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Chartered Accountants &
Management Consultants

BUSINESS NEWS

Kindly refer to our new site for up to date information: http://www.iabcgroup.co.za
 
Exchange rate as at 2011-04-08:
 
Rand/$ 6.65 Rand/€ 9.58 Rand/£ 10.90 Gold/oz 1466.64 Oil 123.69 JSE 32874.90
 
Exchange rate as at 2011-04-04:
 
Rand/$ 6.72 Rand/€ 9.54 Rand/£ 10.83 Gold/oz 1432.52 Oil 120.14 JSE 32437.77
 
Exchange rate as at 2011-03-31:
 
Rand/$ 6.76 Rand/€ 9.60 Rand/£ 10.87 Gold/oz 1434.88 Oil 117.27 JSE 32204.06
 
Exchange rate as at 2011-03-24:
 
Rand/$ 6.89 Rand/€ 9.74 Rand/£ 11.14 Gold/oz 1440.18 Oil 115.03 JSE 31433.24
  
Exchange rate as at 2011-03-06:
 
Rand/$ 6.88  Rand/€ 9.64  Rand/£ 11.19  Gold/oz 1431.05  Oil 115.97  JSE 32337.06 
 
Information supplied by INET Bridge. Data up to date to above stated date on subject header.

 General Economic Indicators:

 Main key indicators only - 2 December 2010: Source: Statsa (StatsOnline)

  • CPI:  December 2010 = 3,5% y/y;
  • PPI:  December 2010 = +5,8 y/y
  • GDP:  3rd Quarter 2010 2,6% q/q
  • Unemployment:  25,3% 3rd Quarter 2010
  • Population  (Census 2001):  44,8 million Night of October 9-10, 2001
  • Population  (Mid-year estimate):  49,99 million Mid 2010

Interest rate in week of 17-21 January 2011:

Latest Rates (source: liberta.co.za): 

Prime * = 9.00%; Repo * = 5.50%; CPI * = 3.50%; PPI * = 5.80%; GDP * = 2.60% ;

The latest interest rate cut by the SARB brings interest rates down to the lowest level they’ve been in 28 years. The prime interest rate is currently touching a 28-year low, which was equaled briefly in April 2005. Before that the last time South Africa had interest rates lower than what we have now was in February 1981.

iabc NOTICE BOARD

We have moved:
be advised that we have moved offices, up to date changes will be made known soon. Further also note that we have communication problems as all our telephone lines are down. You can still contact us however on +27(0)73 555 7775 and +27(0)73 160 2400
 
Cipro: Private Companies and Close Corporations Annual Returns:
This is an urgent message for members, directors and representatives of registered companies (private companies and close corporations), note that Cipro working hour have been extended to 18:00 up until the 31 January 2011 to facilitate the lodgement of the annual returns. If returns are not lodged and fees paid, your company will be de-registered (struck off) from the companies register at Cipro. The consequences of which are;
·          You lose the legal status of your registered company;
·          You might lose you business bank accounts;
·          You will be unable to transact under the registered company particularly with financial institutions and other major players in the economy. You will be unable to access credit with any institution;
·          You might be out of business altogether.
Should you require assistance with secretarial work, please contact Julie Maroos from our office on 011-312 3149.
Vat Returns Submissions
Kindly be advised that Vat returns (Vat201s) for period 201011 (October 2010 & November 2010) were due and payable on 25 December 2010 and the returns (Vat201s) for period 201012 (November & December 2010) is was due and payable on 25 January 2011 for manual submissions and 31 January 2011 for electronic filers.
Please ensure that all submissions and payments are done on time to avoid interest charges and administrative penalties. Should you require assistance from our consultants, kindly provide our office with all the financial and transactional documents. You may contact our tax consultant, Julie Maroos on 011 – 312 3149 for further assistance.
Employee Taxes (PAYE, UIF & SDL) Returns Submissions:
Kindly be advised that the employee taxes returns (Emp201s) for period 201012 ( December 2010) was due and payable on 07 January 2011 and for period 201101 ( January 2011) will be due and payable on 07 February 2011.
Please ensure that all submissions and payments are done on time to avoid interest charges and administrative penalties. Again, should you require assistance from our consultants, kindly provide our office with all the financial and transactional documents. You may contact our tax consultant, Julie Maroos on 011 – 312 3149 for further assistance.
Financial Year End (28 February 2011):
To all our contractual clients: Please note that we are coming yet to another financial year end. As a result, we will be doing a lot of clean up on our system databases in readiness for finalization of Trial Balances to be used in the preparation of Annual Financial Statements and Annual Income Tax Computations. In these regard please bear with us and our consultants as we will be making numerous enquiries in order to close off any gaps that there may be in the system as well as to clear all suspense items. Please assist us in every way that you can.
To our non contractual clients, if you will need our assistance with annual financials, please note that we need full account of transactions accumulated during the course of the year as well a reliable set of financials for the previous year. You contact us either towards the end of February 2011 or in March 2011 to arrange for the preparation of your annual financial statements with us. You can speak to Nompumelelo Shelembe of our office on 011 - 023 5530.
Dedicated Tax (Sars) and Secretarial (Cipro) Consultant:
To all our esteemed contractual and non contractual clients, please be advised that due to the fact that we are going into a very busy administration period for both Sars and Cipro requirements, Ms. Julie Maroos will handle all Cipro and Sars related assistance requests and queries. She can be contacted directly on 011 – 312 3149.
Articles
iabc disclaimer, private policy and terms of use
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Editorial contributions are welcome although the publisher cannot accept responsibility for unsolicited material. © Intellogic Africa Business Consulting_2011. All rights reserved. While every effort has been made by the publisher to ensure accuracy of information contained herein, the publisher and its agents cannot be held responsible for errors, or loss incurred as a consequence of reliance placed on the contents herein. The publisher advises that readers consult their financial and professional consultants before acting on any information. Further, no consideration is accepted for any editorial published. Published articles are not linked to the placement of any advertising.

