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Month: January 2016

MHI ONDERSTEUN MES BELLVILLE

MHI ONDERSTEUN MES BELLVILLE

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Die Skoenboksprojek van 2015 was weer ‘n reuse sukses! Dit was maar ‘n geskarrel, maar al die bokse was betyds en gevul met heerlike bederwe en liefde. Kollegas, vriende en familie het weer hierdie jaar hul harte oopgemaak en gehelp.

MES held their “graduation”at Jack Muller Park in Bellville. Each of the GROW participants received a welcome meal and a very special Christmas box.

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Clarina Hanekom from MES accepting the gifts from Stefanus Malherbe.

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MHI and friends supplied and packed 300 Christmas party packs for Tin Can Town. The Animal Ambulance was loaded and these treats were handed out to the children of Blikkiesdorp in Delft.

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We also received donations of dog and cat food that were handed out for the benefit of Blikkiesdorp’s animals.

Thank you so much for everyone’s participation in ending 2015 with many smiles and warm hearts!

We at MHI wish you and your family, a happy and prosperous 2016!

MAAK DIE OPSTEL VAN ‘N NALATENSKAP-LÊER DEEL VAN JOU OM-TE-DOEN LYSIE VIR 2016

MAAK DIE OPSTEL VAN ‘N NALATENSKAP-LÊER DEEL VAN JOU OM-TE-DOEN LYSIE VIR 2016

A3_BDie nuwe jaar is reeds in volle swang en dit is ‘n goeie idee om as deel van jou om-te-doen lysie, jou persoonlike sake in orde te kry.  Nie net vir gerieflikheidshalwe en gemoedsrus vir jouself nie, maar ook ter wille van jou familie.

Vra jouself die vraag af, “indien ek binne die volgende week sou sterf, sal my familie in staat wees, met die inligting tans tot hul beskikking, om verslag te lewer aan my boedel se eksekuteur ten opsigte van my bates en laste?”  Of sal hulle doelloos rondval om te probeer vasstel watter beleggings jy gehad het?  Het jy ‘n lewensversekeringspolis gehad?  By watter diensverskaffer was jou selfoonkontrak nou weer?

Met die bogemelde stelling stel ek nie voor dat jy jou finansiële posisie met almal in jou familie deel nie.  Die oplossing vir die penarie lê in die opstel van ‘n nalatenskap-lêer.  Hierdie lêer sal al jou belangrikste dokumente (of afskrifte daarvan) bevat, van jou testament tot by jou selfoonkontrak.

Dit klink natuurlik na ‘n reusagtige taak om mee te begin, maar wees verseker, indien die grondslag eers gelê is, sal jy dit maklik op datum kan hou.

Jy kan ‘n ringlêer met sakkies, of flipfile aanskaf vir die doel.  Die lêer moet op ‘n veilige plek bewaar word en onder andere die volgende inligting bevat:

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1. Inligtingsblad met die kontakbesonderhede van jou Prokureur, Makelaar, Bankier, Dokter ens.
2. ‘n Afskrif van jou Identiteitsdokument
3. ‘n Afskrif van jou nuutste Testament – Die oorspronklike testament sal in veilige bewaring in jou Prokureur se kantore gehou word
4. Jou oorspronklike Huweliksertifikaat, Huweliksvoorwaardekontrak, egskeidingsbevel en skikkingsakte (indien van toepassing)
5. Die nuutste weergawe van alle Langtermynversekeringspolisse – bv. Lewensversekering, ongeskiktheidsdekking en verbandbeskermingsdekking
6. Die nuutste weergawe van alle Korttermynversekeringspolisse – bv. Versekering op jou huis, huisinhoud en motorvoertuig
7. Besonderhede van jou begrafnispolis en byvoordele, asook ‘n lys van rekeninge waarop jy dekking het ingeval van sterfte
8. Bewys van jou Aandeleportefeulje
9. Besonderhede van jou bankrekeninge – bv. Jou tjekrekening, kredietkaartrekening en spaarrekening.
10. Besonderhede van jou beleggings – bv. Beleggingsrekening by ‘n bank en uitkeerpolis
11. Bewys van enige bates met waarde bv. ‘n muntversameling of juweliersware
12. Motorvoertuigregistrasie dokumente
13. Jou geldige Televisielisensie
14. Jou selfoonkontrak; landlynkontrak en internetdiensverskaffer kontrak
15. Besonderhede van alle winkelrekeninge bv Edgars of House and Home
16. Nuutste korrespondensie vanaf die Ontvanger van Inkomste
17. Besonderhede van jou Pensioenfonds en -voordele
18. Trustakte en Magtigingsbrief van enige Trust waarby jy ‘n belang het
19. Afskrif / Oorspronklike Titelakte van jou eiendom(me)
20. Besonderhede van jou Verbandrekening(e) oor jou eiendom(me)
21. Nuutste Huurkontrakte – waarby jy die huurder of verhuurder is
22. Rehabilitasiebevel
23. Enige skuldooreenkoms waar jy vir iemand anders geld skuld of hulle vir jou
24. Besonderhede van jou Mediesefonds en Mediese GAP Dekking

