With the tax-filing season opening on 1 July, the South African Institute of Professional Accountants (SAIPA) is advising taxpayers to get their filing done as soon as possible, and to approach the process methodically.
 
“Taxes have to be paid—it’s effort well spent to get the submission right and on time,” says Ettiene Retief, chairperson of the National Tax and SARS Stakeholders Committees at SAIPA. “By following these tips, taxpayers can streamline their efforts and avoid unnecessary stress.”
 
Confirm accuracy of documentation
Most income is now recorded on tax certificates issued by employers, banks or investment houses. Salary payments, deductions and benefits are found on the IRP5 issued by the employer, while other income earned (such as interest and dividends) is reflected on various ITC3 certificates. The only difference is that no employees’ tax deductions are made for income reflected in an ITC3.
 
Retief says that it is important to go through each certificate carefully to ensure it is correct—and that all income is disclosed. A common mistake, for example, is not to recognise the small interest income that might be earned on a medical aid savings account.
 
“The amount of such interest might be too small to be material, but the point is that SARS gets the information reflected on these certificates and its system will compare the income you have disclosed and what it expects. Even a small discrepancy could cause the system to flag a mismatch,” he says.
 
Further, it is important to ensure that your sensitive information, such as contact and banking details, are correct. Make sure they are current—especially if you are expecting a refund!
 
Compare
Use the previous year’s return as a guide, as this comparison will alert you to changes and even omissions. Also important is to be sure that there is continuity across years of assessment. “For example, if your final odometer reading for 2015 was 33 000, then the opening odometer reading for that vehicle for 2016 should be 33 000,” Retief notes.
 
Consider whether you had any additional sources of income or capital gain over the past tax year. These might include rental income, the sale of property or the sale of shares in a business, being mindful of when the income has accrued to you and not only when received.
 
Allocation of expenses
Apportion expenses accurately. If any expense has a dual purpose, only that portion used for business can be claimed. Thus, a self-employed person cannot simply claim all phone costs as a business expense—only the proportion used for business can be claimed. The same is true of mortgage repayments on a rental property: the capital repayment portion is not a claimable expense, while the interest and fees may be.
 
Keep your vehicle logbook up to date. Essential if you receive a travel allowance or a the use of a company car, a logbook must be kept, containing the necessary information regarding the business travelling, which includes at least: date, destination, reason for travel and kilometres travelled (including start and finish odometer readings).
 
Keep paperwork – ask for help
Retief urges that the paperwork for your tax return should be kept together in case SARS calls for any of it. Scanning and storing it as a matter of routine is highly recommended, as it needs to be retained for a minimum of five years.
 
Consult an expert if your matter is complex or you have a dispute. Don’t just submit a return if you are uncertain about something or file an objection if you have a dispute without the required grounds or knowing the procedural rules, Retief advises.
 
Keep in mind when submitting via e-filing, that the SARS system will not accept files larger than 2MB, but you can file multi files. The file that you upload on SARS e-filing cannot have restrictions, such as requiring a password to open the file. It’s also important to be sure that all documents are uploaded before submitting as the system does not permit forgotten files to be loaded later.
 
Tax filing closes for postal submissions on 23 September and 25 September for manual submissions delivered to a SARS office, for e-filing on 25 November 2016 and for provisional tax on 31 January 2017. Don’t delay your filing till the last minute.
 
ENDS

MEDIA CONTACT: Idéle Prinsloo, 082 573 9219, idele@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

South Africa is richer by 282 professional accountants, according to results released by SAIPA – the South African Institute of Professional Accountants – from the latest professional evaluation exam written by 328 qualifying candidates.
 
“Prior to writing the exam, candidates need to prove compliance to a strict set of academic and practical requirements,” said Rashied Small, Education, Training and Membership Executive of SAIPA. “Passing the professional evaluation exam is the final requirement for earning the designation of Professional Accountant (SA).”
 
The designation is one of the few authorised by SARS to provide services as a tax practitioner. A professional accountant can also perform numerous functions and issue reports in terms of the Companies Act, Close Corporations Act, and Micro lending industry regulations, Sectional Titles Act, Non-Profit Organisations Act, and Schools Act.
 
The professional evaluation examination was aligned with the International Education Standards 6 (IES 6) Assessments, with an emphasis on the principles of competency-based assessment. 
 
“The benefit for future employers or clients is that they will benefit sooner from the combined competence and expertise of the Professional Accountant (SA) beyond the preparation of financial statements for compliance purposes,” explained Small.
 
