Category: Uncategorized Blogs

Understanding Foreign Exchange

various world currency notes

A foreign currency transaction should be recorded initially at the rate of exchange at the date of the transaction (use of averages is permitted if they are a reasonable approximation of actual). At each subsequent balance sheet date, foreign currency monetary amounts should be reported using the closing rate non-monetary items, carried at historical cost…

Forecasts of Future Results

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Forecasting in business is the practice of predicting a company’s financial results at certain points in the future, based on certain assumptions and estimates as well as past performance. At we PATC, we understand that whether the forecasting method is simple or sophisticated, the objective is to enable the company to take certain actions in…

Financing

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Financing is the act of providing funds for business activities, making purchases or investing. Financial institutions and banks are in the business of financing as they provide capital to businesses, consumers and investors to help them achieve their goals. PATC is here to help you understand business financing, keep reading the blog as we explore…

Tax Planning: Fringe Benefits & Allowances

tax planning

What are the possible allowances and fringe benefits? Below are the lists of available allowances and fringe benefits. Also Read Now: Valuation of Shares, Goodwill & Members Interest

Preservation, Safekeeping & Maintenance of Records

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A person must keep records, books of account or documents. The retention of records will assist a person to fulfil the requirements of the Tax Administration Act and to satisfy SARS that the person has complied with the requirements. Who is it for? Tax Administration Act requires the following persons to keep records:

Catching Up With PATC’s Owner & Tax Expert: Gavin Bacon

As you may well know,  in recognition of Gavin’s vast experience and Tax Degree, The Office of the Registrar for the Republic of South Africa appointed Gavin in 2017 as a Commercial Member of the Tax Court for a period of five years – an appointment Gavin was honored to accept. In an effort to…

Foreign Currency Transactions

A foreign-currency transaction is one that requires settlement, either payment or receipt, in a foreign currency. When the exchange rate changes between the original purchase or sale transaction date and the settlement date, there is a gain or loss on the exchange. Whoever views the denominated currency (the currency the transaction takes place in) as…

Valuation of Shares, Goodwill & Members Interest

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Shares: The valuation date value of shares listed on a foreign recognized exchange that are not listed on the JSE must be determined on the same basis as local shares. However, unlike local shares the market value of the shares is based on the ruling price on the last business day preceding valuation. The methods…

Requirements in terms of the Companies Act in Respect of Annual Financial Statements

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Private or personal liability companies that are required to audited by the Companies Act, 2008 or regulation 28 must file a copy of the latest approved Audited Financial Statements on the date that they file their annual return with the CIPC. The following private companies are required to have their annual financial statements audited; Any…

Tax Avoidance vs Tax Evasion

Tax avoidance is the legitimate minimizing of taxes, using methods included in the tax code. Businesses avoid taxes by taking all legitimate deductions and by sheltering income from taxes by setting up employee retirement plans and other means, all legal and under the Internal Revenue Code or state tax codes. Most taxpayers use some form…