The Value Added Tax Act 89 of 1991 (the VAT Act) requires VAT to be levied by a vendor on the supply of goods or services in the course or furtherance of an enterprise carried on by the vendor. A vendor is any person who is or is required to be registered in terms of the VAT Act. The fact that a vendor includes any person that is required to be registered makes it clear that a person’s liability for VAT is not dependent on whether the person is in fact registered as a vendor but rather whether the person is required to be registered as a vendor.
The VAT Act requires registration as a vendor on either a prospective or retrospective basis. On a prospective basis, a person would be required to register as a vendor on the first day of the month in which the total value of the vendor’s taxable supplies in terms of a contractual obligation would exceed R1 million (excluding VAT) during the following 12 months. On a retrospective basis, a person would be required to register as a vendor on the last day of the month during which the total value of the vendor’s taxable supplies exceeded R1 million (excluding VAT) during the previous 12 months. Therefore, should a person’s taxable supplies (which excludes exempt supplies) exceed the R1 million threshold, that person would be regarded as a vendor from the beginning of the particular month (on a prospective basis) or from the end of the particular month (on a retrospective basis) and would have to levy output tax from that point in time, irrespective of the fact that the person may not be registered as a vendor at that point in time. Should the vendor fail to register, the VAT Act would deem all of the prices charged by the vendor after his liability for registration came into existence, to include VAT at 14%. This would be the case irrespective of whether VAT was in fact charged by the vendor. SARS would therefore be entitled to recover 14% from all prices charged by the person from the date the person should have been registered as a vendor. The 14% retrospective recovery of VAT from the prices charged by the vendor may eliminate all of the vendor’s profits even before considering the penalties and interest that the vendor could be subject to. These penalties include inter alia:
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Whether you fear that you might be depressed or you just feel unhappy, lacking in motivation and vitality, exercise can help you. In a synopsis on “Exercise, Fitness and Mental Health” (1990) sports psychologist D.R Brown summarised the possible beneficial effects that exercise has on mental health. These are:
How much is enough? On a more practical level, how much exercise should you do to derive the optimal psychological effects and what should you do? Well, people usually feel good for about 2-6 hours after an exercise bout, which also helps to decrease anxiety, tension and depression. However, to have the best effects, try to incorporate the following seven tips into your physical activity. Make it something you enjoy; an activity that doesn’t require mastery, otherwise you could be put off because:
Please contact Namhla or Judy in our Health Department, email [email protected] , if you have any queries about gym membership on wellness programmes and Medical Aid. Source: Bonitas Change of seasons can leave you weak and vulnerable. Now with winter fast approaching, you can reduce the chances of contracting seasonal flu by being vaccinated against it. Research suggests that there is a misconception about vaccines. Immunisation against the flu contributes towards saving many lives and decreasing healthcare costs. The flu vaccine is made up of a chemically inactivated virus that enables the body to learn to store the “shape” of the flu virus so that when you get the flu, the immune system is already armed to fight it. However, the degree of protection it offers will depend on a variety of factors such as a patient’s age, state of health and the closeness of the “match” between the vaccine and the specific strains of influenza in circulation. While the vaccination is an option – with the exception of babies under six months old – there are certain sectors of the population which are more likely to develop serious complications if they contract flu. It is therefore strongly recommended that people who fall into the following categories have the vaccine:
Source: Risk Africa Today, if Bruce Wayne–aka Batman – was walking among us, he would be the 73rd richest man in the world, boasting an estimated net worth of around $11.6 billion, says Neo Kgantsi, Portfolio Manager at Sanlam Private Wealth.
“Batman’s considerable wealth was built up over a number of generations. The first generation of Wayne’s handed over their merchant house to the second which, by the 19thcentury, had become a formidable corporate company. Now, in the 21stcentury, under the watchful eye of Batman and following an excellent diversification strategy, it continues to achieve success in the financial sector and high-end technologies.” Back in the real world, the 2016 Wealth Report says two thirds of wealthy respondents were concerned about handing their wealth to the next generation as they didn’t believe their children would be able to build on that wealth. “And two thirds of the next generation were not inspired to join the family business because they were not excited by the business. They believed the business should be expanded, modernised or reinvented to make it more relevant and sustainable for the future,” says Kgantsi. There is no reason your family shouldn’t succeed in transferring wealth and success between generations. This level of success doesn’t take superhuman strength –it takes intelligence, courage and smarts. Kgantsi suggests we can learn some lessons from the achievements of the Batman clan. Lesson 1: Diversify. What Wayne Enterprises did right, it seems, is to ensure that its business interests withstood the challenges of change by evolving and remaining relevant. Its success lies in trust and in the transferring of trust and power from generation to generation. Your business may currently be booming and meeting the needs of your market, but if you are looking to retire soon and leave the business in the hands of the next generation, are you thinking ahead? If you are not diversifying and allowing fresh blood to evolve and introduce new ideas, your business may become stale. Would we even have heard of Batman if the Wayne’s had remained in hunting? Lesson 2: Collaborate. Wayne Enterprises includes more than 40 diverse umbrella companies that are well integrated in order to ensure the growth of the enterprise. It is vital that the various business units within a family ‘empire’ have some commonality – a shared mission statement for instance – so that they are not working as disjointed entities but rather collaborating for the greater good. Each business should have stated objectives that are measurable and the objectives for the each unit should be complementary. Lesson 3: Trust. Bruce Wayne relies heavily on his closest ally, Lucius Fox. He is perceptive, and an experienced businessman, entrepreneur and inventor, and is the mastermind behind returning Wayne Enterprises to its former glory. As a businessman, you cannot do it all –you need to allow experts to guide you and take control of areas they specialise in. To keep the family business growing, expose the next generation to your business model, teach them everything you know and don’t be afraid of the possibility of evolution. Click here to read more Please contact Kevin a certified Financial Planner; email [email protected] , for all wealth management queries. Source: FA News The Discovery Recurring Dollar Endowment Plan allows clients to invest monthly contributions offshore with ease and allows clients to diversify their investments offshore on a monthly basis through a recurring offshore endowment policy. With the Recurring Dollar Endowment Plan, you can invest at a minimum of $200 a month and you do not have to own a Dollar Life Plan to invest in this plan. You can choose between three risk-profiled funds for easy mapping to your risk profile according to your specific risk tolerance.
