•

At I(am,e'rlon' &, Prentice, we believe thatsetvice rules. ttls o'u,r ,oln,gfJiing mission to IOlo,k: fa" IW:~yS' to

im nr.n'I,.~,'l:!! o;··u'r S:Qf"!l,iIC" Iii!:!! ·a· r ·· n· .. d· 'secure ,n,ulli'" clients the S-I'III'ICC··-Ds.-·s···· ·h'·' ey dem a'· nd ·an· d ~ d · .D5~'iQr'IIiJj~' iir Dooia n' provides

~ l~'- U V ~ .,' .. _'. ..~ ~.. 111"1" .. ~ I '_ ' .. _ -", ~ '\..1,': fI' ~ v."_ ~ " ~I. t. t,-. I ~ .. )IU'".· -'".' -~~.~.} . ,I ~" I !I;i. ~./ UI~ , I,.·. .", .. I "" '. " .. _ ~-", ~ IV' I~[i' -= r·· ~, ' V 'I. :" _. ",' I, .. ~ . !W" ~ I ~, ,I

a' sneak previev« oio nle'w service that will p··.·ro·ve' ,hl/g, .. h,"\,. p···· .. reductive.

I. .. J'I.

Th rough ourpeople and products, we proa ctive~y seek servlce excellence. 'W'e! are a I w,ay.s, ~1[)OkJ'rrlgl 'mr' w'aiys to lmprove the W','f;JJ'Y we W'O rk, a nd ln turn ~ the WfJ1y !~JU IIr d~:ents 'work", b ecsuse Wl~ bel i~ev,s: '~h at lour su CC'e;S5 reflects ill IOU r lei i eats' 511 t'Q~':5:5",

The key ieatures of tne package are that:

For th ls reas on ~ we a re 100 kl ng to p:rov~id e a fu rther service w m,t hi~' n th e Accou lin t'~ n g S e rvl c e s De p dl rt m e In t wlt, h th Ie' in tro d u cf 0 n ,o'f ,2;J rn 0 nth I Y' 1m a na'glls:lm e nt re portl In g fa eiii I i ty' Ul5h~19 011 '~HJEN:]iai~'i sed m eI'n~lglemelnt llielPotUng softw~llre pCl,ck01lge.,

Ma naigemlent 'reports can e'UlJlher'!be produced uss ng dam prepared by th e dlient lor" wihere Calmemn '& Prentice IP rovtdes ,8 Im,IQ.nth~~~(' accou ntB nrgl S~:N,~()e'l!' usiing tl1r1e dsta prod ueed by us.

A IM,ajo r advantage fo r a cUernrt,i's, b usi ness is, the reduced ti~lmle' thalt. [Is talk,e:n to produ Of: mlon:th ~y m a nag'E me nt repo rts. Thill: s.oftwa re Ipac:k,agl! is ca,pab:lle: of co m plating ne:ports,ilm m ed isrtell'y on com p II~tionl Or'F' th e: 1m onth '~en d ciolse'"

U p-te-date rna nagemlenrt rep~)rtlllngl and ~;nrr:~)rm'ation is essentts I 'for the' su QC!:S5. o'f' ,2) fillY besl ness. P'I'E'a 51!! fie,!:1 f:'ree to, contact one !~)f the pa rtne rs to' d:~,SiC:lJ,SS 'wheth,et 'th is semvwee wou I d. be' useful 'to you r bust ness.

II ~ ~ II 'II

" Ii

!II

ED'S DESK

" Ii

~ W'e~IClO m e, the n.,~W' 'fffina n cia,~ vear, Itls

.i

:: ve ry' lli,erfres h il n g to IP ut th,e I a st one

!II

:: behrn d us' and open ,a new, 'fresh pag,e

,I

~ a ndl start alii over a gl8 ln. N,ot that 'It

iii

': r,e~allilly works llke that but there ls

~ II III

5,0 mlletti~' n g ~ n the Jj'S ycho i 0 gly ,of m,t"

I,

Iii

I~ do n't 'y'lou th j'n k? It's so ch ron oillog i,ealill

,II

II - hectlc hours to ctose the last 'yle!ar~

,~

"

= blUJ dg et chat ,i3 nd 'the I'll 1M arch al rrfves

I~

~ a nd here w,e: are aga~ n ,-, ,iB new 'fina ncis;11

y'e1ar.,

>lI

:: alliw',erv:s~ s't: the beJgli~.nning O'f the new

I

: 'yiea r 'til e' people ,[)rf Ca rneron ,a, Pr~nltice

; charlrg'e~ a I lttle. W,e,' 'fal~ewe ~ ~ a 'fe'w o~ld

!II II ,

'I Th~'s y,ealf 'we have sourced our tremee

iii III ,

~ II II

" m

~ briin!g new ldeas, new thillnkiing ,a rid

"

~ ()C:Q'UJ nta I1tS from al good milx of' kl-c;a'il unlversitles ,- young gllU1S wtMJ wU11

= new fu in to QU r set up,

..

