A

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This year h a's c,@',rt,'ainly mov,e:\d" 2'005' '/1I,(]S Ibe',12ln (1' year a,f tQ'n,g,i,b/,rl! S'tII(,C,I!.ss es .fo'r us, Alln,d 'WI!! a're'

peoud nf'" th' e p,;j,rni(]lIli";;;:!i';f:"S", W'", ''"e'' ,;i"iI','''e'' nb,"~',Q ~,nl S' II!-.IO'" W',' '." i"II;f:" 'W',' ,.01 i'1f;'n'W','I,." in p,'lIi"o;'fi'~":D, exoerien ce "'n' d, size I III UU'I" IU' I, ""," ,II U:',III' ~,,;,- , " 'lUI "111.;11,,, ,~'~ il,'" 'I~JI '." U.J! "I~ ::I', v ' r ~ ,III' ,JI!!W,iI' I~A,I'"'" ' ,II'!!;;: I, L" Iw,,'" .J!~'I!;i,~

o Ulr In ow' fa m j I rna r ,OO'IlPolr",ate i dlenitiirty' ls we'~ I at hom e at: CSlm'eron &, Prentl]o-e and proud lV' snea ks i I1IbCI e,v,ery blt of oomm u nh:ation we! halv1e wirth itlhfl! 1~lmaOOIf publll[,c,r c I ~ients ,iii n (]I staff., I't: has p!lrov'led ill ~Ioo k 'that we ,alii, 'ide:ntiify wilith ,et rid ,ellle,a M~y' In!1jJ rase nts 'OIU Ii p,h j I 050 phy QI'f' experl enee, i ntel9 rity aln d com m ltrnent,

'W'r:. have alllSlCDI 'fnlnl~y ma rkt;!d i~;jjlr temrWirY' i n Pffi~el,a n d!s~ Thts 'Ieafy 5U1I[NUf1b has, fast become our home, Our QlffiiCle! possesses ~he space, I ~glh ~ and fllo,w that we d esperatelv needed, And has created the casua 1 'Viet: pro"fessrnonali eha racter ,~)'f ou r c:me:rg'i rig busl ness, It: ba s also 'worked '~O ii ntegllratt:! 'the ma ny 'facets of' !o!ur busiiness a nd the peDp~e wlho a re i nstru me nta 1 'in IOU f' e've!f)f dalV wo rlkifiig ,EI no 5[1 ccess.

,As the Ibus~i n e:5HS: at Cal rnsren :& 'Ir,elnrt'i,ce IQ IroWS,~ SCi tOQI does, 0 IJ r de rna n d fo r h wlQlih I~y p rofesslona 1 and e~ perleneed staff mem be rs. IOU r ,stalff rnem be rs ere

ou r 'fa,oe:,. That"s why W'Ie: a ct~v\~11 V see k 0 ut the b est ~ peo,p~le 'W he u ndersta nd, n3SIPlect, a lid praetlse our wOflkinigl IPilhiiliOiSOplh,"., This 've,ar 'we! focused 'Din new blloodi., Ibring'ing fresh 'tihink:ing ~nl~n, our fiilrm ..

!O U r Ipro~i ile en lJII n mve:lrs i ty ca m IP'u ses ha s il ncreased d Iral matwca ~ 1'1., An d w'iil~ II co ntln ue to do 'i n the y'le!al rs to

'W'hli I e Cillm,erOI1 & Pm ntiee rem a i ns 'thl€ persona bile ,EI IJIdi~t 'fi rm l(Jiur Icliieflits, h a Vie '00 me te know' ill nd respeet, we '~~d~i corntiinmJlE!: ,to [~oollk at w,avs, clf arddinrng v,aliue to tJhe mndivhjuali ;a nd bus,j'ness needs ol'f 0 LUi cl lents, ,0 u r Sle:Niire I~ ortftliliwo 'is, bei 1'1'9 further IdieveWopedl 00' .t~nalb~~€ a IOOrl1lp~!em bLllsi ness solution ccmrmtment. This' is a dr1i've 'to' ensure our

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Audit SUP~~I"tDsorj Stmvla:nd Falmribairn€:, is 11!~av1ing 'tam€!ro:n !& IPrentu'o~: to joilrll SA,B, as al fliin CJlin dia I p I a n ner at thei r O!~te rv depot, W'e w'i sh hli ml a II the b sst.

,IN BRIE.F:

Pr~iV',~rte oom,IP'Bi n W'@'S allrl d other (llri va'te ,bod tes h aV'le be E:n Ig ra nted fu rthelJ"' ti me to su bm it the~l~ Prolm otl on !clf Aecess 001 Int:onm ati on Act Malnualls," Pn'vaJte IcoMlpa ni es operati n,QI iin ,oortah, seete rs w~th 'tumoV1Br le!xce~d i n,g certa i n IrH1!Scrffilb ~dl ~~vels have: u ntl I 31, ID'ec~m bsr 2'0015 'wh i ~ist a ~ I D'tlhle'r private bod les heve u nt:'i I :3:1 Decelm be r 20 Ill,,,

I., VA,T - Category F

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AIrilY \I',I! ndo r w~lthl an ,CI n n u all tJU.J mover ,of Illes" '!ha n R 1 m i ~ Ii 0 111 mlay' nOI'w all[J'P ~y tOI SARS, to su bm i"t VAT retu nn s IElIVe!Ir¥ feu r m 0 n tlh 5" for the perlcds ending at [,he, end 01' June, October and F'ebrularv., 'C@rtah'l cond ~ltlio'n s de Ih (aiweve r alii' pilly .'

