News Blog | Aitken Lambert Elsworth

Aitken Lambert Elsworth – May 2012 CA[SA].News

In this issue…

Cell Phones and Computers: What’s The Best Way to Use them and Minimise Tax and Administration?

Technology has been the great enabler in recent times – cell phones and computers have transformed the way we live and work. They are one of the highest contributors to productivity in the economy, so how do we maximise them to ensure we get the maximum benefit out of them without incurring administrative costs or tax to our business or staff?

What are your options and how do you use them to achieve productivity in the workplace?

The New MOI (Memorandum Of Incorporation): What It Is, And What You Should Do

The new Companies Act requires all companies to amend their existing Memorandum and Articles of Association – now called a “Memorandum of Incorporation” (MOI) – to comply with the new Act. This has to be done by 1 May 2013. The MOI must be sent to the Companies and Intellectual Property Commission (CIPC) accompanied by a special resolution approving the MOI.

In the interim your existing Articles and Memorandum are regarded by the Companies Act as your “deemed” MOI. For this reason, it is worth examining your current Articles and Memorandum to see if there are currently any restrictions placed on you. Contact us so that we can assist you in updating your Company Statutory Records before your next year end.

The CPA and Your Protection from Harm in Medical Matters

As we all know the medical field is one of the most regulated industries. This is for obvious reasons to ensure we take the correct medication or have only the neccessary procedures. The CPA (Consumer Protection Act) is all about protecting the rights of the consumer and a transaction within the ambit of medical law will clearly fall within the ambit of a transaction covered by the CPA. So which one is paramount?

What are your rights, and which legislation takes precedence?

Your Tax Deadlines for May

Remember to lodge your annual EMP501 “Employer Reconciliation Declaration” returns for the period 1 March 2011 to 29 February 2012 by no late than 31 May 2012.
Late submissions risk heavy penalties so don’t delay.

Finance 101: Why Are We Stifling Small Business?

“But economic recovery must be earned. And it will be earned by entrepreneurs and it will be earned by small businesses” (John Huntsman).

It is recognised globally that one of the biggest contributors to growth and jobs are small businesses. Entrepreneurs are the creators of these small businesses.

Revolution! Entrepreneurs in China and Nigeria – What do the small towns of China and Nigeria have in common?…An unregulated market.
“the reality is that the Nigerian economy is almost certain to overtake South Africa in the next few years”
Why not South Africa?…In contrast to this, South Africa has become almost as regulated – i.e. bound up in red tape – as many first world economies. Once factor to consider is that our taxation systems have considerably improved compliance but at a cost. Small businesses are bogged down by frequent PAYE reconciliations, VAT queries and the threat by SARS to audit any potential anomalies. That’s quite apart from all the other forms and returns you need to fill in for all the “hidden” taxes like UIF, SDL, Compensation Fund, etc. The last two years have seen real tax increases as income tax relief has lagged inflation and there have been substantial increases in the fuel levy, capital gains tax and dividend tax.

So, where to now? Perhaps instead of pushing more regulations, enforcing compliance and taking resources from the private sector, government’s focus should rather be on looking to de-regulate the economy at the small business level?

Aitken Lambert Elsworth – April 2012 CA[SA].News

In this issue…

Your Branding: Is It Your Most Valuable Asset?*

Marketing spend is an investment - A good deal of publicity is dedicated to the global annual survey of the world’s most valuable brands.
It’s also now a common and recognised practice to treat your brands as assets which strengthens your balance sheet.
Register your trademark: It is worth registering trademarks to protect your brand name, logo and slogans. How long can Trademarks be registered for?
Avoid reputational damage!

Directors: The New Move to “Solvency” And “Liquidity”…Control Your Risk!

Revised Rules in the New Companies Act – The “Old Act” (the Companies Act of 1973) focused on capital maintenance and emphasised the importance of not diluting share capital. What does the new Companies Act of 2008 say?
What are “solvency” and “liquidity” tests?
How and when must solvency and liquidity tests be performed?
Warning!…Directors are held personally liable if the business does go insolvent in the 12 month period and it could reasonably be established that the directors could have foreseen this.

Audit Firms to Offer B-BBEE Certification?

If you don’t get this certification, it could mean losing out on business to your competition!
Most banks are still requiring an audit if their customer wants to raise finance

So, what are the synergies and the savings?

Finance 101: How Important is Information Technology to You?

IT in your business - Technology has become one of the main drivers in society and, of course, within business. Just think how, in the last twenty years, e-mail, the Internet, iPads, smartphones and Windows amongst others have become integral parts of our lives.
What are the 7 key questions to ask?
How do you quantify your risk?