Die bostaande lys is ‘n riglyn en nie noodwendig volledig nie.  Dit moet aangepas word om by jou unieke omstandighede te pas.

Die lêer kan maklik op datum gehou word deur die veranderlike inligting op te dateer soos die relevante dokumente (bv. ‘n versekeringspolis) hernu word.

Nou is al jou belangrikste inligting bymekaar, nie net vir doeleindes van jou afsterwe nie, maar ook indien jy dit nodig kry vir ‘n transaksie waar jy bv. FICA dokumente benodig of indien jy vinnig wil vasstel of jou versekering ‘n gebarste warmwatersilinder dek.

Sommige van die bogemelde dokumente kan ook in elektroniese formaat gestoor word.  Jy kan dus jou lêer aanpas om uit beide harde kopieë (van die oorspronklike dokumente in jou besit bv. jou Huweliksertifikaat) en elektroniese kopieë (van die dokumente wat aan jou per e-pos gestuur word bv. versekeringspolisse en bankstate) te bestaan.  Onthou om gereeld rugsteun kopieë van die elektroniese lêer te maak en by die harde kopieë te stoor.

Terselfdertyd kan jy seker maak dat al jou dokumente op datum is en vroegtydig ‘n afspraak met jou prokureur maak vir die opstel of opdatering van jou testament.

Hierdie om-te-doen lysie item is beslis ‘n geskenk aan jouself wat sal aanhou gee deur die jare.

Opgestel deur Riëtte Smuts

Hierdie is ‘n algemene inligtingstuk en moet gevolglik nie as regs- of ander professionele advies benut word nie. Geen aanspreeklikheid kan aanvaar word vir enige foute of weglatings of enige skade of verlies wat volg uit die gebruik van enige inligting hierin vervat nie. Kontak altyd u regsadviseur vir spesifieke en toegepaste advies. (E&OE)

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MAKE THE PREPARATION OF A LEGACY FILE PART OF YOUR TO-DO LIST FOR 2016

The new year is already in full swing and it is a good idea to get your personal affairs in order as part of your to-do list.  Not only for convenience and peace of mind for yourself, but also for the sake of your family.

Ask yourself the question, “if I would die within the next week, will my family be able, with the information currently available to them, to report my assets and liabilities to my estate’s executor?”  Or would they rush around trying to determine what investments you had?  Did you have a life insurance policy?  Which service provider did you use for your cellular phone contract?

With the above statement I am not suggesting that you discuss your financial position with everyone in your family.  The solution to the dilemma lies in the drafting of a legacy file.  This file will contain all your important documents (or copies thereof), from your Will to your cellular phone contract.

It may sound like a daunting task to begin with, but rest assured, if the foundation has been laid, you can easily keep it up to date.

You can use a ring file with plastic sleeves or a flip file for this purpose.  The file must be kept in a safe place and amongst others, contain the following information:

