Best horse-riding trails in South Africa

 

A child’s basic motor and communication skills can be affected by a variety of disabilities and many parents have had to hear that their child’s abilities and skills will never improve. 

 

In recent years, horses have been found to be useful when included as part of therapy in a child’s treatment program. This is called equine therapy.

 

Counsellors who have included equine therapy in a child’s treatment have reported dramatic improvements in the child’s abilities. A case has been documented of twin boys diagnosed with cerebral palsy who started walking after three years of equine therapy – against all prognoses!

 

One should remember though that every child responds to therapy differently and therefore there can be no set time frame for achieving a certain level of improvement. The general consensus amongst those who use the therapy is that it definitely has a positive effect.

 

Many physically disabled children lack the balance and coordination required to be able to ride a horse. By giving the child a physically enjoyable experience, it inadvertently also assists in developing muscle tone, balance and coordination.

 

Besides riding horses, the children also learns to groom a horse as it aids them in comprehending the importance of caring for others, whether it be animals or humans. 

 

When the child has a better understanding of how to groom the horse, the therapist can also let them take lead in directing the grooming process which does wonders for the child’s self-confidence.

 

Some of the disabilities and disorders that have responded favourably to equine therapy include:

 

• Cerebal palsy

• Downsyndrome

• Multiple Sclerosis

• Spina Bifida

• Spinal cord injuries

• Brain injuries

• Attention Deficit Disorder

• Stroke

• Visual impairment

 

Horse riding is not only beneficial to disabled people, but also to the everyday person. It has been known to increase one’s general mood and reduce stress. 

 

Pop in at one of the following horse trails to get your weekly dose:

 

• African Horse Company

 

Offers short outrides and 2 – 10 day overnight trails in Cape Town.

 

• Berg Trails

 

Offers a short one or two day overnight trail in the Drakensberg.

 

• Colin’s Horseback Africa Safaris

 

Riders have the chance to see game or horseback, outside of Pretoria in Gauteng.

 

 

Written by: Marleen Theunissen

Step-by-step guide to skydiving

 

Skydiving is one of the sports that features most on many people’s bucket lists. There is something about it that makes people crave the adventure and adrenalin that comes with falling out of an airplane at terminal velocity. 

 

While it is something that can easily be done by a beginner with the help of a trained professional, it is not as simple as strapping on a parachute, flying up to 20,000 feet and jumping. 

 

There is a whole host of safety procedures, failsafe’s and safety checks that need to be performed to make the experience a successful one.

 

The first thing you need to do is to dress according to the weather on the ground. It may be necessary to bring an extra layer, since temperatures and wind factors are much harsher at higher altitudes. Once you get to the drop zone, or depending on how you’ve made your arrangements, you will need to decide on what kind of jump you want to do. Tandem jumps are the most common for beginners, and involve no more on the part of the inexperienced jumper than to get strapped to a professional, then to hold on and enjoy the fall. 

 

Static line jumps allow the jumper to exit the plane by himself or herself, with the chute deployed automatically via a lined connection with the carriage. Inexperienced jumpers will have radio contact with the ground to assist in maneuvering and landing techniques. Accelerated freefalling is the easiest way for a novice to experience jumping without being tethered to someone. 

 

In this situation, the diver jumps and is joined by two instructors who hold on to their waist or arms, assisting in positioning techniques, and instructing them on when to pull the ripcord. Once this happens, the divers are on their own, enjoying the scenery from under the canopy of the parachute. These kinds of jumps are preceded by ground training sessions on positioning, instrument checking and emergency deployment.

 

After a number of assisted jumps, training exercises and courses, individuals will be able to obtain a license, allowing them to jump on their own in future. 

A typical jump takes place from between 12,500 and 18,000 feet, and jumpers can experience up to 185km/h before having to pull the cord between 4000 and 6000 feet above ground level. 

 

In order to determine how high they are, jumpers use altimeters attached to the wrist. Once they've reached the pull altitude, the ripcord is pulled, and the pilot chute is deployed, which creates drag and subsequently pulls the main chute out of the bag. 

 

Failsafe procedures follow if the chute fails to deploy, and emergency chutes are either automatically deployed, or have a dedicated mechanism to allow deployment. Modern packs are also equipped with advanced detectors that will automatically deploy the chute if the diver crosses a certain threshold while still in freefall. 

 

When freefalling, typical positioning is the spread eagle position, with both arms and both legs spread out horizontally in line with the torso, creating some level of drag and stabilizing the body to balance when the drag of the chute is initially felt.

 

 

Written by Wesley Geyer

Creative writer at ATKA SA

Mountain biking in South Africa

South Africa is widely known as one of the most scenic countries in the world. Landscapes vary significantly from region to region, and because of that, many nature enthusiasts have taken to exploring it in any way they can. 

 

Mountain biking is one of the most fast-paced and exhilarating ways to explore the terrain, and South Africa has some of the best trails in the world.

 

The following is a list of a few of South Africa’s choice routes, adapted from various sources and related lists.

 

Baakens River – Intermediate to Difficult (24km)

 

The Baakens Valley is a long and narrow green-space running through the heart of the Port Elizabeth metropolitan area. It stretches in a general east-west direction from just above the harbour to the western outskirts of Port Elizabeth, on the Cape Town side of the city.

 

Local riders rate the contour paths and jeep tracks as one of the best urban rides in South Africa. Expect sharp climbs, rutted downhill’s and heaps of obstacles to test your technical skills to the max. For personal safety reasons, it is always recommended that you cycle the route with a friend or two.

 

Longmore Forest Route – Moderate – Various Lengths

Situated close to Port Elizabeth, this seemingly endless network of gravel roads (840km according to the resident plantation manager) will put miles into your legs, with more than enough jeep-track links to keep it adventurous. Park at the Longmore offices, then head uphill along the gravel road and follow the Kings View signs for an enjoyable 90min (or up to 5-hour) circuit.

 

 

Woodridge/Thornhill XC – Moderate/technoical – Various lengths

 

Your first stop is Woodridge School, one of the few educational institutions in South Africa to boast its own Nationals-quality XC (cross-country) route. The purpose-built route offers some exhilarating and challenging single track riding. It’s great on a windy day, as the plantation offers both shelter and shade. Permits are required and these must be shown at the gate when entering the premises. No less than 95% of the 8km course is groomed single track, dipping and diving through forest sections, plantations and some open grassland.

 

From Woodridge, it is a doddle to get to Thornhill, a tiny village just across Van Staden’s Gorge and approximately 6km further along the N2. This is a more recent, but no less exciting riding venue, catering to both rookie riders and the more hardcore XC racing snakes. Local mountain biker Grant Puttergill has put together a killer 6km route on his Sunny­vale farm, and again you will be bombing into a veritable single track paradise.

 

PwC Toyota Cycle Park – Beginner to expert – Up to 15km

 

Situated in Bryanston, Johannesburg, this secure cycle park offers custom built single-track trails for mountain bikes that are suited for all ages and all skill levels. All the routes are graded, clearly signposted and include beginner, intermediate and advanced circuits. Besides the many kilometres of man-made trails, there is also a world championship standard BMX track at the park.