Aitken Lambert Elsworth Newsletter – February 2012

In this issue…

A look at the new Medical Tax Act

Changes to the treatment of medical expenditure were proposed during the 2011 budget speech. The monthly deductions for contributions to medical schemes and for qualifying out-of-pocket medical expenses will be converted to tax credits, effective 1 March 2012. This is as per the Taxation Laws Amendment Act (no.24 of 2011) which was promulgated on 10 January 2012.

Click on the link below to read more about some of the changes from the old act to the new act?

2012 – A busy year ahead for Payroll and Labour Incentives…

Part 1: Promoting Skills Development and Job Creation

The mid-year population estimate for 2011, as per Statistics South Africa’s census resutls, reveals that the population in South Africa is around 50, 59 million people.
The quarterly labour force survey dated November 2011 (also Statistics SA document) states that 25% of the population are unemployed, and that 60.2% of the job seekers do not have a matric pass.

There have been a number of initiatives recently, in the form of proposed legislation both in the labour and the taxation arena’s, which have been designed to try and alleviate some of the unemployment and also to assist low-income earners.

What are some of these initiatives and when are they expected to be introduced?

Part 2: Social Security, Retirement and Labour Law Reforms

As per the February 2011 budget, the proposal is to standardise the provisions for pension and provident funds to resemble that of retirement annuities with a combined contribution deduction limit of 22.5% of taxable income…In other words, an employer’s contribution on behalf of tan employee will be deemed a taxable fringe benefit in the hands of the employee. Individuals will be allowed to duduct up to 22.5% of their taxable income for contributions to pension, provident and retirement annuity funds.

To ensure greater equity, two thresholds will be established – a minimum annual deduction of R 12 000, and an annual maximum of R 200 000.

Social Media and your Business

Think about these Social Media statistics for a moment:

Over 50% of the world’s population is under 30 years of age
90% of these “millenials” (or Generation Y) have joined a social network
1 out of 8 couples married in the USA in 2009 met via social media
If Facebook were a country, it would be the 4th largest in the world
80% of companies use social media (like LinkedIn) for recruitment purposes
1 in 6 higher education students are enrolled in online curriculum
There are over 2-million Blogs
34% of bloggers post opinions about products and brands
78% of consumers trust peer recommendations
In the near future, we will no longer search for products and services – they will find us via social media
[Source of data: http://www.socialnomics.net/]

It’s everywhere – and if you are in business today, you can’t ignore the potential impact of social media on your business… both positive and negative. As we get fully into 2012, ask yourself these questions:

Is your company getting the maximum benefit from social media?
Do you have a social media strategy in place?
Do you have a policy in place about the use of social media in the workplace, from both a business use perspectice and a “private use at the office” perspective?

Download the full newsletter: ALE – February 2012 Newsletter

ALE Christmas Party 2011

Fashion Flashback…

There was a buzz in the office and you could feel the excitement building, so when 12h30 rolled around there was not a staff member in sight. Everyone had their kit on and were all making their way to Stars Niteclub (opposite the Moses Mabhida Stadium). The social committee put together a fantastic year end celebration…possibly the best yet!!

The theme was “Fashion Flashback” and staff had to dress according to the decade they were born. There were outfits, accessories and hair from as early as the 50′s to as recent as the 90′s. Clearly everyone had made an extra effort to represent their decade proudly and each person added their own unique flair to their fashion flashback.

Sadly we had to say farewell to Abraham Wiggill and Krishan Maharaj and each of them said a little something about their time at ALE. Krishan kicked off the positive vibes as MC and proceeded to do impressions of each of our Directors, which of course got everyone laughing, including the Directors. Then it was time for Andrew’s Annual Year End Speech, followed by the best dressed mini-awards for the guys and gals. Colin took best dressed guy, with Dale, Naeem and Abheran as his runner ups, and Lauren won best dressed gal with Nishi, Vikki & Cassandra as her runner ups.

The good vibes continued with fabulous food, delicious desserts and then a game of musical chairs to loosen everyone up. Next was a Decade Dance Off , and each decade had a chance to “squeak some takkie” on the dance floor. The fantastic 50′s boys brought back the twist, while the psychedelic 60′s children rocked their air guitars to some Woodstock tunes. Next were the Sensational 70′s grooving to Saturday Nite Fever, followed by the Awesome 80′s with their mind-blowing moon walks, and the 90′s babies showed off with some brilliant Mendoza moves.

Everyone had a blast, with a few die-hards dancing well into the night. A big thank you to our Social Committee for making it a party to remember.