Workshop: Due Diligence Audit Masterclass – 9 CPD hours – May 2015


Due diligence is a coherent, systematic and focused review, investigation and analysis exercise carried out to evaluate the target business and project with a view to reaching an objective decision on the status of the target business and project. Due diligence activities are conducted in relation to specific focused areas such as financial, IP, HR, IT, legal and operational on an integrated basis. Due diligence can be conducted for both strategic purposes and established business and property operations performance and valuation confirmation.

The purpose of due diligence is for the investor, buyer and financial institution to be empowered to understand the transaction, to negotiate the transaction, to assess the value of the transaction and to ensure that returns and rewards are greater than the risks and exposure of the transaction.

Due diligence must be done right… first time… to ensure that you know what you’re getting including the problems and risks before you proceed with the strategic decision and transaction.

Workshop content

Session 1:

  • Due Diligence Dynamics

Session 2:

  • Due Diligence Process

Session 3:

  • Due Diligence Audit Types

Session 4:

  • Due Diligence Integration, Assessment and Report

Click here for detailed information.

Who should attend?

Auditors, accounting officers and business advisors.

Continuing Professional Development (CPD)

Attendance of this seminar will accrue 8 + 1 hours’ CPD for members of a relevant professional body such as ACCA, SAICA, AAT, SAIPA, SAIBA, IAC, CSSA, ICBA, LSSA, FPI, and the IBA. ACCA is a full member of IFAC. The ACCA CPD policy is compliant with IFAC IES7 and is recognised by SAICA, AAT, SAIPA, SAIBA, IAC, CIS and others.

Complete a free online assessment at the end of the event and receive an additional CPD point.


Full-day seminar:

  • SAAA members = R 1,890.50
  • Non-members = R 1,990.00

DVD and electronic course notes:

  • SAAA members = R 664.05
  • Non-members = R 699.00

All prices include VAT.

When and where

All workshops will run from 09h00 to 17h00.

  • 12 May 2015 – Cape Town, Lord Charles Hotel
  • 20 May 2015 – Johannesburg, Wanderers Club
  • 21 May 2015 – Pretoria, Diep in die Berg

Click here for more information and bookings.


SAAA: 2nd Annual Not-for-Profit Industry Conference – 8 CPD hours – Jun 2015

The challenges of running a not-for-profit organisation are seemingly endless. From the basic issues around setting up and running an NPO, to more complex challenges of achieving sustainability and evaluating the impact of their programmes. NPOs need to be more savvy than ever before if they want to not only survive, but thrive in today’s economic environment.

This conference has been designed to address the needs of NPOs in South Africa, regardless of sector or size. This year’s speakers come from a wide variety of backgrounds and include both large and smaller NPOs, government departments, academia and agencies and consultants that work extensively with the not-for-profit sector.


  • Engaging with the National Lottery Board (NLB) for funding
  • Building sustainability in not-for-profit organisations
  • The role of the social enterprise in the South African context
  • Running a smaller NPO – what are the challenges and how to overcome them
  • Techniques for developing effective programmes and measuring their impact
  • Online and social media marketing for NPOs
  • Exploring opportunities for networking and partnerships with other NPOs
  • Workshop: Effective fundraising strategies
  • Lessons from King III on corporate governance and The Independent Code for NPOs
  • Looking at HR policies and labour legislation and how they affect the not-for-profit sector

Who should attend?

CEOs, MDs, FDs, General Managers, Operations Managers, HR Managers, Marketing Managers from NPOs, NPCs and PBOs. Accountants and lawyers who have NPO clients or who are looking to acquire clients in this sector.

Continuing Professional Development (CPD)

Attendance of one day will accrue 8 hours’ CPD for members of a relevant professional body such as ACCA, SAICA, AAT, SAIPA, SAIBA, IAC, CIS, ICBA, LSSA, FPI, and the IBA.

Attendance of the full conference will accrue 16 CPD hours.


OPTION 1: One conference day only

  • Members of SAAA: R 1,899.05
  • NPOs*: R 1,699.15
  • Non-members: R 1,999.00

OPTION 2: Both conference days

  • Members of SAAA: R 2,849.05
  • NPOs*: R 2,549.15
  • Non-members: R 2,999.00

OPTION 3: DVDs (includes electronic notes)

  • SAAA members: R 664.05
  • NPOs*: R 594.15
  • Non-members: R6 99.00

*NPO pricing subject to verification of NPO status. All above prices include VAT .

