Ampersand Vol1

1st QUARTER 2005

ampersand NEWS, VIEWS

ATTITUDES OF A 21ST CENTURY FIRM

NEW PLACE. SAME FACES. Cameron & Prentice has finally burst at the seams and moved to bigger and better premises. Situated in the hub of Pinelands, our “new” home

has

been

refurbished

to

accommodate

our

expanding staff and business needs. The space is

open, inviting and has been designed to allow an

easy and accessible work flow. Complete

with

five

client

meeting

rooms

Despite our move to bigger and better things, the

same fresh faces of Cameron & Prentice continue

to keep the cogs turning. Making sure our clients

feel right at home.

we

expect and hope we'll be seeing more of our

clients in the months ahead.

WHAT'S IN NEW CORPORATE IDENTITY Tell us what you think.

MAKE A PLAN

Smart estate planning is essential.

AUDIT CHECKLIST

Why it makes cents to have one.

RISING STARS

New recruits you just might be seeing more of.

GAINING GROUND

Just another point you should know about capital gains.

We're up

running:

www.campren.co.za

www.campren.co.za

t: 021 530 8444

f: 021 531 6600

[email protected]

LOOKING GOOD A new year. A new corporate identity. A new approach to Cameron & Prentice communication. Get ready, because you’re going to hear a lot more about Cameron & Prentice.

ED’S DESK

Welcome

to

Ampersand.

your

Some

first of

read

you

of

are

trying to work out the rather odd

name of our newsletter. It’s quite really.

Ampersand

means

“and”.

And

service to our clients. We want to

Prentice is well on track and uniquely

clients, staff and suppliers are always

strategic thinking, but Cameron &

definitely scratching your head and

simple

It’s taken time and a lot of clear

means

positioned in the market as a 21st century accounting firm that has been built on the foundations

you’ll

notice

record, that ampersand now forms a

Prentice.

the

prominent part of our new corporate

identity. Hence the name of our

Cameron & Prentice. And always in touch with what’s happening on a day-today basis in the industry.

commitment. Three words rather

for

in touch with what’s happening at

of experience, integrity and

“&”. That common little symbol that just

improve on that and ensure our

crop

regularly

company

of

in

In fact, you’ll notice our new

up

the

Cameron

website is highly interactive and

constantly kept up-to-date

&

with

key

and

information.

Naturally, our new positioning

topical

Interpersonal

quarterly newsletter.

demands and deserves a fresh

A lot is happening at Cameron &

the very image we wish to portray.

communication

new look. Our new logo captures

remains our first priority.

Despite our new image,

Prentice. Bits and pieces that you

This look has now been rolled out to

our doors are always open and we’re

premises, our new website, a few

including

recognise that it’s the very strength

may have noted already – our new new faces around the office. It’s exciting stuff and we’re proud of our new direction.

Ampersand will work to keep you in touch and up-to-date with what’s

going on in our world of accounting

several

communication corporate

elements

stationery,

a

website, signage, and has even influenced the interior design of our

new office in Pinelands. Our move

into more effective communication has been driven by our commitment

always available for a chat. We

behind the success of Cameron & Prentice.

It’s

a

strength

planning to keep with us well into the future.

to continued outstanding,personable

and business, and to provide you with

relevant

and

interesting

information that impacts you.

For example, in this issue you’ll find key information about capital gains

tax, estate planning and end of financial year audit checklist advice.

We’d love to hear your feedback and thoughts. Enjoy. Ed

www.campren.co.za

ng Our ongoiwith you is tion se feel a c i n u m m o c . Plea s should t n a t r o p m i act u spects t n o c o t ss a . free u c s i d o t you like ur business needs of yo t: 021 530 8444

f: 021 531 6600

we’re

ntice n & Pre Camero y Ro 4 Glen ds 7405 n la e Pin own Cape T

2, Suite 5 Postnet , 1 2 Bag X 50 Private 4 7 e c Pla Howard

[email protected]

CAPITAL GAINS NOOSE T I GHTENS

reasonably have known that the

seller

Non-resident or resident?

the estate agent or conveyancer

buying and selling property.

did not advise the purchaser that

the seller is a non-resident and

Recent changes to capital gains

that the withholding tax provisions

tax laws now mean that where from

a

purchaser

must

may apply. Where this is the case,

bought

non-resident,

withhold

the estate agent and conveyancer

the

percentage of the purchase

will be jointly and severally liable

a

for the withholding tax.

price and pay it over to the

The seller can apply to the

Receiver to cover the seller’s

Receiver for a directive that

capital gains tax liability.

a

be withheld are: 5% - where

the seller is a natural person, 10% -

where the seller is a company, and 15% - where the seller is a Trust.

The withholding tax must be paid over

within 14 days of being withheld or the purchaser will be liable to pay the a

penalty

of

10%

reduced

withheld

The percentages that must

Receiver

the

This provision will not apply if

need to know about when

is

non-resident,

for paying the withholding tax.

capital gains issues that you

property

a

purchaser will be personally liable

Chris Norris outlines a few key

immovable

was

and

interest on the outstanding amount.