• Fringe lJ'e'nefit Rate of l'nter.e'st'

'Th~' offh:i,B I SARS i Illt~rlest rste 'fa r 't'IT'ingle be f1.€fit: purposes h~:Sl beel11 reduced 'tiJ .8% wi;th eft:e,ct frern 1, Se pternh er 200.5;.

., Welcome Ingrid de w,et'

'W'e alre proud Wel~'[;lOlmle our new audtt mlalnlall~p!llr;p Ingrid de Wet: b:l the leal ml~m'lon It P~~ntmc~ t'€!ll m ~

'TtH~i U llilF' contnb u tto n 'th reshold Ih a s ib,e@ n i~ncrealsed fro m R8 ,83,15 pm to R 1.0 9616 P m 'w~th effe ct 'frio m 1 Oct;o,b,elr 2: 0 I) S ~ Th!e' mlax,i m u m m,cnth~'y contrlbutlon Iby an elmphJiv,e'e w'il~ lnerease from R88~3ie;i tOI RI0'9.66.

TIMEOUT

.1 ,~i:f+ ,no." '&~i~t' :111,,,,~_ Desoite fo~~ w····· \;"'iI;,i<',f" ,1,'O:""',d· W· ,'..0' do !l:..1I;; IL, .;!I' ~ 11;;; It ,U;;;,.l'l~ ~ 1'!i"'I1;;,"_ ~,,;I~~~' t~ i!l,,~ ~I~ __ 'V',!, A ,~'-, y ~"I' __ II;; '_ !!!#"

dose our doors ~O,. a we,e,k' lor 'two' o've" tlu!

Ch.ris'tm'Q S sea'sol,n"

fro m 23 10 ecem ber 2100,5 u ritU 3: J,al f1IU a rv ,20015" we'l ~ be! talking tlme IOUit: an dI celebrat'ing 'w'ith the: rest Io:f' ca IWJiI;~! Tll'Jtw n, W'eid I ike to talke thi s OPJl ortun ity to w j;sh 0 Ull r cl tents ,a safe ,8 ndl su 1li1fi1'Y festivle 5€!aSO n. And a pialRi!c u ~Ialrtv p respe N)US. 21010'6.,

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We'''ve' ,afl' beard :rhej:okes" l~.n oudito is ,S',Offl,f,Ch,e WM'() fOlj',n,d underto« I:ng 'f;,,,O e:xc,lri n',g,a

An'oonie Van tier H'oek h a'S hllUg hed 100ff the' jc kes ,ii) nd he pes 'tllm alt: @'V€!,ryo n e 'still~ I tekes him a nd h~s f@~ IOIW ,a ud ltor col lea glw es ser'io'I!Jsly' i mil the'iir role as beancounters, He e'xI~'lamn:5 'wh'J{"

W~ltllh the maSis;lv'fil' WQllil,dwi,d!! cDlrpOll!'illOO ~'alllll!llii",es ea m,~ hUQle cha rillges, ~Ol "e!!g,ulllaithllli1:S a nd laws Olli!l ,illn fnterliil alt~Olli'la I sea II~ which

Ili!lI#;j;, :!liill: ~ A ltors 1.f;1~,-tlb nn'-th'lInii91 iii--.n; ~!!:iIIU i9I h 9i b' n'l It- , C,"sn -b'l:,.a i';o'!j;halJ:" de 1I'1I,'t- F::ii'"II'I[!\S,~ cm- lle

","~~'!.i, Y'!ii!!IY , V ~""~ n 1"I''io!o 'IUi'!~ 'Ij,'';':' ~~", 'i" ''1d1 :W!O!! ,~V''';'_ MI'I'",", ,\I';':'N","~ ,,,,,,'~I~ ,i Y ,>O!'''''; i!.!! ~ , II _""',

In Souitliil Afr'h:a chalnges '~ndud~, ado;pltlon ,of rlli1rte~ma~llonall !itaJndalll"'dls on AudUingl ,([SA,) and Illi!IrtematlonaJl' Anoountlling ,StarndaMs

I'I' ;Iii. i~ "Ii 'T .... 's li"iiu II;;.~I; i!"" J.i. '~i!""onu nrc 11;;.". nc II;;~I ~,'1FlI A l\u A ~', ....... r:'~ i' i'Joo- ,510 -4 IL.. 9 £' 1I'"£!i""'"I'~£!IAI ·11Mo.~ II"Iir;:;!lll"'~iill""'iEii 1"\9i"~"1 "".u In p;nll""~IIiI:~e ''''nr' !I;; .... ,;tJ; '-t'II;;,"1 p;.-II iI""'U'.i!""1 e-' ni' l"£!Iilj,i!'"I£!iW:~ \, .M~}~ Il~~ It· .. · U~!!!I~ ,MJ~~~.·· _.I~_J~~ ~~I~,U M.··!IjJ~,u.u_~1 ~ .. ·:~~U r~'~l~ ~fJW·~·_~~;~ _111.~ l~:_'~~lLj~~~' ~,~.~'_I~~~' fi~!~~~~~ 11v_ I!J:I,~~ -llr~_~I~ :~,j,.~ I , ~IU' '!!!~~-";_~~' __ Q

comimendng: J,anuary 2,0005" O~her cihangles, iiln tJ~e pipeline i~ndude 'the' cAudliting IP.lrofreSiS:io~1 Bil~~ 2010S I(vet toi be IProm~h~,afted) :alnd prn;pose.d a m endments 'bo the Campa nles ,Act.

