Emotional intelligence is vital for the success of professional accountants in a digital age, says ACCA

A new report from ACCA (Association of Chartered Certified Accountants), launched on 7 November 2018, examines the role of emotional intelligence in developing the accountancy profession needed for a fast-evolving digital age.
To the casual observer, emotions and accountancy can seem like unrelated concepts from two separate worlds. But to succeed in an era of increasing digitisation, professional accountants need a rounded set of skills that go beyond technical knowledge, important as it is.

ACCA refers to these skills as the professional quotients – a unique model that encapsulates technical excellence, ethics, and a range of personal skills and qualities, one of which is the emotional quotient.

The findings from the report, Emotional quotient in a digital age, inform the view on both the level of EQ among accountancy respondents in this digital age, as well as the impact of technology on their need for EQ.

Speaking about the emotional quotient research, Helen Brand OBE, chief executive of ACCA, said: “Many people have an intuitive sense of EQ, often expressed as something to do with emotions and interacting effectively with people. But it is important to go beyond this and critically reflect on the value embedded in emotions in today’s digital age. Being able to effectively harness this value is vital for success.”

The report notes that developing one’s EQ requires working on a range of competencies including a growth mindset, self-knowledge, perspective-taking, empathy and influence. The growth mindset emerged as a key enabler for the development of EQ and is a point of high leverage – for example, improvements here can help with those needed across all emotional competencies more generally.

The findings also showed that experience can be an enabler for improving EQ with higher scores for many competencies being correlated with the level of exposure to situations needing that competency. An implication of this is that EQ can be learned – it is not a magic trick, and like most other skills, it can be developed and improved over time. The more one focuses on it, the better it becomes.

A unique diagnostic tool has been launched alongside the report for individuals to self-assess their level of EQ against a credible global benchmark specific to the accountancy profession. The tool provides practical guidance on how to improve effectiveness in this competency.

The report also explores the multi-dimensional impact of technology on the need for EQ in professional accountants. This impact is articulated along six areas, namely: change readiness, increased diversity, ethics and beliefs, cognition and learning, human-machine interaction and shifting power (softer, rather than directive, forms of influencing).

“Our report on the emotional quotient represents one step in our long-term commitment to providing the finance leaders and strategic professionals who will create the accountancy profession the world needs,” concluded Helen Brand.

ACCA officially launched the report at The World Congress of Accountants 2018 in Sydney, Australia. The theme of the event is “Global Challenges. Global Leaders”, a topical area highlighting the importance of leadership in dealing with emerging threats that cut across boundaries. In this context, forming effective partnerships and developing strategic professionals who can truly think ahead with an emotionally intelligent mindset has never been more important.

Emotional quotient in a digital age surveyed 4,660 respondents primarily comprising ACCA students, members and affiliates, with a small sample from 20 other International Federation of Accountants (IFAC) bodies. Respondents were from 139 countries. A series of interactive workshops were also carried out with 120 professional accountants participating in Australia, Canada, China, India, Malaysia, Nigeria, Pakistan, Singapore and the UK to determine the impact of EQ.


Source: www.bizcommunity.com

What is provisional tax? How and when do I pay it?

Provisional tax is paid twice a year manually by individuals who earn non-salary income

What is provisional tax?

Provisional tax is paid by people who earn income other than a salary / traditional remuneration paid by an employer.
If you earn non-salary income, for example rental income from a property, interest income from investments or other income from a trade or small business you run, you will be a provisional taxpayer, even if you ALSO earn a salary. Some exceptions and thresholds do apply though.
If you just earn a salary then you are a regular taxpayer and don’t have to worry about filing provisional tax returns!

When do I have to pay it?

One payment by end of August (mid tax season)
A second payment by end of February (end of tax season)
*Optional* third payment at end of September (seven months after tax season closes) ONLY if amount paid in previous payments was insufficient.

Provisional payments due for the 2019 tax year:

Provisional tax payment deadlines

Regular taxpayers make their tax contributions to SARS monthly via PAYE deducted off their paycheck automatically and submit one tax return every year for the end of February to describe their affairs – an ITR12.
Since provisional taxpayers earn money from other sources, they have to complete an IRP6 return AND make manual payments to SARS.
SARS wants provisional taxpayers to have an even cash flow and avoid paying one large (potentially crippling) chunk of tax in February, so they ask that two (or optionally three) payments are made during the tax year at the end of August and end of February, with an IRP6 required for each one.
The tax paid from the first and second payments is then credited against any tax owing at the end of tax season, and can be refunded by SARS if too much was paid.
Provisional taxpayers also need to submit an ITR12 tax return (just like regular taxpayers), except the due date for this is 31 January the following year (11 months after the tax season closed).

