DTI Minister announced that President Jacob Zuma finally signed the Companies Amendment Bill 1 May 2011, 3 years after it was drafted!. The Companies Act, 2008 and implementation of the Companies and Intellectual Property Commission (CIPC) will therefore finally become effective 1 May 2011.
Important issues accountants and attorneys need to note are:
- effect of the Comapnies Act, 2008 on the relationship between its advisors and clients.
- drafting of a Memorandum of Incorporation (MOI) for an owner-managed entity.
- Audit vs Independent Review.
- Various business forms - selecting business entity best for needs of company/shareholders.
The new Companies Act of 2008 was due to be implimented 1 April 2011, and in typical fashion despite assurances/threats that it would whether business was ready or not, it didnt happen. The date has now been postponed to 1 May 2011 !!! Dont count on that either.
TAX SYSTEM CHANGES
Significant and far reaching tax system changes have and continue to be made by SARS, unfortunately a good idea by government should remain just that, an idea ONLY, as problems happen thick and fast when they decide to implement them.
In October 2007 SARS introduced their completely new electronic systems, not modelled on the successful VAT system, but completely new. Simultaneously discontinuing the old system, and not as best practice would have it, in parallel!
We have completely written ALL our internal systems and we continue to development them as SARS flops from one badly thought through and badly implemented system change to another. As we provide solutions not additional problems, the only indication you would have had are the electronic communiqués and approval documents relevant to your circumstances.
- Will not accept certain taxpayer files,
- Loses information,
- Adds information we don't have,
- Incorrectly assesses expenses, deductions and income,
- Raises audit stoppers and data mismatches,
- Accepts electronic tax clearance requests but does not process them, requiring manual submissions. Over writes files on 'synchronisation',
Serious and unresolved problems with the system.
- That the powers that been are divorced from the reality on the ground and are unaware of the real problems.
- Not being trained on the system.
- Do not fully understand the system, even aspects they are tasked to support.
- That the system 'loses' information, does 'strange' and 'weird things', and
- Don't even know the new system terminology.
- Change their procedures weekly without consultation or notification.