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I.SAlIA.5

Adcpt~on of ,ISA ,i,nd :IAS I~S, mealnt to ensu Fe ttillaJt af~h~Uro rs a~ I aver' the world CMIPply 'ttnle sa m'~' au ~Iiti ng stalliii dlards and 1:11 alt an n ~Iall 'f~n,a nCla I stat,emelfilts alr.t¥~ Ipn~:palmd I~ s~ ngl the' same rules fa,Ci'llitJatitnIQ Eli univ'e,r;sa I ta nguag',e Of fuinanc~,a I re:port'hiig,'oolm mu niitatioln between SA Ib u silniesses, i nv,estoJ"S,

and! [the -re;st of the: world" '

Practice Review'

The: SiQ uth ,Afn1 can a lI.dit pracbloe, reV'h~w' process, ha s ict]alli1iged tn that [p;l!'actJoes: that a ud 111:, Usted aneVof p~lbnC' ~e nefft EHlbtltr,es, ar-e: flis.tvng tlIisliled from 'tE~'05;e: WIllID do not

An ,ENGAGEM,ENT review.: whmclh Is, 'to! enSilJifle that the a.ud~ft ~trml ls com plyirng w'Uth :II~iterna't1:0IrUll Sta ndalrds, on Audnffin!g:,"

A F'RM ,eviewi'

wll:iilith 'us t\Q1 check whertlh er tim e ,audiit: 'firm ls oomp Ilv~ingl with Iinmm\atio;m~1 Stiindalrds, of IQua ~g"tv COntrol.,

Audit 'ffinms which i]ludim: Usted com pan~es ,ai~ eliot' 'Publ'&[; Benefit entu~li'es, with Iturnover in excess o'F ,R30 M If wi n u ~derg,Q both en en'g alg,e:~m ent en,dl 'filllim llievh~w !l!V'E! ry 3: yea rs 'wh ~dh will be eond ucted sepa rate IIY,.

AJ!!Jldit rfijirm:5; '~;tn,ait: do not aJl!lJdit: Listed lentllltli:Qs wmll u U'il,de!li,glo an engalgemlsiI1It review e'\!'lE!itV 3 yea rs ~f ~I1Jey' aud ~t ~lUlbl~ic Benefit entutli,~$ with IDUlr~O'v,er ira excess ,O'f R3IOIMI" etse eve ry 6, 'teal~' if they' do miGt'. ihes.e' aud~t firm s 'wi III not: I[i)e stlJlbj;ect' 'to ~ nm revie,ws ,art, th~s sta g!'!,.

lProposed' Cbmpd'ni,es ,Alct Ame'ndm,e'nts

Ttl e Bilill Idlefl me s Pu billilc tnte l'iest Com pa n les ,Blpa rt 'fro m Li m ited P\~ rpose Com pan les,

A lLiiimlted Purpose' Comp.'any ws den ned as a Priv,are 'Oompany that dees not:,

• ltaike depo5its or !oan5 '~l'IQm the IPulbH~ iii afirE r its sha res, to, tlhe, IPU bl ie

• act as Iholdl ng compall"lllY 11'111 respect olf a public: mnte rest cern pany, and

" Ills not ,ii SUi b sl dm a rry 0 r assn ci,a'l;e of '~If" jol!lt vlentu re

with a pu bJ lc Interest 00 M,pany .

Pub ~i',c :Ilntere;st ICompa nhE! 5: WIlli I haVlE!' striuc.te.r I"ul es Ire! a't]'ng to 'the aPr po rntment of ~'ndependent n on=ex:ecuUw' d I reaor:s 011 thei r a ud~t, co mm~ttees and wi IIII h laJlY'f.!' to halve a rotation of' alud it ',8 rtners: on thei r ,aud its",

Wha't arre' tne Jmpl,liCia:tions.?

Aud it 'fi rms are, f!fE!q u]n~d to rna lintiii'n strict q ILl! ali ity contrels an dl ~Irooed unas t-OI len SUire, 'thalt. audit procedures, 100 ml~'llv 'wi~1h i nlteln~ al~i,o'~lall sta n da rds, 'Ttl is w',otll din cl u de~ recru ~tl!nrent sta ndla rds to ens l!lI re that 5 ufflcl en Uy lijllLl! a I ifi ed steff a re em p~,oyed to cin'·ry o ~It the' a udtts alUl1I dam pr,cd1ch~,1i!I t 'Dn the ,a pproprriate accou ni[!ngl :SIte ndalrns.,

Ongo~jng tral nilll1i'!2j1 ~is requ ir,M 'to emsu Ire tin\alt proifes:s'~onall :stafiF ,a re up,.,;tO'-daite' with the ~'ims't reQlulartions,~, h~j.ws, a ~d sts ~fdards'. The cost !OIf' the, pradiii,ce l"ievu'S!w'S 'w'"UlI lncrease (these lreviews a re: ohailliQ,ed ou;t to ,al~ d i1t flllf'm s ,a't p,ro'M~i'lon,a I fee r,alt:es;)"

The e.rmtJi I!'iES!IJ lit: bei,!i'il 9) iiu:It U~ e~ ,fa IU! dli~ ~eINke' ~l~tS, ibec'Om!,e mO,Ili~ laQis~~~v w'ithcu:[ thelli€: nec:E:ss',2ilr'ill y behllg ani U'illcreQls€!d yal~ue ,2uj'OIed to lTIhe SimalUI com,pafJ1IV~, as, itjnese standalf'ds are ,devilsed to IProteot the pi~lblnC', 'wn,ienl seldom a:ffew the SJr'rNa II camp,a ~y',.