 

The obstacles increase in number and complexity as the grading goes from novice to advanced level. Enjoy the single-track and tight turns that will make you concentrate on your cornering techniques on the easier trails before heading into the intermediate trails where you will have to pay a bit more attention, as on these you will have to deal with a drop or a log or a steep bump to avoid being bounced off.

 

For the expert riders, the ladder bridges and berms will assure some exhilarating cranking and a serious rush of adrenalin. And finally for the hooligans looking for interesting ways to commit suicide by mountain bike, the Dirt Jump Heaven seems like the right place to be. 

 

 

Written by Wesley Geyer

Creative Writer at ATKA SA

Fuel Prices over the past few years

As a country we hang our heads in defiance when hearing another announcement of a fuel price hike. Over the last ten years the price of petrol per litre has more than tripled. 

 

Let’s look at fuel prices over the past few years and also discuss some factors that contribute to the consistent rise of fuel prices.

 

 

The above image (sourced from www.cars.co.za) may be no news to you. In 2003 South Africans had to pay R4.00 for a litre of petrol.

 

This sound unrealistic in comparison to what consumers must pay now. On average, the petrol price gains nearly a rand a year, although the jumps in the prices have been erratic. Between 2003 and 2013 the petrol price was pushed up with a whopping 339%!

 

 

The year between August 2008 and August 2009 have seen a drop of nearly R2,50 per litre – a welcome reprieve for consumers in South Africa. But the last 4 years has seen the price nearly doubled.

 

This leads us to ask the question – why do fuel prices rise and fall constantly? What factors determine the cost of filling up my car? In the long term the biggest factor influencing fuel prices is the cost of crude oil. In the marketplace however, factors include forces of supply and demand and also competition.

 

Figures released in July of this year indicate that nearly 28% of fuel costs are attributed to taxes. This means that R3,69 of the R13,23 per litre goes to tax. Other factors that influence the fuel price are local market conditions such as supply, demand, competition and government regulations.

 

In the short term supply and demand imbalances will definitely affect prices. Supply shortages due to whatever reason (including transport and worker strikes) will typically cause an upward price pressure. Length of supply, where supply exceeds demand, can result in a downward price pressure.

 

Due to the fact that our oil is  mostly imported, foreign exchange and geographical location play an important role in determining the fuel price. Consumers who live in coastal areas will typically pay a lower price due to the fact that they bypass the costs of transporting fuel inland.

 

So what awaits fuel consumers in the future? Well, that’s difficult to determine with certainty. Some fuel suppliers are starting to implement a comprehensive national energy policy that addresses both fuel conservation (in other words, reducing demand) and increasing the supply of crude oil and refined products. This includes streamlined permitting for petroleum infrastructure as well as increasing domestic oil production in environmentally responsible manners.

 

Ultimately fuel prices are determined by global supply and demand and the market will always decide the price. Consumers who are finding the fuel hikes problematic, should look for alternatives such as public transport or carpooling. 

 

In the end fuel is a much needed commodity, regardless of the effect on its consumers’ pockets.

 

 

Writtem by Marleen Theunissen

Creative writer for ATKA SA

How to get ready for Tax season

 

 

Every year, tax season seems to come quicker and quicker. As we get busy, preparing for the end of the year, planning holidays and business functions to close out the busy year, many of us tend to forget that Income Tax returns need to be filed. 

 

Dates for 2013 have been set between July 1st and the 22nd of November. The cutoff date at the end of November is strictly for returns through the e-filing system, however, and physical returns will need to be filed by the 27th of September.

 

Because the e-filing system implemented by SARS is so much more accessible, convenient and gives you almost two months extra, it is recommended that you get acquainted with it beforehand. There are a few things to keep in mind, however, whether you’re filing manually or through the SARS E-filing system.

 

Firstly, even though it is something that we all tend to do from time to time, avoid waiting until the last possible moment to file your return. For one, if you get it out of the way early, you will give yourself extra time to focus on other things that may take more time. Filing early also gives you the peace of  mind that you won’t have to deal with any congestion that may arise on the e-filing system from overloading, or face any challenges at the post office if that’s how you’ve chosen to do it.

 

Secondly, make sure to be as accurate and honest on your return as possible. Avoid inflating your expenses, or not declaring all of your income (since this is illegal, and since the implementation of the e-filing system, there has been a huge increase in the number of random audits done every year, as well as the efficiency and accuracy of these audits).

 

To make the process easier for yourself, make sure to keep all relevant documents in one place, so you have easy access to them for reference while you’re filling out your return.

 

 

Written by Marleen Theunissen

Creative writer at ATKA SA

Larger tax burden for South African Mining industry

 

 

At the Mangaung conference hosted by the ANC late last year, early talks of a revised mining tax code began, but didn't surface again until the middle of this year. 

 

In a statement released in July of 2013, Finance Minister Pravin Gordhan announced that documents related to the State Intervention in Mining proposal would be reconsidered as part of a complete tax review that could include revised tax rates for the mining industry.

 

The State Intervention in Mining document has lead to speculation that the ruling party would want the taxation of mining commodities to rise to 50% on all activities. A rate similar to this has been implemented in Australia, being stated as a resource rent, but has been met with a lot of opposition throughout the opposition political parties and members of industries that are being affected.

 

As part of the consideration set into motion by Gordhan, an executive committee will review every aspect of the proposal in order to determine whether or not the current tax rate on the mining industry is enough. 

 

The committee, which will be required to provide interim reports to the Finance Minister while making their decision. The decision will require them to consider factors such as the economic instability faced by South Africa, low commodity prices, declining profit margins, rising costs and commodity shortages.

 

Analysts and tax authorities have advised, however, that a higher tax rate would be crippling to the industry, which remains one of the most vital industries in driving the South African economy. 

 

Current tax systems on the mining industry make use of brackets that allow companies and startups with lower profit margins to pay less tax on the use of the commodities than those with higher profit margin, while a set tax rate across the board would mean even more of an unequal balance and causing potential startups in the industry to have to fight an even steeper battle to be sustainable.

 

More information on the revision of the mining tax laws will become available over the next few months, while a more solid decision should be expected during the 2014 State of the Union address in parliament.

 

 

Written by Wesley Geyer

Creative writer at ATKA SA

Fuel Prices

As a country we hang our heads in defiance when hearing another announcement of a fuel price hike. Over the last ten years the price of petrol per litre has more than tripled. 

 

Let’s look at fuel prices over the past few years and also discuss some factors that contribute to the consistent rise of fuel prices.

 

 

 

The above image (sourced from www.cars.co.za) may be no news to you. In 2003 South Africans had to pay R4.00 for a litre of petrol. This sound unrealistic in comparison to what consumers must pay now. On average, the petrol price gains nearly a rand a year, although the jumps in the prices have been erratic. Between 2003 and 2013 the petrol price was pushed up with a whopping 339%!

 

The year between August 2008 and August 2009 have seen a drop of nearly R2,50 per litre – a welcome reprieve for consumers in South Africa. But the last 4 years has seen the price nearly doubled.

 

This leads us to ask the question – why do fuel prices rise and fall constantly? What factors determine the cost of filling up my car? In the long term the biggest factor influencing fuel prices is the cost of crude oil. 

 

In the marketplace however, factors include forces of supply and demand and also competition.