When and where

  • 03 June 2015 – Conference day 1 – The Wanderers Club, Johannesburg
  • 04 June 2015 – Conference day 2 – The Wanderers Club, Johannesburg

Click here for more information and bookings.


QuickBooks training courses – certified for CPD – April 2015


If you’re an entrepreneur or have just been promoted into a managerial position, this is the perfect course for you. You will learn how:

  • to manage your money coming in and going out,
  • track your customer balances and daily sales,
  • record your expenses,
  • reconcile your bank statement to ensure that you can create accurate income statement,
  • balance sheet and trial balance reports.

When and where

Johannesburg – 31 March to 2 April 2015

Cape Town – 21 April to 23 April 2015


This course is designed to give you a quick and easy understanding of how Quick Payroll does:

  • payroll calculations,
  • leave registers,
  • report writing,
  • tax year-end,
  • and how it interfaces seamlessly with QuickBooks Accounting Software.

When and where

Johannesburg – 8 April 2015

Cape Town – 16 April 2015

Port Elizabeth – 19 April 2015

Durban – 23 April 2015


This intensive two-day course will teach you the ins and outs of QuickBooks, so that you can take advantage of the software’s more unique features. By the end of this course, you can consider yourself an accomplished QuickBooks user.

When and where

Johannesburg – 14 to 15 April 2015; 21 to 22 April 2015

Port Elizabeth – 20 April 2015

Durban – 20 to 21 April 2015

Cape Town – 28 to 29 April 2015

South Africa planning substantial tax relief

Article source: Tax-News 

South Africa’s Ministry of Finance launched a public consultation on proposals for a temporary reduction in employers’ and employees’ contributions to the Unemployment Insurance Fund (UIF), while benefits will remain unchanged.

The 2015 Budget contained a proposal to reduce the remuneration threshold against which unemployment contributions are calculated from the current monthly amount of ZAR14,872 (USD1,260) to ZAR1,000.

Given the challenging economic environment that has led to downward revisions in economic growth, it is considered that a reduction in unemployment insurance contributions will provide significant support to households and employers.

If implemented, both employers and employees will be required to pay a maximum of ZAR10 each per month, down from the current maximum of ZAR148.72. The reduction is proposed to take effect on April 1, 2015, and would be reconsidered for the next fiscal year, shortly before April 1, 2016.

The measure will provide about ZAR15bn in relief to employees and employers. The contributions reduction would draw down on the UIF’s accumulated surplus, which currently stands at more than ZAR72bn, and is therefore expected to boost the economy without requiring the Government to issue additional debt.

Submissions of public comments closed on 20 March 2015.



2015 Budget: Key highlights

Article source: Accounting Weekly 

The 2015 Budget was tabled on 26 February 2015 by Finance Minister, Nhlanhle Nene. It contains a 1% hike in tax rates for middle to high-income earners, increased road accident levies, but also a serious effort by government to curtail spending. Here are some of the key highlights:

