 Finance Minister Tito Mboweni’s upcoming 2019 Budget Speech on 20 February will be a waltz with the recent SONA to the tune of the upcoming elections. This is according to Ettiene Retief, Chairman of the National Tax and SARS Committee at the South African Institute of Professional Accountants (SAIPA). Says Retief: “President Ramaphosa’s address set the tone for the budget, which must also keep ANC voter confidence high when the nation goes to the polls on 8th May. But with revenue collection under constant pressure and a shrinking taxation profile due to immigration, high unemployment and job losses, and the results of poor economic growth, the question remains - how will the President’s vision be funded?”
Income sources In his October mini budget speech, Mboweni stated outright that the country could not continue borrowing as it is currently doing. So it looks as if funding the budget with more debt is definitely Plan B. Yet the consensus among commentators is that any opportunity to increase primary taxes is limited and undesirable. The Finance Minister appears to agree, indicating that changes to the current personal and corporate income tax rate or VAT should be avoided. However, the government may still have some wiggle-room with other taxes. These include adjustments to high ticket or luxury items, reducing tax allowances and deductions, and possibly extending its attack on estate planning and the use of trusts. Indirect taxes, such as sin tax - alcohol, cigarettes or sugar - might see further increases, as well as the Road Accident Fund and fuel levy. One would expect that the new Carbon Tax, scheduled to come into effect from 1 June 2019, will not be postponed further. Mending the dam An obvious place to find extra funds is by cutting huge losses in government itself. Specifically, these include the exorbitant wage bill and the cost of supporting several limping state-owned enterprises, among others. “Fix these first,” says Retief. It is public knowledge that SARS’ capacity to meet its collection targets has been severely compromised. Mboweni did commit to mending SARS during the mini budget speech, so it follows that his next address should outline his plan for doing so, which includes the funds needed to address the aging IT infrastructure, and the appointment of a new Commissioner. He has also been outspoken on his approach to correcting SOEs: stop bailing out Eskom and sell SAA. With an unsolicited - if sketchy - R21 billion offer for 51% of SAA on the table and the plan to unbundle Eskom, these should at least receive mention in his speech. But it is expected that any major policies or structural changes will be held over until after the elections. In an election year the pressure is on to allocate money to fund the various initiatives, policies, and promises made, such as national health and free education. However, how can we afford this without significantly increasing our budget deficit or cutting other spend? Furthermore, Mboweni previously stated that per head salary increases in government were often well in excess of inflation and had to be reigned in. A constructive policy for doing so should be a main feature of the budget, as well as at least a mention of the steps that will be taken to bring people to book for fruitless and wasteful expenditure. Freeing revenues “Whatever happens, these problems can’t be fixed by throwing more money at them and they won’t be resolved overnight,” says Retief. “However, by at least beginning to tackle them, their strain on tax revenues can be alleviated over time and that means a growing pool of income for other projects.” ENDS MEDIA CONTACT: Stephné du Toit, 084 587 9933, stephne@thatpoint.co.za, www.atthatpoint.co.za For more information on SAIPA please visit: Website: www.saipa.co.za Twitter: @SAIPAcomms LinkedIn: South African institute of Professional Accountants Company Facebook: South African Institute of Professional Accountants SOURCES:
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 SAIPA’S Professional Evaluation Graduation Ceremony at Greyville Convention Centre in Durban on 2 February 2019.