• i

= A n~w budg'E3''t Igeru!lr,alll'ly gives

'1

~ a.ocount-alrtnts, IP:lentC)t to ta~lk a bout, Th is

: bu,d'get however, has left: us bean

III

: tau rut,alr's); pretty much ,i;lskilVlQ "a nd

II

III now?'tI Vies, '~t 'was a \\rele~l good!} budget

~ tB nd )t,es;,' weive g:ot ~t WIE! ~III ta ped, We'lll

:: keep YOIU well info rmeo and up-to-

II!

date 'with 'fits rum p! ication's, [and hnw the.y

a;frfect 'Y'Ou.

The-se pa,ges lof A,m persand reflect OUIIi 'I n'@iW finalrn:i'al 'Yf!H:U" flliom a bllS'llr18SS

II'

~ atld P~!~si!Jlna lip€! rspett'iv~, Tihey ,Sj,hed

I,

:: i ight on a nu m b~r of' perb~n~nt: au bjects

II

= p rovi:s ionalill ·tax f '~IIfU 81:'5,; CCs I' '~5tate p I a n VI I' n gl ,~:tc;, ,A 11 d 13.1 'I i'tt I.t~~ Ib ... ~' al bo u t what's goingl on wifIth 'Us: ,as 'well.

'I '!

Ed

,

"-------.-------=---------.--.----------~.--.-

Wi th €rffect 'fro Ilill .l. MI a rch 2: 0 06,. ,6(lo/g -Q'f a t rave I al ~ owa In ce pal i dI1 to an em pi o\,'!:,e rn ust b e :~ n,c'~ud:ed ln the ern p 11~!yeel$, rem u ne ratlon f~lr the pu rpose olf cal~culllati'[1g P,AYE,. In addi't~on", as announced in last vear's BiUdiget'~, the, fii rst :1,8 00110' k~i 10m etre 5, tra ve I led w i ~II, ii n ,t heal bse nee I~)'f a ~Ic,gl book, be' dee rned to be: pllilvat;e '[Irave ~ with busl ness, tra:v:e I ,a rnou ntilng! to 211 ma x i mlll!J m o,'f 1,4 000 ki !~o m etres,

I_ ,In,crease.ln M[oneta'ry 'Thresh'o,lds

The Cal~:jta I' G:a ins: ";a,)( prilffl,art reside n 00 exclusion has been i nereasee from Rl. m~il'ltnon to R.l~S million, The fore~igln lnvestment C3lilowance for indiivi'duals has elso been lncressed, from IR7,5lJI 000 to R2 millllioli1" effed:~.ve llMiarch :2006.

A relm i nde r 'theM: RSC: (CMC) h!vi es have bee n ,8 bollshed w ~tJn le:1fect from ,30 ]June' .2006. It: has been sald at: thiis, $Ita'g'e:, thait no neVj~ 'tax wU!i be inltroduced tOI corn pe lin 5 ate; m'UtrrlicilpaUth:'s, for this ~:05S of' revenue, whictl ls estimated b!)r N a'ti ana I Treasurv tOI ,EI mou lilt to R I bi II h:)W1 for 'tJne: 200e)l20 cr7 filleta I ,¥'e',a r.

A- ,;i!:!I;.~--:- 'Cfl; ''''t~,:'::i;;,\~ et C' "a-'m" eron and -P':F'~'I!1'II""I'''1i!!jj []' .... r!i-r,·li;,"jj ·5 .... rn '"t, .... I;.;.~,~, eacked hls b~[g"t"!: ~ 11l.~IU IQ /I ~~III ,~, !I;iIf.: .. -. _' I~ U '1:;;1 I., I !I;;;;; I 1L.IIL~~' f'\ull.ll I1II : '.' I,a. ,III I ~,~,~, It--' 16 · .. 'G,1lJI IIII~I - 1I;lI. ~

an rll ta.ke n trM! IPosit"~o n of' Fli IrH3 !1lcii alill [M,a nag,s'r 131[: I m sigle m ekers (Pty} Ltd., 'We. w'ish hiim w'el~.,

