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Helpful tax resources

South African taxes are inherently complex and often involve interpretation, consulting and in exceptional cases, a fair amount of educated guessing on exactly what the legislature intended when the various

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Ring-fencing of assessed losses of certain trades – Part 1

Persons are generally allowed to set off any losses incurred in respect of one trade against the income derived from another trade, thereby reducing their overall tax liability. However, section

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Ring-fencing of assessed losses of certain trades – Part 2

Section 20A of the Income Tax Act[1]ring-fences losses incurred by natural persons from certain trades under specific circumstances. If applicable, the natural person will not be able to set off

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Internal news – February 2019

Kloppers Marathon Newtons staff had the privileged to man a water point at the annual Kloppers Marathon, as you can see fun was had by all. Thank you to the

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Turnover tax deregistration

The Sixth Schedule of the Income Tax Act details the workings of the turnover tax system applicable to micro-businesses. Turnover tax is an optional system (with preferential tax rates) and

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Form requirements for objections

Dispute resolution with the South African Revenue Service (SARS) generally has a two-pronged approach. Firstly, taxpayers must present their case on the merits – this will include the factual basis

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Admin penalties for outstanding Corporate Income Tax returns

In general, all registered companies must submit corporate income tax (“CIT”) returns within 12 months of the end of the company’s financial year-end. This is applicable to all companies that

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Section 24C future expenditure

The South African Revenue Service (“SARS”) issued a binding private ruling (“BPR 315”) in accordance with sections 78(1) and 87(2) of the Tax Administration Act[1] on 10 January 2019. This

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Non-resident sellers of immovable property

Section 35A of the Income Tax Act[1] came into effect on 1 September 2007 and sets out the capital gains tax consequences of the sale of immovable property situated in

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Zero-rating of services to non-residents

South African value-added tax (VAT) vendors are often unsure of the tax consequences of issuing invoices to foreign customers or clients and whether such services should be invoiced at the

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MSI Global Alliance appoints four new member firms

MSI Global Alliance (MSI), one of the world’s leading international associations of independent legal and accounting firms, is delighted to welcome four new member firms to the association. The new

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MSI Global Alliance welcomes new members in the US and India

MSI Global Alliance, one of the world’s leading international associations of independent legal and accounting firms, is delighted to announce the admission of US law firm Vandeventer Black LLP and

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Korporatiewe beheer – Finansiële jaareinde

Die finansiële jaar van ’n maatskappy staan bekend as die rekenkundige periode. Ingevolge artikel 27 van die Maatskappywet No. 71 van 2008 (“die Wet”), het elke maatskappy wat geregistreer is

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Management’s responsibility

Throughout the audit of a set of financial statements, the phrase “management/director’s responsibility” appears. It is included in the engagement letter, the financial statements and the auditor’s report. But what

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Correction of tax invoices

Since it is illegal to issue more than one tax invoice per taxable supply, and another tax invoice may not be issued to alter any consideration in respect of an

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Different interest rates in tax

The Income Tax Act[1] contains definitions for various interest rates. These interest rates serve as the basis for interest calculations in income tax in different circumstances and can broadly be

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Newtons Internal news (October)

Newtons supports Breast Cancer Awareness Month this October The Newtons “Super Woman” Supporting Breast Cancer Awareness Month is Lucha Greyling, Marie van der Merwe, Susan Nel, Tineke Erasmus, Thelma Oertel,Amoré

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Sperdatums vir individue en administratiewe boetes

Die belastingseisoen het op 1 Julie 2018 oopgemaak en die sperdatums vir die huidige belastingseisoen is as volg: Tipe belastingpligtige   Kanaal   Sperdatum   Alle belastingpligtiges   Per hand

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Tax on retirement lump sums

Determining the tax consequences in respect of any lump sum benefits from retirement funds can be complex and various legislative changes have been incorporated over the last few years, to

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Changes to bad debt allowance