OUTSOURCING - Business Management
2010-07-28
Companies always need to make sure that they keep a close eye on expenses. When some tasks are such as accounting are outsourced companies will enjoy the benefit of lower costs. Many businesses are looking for the best way to save costs and outsourcing is one of them, there are so many companies who are willing to provide a good level of service for lower wages than permanent workers would demand for the same type of work.
SEVERE NON-COMPLIANCE PENALTIES - (Taxation)
2010-09-01

 Be warned, some very serious and hash SARS legislation prescribing administrative penalties for non compliance were gazette recently. These will seek to inflict serious punishment on tax payers who continuosly fail to comply.

Importance of Sound and Effective Business and Financial Controls - Enterprise Risk Management
2010-09-01

 

According to the most recent official crime statistics (June 2008), the number of reported cases of commercial crimes rose by an alarming 21%. It’s not just the case of discovered fraud as a direct consequence of downturn. However with effected and looming retrenchments of spouses’ etc, employees are bound to be tempted to extend their fingers where they shouldn’t really be reaching. The fault can’t be squarely placed on the employees; it’s an issue of controls within the company.

2011 Message from the MC
2011-01-01

The years 2009 and 2010 have been undoubtedly the toughest years for business both on the South African political and economic platform as well as internationally. Even the world cup event hosted right in our backyard was incapable of significantly mitigating the effects of the global economic meltdown.

Security around VAT Registrations and administration - Taxation
2011-01-01

 

The South African Revenue Service has recently implemented a range of additional security measures to safeguard the VAT system from attempted abuse and fraud. SARS is also considering implementing additional verifications including the use of biometric tests (fingerprinting of applicants) for VAT and other tax registrations
ENTERPRISE RISK MANAGEMENT
2011-01-01

“Floods, Security, Breaches, Loss of Major Suppliers/ Customers and Power Cuts are all events capable of crippling a business and yet many companies are far from being prepared”. Risk management is more than just identifying risk, but taking this further to managing and mitigating these risks. Companies ought to take necessary steps to protect themselves.

Leasing vs. Buying - Corporate Finance
2011-01-01
An issue that needs to be considered right at the beginning of any decision to purchase assets is whether to buy or lease them. If you decide to buy, then also consider use of debt to finance the purchase. Asset finance can be considerably complex and any mistakes made in choice of available options can cost the company in terms of profitability as well as balance sheet strength.
POTENTIAL RISKS WHEN BUYING A BUSINESS - BUSINESS DEVELOPMENT
2011-01-05

Don’t buy what the broker wants to sell you just for the sake of buying a business. Look for and get the business you want and deserve. It probably won’t be 100% of what you want, but then why would you buy a business that you do not feel you can grow and develop?

Tax compliance, obstacles encountered by small and medium enterprises in South Africa - Taxation
2011-01-05
In 2009/10 fiscal year single “turnover” tax was introduced for small businesses and an attractive tax band offered to businesses which qualify as Small Business Corporations. In my opinion therefore, there has been a steady response from Government and related institutions in regard to minimizing red tape and burden of doing business by SMEs.
MOST SMEs NOW AUDIT EXEMPT
2011-02-04
Most companies will be exempt from the mandatory statutory audit when the Companies Act No. 71 of 2008 becomes effective on 1 April 2011. This is a topical issue as there are pros and cons of this of legislation.
 
It has been noted globally and recently in South Africa that statutory audit of SME is expensive and creating unnecessary burdens on SME. An audit exempt company can now opt to be voluntarily audited. The majority of the eligible companies have chosen not to spend their limited funds on a voluntary audit. The companies act still requires companies to keep and maintain proper accounting records and those who do not comply will be committing a criminal offence.
COMPANIES ACT IMPLEMENTATION
2011-04-01

RE: COMPANIES ACT IMPLEMENTATION The Department of Trade and Industry (the dti) notes the public interest regarding implementation date of the Companies Act 71 of 2008. It is important to acknowledge that the parliamentary process in regard to the adoption of the Companies Amendment Bill was only finalised on 24 March 2011, following a rigorous and inclusive consultative process that resulted in the incorporation of recommendations from stakeholders. The parliamentary process took slightly longer than anticipated.

the dti RECOMMENDS 01 MAY 2011 AS IMPLEMENTATION DATE FOR THE NEW COMPANIES ACT
2011-04-01

The dti can confirm that after all the technical processes required have been completed. It has recommended to Presidency to provide 01 May 2011 as implementation date. The Department reiterates that all the necessary systems and processes necessary for the operation of the Companies and Intellectual Property Commission, including the appointment of the Commissioner and Deputy Commissioner, are on track.

Deposits made to CIPRO's bank account without a reference number.
2011-04-01

According to CIPRO's records there are customers who deposit money into CIPRO's bank account without a reference number and contact details.
 

The 2008 Companies Act comes into force on 1 May 2011
2011-04-23

Minister of Trade and Industry, Dr Rob Davies signed and approved the Companies Regulations, 2011 and they will come into force on 1 May 2011. The President, Mr Jacob Gedleyihlekisa Zuma signed into law the Companies Amendment Act, 2011. The President also signed and approved the Proclamation and President's Minute that put into legal force the Companies Act 2008 on 1 May 2011. The expected publication date in the Government Gazette is 26 April 2011.