 Those who passed the professional evaluation examination were tested on the application of technical knowledge, cognitive skills with the focus on analysis and synthesis, and attributes or soft-skills with greater emphasis on analytical reading skills, critical thinking skills, and writing skills.
 
Small also extended a word of special congratulations to Nadia Gouws and Stephanie Williams, the candidates that achieved the two top scores. Both Gouws and Williams were part of the Project Achiever intervention funded by the Financial & Accounting Sector Education and Training Authority (Fasset).
 
The Project Achiever joint venture was initiated in 2015 to address the question of transformation in the financial services industry by providing the assistance where it is most needed – among black professionals. The initiative is funded in majority by Fasset – one of the 21 Seta’s that have been established by the South African government in terms of the Skills Development Act, in order to helps bridge the skills gap, particularly the gap between having a qualification and building a successful professional career.
 
Four of the top 10 candidates were from the Project Achiever initiative.
 
The top ten candidates for this examination were:

Ranking         First name                     Region
1                     Nadia Gouws                Midrand
2                     Stephanie Williams      Cape Town
3                     Travis Hofman              Pretoria
4                     Sean Reynolds              Pretoria
5                     Benjamin van Coller     Bloemfontein
6                     Stacy van Eyk                Port Elizabeth
7                     Aradhna Deepchund     Durban
8                     Maarten Potgieter         Bloemfontein
9                     Daniel Strachan             Pretoria
10                   Wisdom Zimuto             Midrand

ENDS

MEDIA CONTACT: Idéle Prinsloo, 082 573 9219, idele@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

Bongani Coka has been appointed as the new Chief Executive of the South African Institute of Professional Accountants (SAIPA) with effect from 1 July 2016.
 
Coka most recently fulfilled the role of CEO at Productivity SA for five years, after having served as the organisation’s CFO for 10 years. His professional experience also includes 16 years in management, 10 years tutoring in tax and accounting and two years of drafting Accounting training material experience.
 
“I accepted this position because I believe that SAIPA’s role is critical for the sustainability of small to medium enterprises, which I am extremely passionate about,” says Coka.
 
“SAIPA members are ideally positioned to act as trusted partners offering a range of business advisory services, particularly to the small business sector-the supposed engine of the SA economy. Our role is to help the engine fire on all cylinders by helping to unlock the potential of the small business sector and ensuring their sustainability”.
 
Coka believes that while accounting professionals have to move with the times and stay up-to-date, the profession is unlikely to be redundant anytime soon. The skills used by accountants to record, classify, interpret, and communicate the financial information about an entity can be applied to any entity in any field, industry or sector.
 
The transferability of accountancy skills has enabled Coka to work across different sectors, including working for a non-profit organisation, a state owned enterprise, and a public entity. 

 
“Mr Coka’s proficiency in the fields of finance and accounting, combined with his passion for education and small enterprises, will serve well in achieving the strategic objectives of SAIPA,” says Cindy Dibete, chairman of the SAIPA board. “Mr Coka is known as an inspirational leader who shows empathy, and as a visionary who is decisive and courageous.”
 
After earning a Bachelor of Accounting Science from the University of South Africa (UNISA) in 1988, and completing his articles at Deloitte and Touché, Coka also earned from UNISA his Bachelor of Accounting Science Honours in 1994.. Coka’s other qualifications include a Higher Diploma in Tax Law from the former Rand Afrikaans University (RAU), as well as the designation as Associate General Accountant, both earned in 1998.
 
Further adding to Coka’s relevant experience is previous board memberships including chairman of the board of the Productivity South Africa Pension Fund Committee, board Secretary General of Pan African Productivity Association, and committee member of both the Work Place Challenge Joint Committee, and the Social Plan Joint Committee. Coka also serves in the Audit Committee of his church.
 
Born on 8 January 1960 and raised in Vosloorus in the east of Johannesburg, Coka remembers being in the class with the first learners to matriculate from the first township High School in 1980. “We had to work harder as the teachers were inexperienced and resources were limited.”
 
This set the tone for the rest of Coka’s path of education. He obtained all his tertiary qualifications through correspondence, relying heavily on his discipline, independence, and determination.
 
Coka is married with two children, and as part of his community participation assists an orphanage and a school in the South of Johannesburg as part of his community participation and is also mentor and counsel to students.
 
Through his keen interest in reading empowering books and attending football matches Coka stays inspired to be an advocate of continuous improvement. He believes that asking the right questions is the key to diagnosing a problem, and that it enables one to better understand the desires, beliefs, actions, and wants of the others.
 