)0-'-'" ""'H- 1 AN- ~'N""'" "'5' 1(······· A .. ·:':- R··········EE' -R· .. ····'-N: Go'

' ,.n,,'] .. - './- ,' ' , .

~~~ CAYMANS

Itl~, taken IC"D'UL:lin" y·,.Dn'wC" ot stud '- .-' • I,;;}' ~U_,_,~_,:. ,)~'~'~_,~~~~.) IV,. ~ .. : ~.!~.y

includin,;g ,a s'UGcessfU'I' learnershipl ,Clt.' Camero," &, P:re.nlticej no'w·Johafl',n Lo',uw is spreadfn'g his wln.gs· lo,n ,e] CDiree:r that will tru'ly S'Oell:,

,Johann com menced his, ll!ealnnersh i p at Ca rneron &. IPre'nth:e in 200,3: aft[!lr grad uatu ngl 'wwth H on au rs fro rn 'the' IU n i vers itv of Ste'l ~ en bosch '. He lh,adl a I read y suceesstu ~ I~y 'wrMDtten lh ls fi rst boa rnl exa m and! was due to calm plete the second exam e iig hteen months, ~aiter"

Preiflerr'i n gamed i u rn -slzed alud ilt: fi rm, ] 0 h a nn's ca fee r 'wilt'h 'Ca m eron &, P're:nth:e has indee,d been a rew,ndl~ngl one,

"tt W'Cl,S; mly personal prefen~~noe~ to, j'C'b!in GI 'firml of this s:~:ze., I beheved thal~ [ would be exposed to 91 reate r 'w,o,r'k experience and 'CrPI[!lOrt!LI n ltl es and .I ,deft n ib~1 'Ill w,a:5,~ N.ot to me ntlon th e fa ct that I€'v,ety' d illy ill ('.'OU I d d raw' on ,the' e~x'Pe rij:e n ce of th e partfH;!:r$ - peoplle ill repo,rted 'to' di~n~:ctjliy Blind ~iealflnt fnOlml directlv,. ] h~\arn[ [a lo~ 'f'ro ml my p,eers ,a 5 'we I' ~ '" Wo rk i n gl I~n .5lm all ~ 'tea ms IrJn ,a Uld :its~, yClu tal P' into [h e ,diw1Ter,e n ~ ,P€'rs Priectives, €i8(;h pelr;so n ,br,j ng:s,., Th ms w'e s 'Ve fY rn\t\fa,rd i ng '. fj!

Frolm IrN:!:reJf, ]oih,ann ~s healding 'Wor' :mo:r'e sun and 'S.tF'aligh~: to IF-we in 'the Cayman Is~,ands 011 a two ye8M'" ,oontr,alct'. He hals his; le'y€,s, set on New Yorkt London andl RU:$s~ial '~,jiv,e:r the Inext t'E!I1 y,ea r-s;" [But pll,a ns t[c mlalikE: South A'fri~ca ho m e :!5o!m,e ti mle cd1:.eJr 'that"

'W'E' ,a n~ pluQud 'to ha'V'E' P rov~ died ,] aha nnw ittl tlhe s:o~ i d 'fOli ndati ons Qf his Cid ree r.. And lo:ok (JCH'w'ard 'to fOllllllow'~ng hi~s 'very promisiilMg can~ellr abroa,~:t Go well, Johann,

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MORE QUESTIONS THAN ANSWERS.

On the 8th of January 2006. an amendment was passed to the Close Cotpomtions Act' that, in meorv; Q',lIows trusts to be members of CCs~,

Chrts Nonis 'takes a doser look at' 'the impikations of this amendment and adds a' Iittie clarity to a somewhat blurred subiect.

Es:s,e ntla I ~ Y'" 'the Act now a 110 WS 81 nat u ra I pe rson T' in ,t he

.... ~ n,,~, ..... "h,~ ..... If·· :':::i,', tru ...-I-crn .. ~ ;;i"'i;,f' . ~ n· .. ·· i nte r· 'U.""V· ~i"'ii .... ~ tn ill, ~!I!-I to be .;;:> -m" °m:':" b 'e"r

~t"'o!l.".I!!;;.:r' 'Y!, !!;l!I , 'c ~I;,..I!;;:;;;'!i;;; 'Y!. 011 "'~ v I V'.;;II,·h,JII~!I!." ,!!t;!,., ~ ~., "

o,f a CC subject to, 'the follo;w:i ng cond ltlons:

.. No j u rlstlc pe rson ca n be a be n eficia ry of the tru st;

• The "member concerned" shallllll", as betwee·n hlrn se If and tlh e eo rporatl (H', pe rso na ~II y ha \N~\ a I~ I tlh e ri g h ts and obligat[~ons of el member;

• Th e CC w'rn I ~I not be o bl I g,ed to o bse nile 01 r h ave ,a n V obi i{HJtio n in respect of a I1V c,f the fJ rov lslens of the trust deed or i~ n respect of ,a ny ag reeme nit ibetvlee n the trust: and 'the member concerned: and

