Category Archives: Finance

Businesses: Think strategically when cost cutting

We all know times are tough and many companies are embarking on cost cutting exercises. Unfortunately, this is a necessary procedure but think of the impact on staff morale and the potential loss of productivity when undertaking cost reduction. You … Continue reading

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Directors: The Potential Liabilities You Face When Issuing Shares

In the life cycle of your company there will be times when you need to recapitalise the business. When would you need to issue shares? A basic requirement of the Companies Act (the Act) is that the company remain a … Continue reading

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Interest Rates in 2019 – Which Way Will They Go and Why?

“Prediction is very difficult, especially if it is about the future” (Nils Bohr – Nobel Laureate) Normally the market and economic commentators react favourably to interest rate decisions of the Monetary Policy Committee (MPC). The Reserve Bank, which houses the … Continue reading

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The Medium Term Budget Speech and the Rating Agencies – Danger in December

The new Minister of Finance didn’t have much time to prepare for the Medium Term Budget Speech (MTBS) but he carried it off well. The MTBS is a three year outlook for the government budget and was introduced by Trevor … Continue reading

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Box Clever With Cash When You Retire

“The question isn’t at what age I want to retire, it’s at what income.” George Foreman There are many things to consider when you retire. One thing to be careful of is the amount of money you cash in from … Continue reading

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VAT Increase and Accounting Systems

As you are aware, the National Treasury announced an increase in Value Added Tax (VAT) from 14% to 15% effective 1 April 2018. We urge you to ensure that your accounting systems are set up to process transactions at the … Continue reading

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Allowable Stock Deductions: Hopefully Less Tax, Less Admin

George, the CEO of a company, was driving with his Finance Director, James, to a meeting. George had learned of a recent Tax Court case around stock values and was curious to know more. “James what does this stock case … Continue reading

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Bitcoin: Is A Bubble Driving Up The Price?

“A bubble is an economic cycle characterized by rapid escalation of asset prices followed by — a massive selloff.” (Investopedia definition)  You come home from work one day and see your next door neighbour off-loading an expensive flat-screen T.V. He tells you … Continue reading

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Running on Empty: Is Our Downgrade to Full Junk Status Coming?

To date only our Rand denominated debt (about 10% of our total debt) has been classified as junk. On the 25th of October, the new Minister of Finance will present the Medium Term Budget Framework (MTBF). Ratings agencies will closely … Continue reading

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