Un d is!! r ,e l!Ilirre flirt: I,eg i~:s~la th:H1 th e re ~,s lfii 0'

1t1,~ s~ll'iIiojUoln ina ud it s~a n~la rd s b,etwee:n ~'b~g ,i ud ~ts;" ,a,ne, "'s m,a II :alud i't~:r'! ~ w'hklhl mealns, that audi~t COlns~deraltlliairiilis ,i rei tile sa me: ~'Dr alU C():ml~1a Ai e$, Wio ma~er ,!t1he s:lze.

As, ij1~, Wl!,gulla.t.o ~ :increalSe 'the nUlmber ,of ,aJUidlit: s.'ta ncilalW',ds, a ncJ related b!l'w:s

:50 the ,alilldil't~t!'s ~o\b Iltiias beoome mC:lie 'CO m I!)~ Je'x and tn ~s ro,l e illS I e,i! m iii r1 gl tow,a rol that of a waW~'dog.

I ,can J ~Jst iima,Qline what: Idnd l~f jokes ,a re' IgIQ~ing '00' fle'.s,u~t from [h~ s,.

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TWDTHIN,GS Q'F WHICH WE ARE CERTAIN ..

I", has ,bet~o',me quite tne cii'cn'ej bu" the trutni of rh',e miatter'is. ;fhiQ:f 'the ·two aiso ,go hCU1d i'n Ihand' and' aliI! often 1e.,quQ!l'ly· lanl tUn we'/com,e ,5'tlfPlf,i se. Peter Pren tke ex,pO$lfl,S' the ~a W' iocts abau t, dea rll and t,uxe's"

:Dea~h ~rilggers a Capita II Ga~i~:s Tax (CIGH)1 ,ev,~;n~:, On dlea(~~ a de~ml~d capita I gef~n is illiU:I!JJd~d '~n 'the ,~lecease~Ii!'!i taxable iln(;orrru~! call'cl!.Ullsrted on tJhle diflf"@lfieilfic@ betwe;elf'l 'ij1e mark~t. 'v'al ~,e' ofJ the d ~c~a~d~s ~S;$ets, subject to, OGT and title iba[se C(!Ist of' 'thlOse assets ..

[;;, ! .-Ii.,. .... ,ii:.,., I ,'t~'·· c ~ 11'11..,;"" ," , d . IIoh 'c. , ...• 10,.... 1.., .. , .' .. 1Ii'!h" ..iI ,110 .'. '.' , . I '. -ivi~' . " .' .. ' . r ....... ,

~1(CJJIUI~ I ~·,oml ~. ~e .. 'I;;!I! •• "",,iJ. Dn .. eai!!. .. are aS1Se~ lJt~queal,._ ell.!! !!.:o :a Sl!! N . ingl SpClIIJ.tSe o. I.'U an

app roved IPliJlbUc: Benefit. to li'galr1l'i satiorl!l. llhe fis.ol1J!s hlil!$, dlelmonstli',a~ed oomp:.alSSr,~n by' inaeasii;~lg tlhe annuall E!x'(ll!lJsion from Rli~1 000 to R510 000 ffin 'the '~a D" of (j,ealth.,

'Th!~~ IEstat~ wi II r ~'rru 'turn i' be ~ labl@. ~o r' CGtT Ion the d ~ff'E!:refiijoli!~ betw 00 n the proceeds !o:lf ,applicalb~e a soots soldl ,a nd ·the Y8 ~l!te' o~ those assets ,at: dete of ,dle:a,'~h aftl!lF' ,a~ lowl liig 'rolf the ,a Iii mJail lexd uslon o,1f llitm 0 COO.

,No:t. only are' W,e! taxed to death but aiso a'~'iJ!j;r' de" n·if;h

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'The seeen dI tax ,BsSloej',ated 'w~th d,eath is ,estart,e duty, whi(J'h

i~S ta fflmmHoiUnt 'bOil Id(~!IJ.Ilbll!e. ta)t<.i~IO.n, I!!~state d!llty rs calculated ,at the faib:: ,of 2C'!;Jto of "the glf'OSS,

~ f' .., il!.r.'. II ..iI1·..iI ..:I *"'" I;. tL.· """~ ~ I·~'" a, ~.. •.

va~ue 0'_ ,~l!i1 eseaee :~n~vuYII~g oeemee assets :SU(;II! as,' 'lIVe preeeees (\,,!,' In ... ,!11'i!51)J1!i,~'D1l(;e f)Q~!i(lelS;f

after- ded Udh'tl g e:rfmrte II~a:b Illiftle,5;", ,a~Jet$ beq ueathsd 'tOI a surviving fl\pouse ,ra r'H1 the SKtion .~I.II'I.. gb'l:li~l!]jlm' . e nt' FIIf Co '11 l~iI'iIO-: 1iF! ifiilA

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,AJthoug h ma.ny oif t!h'~' em ~!iildm,@~f'illts me ~-ely ~'V'li e-tu ne 't:lt'N~' tax ~ egliiisl ii'UOltJ"i to ell lm i filJiiirOO Imlainc r illIrH;:,~)nsiiist.e!ffI,ci,e!s; ·a nd obsol ebe prov;isiofll~\!' it: appears 'iI:J1at: tile s!lJlbject of im,edlialll eld rJQntrlb~ttioFt!15.