Most South African businesses are at some point in time exposed to credit risk in the form of bad debts. Although taxpayers would undoubtedly prefer to recover the debts, the

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Newtons Internal news (September)

Congratulations to Icy Jooste….winner of the 2018 Superbru Superrugby Log!!! Love begins in a MOMENT, Grows over TIME, And lasts an ETERNITY. Congratulations Liezl and Markus du Plessis on this

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SARS verifications, audits – when, why and what to do

Being selected for an audit and being selected for verification are two different processes. Verification: Once you have submitted your return, it could be selected for verification. A verification involves

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Mandatory Rotation of Auditors

Over the past few years the audit industry has been under significant scrutiny where the independence of auditors has been questioned. In response to this and to further drive auditor

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Valuation of preference shares

In income tax, the question of valuation of shares often causes a great deal of uncertainty, especially where shares are not traded on a recognised exchange. Although the Eighth Schedule

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MSI Global Alliance appoints law member in Canada

MSI Global Alliance, one of the world’s leading international associations of independent legal and accounting firms, is delighted to announce the admission of Canadian law practice Bernier Beaudry to the

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Congratulations to Arné and Gillian Nel

“Let there be spaces in your togetherness, And let the winds of the heavens dance between you. Love one another but make not a bond of love: Let it be

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Value Added Tax (VAT) Rates Change

Effective Date:  1st April 2018 The Minister of Finance Dr. Moeketsi Majoro in his budget speech delivered in Parliament on 28 February 2018 announced changes in rates of Value Added

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Valid Tax Invoice Requirements for VAT Vendors

When making a purchase for your business, you should always ensure you receive a valid VAT invoice. This enables you to claim input VAT from SARS. With the change in

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How the VAT increase affects your business

Consumers and suppliers have by now had an opportunity to familiarise themselves with the increased Value-Added Tax (VAT) rate of 15% since 1 April 2018. There are however many technical

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Employer Annual Reconciliation Due

Employers should be aware that Employer Annual Reconciliation submission due date is fast approaching. If the relevant deadlines are missed, certain penalties will apply. When should it be paid? The

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Lesotho Value Added Tax (VAT) Rates Change

Effective Date:  1st April 2018 The Minister of Finance Dr. Moeketsi Majoro in his budget speech delivered in Parliament on 28 February 2018 announced changes in rates of Value Added

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Congratulations Graduates!

Congratulations to Laureate Mathe and Wayne Nortje who were awarded a Bachelor of Commerce Honours in Management Accounting and Baccalaureus Commercii (Accounting) degree respectively at the April Graduation Ceremonies of

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Bloemfontein Golf Club – Club Championships

Newtons where the proud sponsors of the 2018 Bloemfontein Golf Club – Club Championships held on the 14th and 15th April 2018. Here is Cedric Peterson congratulating Wilco Nienaber on

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Employees’ tax reconciliation 2018

April to May each year is the time that employers are given to perform their employees’ tax reconciliation. During this Employer Reconciliation process, employers are required to submit an EMP501

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Why it is important to know the value of your business

A properly considered business valuation can be the first step in many essential business processes and activities. Although there are many examples, these might include procurement of a buy and

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Cryptocurrency

Cryptocurrency and blockchain has been the hot topic in the media the past year. It is a concept that few truly understand, and could change the future for everyone in

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Happy socks bring luck at SAICA Golf Day

Thanks to the two four ball teams that represented Newtons in the 2018 SAICA Golf Day held on Friday 16 March at Bloemfontein Golf Club. Ending 9th and 15th out

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Congratulations Tineke!! Your hard work has made your dream a reality!!!

  “Some people dream of success while other wake up and work hard at it! – Napoleon Hill” We are super proud of our newest CA(SA) – Tineke Erasmus-Nel. Congratulations

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Being happy on International Day of Happiness!

