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Subscribe to our
bi-monthly
HPASA newsletter. |
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August 2011
FICA INCREASES
RISK ON ESTATE AGENTS |
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AJ
Beukes
Exceed Tax & Management
Services |
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The
three month compulsory registration
period for Estate Agents to register
with FICA has recently ended on 28
February 2011. Since that date the
requirements of the Financial Intelligence
Centre Act 38 of 2001 is applicable
to all estate agents.
In short The Act prescribes
certain duties to all accountable
institutions (including estate agents).
The areas that will mainly affect
the operations of estate agents are
the following:
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| 1. |
Duty to identify
clients. |
| 2. |
Duty to keep records. |
| 3. |
Period for which
records must be kept. |
| 4. |
Duty to report
suspicious and unusual transactions. |
| 5. |
Duty to report
cash transactions above the
prescribed limit (Currently
R25,000). |
| 6. |
Duty to report transfers of
money to and from the Republic. |
| 7. |
Formulation and
implementation of internal rules.
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Non-Compliance
An accountable institution that fails to comply
with the provisions of the act is guilty of an
offence. A person convicted of an offence is liable
to imprisonment not exceeding 15 years or to a
fine not exceeding R10,000,000.
Sourced From: Exceed |
August 2011
NEW FRINGE BENEFIT
FOR EMPLOYEES |
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Jonathan
Coetzee
Tenk Loubser & Associates |
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A number
of Employers have, for several years,
been contributing towards either an
employee death or an employee disability
policy on behalf of their employees
(long-term insurance policies). The
aforementioned policies were provided
either by means of ‘approved’
plans or ‘unapproved’
plans, as defined by the South African
Revenue Service (SARS).
These policies can be
structured in the following ways:
1. The proceeds can be paid directly
to the employees
2. The proceeds can be paid directly
to the employer, with a side arrangement
existing between
2.
the employer and employee whereby
the employer will pay proceeds over
to the employee
For many years, these contributions
to policies on behalf of employees
were allowed as a deduction for the
employer, with no matching accounting
for a fringe benefit in the hands
of the employee.
With effect 1 JANUARY 2011, these
rules have however changed. |
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If an employer enters into
a group life or group disability plan for
the direct or indirect benefit of the employees
or their beneficiaries (the employees are
the beneficiaries of the policies), the
employer will only be allowed a deduction
of said contributions if these premiums
give rise to a simultaneous fringe benefit
inclusion for the employees. |
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If the employer is the beneficiary
of the said policy and there is a side arrangement
to repay the proceeds to the employee, the
tax treatment will be similar to the aforementioned
paragraph. The value of the said fringe
benefit in both options will be equal to
the premiums paid by the employer. |
Sourced From: Exceed |
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