~ r'l!slIlll'ts: i [1i tihe Imost g~ve and ta ke for 'the ~'fii:dliv~d jJJ·alll taxpayer,

~ledica!1 ,ailid oOrirtrib lJ'tiOlfl1S, haiv1e, ~an9 Ibeen an .;a real 'wltHB !fE' :se~'f:" employed ·taxp~vers:,~ 'O:~ br::ii;lr)a,y,eh~ wino ,are riot o rill an e;mlpl~o,yers m,€dih:al aid sdhlelliTi,~', have received 1!LII1iI~q!lJ,al~ tre;altm@lIilti: from a ·!tal)';' p eltJ'spedJirve. Whi IIS:t ,employees: ,2ili"ie' flI (!l,t ·taxed Oiiill 'mo th Dreis ofr' the m ed ~tall a id conmrU bUl~h)ns mach! b1y' th eilli' ,emp ~oye rs on ·their· be!fi'tlaif~ :Sl~if:"'l!lm pl~dl t:al>l:Jlal~rs we f.!!~ ,gen~rall[ly' 're5trifb~d to ela ilMli rr1·g1 med ~call costs on ~Y' '~O the exte:fI1t ·tJh,at 'those ,oosts exceeded 5;~ of theilif' taxa b'le ~inoo me .. ,

When e,state plalnnh!l,g 'oogn~'sance !5iihou~:dl be' taken of an~i c:'~per~ed 'taXies. paryalble on ~:eattl i~rn order m ia\ii'lold.~ fIf posSi,lible~ the IIJj n ['!IeeesSialry .saille! o~ assets Ibeq Iljea~hed,. •

With effect 'filrom ::t M erch 200,!'j't- self-ern plo,y@d taxpaY@lIis wilil ~ be ~111!Olwe~! al Ci:! PI' ed d,eduC'tioln 'for medicall a ~dl cOfiUtrl~bU!tio:ns lin r,~slP f!Clt: o:f Itllu~ mrselves ,:a mOl t'h~Jtr' depel1dailnitt:s. The maxi mru m ·deduct~ ble ,a moulill~, alne' IIrtSO f) per month for '~he: lfin e miler i3lnd 'f] rst dlel~ e:nd1allfl't: and R3 CUll pe'r month fO'f el~ ch ~,dd it ~o na ~ dependla iii lit , ,A, fam Uy of ~OUIii 'wu II til tlIS; be eril'tlltled 'bol a maxllm l!I m Ch~allJ:ot'iion of Rl eaIDI per mon'th~ :or Rl'9! 2,C:~1 per annulml;r under 'this 'fO:lfm ula., Where a d:u:a!1 loollrltriiibut~on5 ialre ~ eS5, '~hallil 1thi e,$Je Ii mlits, tlhen 'Oi~ Iy UN! lesser' iilmount may be Ohi ~med,.

~ lin ~s new treartm,e nt wllill ttnlUS PiilO,villdle ,a mealn~'ngfu~ beneli1rt. to ~ ·th ~Sle, ~a)( ~\~rve liS 'W'fJ'!I ose! medlhca I aJ~d ~ontri~b ILIth)ns a nd o~ h'err

~----------------------------------------------------------------------~

~

,i,n Pa riia m'lf',flt· i ('ii !U' ml~u!'n ,01 t) th 1,8'S' ,p,ag e Rlf Vf'.n',U'f' t a W's A m,endm eni t· IB,n/.. en ti s ,Norl'l,$ tl'ig h,1 igh rs 'tbo',~ e a,m,!'n d'm'en:fs' t,h,a:t affect. yOlu~. :thle in-di'viidutCll taxp'a:yer..

------------------------------------------------------------------------------------------------- Ii

med tcal~ oom did riOt. @);:oo€d lithe 5%, of telxabl@ ~'li1oorn@ th~holdi ::

and who tllh IJS ef1i.1Ioye:l ne d@dudbh],n for ~Jheir rned ~CiJiI @,xp.enSE!:s" ~ ~

Any eXlOO~S ,of' med~'cal~ alid oontriliburUon\S ,over the above Ilim~ts, :

IP Ilus ailny at'ih@ If' quaillifyi fiI'!iJ1 rned lea I costs, willi be d @,dilulctible 00 : thlEl. e:xte nt Uii'at t~.ey et)(ceed '7'",,5:'% of taxalble' i n,QO me (th E!' ,!}lmt;m II

. ~

II im it: [na~, llee:1l1 increased lItO '1.5%, ,d:L!I'!' [0 ~e iln!l1ltioductionl of '~ijs, I!

tax detilluction].