Where the purchaser fails to pay the withholding tax and knew, or should

his

amount

if

it

is

can

be

gains

tax

demonstrated by the seller that ultimate

capital

liability will be less than the standard

withholding percentage. This could be

the case, for instance, where the seller is making a capital loss on the sale.

These provisions would also apply to non-resident

purchasers

and

to

situations where the seller is a South African

company

that

resident shareholders.

has

non-

SAVE AUDIT TIME. SAVE COSTS. Check out our audit checklist at www.campren.co.za

Most companies are now preparing for financial year end and the annual audit that goes along with it. Changes in audit and accounting

standards to comply with international requirements have resulted in increased audit time – and therefore increased audit fees.

You can actively minimise these costs by producing crucial information required by auditors.

We’ve put together a comprehensive pre-audit checklist, posted it on

our website www.campren.co.za, and suggest your financial officer considers it prior to your annual audit.

t: 021 530 8444

WITH ESTATE PLANNING Estate planning is an important aspect of our individual financial futures. Peter Prentice discusses the process of effective estate planning. A little thought and effort now will go a

long way in ensuring your last wishes are effectively carried out, and in doing so,

maximising the amount your beneficiaries

derive from your estate by reducing the burden of estate duty.

An estate plan is like a fingerprint in that

every individual has a unique set of circumstances estate plan.

requiring

a

tailormade

Estate planning starts with a thorough

analysis of your existing asset position combined with an in-depth understanding

of your current thinking regarding asset distribution on your death.

Remember, your will and estate plan must encompass

your

last

wishes.

The

complexity of the estate plan will depend

upon many factors including, but not limited to, the value of our estate, family structure,

life

status.

expectancy

and

marital

Mechanisms used to reduce estate duty may include inter-vivos or testamentary

trusts, donations, life insurance, usufructs

Preparing for financial year end?

www.campren.co.za

GETTING PERSONAL

f: 021 531 6600

and disposition of assets prior to death.

Paradoxically, an estate plan is a living

document in that it requires immediate updating

with

circumstances;

for

any

change

example,

a

in

new

addition to the family, a divorce or a new marriage.

Estate planning is not a subject that would

normally keep you awake at night unless you

were

the

beneficiary

inadvertently disinherited. We

are

positioned

to

that

assist

formulating your estate plan.

[email protected]

was

you

in

NEW RECRUITS Every year we take on a handful of recent graduates. Take a look at the fresh faces who'll be joining us this year. Denzel Brown, Gauvain Booyens and Gary Isbister

graduated from the University of Stellenbosch. Lara

Forsyth

graduated

from

the

University

of

Stellenbosch and obtained her graduate diploma in accounting/CTA from the University of Free State.

Q

A

liabilities to the Receiver?

A: All taxpayers who carry on a business or for

their

own

nt)

just ask...

Q: When do I need to submit a statement of assets and

profession

Denzel, Gauvain and Gar (Lara no y t prese

account

or

in

partnership, or who earn income from farming must submit details of their assets and liabilities

as at the end of the tax year. In addition, any taxpayer that receives a tax return that requests a statement of assets and liabilities, must submit the necessary information.

A: All assets and liabilities, including all foreign assets and liabilities, must be included in the statement. This includes personal effects such as household furniture and jewellery.

Assets must be reflected at cost and not at market value as using market values may distort the Receiver's capital reconciliations and give rise to unnecessary queries regarding undeclared income and unexplained increases in net worth.

Q: Is there any benefit in setting up a company

Q: Is there any tax advantage in paying a

Provident Fund for directors?

salary to my spouse for work done in my

A: There are definite advantages in setting

up a non-contributory provident fund for

Q: When do I have to register as a provisional taxpayer?

A: You must register as a provisional taxpayer if

you receive any income (other than salary) exceeding R10 000 per annum, such as interest income or rental income. You must also register

if you are a director of a company or member of a close corporation. The onus is on the taxpayer to register and registration must be done within 30 days of becoming liable.

Q: What assets and liabilities must be included and do I reflect them at cost or market value?

directors as employer contributions are generally tax deductible (within certain

limits), and if properly structured, the contributions

are

not

taxable

for

the

liability

for

employees. It must be clear from the documentation payment

of

that

the

the

provident

fund

contribution is that of the employer, and if

any form of salary sacrifice is involved, this must be properly structured so as not to fall foul of tax laws.

business?

A: There are definite advantages in paying a spouse a salary if it can be justified based on work actually done, and also if the income will be taxed at a

lower rate than you would pay. The salary should actually be paid and the level

of

excessive

payment when

should

compared

f: 021 531 6600

an

work done. Remember to pay over PAYE, UIF and skills levies on the salary.

Recent extensive renovations to a southern suburb shopping centre have had an immediate and positive impact on surrounding commercial rentals by as much as R3 to R5 per square metre. t: 021 530 8444

be

"open market" salary for the type of

ANDY

www.campren.co.za

not

with

[email protected]