 

Figures released in July of this year indicate that nearly 28% of fuel costs are attributed to taxes. This means that R3,69 of the R13,23 per litre goes to tax. Other factors that influence the fuel price are local market conditions such as supply, demand, competition and government regulations.

 

In the short term supply and demand imbalances will definitely affect prices. Supply shortages due to whatever reason (including transport and worker strikes) will typically cause an upward price pressure. Length of supply, where supply exceeds demand, can result in a downward price pressure.

 

Due to the fact that our oil is  mostly imported, foreign exchange and geographical location play an important role in determining the fuel price. Consumers who live in coastal areas will typically pay a lower price due to the fact that they bypass the costs of transporting fuel inland.

 

So what awaits fuel consumers in the future? Well, that’s difficult to determine with certainty. Some fuel suppliers are starting to implement a comprehensive national energy policy that addresses both fuel conservation (in other words, reducing demand) and increasing the supply of crude oil and refined products. This includes streamlined permitting for petroleum infrastructure as well as increasing domestic oil production in environmentally responsible manners.

 

Ultimately fuel prices are determined by global supply and demand and the market will always decide the price. Consumers who are finding the fuel hikes problematic, should look for alternatives such as public transport or carpooling. 

 

In the end fuel is a much needed commodity, regardless of the effect on its consumers’ pockets.

 

 

Written By: Marleen Theunissen

Creative Writer for ATKA SA

 

Enzo Van Vuuren’s quest to save the Rhino!

 

 

In 2011 Enzo Van Vuuren, at the age of 48, began a 6000km journey around South Africa as part of a fundraising and awareness campaign focused on the Youth of South Africa, as well as promoting healthy living and educating the country on the health benefits of clean water.

 

Van Vuuren, as a member of Heal The World, has now decided to dedicate the last 4000km of his journey to the cause of the Rhinoceros, an animal that has recently been under major threat from poaching and the illegal trade of horns.

 

 

Van Vurren’s Rhino Challenge began at the end of 2012 with the support of many organizations around the country, including The Little Logbook – makers of the popular GPS trip-logging device. 

 

The Little Logbook have created a unique device that is being used by Van Vuuren on his journey around the country that will contain the details of his distances and route as he makes his way around the country promoting his cause.

 

The Little Logbook, also dedicated to the plight of the Rhino, has teamed up with the Rhino Orphanage, situated at the Legend Golf and Safari Resort in the Limpopo Province, by introducing the ‘Rhino Promotional Code’.

 

Any purchase of a Little Logbook product from the company’s website entering the voucher code ‘Rhino’, will allow the Little Logbook to pledge R100 of the purchase to the Rhino Orphanage!

 

 

By Wesley Geyer

ATKA SA

Little Logbook and the Rhino Orphanage

 

The Rhino Orphanage is the first specialist; dedicated non-commercial Centre to care for baby rhinos orphaned by the shocking trade in poached rhino horns. 

 

The orphanage will be housed on the renowned Legend Golf and Safari Resort in the Limpopo Province. The Rhino Orphanage was founded after a successful R4 million campaign funded by major organizations dedicated to fighting the impact of poaching of the species of Rhino around the world (more than 90% of which are found in South Africa).

 

The Little Logbook – the creators of one of the most popular GPS-based trip logging system – has teamed up with the Rhino Orphanage to raise money for the cause. 

 

The Little Logbook has introduced the Rhino Discount Code, a promotional code that can be used when purchasing their products from their website. Once the code is entered and the product is purchased, Little Logbook will donate R100 from the purchase to the Rhino Orphanage.

 

The Orphanage and its partners are dedicated to the fight against the poaching of Rhino and the illegal trade of horns. The orphanage, situated at the Wildlife and Cultural Centre in the Legend Golf and Safari Resort, currently cares for four orphaned Rhino calves that have been affected by the widespread poaching epidemic.

 

For more information on how you can support this venture and help prevent further damage to the Rhino population, visit the Rhino Orphanage website for contact information and details on the program.

 

 

Written by: Wesley Geyer

Creative writer at ATKA SA

Little LogBook | Illegal Racing And Alternatives In South Africa

 

It has been two years since South African Hip-Hop artist ‘Jub Jub’ was convicted of murder and sentenced to 25 years in prison for killing four school children, during an illegal drag race in Soweto, Johannesburg.

The high-profile trial shed light on the prevalence of Illegal Street racing happening all over South Africa.The un-sanctioned racing scene, whether it’s worldwide or local, has become frustrated over the years, as it claims that their events are only classified illegal because they do not have proper licensing required to hold such events. 

Many have said that their events are no more dangerous than races and exhibitions held at sanctioned motorways and during sanctioned street racing events. 

However, investigations into the legitimacy of these events have uncovered conditions that make them explicitly dangerous for a number of reasons, including a lack of barriers or sufficient space between where the races take place and where the crowds are allowed to gather; a lack of or no systematic regulation of vehicle safety and in most cases, a complete lack of rules outside of the ‘first to cross the line wins’.

If one were to look at the other side of the spectrum, in Gauteng alone, there are a number of legal racetracks that are available for public entry, such as Tarlton Racetrack; Swartkops and other private courses, which drivers wanting to try their hand at racing can go with their car’s and race under the watchful eye of trained professionals. 

The driver’s will also race without worrying about interference from the authorities. Many race tracks have even set up courses suited to the more ‘street’ oriented events, such as drifting, spinning and the like; so there is really no legitimate difference between the levels of events happening legally versus those in the unsanctioned circles.

 

Little LogBook | Understanding Taxes

Every time there is a budget speech, some sort of tax code reform, or even just talk of taxes in the media, there tends to be a wave of articles written by newspapers, magazine and online media highlighting what has been happening.

The problem is though, that any talk of taxes, reforms, budgets and the like tend to be written and explained by industry professionals, aimed at industry professionals, and occasionally simplified enough that students and junior members of the tax industry can understand.

 

This article will at least attempt to make the seemingly foreign language that is taxation a bit more understandable to the general public, as we are ultimately affected by the decisions made in that regard.

 

As much as Tax is an economic phenomenon, in that it allows for stable growth of a country’s infrastructure, budget and overall wealth, it is also a highly political field, due to the nature of the tax system. Tax is meant to take money from individuals and businesses in society in order or spend that money for the common good, and ultimately to benefit the poorer members of society by providing them with services and basic goods that they cannot afford.

 

As a result of this system, tax is seen as ‘progressive’, which means that the more money you earn, the more of your income is taken as tax. Because of this, especially in South Africa, which has a relatively poor tax turnover rate (the number of active taxpayers versus overall population), the top 5% of taxpayers (those earning over R250 000 per annum) are responsible for over 40% of the total tax income of the country. 

 

 

 

Over the years, the South African government have gradually made provisions in the tax laws to stop taxpayers from doing what is known as ‘tax avoidance’, which is perfectly legal, and is done by dedicating a percentage of your salary to non-taxable items. As a result the tax payers needing to pay less tax at the end of the fiscal year.

An interesting effect of the progressive nature of tax is the fact that anyone earning over a certain amount will fall into the top tax bracket of 40% (earning over R638 601 per annum), effectively only pay around 28-30% tax on average, because of how any money above that number is taxed as a percentage on its own. For example, if you earn R700 000 per annum, you will be taxed 38% (or R185 205) on the R638 600, then another 40% (or R24560) on the extra R61 400 over and above that, giving you a lower total tax payment of R209 765 (only 29.9% of the total)  than R280 000 you would have paid if taxed at 40% on the whole amount.