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1. Information sheet with the contact details of your Attorney, Broker, Banker, Doctor etc.
2. A copy of your Identity Document
3. A copy of your latest Will – The original will be in safekeeping at your Attorney’s Offices
4. Your original Marriage Certificate, Antenuptual Contract, Divorce Order and Settlement Agreement (if applicable)
5. The latest version of all your Long-term insurance policies – eg. Life insurance, disability insurance and mortgage protection cover
6. The latest version of all your Short term insurance policies – eg. Insurance cover for your home, household and motor vehicle
7. Details of your funeral policy and benefits, as well as a list of accounts on which you have death cover
8. Proof of your Shareholding portfolio
9. Details of you bank accounts – eg. Your cheque account, credit card account and savings account
10. Details of your investments – eg. Investment Account at a Bank or annuity
11. Proof of any assets with value – eg. Coin collection or jewellery
12. Motor vehicle registration documents
13. Your valid Television License
14. Your cellular phone contract, land line contract and internet service provider contract
15. Detail of all retail accounts eg. Edgars or House and Home
16. Latest correspondence from the Receiver of Revenue
17. Details of your Pension Fund and -benefits
18. Trust Deed and Letters of Authority for any trust in which you have an interest
19. Copy / Original Deed of Transfer of your property(s)
20. Details of the Bond Account(s) over your property(s)
21. Latest Lease Agreements – where you are the Lessor or Lessee
22. Rehabilitation Order
23. Any acknowledgement of Debt where you owe money to someone or someone owes money to you
24. Details of your Medical Aid and Medical GAP Cover

The above list is a guideline and not necessarily complete.  Same should be customized to suit your unique circumstances.

The file can easily be kept up to date by replacing the variable information as the relevant documents (eg. An insurance policy) are renewed.

All your important information are now in one place, not only to assist your loved ones in the event of your death, but also to help you should you require for example your FICA documents for a transaction or if you quickly want to determine whether your insurance policy will cover a burst geyser.

Some of the above documents can also be stored in electronic format.  You can customize your file to contain both hard copies (of the original documents in your possession eg. Your Marriage Certificate) and electronic copies (of the documents that are sent to you via e-mail eg Insurance policies and bank statements).  Remember to make backup copies of the electronic file on a regular basis and to keep the electronic backup with the hard copies.

At the same time you can ensure that all your documents are up to date and make an appointment with your Attorney for the drafting or updating of your will.

This to-do list item is certainly a gift to yourself that will keep on giving over the years.

Compiled by Riëtte Smuts

This article is a general information sheet and should not be used or relied on as legal or other professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your legal adviser for specific and detailed advice. Errors and omissions excepted (E&OE)

SARS PRESCRIPTION

SARS PRESCRIPTION

A2_BImagine the following scenario: a taxpayer named Andrew is on his annual vacation for four weeks. On the fifth day of his vacation, he is lying carefree in the sun with his toes wiggled into the warm beach sand. A thought crosses his mind: perhaps he must check his email for a change.

Fast forward eight hours: Andrew logs in to his email. He gives the emails in his inbox a quick scan. Suddenly his stomach cramps. His heart beats faster. His hands start to sweat. His eye caught an email from SARS. Andrew opens the email and then the attachment reluctantly. The attachment contains a letter from SARS stating that they are going to re-assess his income tax for a specific tax year. The assessment for that particular tax year has been issued more than four years ago. Can SARS do this?

To be subjected to the prescription (or re-opening) of an assessment that has been finalised a few years ago already, is something taxpayers don’t even want to contemplate. However, in terms of the new Tax Administration Act, 28 of 2011 (TAA) SARS may go back more than three tax years into the past, prescribe and re-assess a tax return but only if the Commissioner is objectively, based on the facts, satisfied that both the following statutory requirements are met:

1.  There was fraud, misrepresentation or non-disclosure of material facts.

“Fraud” is defined as an unlawful act committed with the intention of misleading another person. The misleading information must cause the other person to act differently than they would have acted if they were not given the misleading information.

The legal meaning of “misrepresentation” refers to a false statement made by a person, regardless of whether the statement is made negilently, fraudulently or innocently. Misrepresentation does not include the expression of an opinion or an interpretation of law.The taxpayer must have made a positive statement which contained one or more facts that were untrue.

Note that innocence cannot be pleaded as an excuse for misrepresentation. Taxpayers thus have to make sure about the content of any statement they make regarding their tax affairs before making such a statement.

“Non-disclosure” means failure to reveal a fact if there is a duty to disclose it. Whether or not there is an intention to conceal it is irrelevant.

2.  The above fraud, misrepresentation or non-disclosure of the material facts was the direct cause that the taxpayer had been assessed for a lower amount of tax than if the taxpayer had disclosed these material facts referred to in section (i) above, to SARS.

There must be evidence of a direct link between the non-disclosure or misrepresentation of the material facts and the taxpayer paying too little tax. If the fraud, non-disclosure or misrepresentaiton of the material facts did not cause the taxpayer to be liable for less tax than he was assessed for without the material facts, the second requirement listed above is not met and SARS shouldn’t be able to apply this section of the TAA.