  The Newtons Staff really brought on some smiles on International Day of Happiness on 20 March. The guys rocked their red bow ties, the ladies bloomed with their yellow

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St Patrick’s Day festivities

Congratulations to Leanette Schoeman who won the prize for the best dressed for St Patrick’s day!    

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MSI Global Alliance adds two accounting members in India

MSI Global Alliance, one of the world’s leading international associations of independent legal and accounting firms, is delighted to welcome two new accounting members in India, Paperchase Business Services Pvt

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Medical scheme fees tax credit

Section 6A of the Income Tax Act provides for a medical scheme fees tax credit (“MTC”), or rebate, which reduces the amount of income tax payable by a natural person

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Interest received by non-residents on SA bank accounts

Persons that are not tax resident in South Africa (“SA”) are only taxed in SA on income received by or which accrued to such non-resident from an SA source. This

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Budget 2018

Following the annual national budget speech delivered by Finance Minister Malusi Gigaba on 21 February, we highlight some of the most significant matters arising below: The much-debated VAT rate has

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VAT Increase and Accounting Systems

As you are aware, the National Treasury announced an increase in Value Added Tax (VAT) from 14% to 15% effective 1 April 2018. We urge you to ensure that your

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Wayne Nortje and Tineke Erasmus-Nell

Congratulations to Wayne Nortje for being promoted to Accountant and Tineke Erasmus-Nell as Supervisor.  

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Borrowing to purchase listed shares – 100% tax ineffective?

Where a person borrows money to purchase shares, the general rule would be that the interest paid on the funds borrowed to fund that acquisition would not be deductible for

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Claiming VAT input on “pre-enterprise” expenditure

In terms of section 17 of the Value-Added Tax Act, 89 of 1991, a registered VAT vendor is entitled to claim back any amounts of VAT paid on goods and

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Capital Gains Tax exit charge

In terms of section 1 of the Income Tax Act a natural person will be a “resident” for tax purposes if that person is ordinarily resident in the Republic of

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Newtons: Martinus de Beer

Congratulations to Martinus de Beer on his amazing qualification as a CA(SA) ….. in the end all the hard work pays off.

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And they lived happily ever after

Once in a while, right in the middle of an ordinary life, love gives us a fairytale. Thanks for sharing your fairytale days with us Izél and Elandré Huggett and

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Welcome to the Newtons Family!!!

On 8 January Newtons welcomed 9 new members to our family. We hope you enjoy your time with us as much as we are enjoying you already!!!

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Newtons sponsors Mangaung Metro Chess teams in the 2017 Southern African Junior Chess Championships

Newtons was one of the sponsors to the 13 Mangaung Metro Chess teams who participated in the 2017 Southern African Junior Chess Championships (SAJCC) in Johannesburg from the 3rd to

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MSI Global Alliance appoints accounting member in Finland

MSI Global Alliance, one of the world’s leading international associations of independent legal and accounting firms, is pleased to announce the admission accounting firm Greenstep Oy in Finland. Greenstep Oy

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MSI Global Alliance adds legal member in Switzerland

MSI Global Alliance, one of the world’s leading international associations of independent legal and accounting firms, is delighted to announce its new legal member firm Watt law in Switzerland. Based

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VAT and transfer duty

We are often asked whether the sale or purchase of immovable property is subject to VAT or to transfer duty. Confusion appears to creep in especially in those cases where

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Deductibility of SED and ED expenditure

The South African Revenue Service (“SARS”) recently issued a binding private ruling (“BPR”) in which the income tax consequences of expenditure in respect of socio-economic development (“SED”) and enterprise development

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Not just a pretty face – Meet Sané van der Watt,

Not just a pretty face Meet Sané van der Watt, Third year SAICA trainee accountant at Newtons and resident fitness guru. Sané has been an inspiration to us all with

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Keep your business growing

Having a successful business means ensuring that it continues to grow. Without growth, your business will eventually run dry and stagnant. But with the added responsibility of maintaining your business

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Tax clearance certificates

Taxpayers may require SARS to issue them with a tax clearance certificate for various reasons. This includes a general confirmation that the relevant taxpayer’s affairs are all in order and

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Take care of your biggest asset

I recently dreamt that I was at a conference and the topic was “SHOULD EMPLOYEE COSTS BE CAPITALISED AS AN ASSET OR EXPENSED?” Now that is obviously NONSENSE but let

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Congratulations to our Breast Cancer Awareness Fundraising winners!