Another significant part of the tax laws is what is known as ‘fiscal drag’, which happens when tax rates are not adjusted to fit with inflation, causing many people to be bumped up into higher tax brackets even though they are not earning enough to comfortably afford it.

 

Value Added Tax (VAT) is a system of taxation that is, at face value much simpler and easier to implement than Income Tax, as it is a uniform percentage added on to products nationwide. The problem, however, is that it is known as ‘regressive’ instead of progressive, because the richer classes (or tax brackets) pay exactly the same amount of VAT as those in lower brackets. Once the VAT is increased, it affects the poorer members of society much more than it does the rich. This is mainly why there has been vehement opposition to the idea of raising the VAT rate (which is 14% in South Africa).

One should also be careful when it comes to the way that the government talks about tax. It may be that there is a cut in taxes on the horizon, but at what price? Most commonly, Income Tax reductions are accompanied by increases in other types of tax such as Petrol Tax, the newly instated CO2 emissions tax and taxes on items such as alcohol, cigarettes, tobacco and at times even import tax.

Tax Invoice Special Cases

 

1.    Second-hand goods

 

 

The general rule is that a vendor must hand in tax invoices before being allowed to claim any tax, but there are a few exceptions.  If a vendor purchases second-hand goods from a non-vendor, the vendor needs to record the following transaction details:

 

•    Name, address and ID number of the supplier (verify ID number with ID book)



•    Transaction date



•    Quantity or volume of goods



•    Description of goods



•    Supplier’s declaration that the supply is not taxable



•    If the value of the goods amount to R1000 or more, the vendor must keep a copy of the supplier’s ID.



 

2.    Repossession of Goods



 

When goods are repossessed that are still under an instalment credit agreement, the following applies:

 

•    If the goods are repossessed from a vendor, the person responsible for the repossession must create a tax invoice for the debtor



•    If the goods are repossessed from a non-vendor, the person responsible for the repossession must keep all details as per point 1 (Second-hand goods)

 



3.    Other cases



 

•    For purchase prices less than R50, no tax invoice is required



•    If the Commissioner is satisfied with the records, permission may be granted for tax invoices to not be issued should it appear impractical



•    Supporting documentation to claim VAT on goods imported is a bill of entry accompanied by a proof of payment.



•    IF an agent holds the tax invoices, the schedule from the agent must be held.



 

4.    Electronic Tax Invoices

 

 

The requirements for electronic tax invoices are as follows:

 

•    The arrangement applies to tax invoices and debit or credit notes



•    Recipients must confirm in writing that they wish to receive electronic invoices



•    These invoices must be encrypted with atleast 128 bit encryption.



•    All electronic invoices must be kept for a period of 5 years, also when a service provider is used



•    If the electronic copy is printed, it must bear the words “Computer generated copy tax invoice”



 

5.    Lost or Misplaced Tax Invoices



 

If a tax invoice is lost, you may not request another from the supplier, unless it is clearly marked as a copy.

If faxed, the tax invoice must be printed by a plain paper facsimile machine.



 

6.    Alternatives to Tax Invoices



 

When applying for an alternative to a tax invoice the following requirements must be met:



•    Sufficient records must be available to establish the particulars of the supply



•    It must be proven that it is impractical to provide a tax invoice

If the following criteria are met, it will not be necessary to obtain a ruling regarding the issuing of tax invoices:



•    The transaction must include a number of taxable supplies by a registered vendor with a written contract in place, stating the supplier’s name, address and VAT registration



•    The recipient must have a copy of such contract



•    The recipient must retain proof of payment i.e paid cheques or bank statements



 

7.    Tax Invoices for mixed supplies



 

A full tax invoice must be issued if the supply is zero-rated. If the supply is exempted from VAT, no tax invoice is to be issued. If various supplies are made by the same supplier and the supply is treated individually for VAT purposes, the tax invoice must clearly distinguish between the differences plus the tax charged on each supply.



 

8.    Tax Invoices prepared by the recipient



 

In the case where a supplier takes produce to the vendor that will only be sold at a later stage and the price obtained for the goods depends on factors outside the control of the supplier, SARS may permit the recipient to issue a tax invoice for the supply.  The vendor must have written authorization from SARS before applying this, providing the following details:

 

•    Description of the nature of the businesses of both the supplier and the recipient



•    Full description of transactions



•    Existing invoicing procedures currently being followed



•    An undertaking by the recipient to comply with all administrative requirements.



 

9.    Agents and Auctioneers



 

The VAT on transactions concerned must be accounted for by the principal, seeing as an agent merely acts on behalf of the principal.  However, should an agent make a supply on behalf of another vendor, the agent may issue a tax invoice reflection its details.

 

If an agent receives a supply on behalf of a principal, the agent’s details are to reflect on the tax invoice and the principal may claim input tax only if he/she is in possession of the tax invoice.

 

An agent may ask for a tax invoice if a vendor makes a supply to the agent.  The agent must in all above-mentioned cases maintain sufficient records and notify its principal in writing of the following:

 

•    Description of goods supplied and



•    Quantity or volume of goods supplied and



•    Value of the supply, tax charged and consideration for the supply OR



•    Statement including a charge in respect of tax and the rate of the tax charged.

 

Bike Week in South Africa

In various parts of the world, many countries actively participate in a social experiment that has been recognized, in some form or another, as Bike Week (usually falling within Bike Month). The idea behind it is to emphasize the importance and utility of the bicycle as a legitimate form of transport, as a way to cut down on harmful emissions, avoid congestion on the roads and promote a healthy and convenient form of exercise for everyone involved.

 

The idea of Bike Week has become popular in many cities around the world, throughout mainland Europe, the UK, the United States and Canada (with cities such as Boston, Pasadena, Vancouver and Toronto being some of the largest annual participants). However, the practicality of Bike Week is bound to still fall short of the mark in South Africa, even in the larger cities.

 

In South Africa, it is not uncommon to find that many people live 20, 30 or even 40km away from their place of work, which makes the thought of manually pedaling a bicycle all that way on a round trip a daunting (not to mention time consuming) task.

 

Apart from the distance that faces South Africans during their every day commute, there is also a significant danger factor involved for a number of reasons, such as high crime rates, hazardous road conditions, and an overall tendency of motorists to not take cyclists into account when using the roads.

 

Maybe, over time, South Africans will realize the importance of cutting down on emissions and giving themselves an easier commute, but until conditions improve in many ways, Bike Week may just be a novel idea that only a handful of people participate in.

What does the Tax Administration Act mean for you?

In the last quarter of 2012, a new act was added to the already heavily loaded tax laws in South Africa. The Tax Administration Act, implemented in October 2012 (after being proglumated in July 2011, and later amended in December 2012) gives more control to SARS in terms of effecting penalties, not only for late submission, which has been the norm for many years, but for a variety of other issues that might arise with any one individual tax return.

 

In the past, that is, the days before the Tax Administration Act, SARS had the ability to impose fines of up to 200% on taxpayers due to under-paying, major mistakes or outright failure to submit. In most cases, however, these fees were waived if the mistakes could be proven to have been committed unintentionally. Mostly, the only fines that would be dealt out by SARS were late fees, expect of course in serious cases of fraud and/or negligence.