From left to Right: Nazia Ismail - 2nd Regional Top Achiever; Pranisha Moodley - National / Regional Top Achiever; Nomawethu Tenza – 3rd Regional Top Achiever* Photography courtesy of SnapThat™ Pranisha Moodley was recently named as Regional Top Achiever, as well as overall National Top Achiever during SAIPA’S Professional Evaluation November 2018 Graduation Ceremony at Greyville Convention Centre in Durban. Following in Moodley’s footsteps are Nazia Ismail (2nd place Regional Top Achiever) and Nomawethu Tenza (3rd place Regional Top Achiever). The future with SAIPA Professor Rashied Small, Executive: Education and Training at SAIPA, congratulated the successful candidates and welcomed them as competent Professional Accountant (SA). “Those who passed have proven their competence and may now proudly bear the distinguished title of Professional Accountant (SA),” he says. “We are delighted and have encouraged them to take to register as full members and look forward to supporting them throughout their careers and endeavours. With their Professional Evaluation behind them, these newly fledged Professional Accountant (SA) holders may go on to, say, work at corporations, start their own private practice or even extend their skills to specialised fields, like tax consulting. Whatever they choose, each will be considered a valuable business advisor.” The purpose of the PE The Professional Evaluation is a four-and-half-hour written competency assessment (aligned with the International Education Standard – IES 6 issued by IFAC) that every prospective SAIPA member must complete before being granted access to the Institute’s ranks. Prerequisites for taking the assessment are a SAIPA approved degree or diploma (aligned with IES 2) and the completion of a three-year learnership at a SAIPA accredited training centre (ATC) (aligned with IES 3 – 5). The stringent pre-entry evaluation is a distinctive requirement that sets SAIPA apart by evaluating the applicant’s ability to apply what they have learned to complex practical and ethical problems. “We don’t assume an accountant to be competent,” explains Professor Small. “Rather, they must be able to demonstrate their proficiency on demand. This assures the public that our members understand their burden of responsibility and are equipped to practice professionally from the very beginning.” ENDS MEDIA CONTACT: Stephné du Toit, 084 587 9933, stephne@thatpoint.co.za, www.atthatpoint.co.za For more information on SAIPA please visit: Website: www.saipa.co.za Twitter: @SAIPAcomms LinkedIn: South African institute of Professional Accountants Company Facebook: South African Institute of Professional Accountants  A late-2018 study from IFAC titled Make Way for Gen Z: Identifying What Matters Most to the Next Generation suggests accounting is the perfect career choice for today’s young adults. Zobuzwe Ngobese, Marketing and Business Development Executive at SAIPA, says it is a timely insight into the aspirations of the new generation, some of whom are still deciding on their career while others are already entering the workplace. “The document reports that people in that generational group mainly desire stability and job security,” he says. “The accounting profession satisfies this requirement as well as many others revealed by the survey.” The study is also an invaluable guideline for employers who need to understand what motivates the next wave of workers to maintain high productivity in their organisation.
What Gen Z wants The report classifies Gen Z as those born between the mid-1990s and around 2005, who will make up one third of the global workforce within a decade. Their bias toward economic stability - both personally and marketwise - and nationalism over globalism, stands in stark contrast to the previous Millennial generation’s “live the dream at any cost” outlook. Ngobese observes that Gen Z were fundamentally affected by the economic crisis of 2008 and therefore yearn for greater security. The study surveyed 3388 people between the ages of 18 and 23 in G20 countries, considering two broad topics - public policy, and careers and work. It revealed that the majority want their governments to focus on their country’s economy, quality of education and availability of jobs. 51% prefer a national approach to policy while only 32% desire a globalist approach. 89% prioritise a stable career, 87% a competitive salary and benefits, and 84% a good balance between work and life. Although lower in their priorities, the majority are keen on leadership opportunities (64%), working abroad (63%) and driving business strategy (63%). South African perspective In South Africa, the main Gen Z concerns are, first, stopping corruption in government and corporations, followed by addressing income and wealth inequality and, third, tackling climate change. 63% favour a nationalist approach. It is notable that, in South Africa, those surveyed prioritised the ethics of their chosen industry or profession ahead of work-life balance. “This is exactly the attitude required for SAIPA to realise its vision of a new era of ethical accounting for the country,” says Ngobese. Over half of the respondents indicated they will pursue or would consider pursuing a career in accounting. Professional Accountant (SA) Ngobese says SAIPA’s Professional Accountant (SA) designation is the ideal career path for Gen Z. Its ultimate goal is economic stability, it is backed by strong ethical standards to protect the public and national interests, and it is one of the most stable and rewarding careers in history. “We definitely need professionals with Gen Z’s strong moral and economic ideals.” Information on education, practical training and membership entry requirements for becoming a Professional Accountant (SA) can be found on SAIPA’s website at www.saipa.co.za. Employers may review the IFAC study at https://www.ifac.org/publications-resources/make-way-gen-z-identifying-what-matters-most-next-generation ENDS MEDIA CONTACT: Stephné du Toit, 084 587 9933, stephne@thatpoint.co.za, www.atthatpoint.co.za For more information on SAIPA please visit: Website: www.saipa.co.za Twitter: @SAIPAcomms LinkedIn: South African institute of Professional Accountants Company Facebook: South African Institute of Professional Accountants SOURCES: https://en.wikipedia.org/wiki/Generation_Z |
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