Congratulations to our “Toasted Sandwiches Making” team who raised the most money during our breast Cancer Awareness Month Fundraising Challenge! Thanks to their efforts they raised R800! In second place,

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Heritage Day 2017

Heritage Day Celebrations This year Newtons took Heritage Day celebrations to different level by hosting a Braaibroodjie Challenge! The whole firm was divided into teams who each had to present

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Boss’s Day 2017

Success wouldn’t have been easy without your expert guidance and leadership! Thanks for being so wonderful to work with!

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Danie endures the desert and the dunes

The Walvis Bay endurance is the African Championships and this takes place every year at the end of August, this year it was their 21st year of existence. Riders from

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Wishing Vic Chemaly a speedy recovery!

Mr Vic Chemaly, ex-partner of Newtons was hospitalised on 16 September after a nasty fall. Our thoughts and prayers are with him during his time of recovery.

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Dividends tax returns

With effect from 1 April 2012, dividends tax was introduced to replace the then “secondary tax on companies” (or “STC”). The tax is currently levied at 20%. The dividends tax

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MSI wins ‘Rising Star Association’ and ‘Communications Campaign’ awards

MSI Global Alliance, one of the world’s leading international associations of independent legal and accounting firms, has won two awards in the prestigious International Accounting Bulletin Forum & Awards. MSI

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SARS to intensify action against tax offenders

Despite the fact that SARS has upheld their philosophy of education, service, and thereafter enforcement, they have noticed an increase in taxpayers not submitting their tax returns by the stipulated

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The importance of having a good accounting system

If your business doesn’t have an effective accounting system in place, you run the risk of making serious errors in your finances. Furthermore, a good accounting system simply makes life

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Casusal Day 2017

Newtons always supports Casual Day and this year was no different! Thanks to all who wore their green proudly to show our diversity in support of people with disabilities.

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Siseko Tose appointed to ABASA National Committee

We are proud to announce that Siseko Tose, currently Chairperson of the ABASA Free State branch, has been elected at the ABASA National Conference held in Durban into the National

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Goodbye Winter…Hello Spring!

Newtons welcomed Spring by having a beer tasting and burgers event on Thursday, 31 August. Thanks so much to Phillip Coetzer of the Brew & Still for sharing his passion,

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Newtons Action Netball Team wins 2nd place!

Congratulations to the Newtons Action Netball team that took part in the Nashua Social Cricket & Netball Tournament on Saturday, 9 September. They ended 2nd in pool B and made

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Newtons Business League Bowling Team

Thanks to all the players that supported the Newtons Bowling Team during the Bloemfontein Municipal Bowling Club’s Business League! Even though the end result was not what we hoped for,

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5 Common small business money mistakes

Of all the roles, a small business owner takes on, often the most challenging is managing the business’s finances. You can improve your chances for success – and your profitability –

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Treasury moves to close CGT avoidance loophole through share buybacks

Where one company previously sought to dispose of its shares in another company, it was able to do so without incurring an exposure for capital gains tax (“CGT”) or dividends

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Three financial tips for small business entrepreneurs

Here are three things which small business owners should consider implementing to improve their chances for long-term success. Do Not aim to match or beat prices offered by competitors  Price

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MSI Global Alliance appoints new accounting members in South Korea and Australia

MSI Global Alliance, one of the world’s leading international associations of independent legal and accounting firms, is delighted to announce the appointment of two new accounting members SEJUNG LLC in

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Newtons 2017 SuperRugby winner: Elrico Greyvenstein

Congratulations Elrico Greyvenstein on winning the Newtons 2017 SuperRugby Superbru!

