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Day 1
8:30 Welcome & Introductions
Effective tax management is an essential tool to ensure that the company meets its objective of Shareholder Wealth maximization.
Framework for the Computation of Normal Tax
In order to determine the tax liability of a taxpayer it is necessary to compute the taxpayer’s taxable income. You will understand the “rules” of computing “taxable income” for a particular year of assessment.
Forms of Business Ownership and Organization
The tax implications of the different types of business organizations in South Africa will be explained.
Gross Income and Exempt Income
The components of the definitions of “Gross Income” and “Exempt Income” are analyzed and explained.
The General Deduction Formula
You will be able to understand the components of the “General Deduction formula”, especially the ‘production of income’ and capital and revenue components. A case study will be conducted to illustrate these components.
13:00 Lunch
The General Deduction formula (continued)
Section 23 (g), which prohibits the deduction of any moneys which are not laid out or expended for the purposes of trade. Also “Special Deductions”.
Assessment of Company Income Tax – Case Study
Day 2
Dividends and “Secondary Tax on Companies”
The inclusion in ‘gross income’ and the provision for an ‘exemption’.
It is essential to identify the ‘starting date and ending date of a ‘dividend cycle’
Tax Avoidance
“Tax Avoidance” versus “Tax Evasion”. It is important to distinguish between these two concepts because the one is legal and the other illegal. You will gain an insight into where the line is drawn.
Transfer pricing and thin capitalization will also be explained.
Introduction to Capital Gains Tax
Previously, receipts and accruals of a capital nature were not subject to tax because of the exclusion of capital amounts in the gross income definition.
Now, receipts and accruals of a revenue nature are included in gross income whilst receipts and accruals of a capital nature are dealt with separately.
13: 00 Lunch
Value-Added Tax
Value-Added Tax is an indirect tax currently levies at 14%. You will be introduced to important issues of compliance as well as a typical computation.
The VAT implications of the disposal of a going concern will be discussed.
Tax Risk Management
The importance of careful planning will be discussed.
Course Evaluation and Closure
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