Dear Subscriber,

Small Business Tax Amnesty is picking up speed. More than 9000 applications for the Small Business Tax Amnesty were received by the beginning of February.

Drawing small and medium enterprises (SMEs), including the taxi industry into the tax net was one of the main motivations when the minister of finance, Trevor Manual announced the tax amnesty for small business in his budget speech in February last year.

The taxi industry is at present one of the major business sectors that have applied for amnesty, with more than 1 400 taxi operators having applied. According to SARS spokesperson, Adrian Lackay, this represents more than 15% of all the applications received.

One of the reasons why the amnesty is supported by the taxi industry

is that taxi operators need a tax clearance certificate in order to take part in the taxi recapitalisation programme. SARS also had an endorsement from the South African National Taxi Council (Santaco) and was helping the association's members to apply for amnesty.

The amnesty is applicable to any business, sole ownership or close corporation with a gross income of less than R10 million. The deadline date is 31 May 2007 and according to Lackay, will not be extended.

Tax Issues Interview:

Many taxpayers find themselves in a situation where they render a service to a company on a contract basis as an independent contractor but receive more than 80% of their income from that specific client. Are they being considered a personal services company by SARS and thus treated as an employee? Anton Lockem who works with employee tax at PWC discussed this grey area on Tax Issues, broadcast on Summit TV on Monday night. Click here for a summary of the full interview.

Tax Issues is broadcast on Mondays at 20h40 and again at 22h40 on SUMMIT TV (DSTV CHANNEL 55).

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Until next week.

Janine Connor
Head of TAXtalk

SUBSCRIBE to TAXtalk before the small business tax amnesty deadline on 31 May 2007 and receive a FREE TAXtalk Magazine subscription pack and be entered into a prize draw for 5 complimentary seminar seats, to The International Tax Institute's Small Business Tax Amnesty Seminar worth R650.00

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Daniel Erasmus - DE Tax Consulting

Tax Risk Management, in the context of Constitutional rights has been discussed in the previous articles, pointing out the facilities available to taxpayers. It reminds me of an old joke – apologies upfront to anyone who may take offence, but it illustrates an important point – an elderly gentleman goes down to the lobby of a 5 star hotel to settle his bill. He is shocked at the amount and questions it.

First National Bank (FNB)

What better way to stimulate innovation among aspirant entrepreneurs in South Africa than to expose them to the thinking of some of our own innovators in the business field.

These are people who started out with good ideas that they have grown into some of the country`s most successful businesses.

eTaxJobs is a global job portal exclusively for tax professionals, and an online resource for employers and recruitment firms to advertise their vacancies. eTaxjobs operate in the UK, Europe, USA, Canada, Australia, New Zealand, Africa and around the World.

Available tax jobs for this week are:

• Group Tax Manager, Vodafone, Newbury, UK
• Senior Tax Manager (International Tax), Hong Kong
• Director of Tax, Intrawest, Vancouver, Canada
• Tax Manager, Dubai, UAE
• US Tax Manager, Surrey, UK

Sanchia Temkin - Professional Services Editor

THE International Accounting Standards Board is expected to issue a draft version of its new international financial reporting standards for small and medium enterprises (SMEs) during the first half of this year.

The new standards will simplify accounting for SMEs and lower their audit costs, says the CEO of the Independent Regulatory Board for Auditors (IRBA), Kariem Hoosain.

David Clegg, National Technical Director, - Ernst & Young Tax Advisory Services

Last year, a number of commentators (including myself) expressed the thought that the top rates of individual and company tax are now sufficiently out of line to start creating opportunities for arbitrage – that is to run one’s business in a manner that takes advantage of that differential.

The Minister of Finance, Trevor Manuel, announced that as of August 2006 until May 31 2007 a Small Business Tax Amnesty will be in place. The International Tax Institute (ITI) will be unpacking the effects of the Small Business Tax Amnesty. Important aspects that will be covered at this ½ day event are:

• Who does tax amnesty apply to?
• Instances where amnesty will not apply
• General requirements
• Which taxes does amnesty apply to?
• How to apply for amnesty
• What is the effect of a successful amnesty application?

Interview with Anton Lockem, Manager Employee Tax, PWC

Many taxpayers find themselves in a situation where they render a service to a company on a contract basis as an independent contractor but receive more than 80% of their income from that specific client. Are they being considered a personal services company by SARS and thus treated as an employee? Anton Lockem who works with employee tax at PWC discussed this grey area on Tax Issues, broadcast on Summit TV on Monday night.

From personal individual tax to significant company tax changes - the subject is a hotly debated issue throughout South Africa's corporate environment. Tax Issues - every Monday at 20h40pm and again at 22h40pm - demystifies some of the latest developments and issues being discussed in the corridors of power. Tax Issues will cover; The impact of pending new tax laws on individuals and companies, The capital gains tax debate, New SARS initiatives to collect tax Changes to tax benefits, The VAT vs personal tax debate.

Antonie Goosen, Editor Practical Tax Handbook - Practical Tax Handbook

Do you know when or when not to use a logbook? Find out how to make the most of your travel expenses. Save R23 863.20 by keeping an accurate logbook.

Maintaining an accurate logbook is a tedious affair but the benefit of additional tax savings may make it worthwhile.

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If so, send your submissions by email to (janine@taxtalk.co.za), fax (27 11 476 5004) or post (P.O. Box 1650, Gallo Manor 2052) and be heard!

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Contact Janine at
janine@taxtalk.co.za
(011) 476 5095