Generally the onus of proving that income is not taxable or that an expense is tax-deductable rests with the taxpayer. However, if SARS wants to apply the provisions of this section of the TAA, the onus of proving that the above requirements are met, rests with the Commissioner.

It seems that if the fraud, non-disclosure or misrepresentation of material facts did take place but did not cause the taxpayer to pay less tax than if SARS had been in possession of these material facts, and SARS would have assessed the taxpayer in exactly the same way as with the original assessment, despite SARS becoming aware of the material facts now, SARS cannot claim that the under-assessment was due to that fraud, non-disclosure or misrepresentation of the material facts.

If SARS wants to issue an additional assessment on the basis of requirement (i) above but requirement (ii) is not met, the taxpayer can deal with this situation using the objection and appeal provisions available.

In the light of SARS’s tools to go back and prescribe assessments for old tax years, it might be prudent to keep tax records for longer than the required retention periods prescribed by SARS.

This article is a general information sheet and should not be used or relied on as legal or other professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your legal adviser for specific and detailed advice. Errors and omissions excepted (E&OE)

Reference List:

l TAA: Section 99

l http://financial-dictionary.thefreedictionary.com

l http://www.justanswer.com/south-africa-law

 

 

THE VALIDITY OF TAX INVOICES – IT IS YOUR RESPONSIBILITY

THE VALIDITY OF TAX INVOICES – IT IS YOUR RESPONSIBILITY

A1_BThe audits of Value-Added Tax (VAT) returns by the South African Revenue Service (SARS), have increased the focus on the validity of tax invoices for the purposes of VAT.

A VAT vendor submitting VAT returns is responsible for ensuring that all invoices included in the returns comply with the relevant legislation. If valid tax invoices cannot be provided at the time of a VAT audit, the vendor may lose up to 100% of the input tax being claimed on the invoice, even if an amended valid invoice can be provided subsequent to the audit. Furthermore, serious penalties, interest and other consequences may be imposed on the VAT vendor for errors, intentional omissions and fraud.

Section 20 of the Value-Added Tax Act, No 89 of 1991, together with the VAT404 Guide for Vendors as updated in March 2012, sets out the requirements for a valid tax invoice.

A VAT vendor must issue a tax invoice within 21 days of the supply having been made where the consideration for the supply exceeds R50, whether the purchaser has requested this or not. If the consideration for the supply is R50 or less, a tax invoice is not required. However, a document such as a till slip or sales docket indicating the VAT charged by the supplier, will be required to verify the input tax.

The requirements for tax invoices of which the consideration or taxable supply is more than R5 000 are:

  • the words “tax invoice” should be displayed
  • name, physical address and VAT registration number of the supplier name, physical address and VAT registration number of the recipient
  • original serial number of the tax invoice
  • the date of issue of the tax invoice
  • full and proper description of the goods sold and / or services rendered
  • quantity or volume of goods and / or services supplied
  • total amount of the invoice and VAT amount in South African currency (except for certain zero-rated supplies)

The requirements for tax invoices of less than R5 000 are:

  • the words “tax invoice” should be displayed
  • name, physical address and VAT registration number of the supplier
  • original serial number of the tax invoice
  • the date of issue of the tax invoice
  • full and proper description of the goods sold and / or services rendered
  • total amount of the invoice and VAT amount in South African currency (except for certain zero-rated supplies)

In the case of second-hand goods purchased from a non-vendor, the purchaser has to record the following information:

  • name, address and identity number of the supplier, confirmed by the person’s identity document or passport. (If the value of the supply is equal to or greater than R1 000, a copy of this document must be retained by the purchaser. If the non-vendor is a juristic person, a letterhead or similar document stating the name and registration number of the juristic person is required)
  • date of acquisition
  • quantity or volume of goods
  • description of the goods
  • total consideration paid for the supply
  • declaration by the supplier stating that the supply is not a taxable supply

If a vendor fails to deduct an input tax in respect of a particular tax period,that input tax may be deducted in a later tax period, but limited to a period of five years from the date that the particular supply was made. However, when a vendor becomes aware of an output tax not declared in the relevant period, a corrected VAT return for that specific period should be submitted. It is not acceptable to declare the output tax in the next period and SARS may impose penalties and interest on the output VAT omitted.

This article is a general information sheet and should not be used or relied on as legal or other professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your legal adviser for specific and detailed advice. Errors and omissions excepted (E&OE)