For your convenience, contributions will be deducted monthly from your South African bank accounts and converted to dollars, and invested globally. You do not have to apply for tax clearance on the amount invested offshore because this investment uses the annual R1 million Single Discretionary Allowance (SDA). For more information on this new offshore investment, please Click here . Terms and conditions apply. Please contact Kevin or Thato, email: [email protected], to get a quote for the Discovery Recurring Dollar Endowment Plan Vitality members can earn up to 100% off their monthly gym fees Vitality Active Rewards has been a resounding success with Vitality Active Rewards members exercising 25% more. We have now introduced the Gym Booster benefit which allows Vitality members to earn additional cash back on monthly gym membership fees, with a potential saving of up to 100%. How does it work? Vitality members will qualify for the Gym Booster benefit if they: • are a member of either Virgin Active Club or Planet Fitness Local • have already activated Vitality Active Rewards • are the main member or spouse on the Vitality membership • have visited the gym 36 times in a rolling 12-month period. To activate, clients must visit the Vitality Active Rewards page, log in and select the Gym Booster button – only members who are eligible for this benefit will be able to see the button to activate. If the member achieves all four Vitality Active Rewards goals in a month, they earn additional 25% cash back on monthly gym fees paid into their nominated account the following month.
Members can earn points by visiting the gym and our other fitness partners, taking part in Outdoor Sporting Events, and tracking their activity with a fitness device.
Good to know Members with single club contracts receive a 75% discount on monthly gym fees and can get up to 100% discount once they activate Active Rewards and Gym Booster. Members who joined in the past 12 months qualify for an 80% discount will also get access to the Gym Booster benefit, allowing them to boost their savings on their monthly gym fees to up to 100%. Once these members are out of their initial 12 month contract period, their initial monthly savings will become 75%. Members who are still eligible will be able to earn the additional 25% cash back with Gym Booster. Please note that members of Virgin Active Premier and Classic, as well as Planet Fitness National and Platinum, will continue to get substantial savings on gym fees but do not qualify for the Gym Booster benefit. Members who activated the gym benefit before 2010 and save 100% on their or their spouse’s membership are not eligible for the Gym Booster benefit. Please contact Namhla or Judy in our Health Department, email [email protected] , if you have any queries about Vitality or Medical Aid Source: Discovery Vitality members can earn up to 100% off their monthly gym fees Vitality Active Rewards has been a resounding success with Vitality Active Rewards members exercising 25% more. We have now introduced the Gym Booster benefit which allows Vitality members to earn additional cash back on monthly gym membership fees, with a potential saving of up to 100%. How does it work? Vitality members will qualify for the Gym Booster benefit if they: • are a member of either Virgin Active Club or Planet Fitness Local • have already activated Vitality Active Rewards • are the main member or spouse on the Vitality membership • have visited the gym 36 times in a rolling 12-month period. To activate, clients must visit the Vitality Active Rewards page, log in and select the Gym Booster button – only members who are eligible for this benefit will be able to see the button to activate. If the member achieves all four Vitality Active Rewards goals in a month, they earn additional 25% cash back on monthly gym fees paid into their nominated account the following month.
Members can earn points by visiting the gym and our other fitness partners, taking part in Outdoor Sporting Events, and tracking their activity with a fitness device.
Good to know Members with single club contracts receive a 75% discount on monthly gym fees and can get up to 100% discount once they activate Active Rewards and Gym Booster. Members who joined in the past 12 months qualify for an 80% discount will also get access to the Gym Booster benefit, allowing them to boost their savings on their monthly gym fees to up to 100%. Once these members are out of their initial 12 month contract period, their initial monthly savings will become 75%. Members who are still eligible will be able to earn the additional 25% cash back with Gym Booster. Please note that members of Virgin Active Premier and Classic, as well as Planet Fitness National and Platinum, will continue to get substantial savings on gym fees but do not qualify for the Gym Booster benefit. Members who activated the gym benefit before 2010 and save 100% on their or their spouse’s membership are not eligible for the Gym Booster benefit. Please contact Namhla or Judy in our Health Department, email [email protected] , if you have any queries about Vitality or Medical Aid Source: Discovery |
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