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MSI Global Alliance adds two new members

MSI Global Alliance, one of the world’s leading international associations of independent legal and accounting firms, is pleased to announce the appointment of two new member firms Bowditch & Dewey,

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Tax residence for individuals

According to the South African Revenue Service (SARS), South Africa has a residence-based tax system, which means residents are, subject to certain exclusions, taxed on their worldwide income, irrespective of

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Goods and services acquired by VAT vendors on credit

It is an established principle that registered VAT vendors may claim a deduction for input tax on goods or services acquired for use in the course of making taxable supplies

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Ten tips for small business owners during tough financial times

When the economy is slow, small business owners struggle to survive, many for the first time. Financial problems consume valuable time and business resources, yet must be dealt with proactively.

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MSI Global Alliance appoints two new member firms in Brazil and Denmark

MSI Global Alliance, one of the world’s leading international associations of independent legal and accounting firms, is delighted to announce the appointment of two new member firms to its international

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Newtons receives award at ABASA Free State Branch FQE Dinner

Newtons is very proud to have received the “Most Supportive Firm Award” at this year’s ABASA FQE Dinner. The FQE Dinner is a yearly event where black successfull candidates passing

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Christmas in July

With Bloemfontein being so cold we decided it would be perfect to have a Christmas in winter as well! Complete with Eggnog and a Santa Claus!

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Congratulations successfull SAIPA Professional Exam Candidates!

Newtons is extremely proud to announce that the following trainee accountants have successfully passed their SAIPA Professional Evaluation: Thembakazi Kojana, Sharidon Williams, Luzanne Harmse and Eric Salley. “It always seems

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Newtons Staff donates towards Mandela Day

Thank you to all the Newtons Staff who donated items for our Mandela Day Drive. A special thank you to Anné and Schalk who organised it all and dropped off

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The 2017 tax season is open

The Commissioner for SARS recently published the annual notice to officially ‘open’ the 2017 tax season. Individuals are now able to file their annual income tax returns for the 2017

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When it comes to strategy, think big

To create a strategic roadmap for your business you don’t need heaps of wonderful resources; you only need to give up your preconceived ideas about strategy. Sometimes the thing that

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Beware of Capital Gains Tax when you emigrate

While many people immigrate to South Africa, we also see many of our clients emigrating from South Africa. And while formal migration-status is not necessarily linked to tax residency, the

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Interest free loans to directors

It is very often the case that a company extends an interest free or low interest loan to a director. This manifests either as a true incentive or benefit to

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Interest free loans cross border

A consideration of the tax consequences of interest free loans will be incomplete if not also considered in the context of interest free debt funding being provided cross-border. Typically, when

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Interest free loans with companies

The latest annual nation budget presented in Parliament proposed the dividends tax rate to be increased with almost immediate effect from 15% to 20%. The increased rate brings into renewed

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Newtons went “back to school”

Newtons went “Back to School” for Youth Day this year and had the privilege of having Sheri Brynard as our guest speaker. Sheri is a world renowned speaker and international

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Interest free loans and trusts

The recent introduction of section 7C to the Income Tax Act[1] brought the taxation of trusts, and the funding thereof specifically, under the spotlight again. Briefly, section 7C seeks to

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Non-executive directors’ remuneration: VAT and PAYE

Two significant rulings by SARS, both relating to non-executive directors’ remuneration, were published by SARS during February 2017. The rulings, Binding General Rulings 40 and 41, concerned the VAT and

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Capital gains and cancelled sales

Many transactions in terms in which assets are sold are subject to suspensive conditions. In terms of such agreements, the sales transaction will only take place once all the suspensive

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