  1. A 1% hike in tax rates for the middle to high-income earners.
  2. All taxpayers earning more than R181,900 a year will pay 1% more in tax, generating R9,4 billion in additional revenue.
  3. R8,5 billion of this will be returned to those earning less than R450,000 a year in the form of inflation adjusted tax-relief, rebates and medical scheme credits.
  4. The maximum marginal tax rate for individuals is now fixed at 41% for Individuals earning in excess of R 701,300 in the 2016 year of assessment.
  5. Small businesses with a turnover of less than R335,000 a year will pay no tax. This threshold has increased from R150 000 the prior year. The maximum rate falls from 6% to 3%.
  6. Fuel levies have been increased by 80.5 cents (general fuel levy – 30.5 cents per litre and RAF levy – 50 cents per litre) in respect of petrol and diesel with a total levy payable in the 2015/2016 year of 332.50 cents and 413.00 cents respectively. This represents an increase in the region of 25 % compared to approximately 7% in 2014/2015.
  7. The road accident levy will rise by 50c from the R1.04 to help the Road Accident Fund address its accumulated unfunded liability of R98.5bn.
  8. Budget deficit expected to fall to 2,5% in 2017-18 from a level of 3,9% in 2015-16 (and the current level of 4,1%).
  9. Economic growth likely to slow to 2% this year, down from 2,5% projected in October last year.
  10. Slowdown in economic growth blamed on electricity shortages and weak economy.
  11. Growth only likely to reach 3% again in 2017, effectively derailing the National Development Plan target of 5% growth.
  12. Tax revenue in the current fiscal year was R14,7 billion lower than projected and will likely deteriorate R36 billion over the next three years.
  13. Government’s net borrowing requirement is expected to reach R173,1 billion in 2015-16 (from the expected R180,9 billion) and will fall to R155,5 billion by 2017.
  14. Tax increases will generate R16,8 billion, half of which will find its way back to the poor.
  15. Property transfer duties: all transfer duty on property acquired below R750,000 will be eliminated.
  16. There will also be a decrease in the effective transfer-duty liability for properties acquired up to about R2.3 million, and an increased liability for more expensive properties to 11% of the property value.
  17. R25 billion has been slashed from government expenditure over the next two years.
  18. Real growth in non-interest government expenditure on the main budget will be cut to an average of 2% over the next three years, from 2.5% in 2015-16.
  19. Interest on state debt is the fastest rising item of expenditure, increasing from R115 billion this fiscal year to R153 billion in 2017.
  20. Interest on state debt will come in at a staggering R421 billion over the next three years.
  21. The consolidated wage bill is expected to grow at a nominal annual average of 6.6% over the next three years.
  22. Eskom needs a capital injection of R23 billion which will come from the sale of state assets. The first R10 billion to Eskom will be paid in June, the balance of R13 billion later in the year

Biggest risks

The biggest risks to the Budget are further electricity shortages, slower than expected economic growth, and a trade union movement that is demanding 15% annual wage increases – well ahead of inflation.

Together, these risks can throw the Budget out of kilter.

Tax on investments

Tom Smyth, Supervisor for Tax at Ernst & Young comments on some key changes to tax on investments:

Section 12-I of Income Tax Act – Previously, there was a lack of eligible projects to suit the requirements for the 12-I incentive which was designed to attract investment. To remedy this, the deadline for industrial policy project applications is to be extended from 31 December 2015 to 31 December 2017. That, in conjunction with the lowering minimum investment thresholds, will offer companies big incentives for major Greenfield and Brownfield investments. The combined changes will make the incentive more accessible to companies as government tries to attract more private-sector investment.

Research and Development (R&D) Incentives: Section 11-D – Since their inception on the pre-approval system on 1 October 2012, there have been backlogs in the administration of the R&D tax incentives. Government is spending significant time in establishing a solution to deal with these implementation challenges. Government has addressed some of the “known” issues, such as clinical trials and multi-source pharmaceutical (generics). The issue of third-party funding is still to be addressed. Progress has been made and the private sector is looking forward to this being an effective measure to addressing innovation in increasingly knowledge-based economies.

Special Economic Zones (SEZs) – Government is proposing changes to legislation to incentivise investment and industrialisation within Special Economic Zones (SEZs). As part of the incentives, companies can qualify for a special 15% income tax benefit if at least 90% of their revenue/income originates from within these SEZs. Government is proposing a change to the definition of an eligible company, saying that if more than 20% of its expenditure or gross income arises from transactions with connected persons, it will be disqualified. This is in recognition of the ever-evolving discussion around Base Erosion and Profit Shifting (BEPS). Government is worried that companies will try to artificially shift income to these SEZs to take advantage of this benefit and this is an effort to curb this act. This could potentially have undesired consequences as a result of the stricter requirements for eligibility. There is still much to be done in respect of implementation of current and proposed legislation in respect of SEZs.

Section 12-L of Income Tax Act – The energy-efficiency savings tax incentive will be increased from 45c/kWh to 95c/kWh and extended to cogeneration projects. This is a big incentive that recognises the constrained electricity supply in our country. This is well-received and will provide significant relief for firms with operational challenges and a tough business environment. Cogeneration will also in turn significantly increase the scope of this incentive.


Betty Bookkeeper explains how to invoice when a VAT vendor passes on charges from another entity – March 2015

Hi Betty 

Please can you advise on the below?

Scenario 1:

  • The company is a VAT vendor.
  • The company receives an invoice from a non-VAT vendor for R300. This is work done for another entity. We have to invoice the entity to recover the expense.

How do we invoice? R300 + VAT?