• If at any tiil me the n u rn be r ,of be n eficia ri es ,t haft a rs e I1tiifi[~ed bJI rncei~ve any be n~'flu~l:' from ,the trust, ad ded 'to the number of members of the 'CC at that ti me exceeds te n, the n th Is exem ptto n w[]~I~ cease to a pp~V ,lI nd ca n not a'g al'i n become a pp I lea b~e., ,1.;113" a tru st cain no long er be a member ,of' that CC,.

'W hat the i m p~ lcatlons of the tast 'tlh res co n d iti 0 ns are ws by no means clear.

'lhe' Act c lea [iii y e nv lsa yes. '[ h at: a '[ rustee 'w~l II be' n a iii ad as the me m be r of the corp orstton ,. aut if th IiIs is, the' case, al nd the 'IA me m be r co n cerned fl persona lilly has ,8 II the fl]g hts a rrd a,bllgat~o'ns, of ,8 mernbe r, does he own that m embers hlp personally and thus have an obll'igatlon to acccunt for the asset In hilis pe rsona I assets ,a nd I ia bi ~Iilitles? A nd what wou Id the pes iti~o n be w he n the re is a cha ng e in tru stees _. does the 0 ut'g o,~i n 91 tru stee ha'V',e! ,eI eel P i'~a I 9 a i inS· ta x ,eve nt?· Do divid@'ndl dwstributions accnJe "[0 h iii ml 1P8lUSOn8111y and w'hat: about estate' Iplanning i~sslJles1 Our v~ew is that the trustees 'WOU Id need to, d lraw' up ,lI Illeg[a I dacu m,ent that mlEJi kes ~tt cI;e\a r tl~at, the nom.n,Bted trustee does not o'wn '~he Inte'rest benefi,d,eI lilly I' ,eI nd '~hat in these c[J reu Im:5,ta nees 'the no ml i na'~,ed trustee WQIU I d av',o[Jd! ,eI tny :5uch neg aJtllve i m pi mcatt[Jo ns i

Since the CC i:s, not ob~ ig,ed to ,obselNe a ny of 'the pro,vls,hJns o,f '~[he· Trust Deed air any letteif of 'Wislhe:5'j)' do,es this, mean that 'ItIe beRe'ficlarh:s of the tn.lst (even [lif vested) are, powerless to s.ue the ICC (Blind Gan on'ly look 'to, 'the trustees, 'for rem,edy? Ou Ir 'vi,e'w i'!:;, 'that th is 1;::;, rnndeed '~he ea5!e'.

Rem em be'ri ng 'tha'~ a trust ws not recogm ized ,as al separal~e I eg a I ~U3 rS(H'l W n So uth ,A.'fr h:;a n I,a W 211 nd tru stees. 81 re j 0 in t Qrwne r.s, ,of trust p nJlpe rty, can a II b'lIS,b!8S I:U!' he lei pe rsonal~ 1'1

~~a b~e ,8 nd be' sued shou Id the re be ,8 nv lieg',a I action i nstttuted Clig 211 i nst the rn e m be rs 0'" ,t h e 'Ge?' QIU Ir v j,e;w is that th 1:5, Is, wndeed the' case w hwch would I ilk,e~y rna ke it u nettractlve for any thim party' who is not actively involved in the rna nagement, of the ct:' (e, 9 '" a leg,a I adv lso r or aceou ntaJrlt) to ta ke on the tru steesh i p of such a trust.

M rn so fa r as; the rnu rn be r of be n efi cma rilles Is conee rn ed; it is, sub m mtted i n ,t he co ntext of ,a dis c re ti 0' n airy 't rust th cit be neflela rles a re on Iy e ntltled to rece iv',e a benefi't from 'the, trust when 'the trustees exercise thei r d lscrenon. The nUlim be r of pete ntte I be nefl c la rl es is the refo re nOit r,e'~eval nt in the qllU estl on of ViI hethe r the ~I i m ~t a,f te n has been exceeded i

It: alp pea rs to us then, thalt rno re then ten benefic~alrles could be benefited in a ny' yealr as I,ong as 'the trustees do not mlalt,e' dI isb'i butIDo ns t-o mo re tba n the m a!xi m u m a I h;)'wed at a nry 0 ns ttrne (remernbertnq that the number of members and be n eflcla ries m aly not tog Ettie r exceed 'tern ai~ any ti me) .

