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| AESTHETICS
& LODGE SAFETY |
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Most safari lodges are constructed
using materials that blend into the natural surroundings
and offer an element of aesthetic appeal that
has become synonymous with Africa.
Construction of Balustrades
A common feature in the construction of balustrades
is the use of weathered tree branches, with all
their twists, gnarls and often strangely distorted
shapes as either the handrail or supporting baluster
uprights. |
‘Backward
Balustrade Bounce’
While aesthetically pleasing to the eye,
these constructions often negate the purpose
for which they are intended, and that is
to protect guests from doing an impromptu
‘backward balustrade bounce’
off the viewing deck or balcony.
The Problem
The problem arises in the way in which the
branches are secured to the platform base,
handrail or uprights. Without two flat adjoining
surfaces against which to screw or bolt
the one to the other, it is almost impossible
to ensure a secure join.
Consequences
This fact is borne out by several recent
incidents, where guests who are prone to
leaning their full (and often substantial)
weight against the balustrade or even sitting
on top of the handrail.
Spinal Injuries
While the lodge’s public liability
insurance policy might well provide protection
to the lodge owner against the inevitable
compensation for injury claims to follow
such incidents, this is scant solace to
the guests who often sustain multiple injuries,
specifically to the spine.
Justifiable
Cause
To further complicate matters, there does
exist a clause in the wording of most liability
policies that dictates; “the insured
shall at all times take reasonable care
for the safety of the property and visitors
to such property”. Depending on the
insurer, this clause could give justifiable
cause to refute any claim brought against
the policy.
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Reasonable Care
From a legal perspective, Wayne Forrester
of Savage & Jooste Attorneys, who are
specialists in defending liability suits
brought against providers in the tourism
and hospitality industry, comments, “In
our law there is a duty to use reasonable
care to see the premises upon which people
are invited are kept reasonably safe. In
the case of Cape Town Municipality vs Payne
1923 AD 207, the Judge of Appeal Kotze,
stated the following:
| “If a person erects on his
land a building or structure for use
by members of the public, he is under
duty of erecting and maintaining it
in a secure and proper manner, in
keeping with the safety and protection
of those using the building or structure”. |
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Question
of Liability
It is prudent to note that in considering
the question of liability a Court
will have regard to the foreseeable
harm that could occur if a party were
for example to fall from an elevated
deck or platform as a result of a
railing or balustrade that gives way
as well as the burden (or costs) of
eliminating such a risk or harm.
Comparing Costs
The reasonable costs of ensuring that
a walkway, deck, floor, balustrade
etc are safe will generally be considered
minimal when compared to the very
serious injury that could occur. It
is accordingly prudent to ensure that
regular inspections and maintenance
operations take place to ensure that
potential hazards are identified and
eliminated as soon as possible”.
Conclusion
It is therefore important to
check all structures for your
guests’ safety, your own
and your insurance underwriter’s
peace of mind. Accidents will
happen, but where a trend or
habitual pattern begins to emerge,
the insurers get jittery and
impose stricter terms on liability
insurance contracts for “slip
and fall” accidents. |
 |
| For all your business
risk assessment - call
Safari & Tourism
Insurance Brokers (SATIB)
- Gavin Courtenay on +27
(0) 31 562 1880 - E-mail:
gcourtenay@satib.co.za |
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| DOING
BUSINESS IN SOUTH AFRICA |
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Establishing a private
company or a close corporation are
the most frequent choices for most
overseas investors rather than trading
as an individual or a partnership.
| Key feature
of a Private Company |
| |
| • |
A company
is a separate legal entity
and is registered with
CIPRO (Company and Intellectual
Property Registration).
The company’s name
ends with “(Proprietary)
Limited” or (Pty)
Ltd”; |
| • |
A company
is formed with share capital
which may consist of ordinary,
preference, redeemable,
convertible shares or
a combination thereof.