~ llhe "Ita ke~'f as, 'f,aIF !BiS Imle~ ica la ~d loonl[ri l)1!U:tiOlii'iS, ,a ~e oonQelmled" ~

irS, 't~art. the fmfnge I~enefit provishJf!S h8i~e been s~mnarlv almerulle,d., :

An 1~1mplo·vef!f"S; ~ax free ~ o,rtu',o n of ItJh'e~ emlpll oyer~:s Imelll lea I a id ~

. . . . ~

COfiiltrl~bUitiOIl1 'W~ n be I imU:edl to IR50~]i per men th fClr the' member ~

.. . ..... Ii

and 'Ilr,s,t dlependlanit a l1uj IR3«~IO p,e:r m onrbl1 'for ea C~I a dldl~'ti'Olfii a I Ii

de'pe nil d1alnlli.. IF'Dr' ,ec<almp~le, 'where a III em pll;oy,ee:'~'s 'mle~ ilea I ,8 id :

I~,avm ent: i~S! eu ff1e Ilthf R3: 500i per' m,@,ntlh 'h),1i ~I fam lily of 'f@IIJf, ~ on~ V' R. m :U;Jr1 W'O ILl! id oorrently b ~ 'ta~a b~e~ U iii d ~Ji ·th~ riH3W rl!Jles~ :

Rl '9DO wn~1 be! ta)Gab~Ie!.. Tine two.-thi ro.s, I one-tnh'~rd ~o(lrmlllll!a wi U ~

~

~'hil!JS no long;e\l!" a p,P1y', ,~: mEH1~fC,iiiedi ;a·bove, tl'il.esE!~ ameriJdfiil"u~fiIlts., ~ I!

~ ~m:p;h)rye ~ shl[Dulld ef1isruJlFe that ittineilf" ,p~ry1Foll ;sy,stems are updated :

lin ~ m e' t~1 iimlp.1lemeirnt tn.e· ,cnalfllges, and WOiU Il~ aliso be 'weill ,advised ~ to disouss: ttu~ i'mplh:.attcH1S w1ith 'the~'r employees iln order'fro ~11¥e' :

W- - -H --1- C· .. ··· _. H- -, 0······· P··'TI- 0 .... ··· .... -N·· - ':-W- :-·1- Ll, p ... -U-T· M-' .- 0···· .... RI E

I,. _. - I. >_, I .:., ,_/\' .. ,.. .. 1"_ , .....•.. ,' •..•. ./,',

MID EY IN YOUR POCKET?

Q,uite CJ.ftf'l1J) th~ n~:t· ,pi.rtJ'~·f~d! Tiec(f!,i'v;(j',ble !~Y' the rn!\1:t1',f;\t .ftD'm :rhfe' st~'/€ of a ,b'u'.'5',ine.~,·$ Ifl,r;e ,f..igni'ncal1ltly less :rtu1fi' we,;e: !f~pec;te{l w:hen tn,e' st2llin.g Pt~·(J2' 'WD,!,' G.g.(ieBd up 0,(,1' wi'th r.llle pu,r;cth2,~e,r." ,In fdef~ wll'en' til,e' n,e:t ,P'ti(j:cee(ls rec!'i'rQble' ,fly' the owner' a lie' ICQlcu'IQi~e,rJ~ t:hi,e lo'wne,r' one'J1 tea'lize,~ :thiQt tll:e' ItJu,s;/ness ts 'INDr,th mlOr:e fO ,keep t~\a'n to' $Iel~l

'O!li1le of the mal i iii reasen S 'f:Olf '~:hl":s has to do wiittl ·ttl e way' 'thai[ the! :saile! ,ot the busi [N'!~S W,aJS stru etu red ,a ndl the 'tax: Idects· ()if 'th€!: Pi! rtleula r structu re, 'Ohln"is; N orris exa mine's the 'ifii n 8'1i 'fi n an cia [II rea II ~it'i es oif Sj'H! I [~i: ng a blUsm ness or oOmIIPI!3lny,.

When se[.~I~ngl ,!31 busln ess ttl,at i~s operated in ,el ComlP·any or CI'Dsl':; C'o rpo r:Elition, the :salle ,taln e:[tJh,er I[n~: Sb-UC~Ulr'ied a s 'the' :sa,lle o.f the b Ulsmn ess out of 'tine: oam,pa flY er C'C,. or 'th e sa 1119: ,of ttl e s ha Ilia's I rnem b er's ii nterest i fI 'th e compa ny or ce. Ve,f!Y di~ffe~ent 'tax: ,e~ects arlse '~:roOlml ea en of ttl ese o ptJ ons d ie:[(li@:tnldi'n91 on th e sps ci fi c ci~ m"C:U msta nee's ,of e,eilch ea se i ] nva r~i,a b Ily it costs S,i'gltn:ilfi,ca ntly mlOIt",e inl taxes (re·oo1u,pm ents of' w·,ea r ,8 nd teer 0 n assets, CST ion sate o,'i the bu s;iJn ess a'nd Seco.r~ ea rry T:alx 0 n COlmIP'CJ nles f'~,STC~tf.) to iget the' ca:s:h hli~OI the lowne~r's pocket) wh en sel II j'n.g th e b usl ness IQUIt IO~' 'the' ,oom:pany' or OC 'thaln whe'n: 813 il~m[rH~~1 the $,hares thernselees .