[From a p racttca I perspecttve, Where trustees a re to [be added as members of a CC, OIPRO requi res the! fa' ~o'wi ngl documents to be lad gled :

• .A. ,cett~fl ed co py ,of the Lette rs o,f Autho ri ty i ssu ed by 'the IM,aster;;

• Where there is more 'than one trustee, a ~5;pecial~ p-ower of atto r!ney lby each c,f th e ,t rustees a p po inti ng 0 n e of ·j.h~m ~C': t h'c Q rep resent ~r~I'v£lj: '~11i purposes Orf h~'I'dc'ing' and

'!I.._ ..... _.o;!!1~._~!"., _~~""' •• ~,!l. .~!v.1 ..... ~""';;!,""' .. _'Y' .'~!. 'iiI...

dea ling with the mira m be rs' i~ nbe'rest,;

• A Illatta r firo,m '~he' trustee Whi ich plrovi des deta i [lis ,of!' 'ttle n,B 1m e J' IIf'G'QI i str,a[ ion n u m be'r 81 n d ,8 dd ress o'w' the '[ rust,; na tries of a II ,th e tru:stee:s,;, ,tih.,e' n u m be'r ,O'f' be nefi;ci;a ri'e:!; of 'the' t:rust; and pallrti,cu la rs oif a II bem1e·1i~c ia r1]es na mled ~ n 'the 'tlriU st deed ~

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.' A cOIPY ,of 'th e secttc n 5 of th e tru st deed t hat id e nttfy the benef c~ e.llUi,e'5,;, ,a nd

• 'W he re til E!: 'it ru s 'be ,e' i s al .J u tr! stlc p erson f (31 letter on the I ette rhea dlI of the j u rlstl C pie rso n nom i lUI ~~ltlil n g 181 natu ra III perso n as lts Ire prese nt8'tii:ve.

'W heneve r a cha ngle rs m aide, or occu rs n~,g a rd i rrligjl a ny ,of the fo[11 ~owil",g ,~! a n a mit! nded feu nd i ng state me nit rnu st b e 10 d g e d 'with 'CIPRO:

!I! The trustees:

.' Tine representative of the trustees;

.1 Th e re p resentanve of thJle ju rlstlc pe rso n win i ch ls cl trustee; or

.' 'The be n@'ficiraMiles.

W he re 18 n 'if req II mired arne nd me nts a Ire not: tod gledi,~, Accou nti ng Offllic,el'fS w n I be ,ob! ig,ed to, re pICHt a ny' such contra ventto ns 'to CMPRO.

,Any (Jie nts w is hi ng to ma ke use of th~s relllalX:,abon to conve rt (101m pe ni~es to ices 0 r to tra nste r CCs '[0 tru sts :5 hOitlllldl,. P rl 0 r to 11m pie me nting any cha ng,es" ca re~lLIlly conSlfd er 121 I ~ the ebove ~ilm p !'ications and 1311150 that;

.. Any' sa le of' a mem bers' 'i nterest lnto a trust: must be st rn 81 rket va illu e 81nd is ~ fI k:e:llly to, he v e ,cal p ~ita III gl,a ~ ns til n d ether tax i rn p I leations for the Sf! ller:

.. 0···, It 10. ~ r ,It 'Ii'" I est ~ ee~+- mi" ~ 'i,j!' I.. ~,"'''''' m·ll~ !U u ln . ~III!"~ ble ·5"1 n""~ ~ lin''!.''

. · .. "Ilk U i!G 111,111 !b:I,;:]I " ,~aa'G; '-_::i) '!<:lI;, b!!'~,LY 1_ ~ '!II' '. - II I!G If 'IOJI -.!iU I .!b~ '!<:lI I 1

trustee wiii II see k to be i 111 de min ifj~edl by the tru st EI'Q 81 i HS,t dlny 1110'55 personally suffered as a result of ,any legal alct~io n ag,a i nst the CC rn ern bers:

• Li m wted III la lib i I ~ty P rotectlo n fOlr me m bers ,cir' CCs ls not as strorwg as th e p rotectlo n affo rd ed 'to s h a I~ ho lders l

d lrectors (jI't' corn pia nles '" I.

WHAT TREVOR SAID ABOUT ESTATE DUTY

If yOlu' didn': manaqe to catch the budqet speech on 1.5 february this yea,1:, Peter Prentice shares ,a' tewpoims thatyou don't' want 'to miss when it ,'omeS' to' estate duty.