How do I register as a provisional taxpayer?

You can either apply as a provisional taxpayer when you first register for a tax number with SARS, or make the change on your SARS eFiling profile. Alternatively you can visit your nearest SARS branch in person or call the call centre on 0800 00 7277 (0800 00 SARS).

How do I complete the IRP6 form on SARS eFiling?

If you do not make use of SARS eFiling to file your returns, you can visit your nearest SARS office and complete the return there, with assistance from the staff. The quickest way to file is via eFiling and these instructions are below:

STEP 1: Login to your eFiling profile
Go to www.sarsefiling.co.za.
On the top right-hand corner you will see Register and Log in.

SARS eFiling login screen

Click Log in and then type in your unique username and password – you will have decided on these when you registered for eFiling.
Didn’t register yet to E File? Register your profile quickly at www.sarsefiling.co.za using your tax number.
If you used to use a tax practitioner and they did this for you, you must request your SARS eFiling login details from them – they belong to you!
Otherwise call SARS ZA on 0800 00 7277 (0800 00 SARS), provide your ID number and some other security details and they will restore access to your eFiling.

SARS eFiling login screen

Then click Login.

STEP 2: Generate the IRP6 return
Make sure that your name appears at the top under Taxpayer List just in case you have logged onto someone else’s SARS eFile page!
If the title of the page is not INCOME TAX WORK PAGE then click the RETURNS button in the menu at the top of the page.
In the menu on the left Returns Issued will open, showing Personal Income Tax (ITR12) and Provisional Tax (IRP6) – click Provisional Tax (IRP6).

SARS eFiling Returns Issued menu

The page title will now be PROVISIONAL TAX WORK PAGE and should show the IRP6 returns you are busy with.
If you have already created your IRP6 provisional tax return for the relevant year (it should be listed), jump to STEP 3 below.

Generate a new IRP6 return

Otherwise, select the year and relevant period (01 is the payment due at end of August and 02 is the second payment due end of February) from the drop down selector box on the right hand side of the page and click Request Return.
This tells SARS you would like to complete a return for that period and they generate it for you.
Important: You are filing a return for the tax year you are currently in, the one that ends in the coming month of February.
For example, if filing for period 01 in August of 2018, you will select 2019-01 (the 2019 tax year).

STEP 3: Start work on your IRP6 return
Click on the relevant IRP6 and then complete the form with the help of the explanations below.

Select the IRP6 to work on

When you are finished, click the File button to submit.
To make payment to SARS, click the Make Payment button and follow the instructions.

Understanding each section of the IRP6 on eFiling

Particulars of Taxpayer – will already be completed. Check to ensure that these are still correct.
Period – ensure that the correct period is checked – first period / 01 is 31 August 2018 for the 2019 tax year.
Turnover – GROSS INCOME: total business income, royalties, dividends, interest and all other income, including employment income. Exclude all retirement lump sums.
Important: In August, this is your ESTIMATED full amount that you expect to have made for the whole tax year at year end – not the amount you have earned to date over 6 months. In February this amount can be corrected based on your actual recorded income.
Estimated taxable income – all your income minus the business-related expenses incurred in earning that income. Also subtract any pension fund, retirement annuity fund contributions, donation deductions and any exempt income.
Tax on estimated taxable income – this amount will automatically calculate.
Less: Rebates (for individuals only) – depending on your age this amount will already appear on the return.
Less: Medical scheme fees (for individuals only) – this is a credit that goes toward providing relief if you or your employer pay for a private medical scheme. For the 2019 tax year this amounts to R310 per month for the first two members and R209 per month for every member thereafter. For the 2018 tax year this amounts to R303 per month for the first two members and R204 per month for every member thereafter. See our medical aid credits calculator.
Less: Additional medical expenses (for individuals only) – if your medical aid costs exceed 4x the above medical credit (3x if you are over 65) then a portion of your costs PLUS Out of Pocket Medical expenses can be claimed here as a credit.
Tax for the full year – will automatically calculate based on the tax tables.
Tax for this period (6 months) – this amount will automatically calculate and then divide by 2.
Less: Employees tax for this period (6 months) – add up all the employees tax your business paid from all the pay slips. Only add the PAYE. Do not include PAYE on Lump Sums, UIF or SDL.
Less: Foreign tax credits for this period (6 months) – if you earned money from overseas and any tax was withheld or paid, include that amount here.
Tax payable for this period – this amount will automatically calculate.
Add: Penalty on late payment – this amount will automatically calculate.
Add: Interest on late payment – this amount will automatically calculate.
Total Amount Payable – this amount will automatically calculate.

Historical information – this will already be completed based on your previous year’s income.

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