Ta [k!e ttl e 5;ii m [pl~le! e,l(a ml pl~,e of a bu s'j n ess WID rth sa V RS m iml~i~on$ 'W hem' the' net ta ng'i bill€! assets fa ~irly va IlU~d are w(utlh R3: mIl [II iiDIIi1 a ndl the goo dwilll fa ctor ls wo rt:h R2 mi I Jon" A'S5U m,e that IRS,OID ,000 'of 'W'I~alr an d tsar wmll be recouped on fi'::('ed assets ,ailndl also thalt no CGT va~llJ~rtiOrliS; W@:~: Idol1l~ onl ei1tu~r· ,'tu~; valllu~' o,f 1jh~ btl5~ln~ss or 1Jne va I ue of the shares ~ The CGl base' cost is th UlS a ssu m ed tOI ee 210iQ<Jcl o'f proceeds,

:rf' thJe: !(~w'ne r sa II~s, the tJlus~in,ess 0 ut olf 'till:€! corn pailnv or !C'C" the e ntiity w'ii III [be [I ila Ib I,e rtH- CIGT (lIn: :sa I e' 10if th e 910 Od~Afi III" I nmlml€! ·~~X 0 f1II ·ttH~ reOOlli p.lme:nt a no ST'C 0 n the d iivilde:rmd decillarsd 001 IQlet ·tJh e 'CClISh i 1I100! the: OIWlrH!r~5 pocike:t" In ·ttl is; :soena rliOlj inco,me' tax 0 n 1tihe If'eCQU pedl wear ,eI nd '~ear 'WOIUJ lid a mQlunt '~O Rl4§: 0001,., CGiT .,ou Id] a mo UlInt 'to R23:2 Oil) 0 ,e nd S,1rIC ,alpP roxi'matel" R,.469 1000 (,a S5 u mlw ng t~crt. the EU'Itity wi II~ th! wo U nd U[I) litrfbeli 't!n,e s~al~le~ - ruf In ot,~ S;'fIC 'W i III be. R45 0'01l) more) I g h/~i ng t:o.t,iJ ~ tcJl)ce 5; Orf: R,B,t:U5, 0100,. Cash ii n '~he ('I'Wlne rs [P oc:lu!t. '",'i I ~ a miQ unt, to R4!, 154 m ~i~ I i:o n.,

Hlowlwe tJ"" 'iif ·ttl e OIW ner stE!:ll[s, h ts sha res 'm,t' R,5 m mnOI61 r he 'W'j III b e ~ la b 1'13 '~oln'" IC:'GT of on ily R.4 0 I) 00 IJ and wli II r€!~e'i"v€! cash Wlnl IPlodke:t. ,of IR4",6 ImU l.iionj al better m:s..ullt

b- '!jJ!' .~I -I m net- Iio. ~ ~"f~ '~ m ~'I[-III·I iF'i; I9i

'I I!i;II . 'u~ III'~~ ~I ~ ~I ~III

From a p IILI rebase r's p e Irs,p,e'ct'j'Ylel, ii't ls II n va ,'i a ILlII y preremlb~e to pUlrdhase tjhe: bus~ness out ,eaf ·the ioo:mp'ttlny er CC., Tbis ,Cli~ I OW$, the pu rcha ser 'btl pli'eJk: the assets, th art hie: iJ$, tnterested ~in and ensu res that hew i·[~ I not be, I i',a b~~e for any' u nd~isdosed [llhlb:i1llmi~iles; that may .sulmu:e, iin the '~UltUlreL AI!~~H)" aClqllJilrmn'QI the! CQimlpalUllY' or OC mea 11~ ·that 'lthe [JtJ r'uhatSls't ii n eiffed: aS5U mss '~he sell!s rs latent CGIII and STC b i I [lis, on the In et asset v,alilue' ia,nd 'vail ue ort the g Qi~!dwi~ III., The sa I l:ialr' 'is therefo ria usua my u nde r pressu re to se III ,ttl e b usiiln ess out Illf the le!nt~ity' a n d s hie ul d efl,s:lIlr~~ t ba t the sail @: ii:S: structu red ,85, ,effi,ciie ntl vas ~:UJSSli b lie to rnl nl m ~ZJe ,t r:al ns a ctj,o,n taxes ,Cllnd iin turn rnaxtmrze net cash recetved. W'lh,le:re· silgJn ifh:a nt 'tra nsa ctlon taxes 'wr~l~ be! iilf1lcUirred" the se~1 !er n eed s tOI b ~ a'w ell rs of ·ttl 'i s fa'cit tOI ass i ::rt: Ih i nil ii n neg:oti'arti ngl th e sell i'ng prlee aln d aIPlp~l~calli1lle' ira nsaetlon

•

BACK TO VARSITY

It'~ famJ,Ij'ar' 'ferr:itory. Antonie ~Qn der Hoek and ,JoM,Q',nn :Louw ,rec'ent.,Iy' W'e",nit b,o'rk to uni'v,e'rsi:ty IQ,nd' im',pre:ss!ed sruden'ts !at ,[JeT 'w,lth me ,CtJI,mpJ.'ete' law d()'w,n ,0,( a J'e"C'J',rru2rs.hip' ,at Cameron & ,Pre'n rice'.