1!::s'Slentiila lilly f, the re are 'two cha ng es 'that IOOU ld or wou Idl affect estate duty pava b I e on d eath, fi rst IV'" the Secti 0 n ,4A el bra te me nt W'GIS i ncreased 'fro ill RI.5 m I11III 0 n tOI R:2. 5 m i I111 ion al nd seta no ~1'Y,f' the a n lin ua ~ do nat lon 5: 'ta x exe m ptl 0 n W'8IS, i IIn<ClU,e'rBIS edl 'fro ml R30 000 to R50 000.

T'h ls in effect, mea n s that yo U Iii n et este te 1m ILl st e'KC~~ aid R2, . .5 Imi'lMon befor,e: e.statte duty a,f 200/0, kicks in.

Those of 'you who are: utllil i5,inQ iiinter vivos 'trusts as ,8 mecha n lsrn 'f-or' dou b! i ng the 181 bate m ent 'to R5 rn i Iliilo n s houilid i mimed late 1'1 a me nd ynu r w'i ~ Ills., R,e me m b er a I sa to ~ nc rea se yo U IF" an nus III donatlon to yo LJ Ir" trust to R, SO 000.

news,

SPREAD THE NEWS

Is there in tormation in this newsletter thatyou Ib,elie'vfi a cotteaque or iriend m,ay be interested ini,?

.... "'<iii:ii~~K ~~I!!II'~!IF~~--

I !I'!".I ~"IIIII!I_IiII_~"'~ ~~OliII!I".III!I!!!!IIIIIIII!!I!!III,

----.-:i~--...m lI"liiiil~~~11§ 'Z§wz. . , ~ ,~!"!!'II~~'-

Feel free to cootact us and w'8,.t11 Si~'I1Idl y'oulw frtend a copy ofr' AmjJtersand. A~t,e'rnaltivehll ,they' ca n dow n load thls newslette r c!nd previous n ews letters from au r webs i'te www .. c(}Jlmpren .. co· .. za:..We~·remon~·tllh.an ha ppy to ad d ,thei~lr na rnes 'to raj Ir list to e nsu re th e'y recelve ,Ampe,rSi#ld on a re.guillar basis

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P-OVIS ONAL,TAX FOR INDIVIDUA 5

Provistonat tax' torlndtvtduats. lapie vanl Riel explains that ify;o'u'just follow' the rules

it'S' reatty not as scary las it seems.

'lfalx pia ye rs w ho all re c la ssiffi ed as PIIi'QV' is ion 131 ~ ta x pia ve rs are reql u i red to' corn pillete a provl 51r 0 na ~ tax retu rn (IIRP6) eve ry six months, and submit p1ayroen-t wher,~' necessary based on the, i Iii e stl rna tie d tax (31 b I e ~ n co m e fo r the, y e,a r. Th e 'f'~ rst prov isi 0 n a III ta x retu rn for al ta x 'IN!,a r m ust be su brn i ttedi si~x months befo rs the end ,of the tax yea r a nd the secondl retu rn on the last day o,-f th e tax y~a r i

SA,RS req u i res that t w he n m 81 kJ ng ,t h e fi rst p rov 1:5 ~ 0 na I tax n~y .. m"( ent t axable lnoame m'i'rIIIIS·· .t·-. be based on tha taxable

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·j("jj .... om· e of !I!- .... e I:~~!I!- '/e~'- assessed (kn .... -w· j("jj ~~ il;-I..£!j; ''i.~II!...~~·' .....

II~I"'~. '':._'~ 'II!,U~ ol,~:ll!,l' ar ,o;:):;;:;!,.~,'~;::;it;;~· 1.1\.,. 'v .llli 'o;;;ii '11!,'1111'e; 0,661"",

amou nt") ,a nd the ta x pia ya ble ~ s ca leu lated ba sed 0 nth at i nco mile . The !pay m e nt to be m ad e is ha Illf of 't hen at ta x pa YSIIb te 'for the yeallF" ~ess any P,AYE' tax: pa wd 'fa r the '~~ rst stx mo nths of th e tax yeal r . A lowe r lest! mate tha n the fig u re stl pUI lated by SA RS 'w'i IIIII1 on'iy be co nslde red by tlihe rn i'f it ca n be j u sti~fi ed by the taxpayer WlrB~'re a first p rovis lena I 'bJIX return lnd iCelltes 'that no tax 'is pay,abille, then a 1Ii1i'1 return can be. su b m itt,ed ICl nd eve n mf a t~IX pave r's est'i mate of ta xal bl e i nco me for the yea r is 91 reate r tha n th e basi c ,8 mou nt, liit ls accepta ble 'ro r the tax pave r to pay i21 n arn ou 11i[ of provls 10 na III tax based on 'the ~ owe r fig u re,