 

Under the TAA, however, the increments of payment fines has been set out according to a fixed system based on two major factors: taxpayer behavior and severity of the act (the act being failure to comply with SARS policies in any number of ways.

 

For instance, in a standard case (a case involving a first time offender) who has ‘ substantially understated’ the values on their tax returns will be charged a 25% fine. A repeat offender of the same offence will pay 50%. Also, if the taxpayer in question fully and voluntarily discloses all information after being called for an audit, the fine will be reduced to 5%, and if they disclose fully before being called for an audit, the fine will be reduced to 100%.

 

This example is of a simple case of under calculating values on the tax forms, and there are various other offences that are affected by the TAA changes, many of which are more serious, but in most cases, the reduction in fines for voluntary disclosure before and after the audit process will stand (at least partially).

 

The point is this: simply do everything in your power to ensure that your SARS tax forms are filled out correctly and promptly. After all, since there is no fixed method of selecting targets for the SARS audits, you will always run the risk of incurring penalties if you do not comply fully.

 

While the TAA has tightened SARS’ grip on the South African tax industry, if for some reason you do happen to make a mistake or involuntarily slip up, the Act does allow for disclosure and grace periods that will stop you from being fined too harshly.

 

Written By: Wesley Geyer

Creative Writer for ATKA SA

SARS AND ITS NEW POWERS

With recent effect the Tax Administration Act (TAA), allows SARS to “search and seize” without first obtaining a court warrant. This enables the taxman to act immediately in order to stop tax evaders from hiding or destroys records or evidence during the period of delay that would normally precede the issue of a court warrant.

 

This is great news for SARS in its fight against tax evasion, but what about our constitutional rights to privacy and fair administrative action? Thus limitations do apply and a warrantless search is only permitted if -

 

1. The owner or person in control of the premises consents in writing to the search; or

 

2. If no consent is given, if a senior SARS official “on reasonable grounds” is satisfied that:

 

- There may be an imminent removal or destruction of relevant material likely to be found on the premises,

 

- SARS would have obtained a warrant had it applied for one, and

 

- The delay in obtaining a warrant would defeat the object of the search and seizure.

 

Even if you are totally innocent of any wrong-doing, to have a team of SARS officials arriving unannounced on your doorstep is always going to be stressful, apart from the fact that it results in disruption to your business activities. So what do you do if it happens?

1. First check the officials’ SARS I.D. cards. These I.D. cards are a requirement of the TAA. And if you have any doubt as to the genuineness of any card, phone 012-4227435 to check.

 

2. Then call in legal assistance immediately - you must of course co-operate with lawful requests made of you, but the TAA also gives you many rights and safeguards, and you are entitled to urgent access to the courts to enforce them if need be.

 

What Makes Little Logbook Unique?

Although many will agree that Little LogBook is an excellent product, a few have asked what makes it unique in a market where there are other alternatives.

 

Firstly, Little LogBook is a true pioneer in that although the concept may have existed overseas, Little LogBook was the first of its kind on South African soil. While everyone was still talking about keeping a logbook with paper and pen, Little LogBook was pioneering the concept of doing it the convenient and easy with GPS technology.

 

On top of being first, it is also a bone fide South African product that is 100% designed and supported right here in South Africa. No country is the same, so what this means for you is that Little LogBook was designed with YOU in mind – for South Africans by South Africans. And if you need help or support on your Little LogBook, you can speak directly to the people that made it - hassle free!

 

Although the product has been around for a few years now, Little LogBook has stayed abreast with the latest developments, from improvements in GPS technology from AGPS to SAGPS, and updates on Google and other mapping programs. We are always improving and adapting the hardware and software to meet our client’s needs.

 

Little LogBook is a beacon of South African ingenuity and innovation. It has truly transformed how we do business and taken away much of the stress and hassle related to filling in our log books for your tax returns.

 

 

Where are all my taxes going - a summary of the 2013 National Budget.

How PravinGordhan plans to allocate funds to the nation

 



Tax incentives for youth jobs

 

Tax incentives to employ young people and for people employed in the special economic zones (SEZs) are on the cards.

 



R7bn tax relief for individuals

 

Individuals will benefit from R7 billion in personal income tax relief, together with adjustments to the medical tax credit and other monetary thresholds amounting to about R350 million.

 



Individual tax payers will start paying tax at an annual income of R67 111 (R63 556 last year) for people below 65, R104 611 (R99 056) for persons 65 to 74 and R117 111 (R110 889) for persons over 75.

 



Individuals whose taxable income is only from a single employer and does not exceed R250 000 for the 2012/13 tax year are not required to submit tax returns.

 



Crime fighting - budget sends police back to basics

 

Gordhan announced that the bulk of the police department's budget (R67.9 billion in 2013/14, rising to R75.8 billion by 2015/16 ) will go towards visible policing at police stations, in an effort to drive down crime rates.

 



Sin taxes, fuel levies up

 

Beer drinkers will pay 7 cents more for a 340ml can. A bottle of wine will cost 15 cents more, while the price of ciders and alcoholic fruit beverages is set to rise seven cents a litre.A 750ml bottle of spirits will cost R3.60 more from April 1.

 



Health gets R133bn budget

 

Of this, R48.8 billion is for district, R26.4 billion for provincial, and R18.9 billion for central health services.

 



Over 400,000 houses to be delivered

 

Transfers of funds would be made to provinces and municipalities through grants to accelerate the delivery of such housing and basic services to households.

 



New tax proposals on retirement funds

 

Individuals would be allowed to deduct up to 27.5 percent of the higher of taxable income or employment income, for contributions to pension, provident and retirement annuity funds.

 



Education gets R200bn

 

A total of R232.5 billion has been set aside for the departments of basic education, higher education and training, and arts and culture.

 



The breakdown in spending for the 2013/14 financial year will be:

 



-- R164bn for basic education;

 

-- R28.7bn for tertiary education;

 

-- R20.1bn for vocational and continuing education;

 

-- R10.6bn for education administration; and

 

-- R9.1bn for recreation and culture.

 



Over 600k households to be electrified

 

R5.7 billion over the next three years will be used on infrastructure to ensure 645,000 households are connected to the electricity grid over this period.

 



Agriculture - focus on smallholder farmers

 

It would spend in excess of R6 billion over the medium term on conditional grants to provinces, to support 435,000 subsistence farmers and 54,500 smallholder producers.

 



Labour unrest leads to weak output growth

 

The total value of losses in mining production due to the crippling 2012 strikes has exceeded the R15 billion mark, the National Treasury estimates.

According to the 2013/14 budget review document, copper production fell by 21.8 percent, gold by 14.5 percent, and platinum by 12 percent.

 



Gordhan gives Sanral, Prasa more money

 

The Passenger Rail Agency of South Africa will get roughly R5 billion over the next three years to fund plans to renew its fleet.

 



SAA, SABC could see restructuring

 

State-owned enterprises (SOEs) that are bleeding money could see some restructuring



Programme aims to create 3.7m jobs

 

"The department (of public works) has re-prioritised R248 million over the MTEF (medium-term expenditure framework) period from transfers to provinces and municipalities to... the non-state sector as follows: R80.2 million in 2013/14, R87.7 million in 2014/15, and R79.7 million in 2015/16."