IfijOu 1'" Iprese~ ce 0 n 'calm pus 'is, essen~ia l, fJ' :s:ali,d ,A["jltoni~e 'Va'n dar Hoelli(,. 'ftjWe wa nt to p 9 ra d llJates jC'illiilli ngl 0 LlIlr 'filrml a nd tlhrB rea IIUty iSI 'thlalt WQ' lm,ust: go atl1u::l '~lnd them (JU r!H~:I~\i35;, fj'

UCf '~s :stilll cQru]~'d ered [[til e 'top ~ l1ivers!lity 'four tu mh'9 o'~t the imo~t succe~111 IOO2lliro exalm pa sses, M a fllY' s~udlents~, ~'lowe¥e:r.f sti II 1~lel ie\i'\e t!~lat 'the next s~ep after u I!1lI~iVell!"Smty' Js to step ri~g ht I rum ,a ~ iill!'ge fllrm '= 'that. it~'s 'tjhiJe' 0 n I y way to 'glO'~

, ~IGradu.aftes need to 1100 k ,at 'lithe: type' ,ow. '8'Xp'Slri!ence th,eyill be 9 ebti niQl i nil , theiir Illealllililershmp',~n says V,a," doer IHoek. ~'At ~Imleron I. IPlrenti'ce!!" we Ipride o!~rse'~ve-s on the' 'fa,ct tha~ ol~r' em~loyees have ncwhefle to tridle" Th,ey are CO,nff!t)llrnt~d witl~, UM! wo rk, ctrua 1m mn.gl~d wit hil it ,allli1,d gli\f,~n oDm[p,letE access to tJhe 'fl rm is pertners ,a nd di',ents,. W',e expect a lot Otwt of tb em. ,And U'a,e e'xlp!erie'l1c~' tlthe:~l g,a i n 'wi II ta 1iO~ ttn;!'M 'V\ery far.'

Calm,e~lioml a. IPrentiUc:€! ~Ic,ok. 'fOIIl'W',Ci'rd '~O ,aln oith~r a c~iV1e ''Yea r (H'Il ca m puses EII!f(W nd tne ceuntrv

Q,: Why does (BtP ,fif$qu,;re so much information from me when' preparin,g ,my (Cs accounts?

,&4; A piu1 fro m th e need to ,ensu re that we ,ilre a bl~e: to canoy 0 U ~ th e mm rni mill! m p'l1:u:@dUln~s as prescri bed to U 5: by th e CIQs@ 'Corp cur-ali ons Act, a nd ttl e Sou ~ 11 A'friCiJlf."n ill n stitute 'of Ch alRered AooolllJ rita nts, SARS is increaslngl'ly in!SiI'stt:lngl Oil'll] f,ecelvlngl mor,e detailed ffinif:O,tJ"jmaltion ilnd sohed u lies witlh the a nllilluall 'tal x ~etUl/i1i1 ~ 'We.: the refere req Il.!I est eerta in l~kmmaitjDn f1JJo:m you In om\er to ensure: that we meee 'Ulese~ req u lrements.

Q,: When ,is ~y ooMj)Q,ny ,or C(',en'tirted eo (ar.ry ,f(J,rwoto a tax assessed ,loss 'rom one' year to the' next?

A: A eem pam!y or CC Is on IV e nEi~le d tOI cBlrry' fu,rw'a rd a~1 Bissessed loss fro m 0 ne yea r tlCi the ne'xt ~f it I~ a s trad ed du rilng ~hat subsequent yle.a r, SARS ls en1l:i'tll!ed 'to d isalill ow tJhi e Cialrry m rw,a rd of a n a ssessed 1,055 in

iif,.,. t- h it ii;.1i.., i;."f,u d t t-..:II • A ii;. I . ..:Ild·"'"

any 'IUilX YEialr· al I!O.UE!i end ... :!'" • 01135 no . mUle or ~s !.i.i!orman,,~ IiiI al!J.lll . 1:~~C!!n!!,

SAJRS can also dllsallow the se~-off Df ,al ~DSS under' oertain ciflCumstan,c:es. w tli e re' an ag ree m ent 0 If tra nsa Citl on ha 5 been e'mi,lbBred '!milm to divert i ncom e j'nro the complalnv lin order to u tnl lse that less,

A: Cu rre:ntly ~ arnnuall retu rns a re only requ i red to be sub m '~t~ed eo C I P RoO by P IJ b~ le cern i=N3 n les, prh/,m:e rom p-aln~'es, ani dl extema I oompanii es, ClfR.O h as 'I nd i (atedl thal[ cl () se~ CD rp 0 ratto ns W II ~ be req UlUired tOI su bm it a ~ n us I retu rns at some tilm,e in the futufie,. b utt ~la s m'1I et at ~ is, sta ge announced tjhi e loom[m~nCl!'m ent dalIDe,.

Q: Can I c::la;'m t'I 'VAT input ,,.edit' 011 my ,skills' levy

n..r:llumnn,t~:'

~"u.~.'1! ,I'! ~I~!II' ~I~,

A: Up U Il1tU ,10 IrMa rch 2005.!i' vend Drs wlere' @lIi1itjti,ed to el ~ i ml VAT iilm put cred its on tl~ e i r 5kli~ [lis, ~l!lvy

. -

pa Ylm,e nts, H oweV\er~, wiith e:ffed 'fro ml ,m A,PIr'111

200,5, ltihis is no ~'Dnger the case a nd no VAT i rnp'lIJ/!t ta x f red I Its mai), be e 108 ilm ed . 0 n ttl e fl i psi de, venders are' no l,oGlIQle'r obnge~ eo acootui'lrt fOI!'" 'Dut,ilJ ut tall(, 0 n 9 ra nts recel \;led t'rn m thei r $,E'TAs.

ANDV

'MID@! 1HeR~'S, OWI:Y,~ ~,% Ir4CR6~Se: \]1"4 1iI,$:~ V~~. 1'!H:A'Ii'S, 'WAY' ~ElLOW' THE ,c:;uRREi)i(Ir IR~1iE (~F llNR.p,;il:ON.