There is a minimum ordinary
share capital of R1 requirement
for a company; |
| • |
Both natural
persons and juristic persons
can hold shares. There
is no requirement that
a shareholder must be
a South African resident;
|
| • |
The board
of directors is appointed
by the shareholders. There
is no requirement that
a director must be a South
African resident; |
| • |
A company
must appoint an auditor
practicing in South Africa.
|
|
|
| Key
feature of a Close Corporation |
| |
| • |
Like
a private company,
a close corporation
is a legal entity
on its own and is
registered with
CIPRO. Close corporations
are simpler, less
expensive corporate
entities for single
business persons
or small groups
of entrepreneurs; |
| • |
A
close corporation
does not have shareholders,
but members and
does not have shares,
but members’
interest. Only natural
persons (or trusts
under certain circumstances)
may hold an interest
in a close corporation;
|
| • |
A
close corporation
does not have to
appoint an auditor,
but only an “accounting
officer” to
submit reliable
financial records.
|
|
TAX RELIEF MEASURES
FOR COMPANIES AND CLOSE CORPORATIONS
Small
Business Corporations (SBC)
tax regime
This regime allows one major
concession to companies and
close corporations which comply
with all of the following requirements:
| |
| • |
The
shareholders or
members must be
natural persons
(individuals) and
must hold the entire
shareholding/member’s
interest of the
company/close corporation; |
| • |
Shareholders
or members may not
hold any shares
or interest in the
equity of any other
company; |
| • |
The
gross income of
the corporation
for the tax year
may not exceed R14
million. |
|
The main concession is to be
taxed on the basis of a multiple
rate system as follows:
| • |
First R54
200 of taxable income
- 0% |
| • |
Taxable
income in excess of R54
200 but not exceeding
R300 000 - 10%
|
| • |
For every
R1 in excess of R300 000
- 28% |
Employer obligations
When employing people a South
African entity is liable to
register for the following:
| • |
Workmen
compensation |
| • |
Skills
development levy (SDL)
The levy is utilized to
develop the skills of
the workforce, improve
productivity and the quality
of life of the workers.
(Employers are require
to register with payroll
in excess of R500 000) |
| • |
Unemployment
Insurance Fund (UIF)
UIF was established in
order to provide short
term relief to employees
when they become unemployed
or are unable to work.
|
VAT,
TAX REGISTRATIONS AND
OPENING BANK ACCOUNTS
There are a number of
ongoing regulatory, legal
and tax filings that are
specific to SA such as:
| •
|
Value
Added Tax (VAT)
registration: |
| |
| - |
VAT applies
to businesses
trading over
a minimum
threshold
of R1 000
000 |
|
|
| •
|
Regular
returns: |
| |
| - |
e.g.
statutory
returns for
VAT, payroll
and direct
taxes |
|
|
| • |
Initial
tax registration:
|
| |
| - |
companies,
businesses
and individuals
must be registered
with the Inland
Revenue |
|
|
| • |
Bank
accounts: |
| |
| - |
Exceed
can make introduction
and open bank
accounts for
their clients |
|
|
 |
EXCHANGE CONTROL
Exchange control is a key factor,
along with DTA’s (Double
Taxation Agreements), in International
Tax Planning. Exceed can assist
foreign investors with exchange
control issues.
Exchange control applies in
regard of:
| • |
Foreign
operation of South African
companies |
| • |
South African
operations of foreign
companies |
| • |
Offshore
trusts |
| • |
Payment
of import, exports services |
| • |
Capital
transfers |
| • |
Loan agreements |
| • |
Payments
of business nature |
| • |
Financial
instruments |
 |
Key
feature of Exchange controls
| Non-residents
may: |
| |
| 1. |
Invest in
South African
listed or
unlisted shares.
Proceeds on
sale are fully
remittable |
| 2. |
Introduce
loan capital
with Exchange
control approval,
this will
allow: |
| |
| - |
repatriation
of loan
in original
foreign
currency
or Rand |
| - |
interest
remittance
at appropriate
rates
applicable
to repatriation
currency |
|
| 3. |
Have
after-tax
profits and
dividends
remitted |
|
|
ACCOUNTING AND FINANCE
Exceed has developed an efficient
and cost effective approach
to outsourcing ongoing regulatory,
legal and tax filing for clients,
effectively becoming their accounts
department.
Services include:
| • |
Management
accounts |
| • |
VAT returns |
| • |
Head office
reporting and financial
reports |
| • |
Statutory
accounts |
| • |
Sales, purchase
and general ledger |
| • |
Company
Secretarial returns |
| • |
Payroll
administration |
| • |
Non Executive
Director Services |
Sourced from Exceed |
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