartially and without fear, favour or prejudice by virtue of their qualifications, expertise and experience in the fields of their industry; and
  • be a South African citizen who permanently reside in the Republic.

It is clear that Gavin’s exceptional background as a highly-respected and revered accountant, and his more than 34 years’ of experience lends him most suited to this role. PATC is proud of this significant achievement that speaks so highly of the level of professionalism and experience that all PATC clients enjoy.

Contact PATC Today

If you need assistance in your business’ finances, from accounting to tax consulting and financial management, PATC can help you. Contact us today and let us know how we can help you.

Now read: Working from home and tax implications

 

Working From Home and Tax Implications

While working remotely has become a norm for many companies it does come with certain complications such as a scattered workforce and its various tax implications. While many offices are equipped to help employees work efficiently, working from home for long periods of time can become challenging, the need for equipment and supplies therefore becomes substantial.

If you are an employee who works from home, here are some important points to take notes of.

  1. Reimbursements

  • These amounts have the benefit of not being taxable, as they do not constitute remuneration.
  • The employee must bear the office expense first and keep all invoices and receipts to be able to claim the amount from the employer, and the expense must be incurred because of your rendering services to your employer.
  1. Advances from employers

  • The amount received from your employer to be used for your home office expenses.
  • Has the same benefits as reimbursements.
  • The expense must also be related to the rendering of your services to your employer.
  • All invoices and receipts must be kept.
  • If the advance is excessive and not fully utilised by the employee, the employer will claim the excess from the employer.
  • If the advance is deficient, the employee will claim a reimbursement from the employer.
  1. No reimbursements

  • Section 23(b) of the Income Tax Act states that a tax deduction for home office expenses may be allowed if the following requirements are met:
    • The space used as a home office is regularly and exclusively used for the purposes of the taxpayer’s employment. And the space is specifically equipment and set up solely for the purpose of working.
    • If your salary is only remuneration, your duties must be mainly performed in this part of your home. More than 50% of your duties must be performed in your home office.

Examples for home office expenses include:

  • Rent paid for your home.
  • Interest on a bond for your home.
  • Cost of repairs to your home
  • Expenses in connection to your home

In addition to these expenses, other typical home office expenditure may include:

  • Phones
  • Internet
  • Stationery
  • Rates and taxes
  • Cleaning
  • Office equipment
  • Wear-and-tear

The tax deduction for home office expenses is calculated on a pro-rated basis which is based on the square meters of the area of home office versus total square meters of your home. Only expenses relating to the premises must be apportioned based on floor area (such as for example rent, interest on bond, rates and taxes, cleaning, etc.) Expenses that do not relate to the premises (such as wear and tear on equipment and furniture) do not need to be apportioned based on floor area.

This article was written by: Renisha Arjoon, Professional Accountant (SA)

Contact PATC Today

If you need assistance in your business’ finances, from accounting to tax consulting and financial management, PATC can help you. Contact us today and let us know how we can help you.

Now read: Termination of an employee contract

 

PATC Welcomes Two New Appointments

Dear Clients, Staff and all Interested Parties

As you know, we pride ourselves on only appointing employees of the highest calibre to ensure that you receive the best possible attention and service. This is why I am proud to announce the appointment of two new employees that have joined our PATC team.

Please join me in welcoming:

Nick Arumugam, who recently completed his articles and will soon be writing his board exams. You can reach Nick on nick@patc.co.za

and

Natasha Kruger, who is a qualified professional accountant. Natasha’s details are natasha@patc.co.za

Both Nick and Natasha join our team in alignment with Christopher Naidoo’s appointment (Promoted to Head of Department). We are confident that these appointments will help us reach new frontiers following Rose Ngubane’s recent departure. We wish Rose well with her future endeavours.

For reference, we are sharing the department structures with you as outlined below: 

  • Cindy with Darusha and Rejoice and Joann
  • Renisha with help from Gavin and Juniors
  • Victor with help from Gavin and Juniors
  • Mandy with Victor and Gavin’s help
  • Luell with his Associates and contacts
  • (New) Christopher Naidoo with Nick and Natasha (with effect from 3.5.2022) and assisted by Seluleko and Jubilee-Amber (taken over from Rose’s department)
  • Gavin, Head of the Company and overseeing PATC and its affiliate Partnerships

Please join me in welcoming Nick and Natasha to our team. If you need any assistance, have referrals, or need help with anything, please continue to use your normal communication channels.

Thank you for continuing to support PATC.

Onwards and upwards!
Gavin Bacon

 Contact PATC Today

If you need assistance in your business’ finances, from accounting to tax consulting and financial management, PATC can help you. Contact us today and let us know how we can help you.