'W h eire the 't111 rst IP roviflsiiio n al~1 ta x [p,ay me nt lis pal]d Illat~,~, 211 .1 0 0/iJ. pena Ity will be ,c::ha r'Q ed Ib'y SA RS.J

'I1ne second provi siona I p~ .. y'm ent m ust also be est lmated based on the last assessed income and the sece nd [payment: 1:5, the net tax, pa va Ib I,e' fo r th e yea r, less P'AYE 'for the yea r a nd any 'Mii rst prcvlslo na III tax: paiy ment mad e.

Ag a i n, [rr the estt mate of tax .. il b le i ncorne is g reete r tha n the baslc ameun .. t 'to hen -I"~ '11:("" nllllli~,~ acceptable for ,p,·IIi)..1 ~ +< .... xnaver to

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pay based nn the basic- ameunt, wi~thoUit i1ncu.rr~ng any und erpevment pe n6J lties '. H owever, if a ta xpave r 'wiiishes to pay balsa don an estliJlm,atje lower tha n the baste ,a mo u nt then tlh is ls acceptab Ie! but SAJRS wi'! I ~evy aln ulllldellfilPai~tm ent [penal!ty of 20 % li'f th is I€!'s.ti mate is Illess tha In the basic a mou nt a nd ls less than 90'% of ,actual taKl1I[ble ~in'oo,me fo r '~hat yealln'"..

W here the- second provi~Sliiorna I tax re:tu rn is not, su b m~ttlte{1 by the, du e d alte f a pe n Bllty of 20o/~ wi i II be i m posed b "I' SAR-S. .I fnI a dd itmo n, if the lIP rovls ion f]11 tax, pay rnent ts pa ld la te, a HJ% pena~'ty' w ill be, charqed b,y' SARS"

P rev iiiS, i 0 In1 a III tax ID a:y e rs, who's e '~a xa b lei rM::O m e e xce ed s R50 OOO,~, are charqed lnterest 'Olin ,an'/, :sho'irtfaill of tax pald 8'S, from the b ~{I iilrrl nln 9 of 'the etn IMonth i31fter the !!3 n dI G,f tlrH~ ta x yea runt! ~ ,a n ,as'S,ess mle nt ~js [SSI!LI e'd., In order tn () revent t h 1:5 i nte re:5 t ,ch 211 rg e, i3 'ftJ rthe r v()JI u nta ry p n)i\( i.sh.J fiII,a I talX' pay m,e nt (know n (] s la th i rd 0 r ~\ tu P ~}i n'g '= u lIP 1J!' pay'me nt) ,ca n be Iffi,8, die' 0 n 1t)lr bern re the e ndl of 't Ii e '1 th mit) nth a'fie r the ,end of 'the, 'ta x yea r i

Ca me ro n '& Pre nt:ice se nds, out pnlv i si 0 nal ~ tax n ot.i'f~icati,ons ~ na d va nee ,8 nd it is iii ml po rta nt tlh a t: c! i e nts cOlrl~act lUIS on reoe ivi~lng the notificatliion of prO'\tis ~olna ~ talx pa'va 1)le to ensu re tin at ,co rn!:ct 'e,st i mlates and p,a Y' m e nts GI re m,a de I C!11 nd that pay m~ nts are mlad e by dI u e d Glte" to '€3ns u re' '[ ha'[ p e'ml€! I tie s, ,81nd i n~eluest chlallug es do not a rl,gle'.

www .. campr-en.co.zGI:t:0215:308444f.:0215316600info@campren.co.za.

LOOK WHO'S JO.lNING US

Fr,e's,h' taced and fresh out of varsityt We/a like ro in troduceyou ro ,r.h-'· e ,2'",.1.0, 'O"".',6c' trainee cc ,c:'o-'u"n,·'ta,,-'fl'- ts and

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Eloise V!91 n de r West ~ u lzen al nd Yalti n Ra nc h od! grad uated from the Univ,e'rsity of Cape Town, Abeeda ForttU'l1e glr~dUlated from tJhe Un Ivers ~ty of the Weste'rn Ca pe and J oa nile Kim 9 e r from the' Un lve rs,ity of St,e'll!s nbosch. N iick Hell U is an u nd erg raduate at the, U ntverstty alf Callpe Town and teem ing up 'w'iiitl~ US' for 2006,,,