Scenario 2:

  • We paid cellphone expenses of R570 (incl. VAT) for another company.
  • We claimed the VAT.
  • We have to recover the expense.

How do we invoice? R500 + VAT?


  • The company is a VAT vendor. Is there any scenario in which we may not invoice for VAT?
  • May we claim VAT for kilometers traveled on behalf of another entity?

I would really appreciate your input.

Thanks and regards,


Hi David

If a VAT-registered entity is passing on an exact charge from another entity – and there is no separate supply of goods and services – then they do not have to charge VAT on this amount, as it’s merely a recovery of expenditure.

Hope that helps!


Don’t forget that I’m here to answer your questions about the ICBA, or just queries about your accounting at work. All you have to do is email me!


What fees are accountants charging?

Article source: Accounting Weekly

In a recent survey conducted by the University of Pretoria, accountants were asked what their fees are for particular services offered to clients. How do you compare?

From the above table it is clear that fees charged for services vary significantly. The size and complexity of the client and the time spent on the service influence the fee charged, whether in total or per hour/item. An Income Tax Return for an individual (IT12) costs on average R1,164, but can cost up to R87,550. The most common fee for an IT12 is R350 per hour. Firms that provide payroll services to their clients, charge on average R305 per hour/item for this service. At most, a client would have to pay R36,000 per month for payroll services.

The fee charged for monthly bookkeeping of a simple business is on average R3,073 (R418 per hour). Dependent on the size of the client, the total costs can amount to R100,000, but can be as little as R150. Financial statements for a non-audit company can cost up to R200,000, depending on the size and complexity of the client. The average per hour fee for financial statements (non-audit company) is R898.


TaxBox TaxPlanner 2016 now available

Analyse, plan, administer and prepare your client’s tax the quick, accurate and easy way. This is the ideal, easy-to-use, client database application – saving you time and money. Prepare your client’s tax in advance, prior to assessment.

All tax calculations with the applicable rules are built in. As you enter information, the calculations are done instantly and displayed on the screen.

This system is designed to provide a tax practitioner with a single toolset to handle the complete tax submission process, consisting of the following:

  • Provisional Tax Payments IRP6.
  • Assets and Liabilities / All income and deductions.
  • Logged time against client file.
  • Professionally designed reports all coded for SARS eFiling.
  • Standard letters to SARS and client.
  • Also includes FINPACK to generate Income Statements, Statement of Assets and Liabilities, as well as Disposable Income Reconciliation Summary.

Special offer of 25% discount valid until 31 March 2015.

Place your order here.


Seminar: Income Tax Update – 2.5 CPD hours – Apr 2015


  • A reminder of 2013 amendments that became effective 1 March 2015.
  • The 2014 amendments and how they will impact you.
  • The 2015 Budget Speech.
  • Feedback on the Davis Committee findings.


  • Students = R400
  • Members = R500
  • Public = R600

When and where

All seminars will run from 08h00 to 10h30.

  • 02 April 2015 – Westville Country Club, 1 Link Road, Westville, Durban
  • 14 April 2015 – Chartered Secretaries Southern Africa, Riviera Road Office Park, 6 -10 Riviera Road, Killarney, JHB

To make a booking, email brenda[at] or call +27 (11) 551 4000.


Seminar: Payroll year-end tax – 3 CPD hours – Mar/Apr 2015

Topics to be covered 

  • Review of the 2015/2016 Budget Speech (parts that affect payroll).
  • Info to check your payslips / payroll are correct.
  • Medical aid setups on IRP5s.
  • ETI setups.
  • Getting your IRP5s ready in Quick Payroll.
  • Importing data in e@syFile.
  • Reconciling your EMP201s.
  • Questions and answers affecting your payroll.

Continuing Professional Development (CPD)

By attending this seminar, you can earn three CPD points.

When and where

All seminars will run from 09h00 to 12h00.

  • 26 March 2015 – QuickBooks, 100 Armstrong Avenue, La Lucia, Durban
  • 27 March 2015 – QuickBooks, 2 Venus Street, cnr Glenhove Road, Melrose Estate, Johannesburg
  • 2 April 2015 – QuickBooks, 2 Venus Street, cnr Glenhove Road, Melrose Estate, Johannesburg

Email Mary Sampson to register for the Durban seminar, or phone 031 566 2960.

Email training[at] to register for the Johannesburg seminar, or phone 0861 726 657.