ENDS
 
MEDIA CONTACT: Idéle Prinsloo, 082 573 9219, idele@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

By: Faith Ngwenya,
Acting CE and Technical Executive,
South African Institute of Professional Accountants (SAIPA)
 
Choosing an accountant based on prestige rather than proficiency can sometimes have expensive and risky results.
 
A common misconception is that the term “accountant” encompasses a small – although significant – set of skills that deliver basic financial management. Another incorrect assumption is that areas of specialisation in the accountancy profession follow a superiority ranking, or the notion that some accountancy designations are better than others.
 
There is no accountancy designation that is superior to another when it comes to accountancy. Rather, the value of the accounting service performed is not dependent on title or designation, but on the relevance of knowledge and experience according to what the client or employer needs.
 
To gain the most benefit from their accountancy service, an organisation needs to understand exactly which type of accountant is the right fit for them, specifically, and why.
 
Many people find it surprising that there are a number of designations and regulatory bodies in the accountancy space. In South Africa, professional designations are formalised and regulated by the South Africa Qualification Authority (SAQA) through a stringent process. While some of the accountancy designations require only a university degree, many require additional studies and practical work, or articles, to be completed before the professional designation can be awarded.
 
Once a designation has been registered with SAQA, these marks of professional competency are regulated by specific professional bodies. These institutes take on the role of awarding professional competency recognition to people who have proven their competencies in their specialised areas of expertise. In addition, the institutes are then responsible for ensuring that professionals who use these designations adhere to a strict set of rules and professional conduct.
 
While the title allocated to an accountant might sometimes allude to the type of function in which each designation is competent, a deeper understanding of the areas of specialisation can save businesses a lot of time and money. It is worth visiting the websites of each regulating body to discover whether the competencies and experiences of a relevant accountancy designation hold relevant value for a specific type of business.
 
Accountants can perform numerous functions and issue reports in terms of the Companies Act, Close Corporations Act, Micro lending industry regulations, Sectional Titles Act, Non-profit Organisations Act, Income Tax Act, Schools Act and various other Acts.
 
From a business value point of view, an accountant can – dependent on their specific combination of knowledge and expertise – add value to the performance or compliance of any business in the following ways:
 
Creator of business value
As a creator of business value, some accountants can drive strategy and design business models. In this role an accountant needs to be capable of focused decision-making and have a clear understanding of financial statements and how they impact the business. They also have to know how to preserve business value through risk management and awareness of functions like business rescue.
 
In this area the accountant might perform the role of CEO, strategic manager, business advisor/consultant, due diligence consultant, financial manager, or business analyst.
 
Enabler of business value
In the space of acting as an enabler of business value, an accountant can become involved in financial decision making for the business – often the role is that of the company CFO, or an official of the Treasury department.
 
This role focuses on performance and assessment of cost and management requirements, playing the role of internal auditor and even systems analyst towards a deeper understanding of business process and performance. Accountants in this role are often the financial manager and/or general business manager as they understand the overall value of the business.
 
Preserver of business value
As preserver of business value, an accountant becomes involved in functions such as Interpretation and analysis of financial information, Internal Auditing, Risk Management and Business Rescue. It demands an understanding of the importance of compliance and the role it plays in perpetuating growth and a sustainable business.
 
In this area an accountant may take on the role of business analyst, business risk manager, systems analyst and even financial manager. They are an advisor and a consultant, someone who can guide and support a business in its growth and development over the long term.
 
Reporter of business value
Some accountants specialise in reporting the value of a business through an involvement in both financial and non-financial reporting. A great example is legislators, or practitioners preparing financial statements and independent reviews. They are aware of compliance, can plan ahead, forecast the financial future of a business, and hold a managerial role in the financial department.
 
An accountant, regardless of specialised designation, has to provide a business with the support it needs to drive it forward, create employment and ignite growth. If they can create and enable value while managing risk and reporting, then they are an invaluable asset to any organisation.
 
Finding the right accountant is more than the sum of their qualifications, it is a blend of training and insight which has the potential to support a business. A firm hand and a sound background will see any accountant become a trusted advisor and reliable partner in any enterprise.
 
Choosing an accountant based on proficiency, rather than prestige, is the start of a valuable partnership.
 
ENDS
 
MEDIA CONTACT: Idéle Prinsloo, 082 573 9219, idele@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 group
Facebook: South African Institute of Professional Accountants