 



Gordhan mum on mining taxes

 

Finance Minister PravinGordhan stressed that mining was a cornerstone of the South African economy, and refused to comment on the rumoured increase in mining taxes.

 



Decrease in US Aids funding

 

R100m had been allocated in 2014/15 and R384 million in 2015/2016 to partly offset the decreases of the contribution that came from the US President's Emergency Plan for Aids Relief programme

 



No NHI tax expected in medium term

 

It is unlikely that tax will be increased in the medium term to fund the National Health Insurance (NHI) scheme

 



Business confidence growing. Plans for construction and refurbishment

 

Plans by business included construction and refurbishment by a company in the hospitality sector of R2.5 billion in the next 18 months, and expansion of R3 billion in the pipeline.

 



There were two telecommunications investments amounting to R14 billion this year, and capital spending of R3.4 billion over the next three years by a rail and logistics operator.

 



Also, a R2.5 billion expansion and longer-term plans of R15 billion in mining projects, and investment of R1.4 billion this year by a leading retailer, and plans to open 100 new stores by another.

 



KZN gets bigger budget transfer

 

The province would receive R88 billion for 2013/14, followed by Gauteng with R76.9bn and the Eastern Cape with R59.6bn.

 



Limpopo receives R48.5bn, the Western Cape R41.7bn, Mpumalanga R33bn and the North-West R27.7bn.

 



R6.5billion extra for water affairs

 

An additional R6.5 billion is set to flow into water affairs' coffers over the next three years

 



Gordhan warns against tax avoidance

 

We owe it to our taxpayers to ensure they are not carrying the burden of those who benefit from our country's infrastructure and resources without paying their fair share of the costs

 

What can I claim for on my Tax return?

Tax return season is never the most exciting time. Not only do we have to sort through endless amounts of paperwork (because chances are, some of us forget that deadlines are coming up), but we have to actually do tax returns. However, many people often forget that there are a number of expenses that are incurred throughout the tax year that make you eligible to claim money back from SARS.

 



While these claims don’t necessarily always add up to a significant amount, they can easily help in terms of keeping expenses as low as possible. Some of these refundable expenses are contingent on aspects such as employment, medical aid participation or working hours.

 



For example, you are eligible for a refund on taxes paid on items such as medication and medical supplies purchased through registered pharmacy outlets, taxes paid on medical aid payments (either through your employer or privately), travelling allowances (depending on your agreement with your employer and the stipulations set forth in the tax code) and various other contributions made by you through tax.

 



Casual workers who earn less than a certain amount per year (R57 000) can claim back the amount contributed on their behalf, as any earnings under a certain threshold are non-deductible.

 

Are All Young Drivers Really Bad Motorists?

During the last festive season, as is the case every year around the same time, both provincial and national government begin working toward clamping down on reckless, negligent and drunken driving. A recent interview with an Arrive Alive spokesperson conducted by the New Age newspaper stated that young drivers seem to be at the forefront of the reckless behavior that is exhibited, not only during these times, but year-round.

 

Spokesperson, Tshepo Machaea, cited statistics in an interview with the newspaper, and claimed that   whenever roadblocks are conducted, the majority of offenders would tend to be young drivers either driving under the influence or without a legal drivers’ license. The figures given are, of course troubling, if we factor in the number of annual deaths caused by negligent and reckless driving. The idea of these deaths being caused by inexperienced and reckless youngsters with little to no experience on the road, or even without the right to actually be operating the vehicle should be addressed as quickly as possible.

 

While it is not necessarily a guaranteed fail safe, one way that such negligence could be curbed is by installing some kind of drivers’ education system into the high school phase of education, the time when children are most likely to be preparing to obtain their licenses. This will give schools and governments the ability to monitor driving ability more closely, while educating possible future drivers in safety and responsibility.

 

On the other hand, it does seem a little bit unfair to state outright that by being a young, inexperienced driver that one will be more likely to cause an accident, or to drive under the influence of alcohol or narcotics. While it may seem like the evidence points to this conclusion, the question of whether or not these practices are carried over into later life should be asked. It seems to not be a case of the younger generation being less responsible than the previous, but simply a case of younger drivers being more prominently assumed to be risks in the eyes of authorities.

 

Clamping down on negligent and reckless driving across the board, regardless of the perpetrator’s age and driving experience should provide at least one step closer to the goal of reducing death and accidents on the roads.

Types of Tax in South Africa

 

 

The South African tax system has been subjected to a fair amount of public scrutiny in recent months due to various issues within the political framework of the country. It should also be noted that while the tax laws are applicable to all residents of South Africa, there is still a lot of confusion at a grassroots level about how it works. The following is a brief explanation of the types of tax applicable to South African residents and how they apply to certain persons:

 

Income tax

 

Income tax is imposed on a resident’s worldwide income, at the following rates:

 

Individuals and special trusts are taxed at graduated rates, up to a maximum of 40%, companies and corporations at 29%, and trusts and 40%.

 

Interest received by a non-resident is tax-exempt provided the individual is physically absent from South Africa for at least 183 days and does not carry on business in South Africa during the year of assessment. Interest received by or accrued to any company managed or controlled outside South Africa is tax-exempt unless such company carries on business in South Africa (such as branches of foreign companies). Dividends received by non-residents are tax-exempt. Royalties that are subject to Double Tax Agreements and paid to non-residents are subject to a final withholding tax of 12% (Residents require the approval of the Department of Trade and Industry and Exchange Control for payments of a royalty to a non-resident). Non-residents are taxed on South African source income.

 

Capital gains tax

 

Capital gains tax is imposed on a resident’s worldwide assets at the following maximum effective rates:

 

Individuals and special trusts at a rate of 10%, companies and corporations at 14.5% and trusts at 20%.

 

Generally, a primary residence up to a value of R1 million is excluded. The rate applicable to trusts may be reduced to that applicable to individuals by distributing capital gains to individual beneficiaries. Capital gains tax, triggered on disposal of an asset, applies to a non-resident’s immovable property or assets of a permanent establishment in South Africa.

 

Donations tax

 

Generally, donations tax is levied at a rate of 20% on the value of any property disposed gratuitously by a South African resident or domestic company or domestic corporation. Exemptions include donations by a natural person up to R30,000 per annum, property disposed of under and in pursuance of any trust, donations between spouses not separated, and donation of property or a right in property situated outside South Africa if acquired by the donor before becoming resident in South Africa for the first time, or by inheritance or donation from a non-resident.

 

Other

 

Estate duty is levied on estates at a rate of 20%. Exemptions include the first R1,500,000 of the estate and any bequest to a surviving spouse.

 

Secondary tax on companies and corporations is levied at a rate of 12.5% on dividends declared by a company or corporation.

 

 

By Wesley Geyer

Creative Writer at ATKA SA

Oversteer vs. Understeer

 

A lot of car and racing experts often refer to vehicles as being ‘front or rear-wheel drive’, and while these terms seem quite self-explanatory, there are significant differences between them in terms of steering and control.

 

The basic difference between the two types can be explained as a difference between over and understeering. Understeering is an action seen in front wheel drive vehicles. Because these vehicles rely on the front end to both drive and maneuver the vehicle, it becomes more difficult for the wheels to perform both actions at once. In order to avoid understeering, the driver should take his or her foot off of the accelerator pedal to allow the turning mechanisms to take control around corners and shorten the turning arc.