Corrine 5wane peel aliso joi ns us as Sen lor ilBookllke,e'pe:lr and Tonlcha de' Faria as Junlor BQokmo!:elper,

0'-· '" "f' I ~;jj"'n,ni';' 'fi'!i, oroviaea ·"'r·i'ii·Li.OI.."Uo····"~'nri .... d ".",[" 'u- e ... $nnd,Ii:,.Oil'lj,.o;Cr '1Ioii~'h-;""h-

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A: Trave i a i lo;wa noes, shcu lei b!: lIP rov ided om ~'Y to e rnplove as who a re requ ired a s pa rt of the i ~ !~ ml p~oy mile nt to use th e i r private C2! rs 'for business trave~ POll rposes, 'W here an emllpll!oiyee' does not use thelr car for bustness travel, SARS~s posttlon is that a In a 1lllo;w a nee pal id un d is r su ch c:i III'CU m sta ness ts not ge nu i ne and .1 0 OQ/Q of the a 11111100w,a nee s ho u Illd be S.UI b1 eeted to PAYE. A n~~,ci ple nt of ai tra ve I alii ow,a nee Is mq U i red to lregl lste r wnh SARS ellS a ta X:IP'B'~t€lr a nd is the refo re a lso req u m n~dl to su bm it in come tax retu rns ,a n n Ijh€i 11'\1'"

Q': Does ,my ,co,m'p'Q'll)l I' CC ,quaiiry' fo" Sm all Buslne:ss COfpo.ratio.n 'tax breaks?

A"' 1'11111- 0-' r~'lg r to ,n IIII ~ ~ 'I'I'~"' ~,Il!" ~ n S' ': ~'C--~ ,·t h,e, ;::. ntlre ,I!" ha reh '0-' ld 'l'I'I'l'1iin n r

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mem be r's i~nterest m ust be he Id by nato ra I pe f:SO ns and none a,f the shereholde rs mav Ina ld ani nte rest I n a nothe r corn PEM1Y or' CC (stoc k m arket iCi nd un liit tru st tnve stm ents asld e) . Not more "[ h a 1n1 20qt~ of' the i nco m e of "[Ihe' e nt:ity ca n a rise fro m i nvestme nt i nco m e 0 r from pe rso n alill se rv ~ices., T11h e ,8 n nua III tu rnov ell!" of the bus i ness can not exceed R 14 mill to n (,2,006 tax ~te',a r - R6 ml llilll'ion),

A:: tn ~e rrns o,f ClJ rre n't prov i s:i~o ns s w'he re IrH'J lilog IOCHJ k Js ke pt, the first: 18, 000 krn are deemed '~O be p,rhl ate and a rnaxl Imum of a fILl rther i 4, 000 krn a re a II~owedi lin respect of bust ness trevel, S i nee 1 a 000 krn I~S ofte n more ~ ha lin m (3IIIl1Y taxpave rs trave I 'i n 'bJtali in alny tax yeallU"J' it: iii$: ,~ssentlilal to, keep an accurate log book of IlDusmness travel," This ts a,d'visablh~' both iiin circumstances where, prlh/2l'te trave I is less tha In 1 a 000 krn and whe re busiliness: travel exceeds the 14 000 km die,effling amount, in order to be in ,B I:H)S i tin n 'to j ust ify and c la m m the mia)di mum treve I d ed u ct in n ellowed.

Q: Wh,a:t' (l're' the benefits 0,' qucd'ifyi.n.g as an SIC?

A,: An SIBC' pays O'Vo 'tax on the 'fi'rst P.:40 000 of taxa b Ie Inca me t2006 - R35 000)1 1 O'Ot~ 'tax '01111 i ncorne betw!eien R40 000 and R300 000 (2006 - 1R35 000 to R2,5,O 0(0) and ,29,0/'0 011 any' excess. Thiiis translates into ·21 tax: saviling of' R6,l 000 on a 'ten<:aibll:e: i nco me of R30 0 000. S BCs, a I so ql U ell i'ry fo r a l OO~/{! 'wea rand tealll! ,8 Ilowa nos on m a nufectu rl ng pla nt a ndl mach i n@:lry acq u ~il~d and di SO:: 30 :: :2 0 wea rand '~ea r a ~ 11.0 w a 1tJ1(~e 0 n other bu 5 i ness assets.