Treasury will need to think outside the box this year if it is to make any meaningful difference to its current revenue shortfall, estimated to currently stand at around R50.8 billion. This is according to David French, Tax Consulting Director at Mazars, who says that, ahead of the 2018 Budget Speech, Treasury’s options to raise revenue are becoming increasingly limited.
Some high profile companies, including General Electric, Adobe, Netflix and Intel recently announced that they were abandoning the traditional annual performance appraisal system, leading many to assert that performance management systems are heading towards extinction.
The number of international tourists arriving in South Africa has surged by 18,7% in the last quarter of the 2015/16 financial year, compared to the previous year, according to the Department of Tourism’s annual report. Domestic tourism numbers are also on the rise with this number likely to grow substantially over the next two years, according to the report. Unfortunately, the rise in tourism has also led to a substantial increase in the instances of fraud in this sector.
Mazars, an internationally represented organisation specialising in audit, accounting, tax and advisory services, has announced its acquisition of Corality Financial Group (Corality). Corality is a leading financial modelling consultancy and training provider founded in Sydney, with offices in London and New York.
With our deteriorating business environment and increasing insolvencies, businesses are looking to obtain the cheapest finance possible. One very common type of financing that is used is the issue of preference shares. The problem that always raises its head with these is how does one classify preference shares? Is it debt or equity, or both and if so how should the allocation be determined?
The Broad-based Black Economic Empowerment (B-BBEE) commission, founded to investigate and deal with fronting, fraud, and other B-BBEE transgressions, this week commented on the nearly 100 cases that it had received since April this year. Commissioner Zodwa Ntuli has described some of the cases as ‘traumatising’, and again emphasized that the commission would take a hard stand against companies found in violation of B-BBEE codes. In light of this, businesses should partner with an accredited and reputable B-BBEE verification agency to ensure that their B-BBEE status is evaluated and reported accurately.
Tax authorities worldwide have articulated concern about what they regard as widespread tax avoidance arising from tax residents holding assets in and earning income in countries other than their country of residence and failing to declare such income and assets to the tax authorities in their country of residence.
Exchange rate fluctuations over the past six months have resulted in Rand depreciation and Rand appreciation of approximately 20% either way. This ebb and flow has led to many financial planners advising investors to transfer money offshore. While this is a very important step in portfolio diversification, investors should weigh up all of the factors when dipping their toes into offshore waters.
The number of liquidations for South African businesses decreased by 1.1% to 177 in May compared with May 2015, according to Statistics SA data. While this could be a result of business rescue becoming available to more companies in financial distress, it is important for business owners to understand that business rescue and liquidation are seldom interchangeable processes.
Mazars, the internationally represented organisation specialising in audit, accounting, tax and advisory services, has officially opened its new Gauteng premises located in Melrose Estate, Johannesburg – an ideal location in the epicentre of South Africa’s business powerhouse.