 

Oversteering, on the other hand, happens in rear wheel drive vehicles. The rear wheels only move the car forward, and the front wheels only have to change the car's direction. Oversteering means that the arc is much tighter as the rear of the car tries to 'come around' to the front. Oversteering can be countered by applying more speed, and by turning the wheel in the opposite direction. Lifting off the accelerator during oversteering will cause a weight transfer to the front of the car, reducing grip at the rear, which is not good in a rear wheel drive car.

    

Types of Tax in South Africa

 

The South African tax system in South Africa has been subjected to a fair amount of public scrutiny in recent months due to various issues within the political framework of the country. It should also be noted that while the tax laws are applicable to all residents of South Africa, there is still a lot of confusion at a grassroots level about how it works. The following is a brief explanation of the types of tax applicable to South African residents and how they apply to certain persons:

 

Income tax

 

Income tax is imposed on a resident’s worldwide income, at the following rates:

 

Individuals and special trusts are taxed at graduated rates, up to a maximum of 40%, companies and corporations at 29%, and trusts and 40%.

 

Interest received by a non-resident is tax-exempt provided the individual is physically absent from South Africa for at least 183 days and does not carry on business in South Africa during the year of assessment. Interest received by or accrued to any company managed or controlled outside South Africa is tax-exempt unless such company carries on business in South Africa (such as branches of foreign companies). Dividends received by non-residents are tax-exempt. Royalties that are subject to Double Tax Agreements and paid to non-residents are subject to a final withholding tax of 12% (Residents require the approval of the Department of Trade and Industry and Exchange Control for payments of a royalty to a non-resident). Non-residents are taxed on South African source income.

 

Capital gains tax

 

Capital gains tax is imposed on a resident’s worldwide assets at the following maximum effective rates:

 

Individuals and special trusts at a rate of 10%, companies and corporations at 14.5% and trusts at 20%.

 

Generally, a primary residence up to a value of R1 million is excluded. The rate applicable to trusts may be reduced to that applicable to individuals by distributing capital gains to individual beneficiaries. Capital gains tax, triggered on disposal of an asset, applies to a non-resident’s immovable property or assets of a permanent establishment in South Africa.

 

Donations tax

 

Generally, donations tax is levied at a rate of 20% on the value of any property disposed gratuitously by a South African resident or domestic company or domestic corporation. Exemptions include donations by a natural person up to R30,000 per annum, property disposed of under and in pursuance of any trust, donations between spouses not separated, and donation of property or a right in property situated outside South Africa if acquired by the donor before becoming resident in South Africa for the first time, or by inheritance or donation from a non-resident.

 

Other

 

Estate duty is levied on estates at a rate of 20%. Exemptions include the first R1,500,000 of the estate and any bequest to a surviving spouse.

 

Secondary tax on companies and corporations is levied at a rate of 12.5% on dividends declared by a company or corporation.

 

 

By Wesley Geyer

Creative Writer at ATKA SA

Six Tips To Make Sure Your Tax Affairs Are In Order

As a taxpayer, even a simple error might lead to severe penalties. Your best option to prevent this from happening, is to clean up house. 

Take a look at  the following six steps – they are guaranteed to help you keep your name clear!



1. Have all the aspects of your tax affairs reviewed by a tax practitioner – this includes income tax, employee's tax, VAT, everything. This process will help you to see which areas are at risk and also show you the seriousness of it, which will help you decide whether you should consider voluntary disclosure to SARS.

 

2. It is imperative that you keep proper records and keep all the documents that you will need to hand in to SARS.  Don't be shy to spend money on this – going cheap might work out more expensive in the end.

 

3. Make sure you receive proper advice before taking a tax position.  When it is done, it cannot be reversed and you might not have made a properly informed decision.

 

4. Don't set your hopes too high.  Tax is hardly ever fair and SARS allows very few loopholes. Remember, if something sounds too good to be true, it usually is – even your tax position.

 

5. Don't try to cut corners by manipulating estimates and payments according to what you feel is fair. This might lead to possible investigations and payments and is definitely not worth it.

 

6. Make sure you use a tax practitioner that it compliant.  If their affairs aren't in order, chances are they won't put yours in order either.  You are still responsible for what you hand in to SARS, regardless of whether you make use of a tax practitioner.

 

Experience has proven that, no matter how hard you try, some errors might still happen.  It is important to note, though that taxpayers will no longer escape additional tax on their errors under the new TAA.  That is why the use of a tax practitioner is so strongly recommended as it helps the taxpayer limit these errors.

 

The new understatement penalty regime has swung the odds of collecting more tax revenues squarely in favour of SARS and taxpayers must be extra vigilant in their affairs. These measures might seem harsh, but there is value in remembering that SARS retains substantial powers when collecting debt that it is owed.

As the TAA is still very young, it will inevitably make amendments and additions, even while taxpayers and SARS still learn the full effect of the Act.

 

In the meantime, pay close attention to your affairs and don't bend the rules in any aspect of your tax life.

Deadline for Tax Advisers

Tax practitioners who complete tax returns for a fee or provide advice have until July 2013 to find a controlling body if they want to be recognized under the new Tax Administration Act. The Tax practitioner has to be registered with the South African Revenue Service (SARS) by 1 July this year, in terms of the act which came into effect in October 2012.

Those who do not register could face legal action.

This was implemented to shield the taxpayers from unprofessional conduct by the practitioners who could place their funds at a great risk.

There are new regulations to hold the tax practitioner liable for the advice he gives to the tax payer, and also to root out any unreliable practitioners. The regulations requires all tax practitioners to register with controlling bodies such as the Institute for Tax Practitioners (Sait), the South Africa Institute of Professional Accountants (Saica) and the Independent Regulatory Board of Auditors amongst others.

The act also allows the controlling bodies to take disciplinary action against the practitioners who fail to comply with the body’s rules.

The new legislation states that controlling bodies can now enforce minimum qualifications and continuing  educational requirements, ensuring that the public is no longer at the mercy of tax practitioners who are not up to date with the latest developments. Tax payers can now take pride in the fact that their tax advisers meet the minimum industry standard, and undertake in continual professional education and are now subject to a disciplinary code.

Unfortunately highly experienced practitioners may not be able to practice legally unless they comply with the regulations of a controlling body to which they are required to belong.

Saica welcomed the legislation saying that the tax profession should be regulated. “Saica was however not in favor of a statutory regulator that would regulate and provide services to tax practitioners” said Piet Nel, Saica’s project director for tax

An unregulated industry meant spending a great deal of time and energy to correct errors caused by unprofessional conduct of a significant number of tax practitioners, according to Adrian Lackay, SARS spokesperson.  

It is proposed that the regulation of tax practitioners be divided into two phases. The first phase will be the compulsory registration of tax practitioners with a recognized controlling body.



“The second phase will be the establishment of an independent regulatory board for tax practitioners." This will start with a review of the first phase 18 months after its implementation, said Lackay.

Little LogBook – FAQ #7

Who is the main client base for Little LogBook?

 

The Little LogBook GPS Trip Logger is suitable for use by just about anyone. Its purpose is to help users not only efficiently manage their trip data and mileage, but also allows them to create SARS-compliant logbooks for both private and business related purposes.

 

The Little LogBook GPS device is usable anywhere in the world, depending on the country edition purchased. As it uses state-of-the-art GPS tracking technology, the device will work effectively no matter where in the world it is. This allows you to manage your fleets and vehicles from anywhere in the world and use the device to keep track of all costs via the included software.

Little LogBook – FAQ #6

How do I erase data that is already on my device/How do I deal with errors?

 

Managing the data on your Little LogBook device is a simple procedure that is aided by the software provided upon purchase. Once you have used the device for any period of time, by simply connecting it to your PC or laptop and accessing the given software, you can save, copy and delete data from the device itself to make sure you have back-ups of it safely stored on your computer for future reference.

 

If you happen to encounter an error with the data that is stored on the device (i.e. the trip log that has been recorded is faulty due to poor connection with satellites, etc.), you can access those parts and directly delete the incorrect information to ensure that your logged information is as accurate as possible.

Little LogBook – FAQ #5

Why is it important to create a password when registering?

 

Setting up a password secured device allows you, whether you use it for private logging, or fleet management, to keep your personal information from being used in a harmful manner.

 

Having a device record every trip you make may be incredibly useful to you as an individual or business for a variety of reasons, but in the wrong hands could lead to an unwanted situation. Information on your whereabouts and every day routine should be kept private, and by securing your device with a password, you can ensure that only you can access your logged records.

SARS Business mileage logging requirements

With the individual financial year coming to a close in the next month, it is absolutely vital to remember every piece of information that has to be compiled into your SARS tax return before the end of February. This includes, as of quite recently, a mandatory mileage tracking logbook for any person that receives an allowance for business usage of their private cars, or has been given a company car to use for business purposes.



The logging procedure is used to differentiate personal travelling distances from business time in order to determine how much of a tax break an individual should be given (since business mileage adds extra wear to the vehicle, the owner should be compensated for their use of it). The requirements for the SARS compliant logbook are quite detailed, and require accurate recording of all travels both during and after office hours.



For example, every trip that is made must be recorded, along with the reason for the trip, the destination, distance and time. These facts are checked against the odometer readings that are required from the vehicle on the first and last day of every financial year.



GPS tracking has als become popular in areas such as mileage logging that is required by some companies whose employees are frequent travellers. Paper is no longer the easiest way of logging mileage and distances. Electronic logbooks such as those made by The Little Logbook have made the whole process so much easier and don’t require half the effort on your part.



The GPS trip logger simply plugs into your vehicle, and does all of the work for you. It generates detailed trip reports that are compliant with SARS outlines, and can be password protected for your peace of mind.

Little Logbook – FAQ #4

How do I categorize my trips between business and personal?

 

In order to distinguish between business and private trips on your log, you will need to have the accompanying software installed on your PC or laptop. Once your device and all of the recorded trips on it have been synced with the software, right clicking on a specific trip will bring up a drop down menu. In this menu you will be able to distinguish between private and business trips.

 

From this menu, you will also be given the opportunity to qualify the reason for the trip (if the business option is selected) in order to provide a more detailed description of your trip for tax or business related purposes.

 

The Little LogBook also allows you to name certain destinations that appear frequently in your log. This allows you to keep your log as detailed and user-friendly as possible. For instance, if you would like to know how often a vehicle in your fleet makes a trip between your head office and a factory, bring up that destination, and all of the trips in that range will appear.

 

From a business perspective, the Little LogBook will enable you to keep track of all of the costs incurred by your vehicles, as well as maintain accurate route plans and plan efficiency.

Little Logbook – FAQ #2

Where should the device be placed inside the vehicle?

 

As with most GPS technology devices, the Little LogBook makes use of satellite triangulation technology. In order to aquire the optimal connection with the required satellites, the device should be placed and secured (using the provided adhesive attachments) to the dashboard, allowing it to maintain a constant stream of information.

 

While this is noted as the optimal position, you may find that your vehicle’s optimal spot is in another region, or that your travel route requires you to travel between mountains, hills, and tall buildings or through tunnels. In these situations, you should remember to check your device to make sure that it is able to maintain its connection, and adjust its position accordingly.

 

The connection between your device and at least three satellites is required for GPS tracking technology to work. Any obstruction or dense object in the direct path weakens the signal. This means that having a clear view of the sky is the most suitable way to maintain a secure connection.

Little Logbook – FAQ #3

Are there monthly charges/What do you get in the box?

 

Upon purchasing the Little LogBook GPS Trip Logger, you will receive the USB stick, which contains the GPS hardware and will act as your portable trip logger, a software installation disk that contains your PC integration program, an adhesive dashboard strip which allows you to attach the device to your dash to keep it secure, and a quick start manual for easy, on hand instructions.

 

Once you have purchased the device, you will not be liable for any extra fees, such as monthly subscriptions, service fees or update costs. Your device is bought and paid for immediately with a simple once-off purchase.

Little LogBook – FAQ #1

What is Little LogBook and what is the benefit?

 

The Little LogBook is a GPS-enabled mileage-tracking device that can be used in any vehicle. The device makes use of GPS technology to create an automatic digital log of the distances travelled in the vehicle, which can then be loaded onto a computer using the linking software.

 

The Little LogBook is no larger than a flash drive. It uses a minimum of four satellites to log your kilometers as you drive. This information is translated into a SARS-compliant report, using powerful software, fully developed and supported in South Africa.

 

The Little LogBook replaces your traditional analog method of tracking mileage, and allows you to rest easy, knowing that your logbook will be accurate and free of any errors, as the device will do all of the work for you, leaving you more time to worry about the important things.

 

The Little LogBook provides a complete, accurate account of your mileage to be used for tax purposes, and eliminates the threat of fraudulent record keeping.

What is a provisional taxpayer?

The South African Revenue Service, in 2010, made changes to the process that is to be used by ‘Provisional Taxpayers’. The new process includes new IRP6 forms, processes for filing and E-Filing of provisional tax, and requirements.

 

Provisional taxpayers differ from regular taxpayers in that provisional taxpayer status is awarded to anyone that receives an income other than remuneration in the form of a salary or wage. Income such as house rental, investment return, interest returns, etc., all get placed under provisional tax, even if the taxpayer also receives a salary. The Provisional Taxpayer status is automatically assigned to companies.

 

Provisional taxpayers are required to make two payments through the course of the year, with a third payment being optional at the end of the tax year.

 

The calculation of payable tax for each period is as follows (according to the SARS website):

 

• The First Period: (Payable with in the first six months of the year of assessment)

◦ Half of the total tax for the full year;

◦ Less the employees tax deducted for this period (6 months);

◦ Less any allowable foreign tax credits for this period (6 months).  

 

• The Second Period: (No later than the last working day of the year of assessment)

◦ The total estimated tax for the full year;

◦ Less the employees tax paid for the full year;

◦ Less any allowable foreign tax credits for the full year;

◦ Less the amount paid for the first period.

 

• The Third Period (voluntary):

◦ The total tax payable for the full year;

◦ Less the employees tax paid for the full year;

◦ Less any allowable foreign tax credits for the full year;

◦ Less the amount paid for the 1st and 2nd provisional tax periods.