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Cecil Kilpin | June 2022 Newsletter

By |2022-06-10T11:47:27+02:00Jun 9th, 2022|Business, Environmental, Finance + Economics, Goverment, Newsletter, Tax|

Environmental, Social and Governance (ESG) versus Friedman Doctrine and the SME The Friedman doctrine is a theory advanced by economist Milton Friedman which holds that the social responsibility of a business is to increase its profits. This approach views shareholders as the economic engine of the organization and the only group to which the firm is socially responsible. decide such matters for them. The Friedman doctrine has been very influential in the corporate world. The World Economic Forum, on the other hand is a staunch supporter of ESG which in its simplest form promotes that a corporation exists for benefit of all stakeholders. Stakeholders is a broad term, but from a corporation’s perspective this would include inter alia [...]

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Cecil Kilpin | May 2022 Newsletter

By |2022-05-09T12:07:34+02:00May 9th, 2022|Business, Environmental, Finance + Economics, Goverment, Newsletter, Tax|

StatsSA Releases Latest Producer Price Inflation (PPI) Figures The following producer price inflation (PPI) statistics were published on 28 April by StatsSA, reflecting the inflationary pressures being felt throughout the world. Final Manufactured Goods Annual producer price inflation increased to 11,9% in March 2022, from 10,5% in February 2022. The main contributors were: Coke, petroleum, chemical, rubber and plastic products increased by 26,8% year-on-year and contributed 6,4 percentage points Food products, beverages and tobacco products increased by 7,6% year-on-year and contributed 2,0 percentage points Metals, machinery, equipment and computing equipment increased by 13,0% year-on-year and contributed 1,9 percentage points The month-on-month PPI increased by 2,5%. The main contributors were: Coke, petroleum, chemical, rubber and plastic products, which increased by 6,2% month-on-month and contributed [...]

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Cecil Kilpin | April 2022 Newsletter

By |2022-04-06T09:30:24+02:00Apr 6th, 2022|Business, Environmental, Finance + Economics, Newsletter, Tax|

Restructuring Corporate Income Tax The 2020 Budget announced government’s intention to restructure the corporate income tax system by reducing avoidance opportunities and expanding the tax base, while lowering the headline tax rate. South Africa’s interest limitation rules also need to be better aligned with OECD/G20 recommendations on base erosion and profit shifting. Government proposed restricting the use of assessed losses. The offsetting of the balance of assessed losses brought forward will be limited to 80 per cent of taxable income. This means that companies with an assessed loss balance that matches or exceeds their current‐year taxable income will need to pay tax on 20 per cent of their taxable income. The proposal does not increase companies’ tax liability [...]

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Cecil Kilpin | March 2022 Newsletter

By |2022-03-07T16:13:40+02:00Mar 7th, 2022|Business, Environmental, Finance + Economics, Newsletter, Tax|

2022/2023 Budget Highlights The Minister of finance Enoch Godongwana tabled his Budget review on the 23 rd February 2022. The following were the key tax issues arising. Personal Income Tax: Inflationary relief through a 4.5 percent adjustment in the tax brackets and rebates Employment Tax Incentive: Expanded through a 50 percent increase to a R1 500 per month Fuel & RAF Levies: No change to the general fuel levy or the Road Accident Fund (RAF) levy Excise Duties: Increases of between 4.5 percent and 6.5 percent on alcohol and tobacco Corporate Income Tax: Effective for tax years ending on or after 31 March 2023 the rate is reduced to 27% Disclosure of Wealth: It is proposed that all provisional taxpayers with assets above R50 [...]

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Cecil Kilpin | February 2022 Newsletter

By |2022-02-03T10:01:32+02:00Feb 3rd, 2022|Business, Environmental, Finance + Economics, Newsletter, Tax|

2022 Budget Tips - Make Your Voice Count The Minister of Finance, Mr Enoch Godongwana, will deliver his inaugural National Budget Speech on 23 February 2022. As usual, the budget allocation always aims to strike a balance between competing national spending priorities. It is in this context that Minister Godongwana invites South Africans to share their suggestions on the Budget – what should the government be spending the money on, how to address a large budget deficit, new sources of tax revenues, and other Budget-relevant information. Minister Godongwana looks forward to your contributions. NB: Contributions can be sent through - National Treasury website here: https://bit.ly/3ruszsi Twitter: @TreasuryRSA Facebook: National Treasury RSA with the hashtag #TipsForMinFin and #Budget2022 [...]

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Cecil Kilpin | December 2021 Newsletter

By |2021-12-14T10:34:12+02:00Dec 14th, 2021|Business, Environmental, Finance + Economics, Innovation & I.T, Newsletter, Tax|

A Green Economy In South Africa The South African Department of Forestry, Fisheries and the Environment has defined the green economy in South Africa as “a system of economic activities related to the production, distribution and consumption of goods and services that result in improved human well-being over the long term, while not exposing future generations to significant environmental risks or ecological scarcities. It implies the decoupling of resource use and environmental impacts from economic growth. It is characterized by substantially increased investment in green sectors, supported by enabling policy reforms. The Green Economy refers to two inter-linked developmental outcomes for the South African economy: Growing economic activity (which leads to investment, jobs and competitiveness) in the green industry sector A [...]

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Cecil Kilpin | November 2021 Newsletter

By |2022-01-19T17:03:21+02:00Nov 25th, 2021|Business, Finance + Economics, Goverment, Newsletter, Tax|

Economic Outlook Below is a brief synopsis of the economic outlook as presented at the Medium-Term Budget Policy Statement (MTBPS). The South African economy grew faster than expected in the first half of 2021, but this momentum is expected to wane following public violence in July, port and rail disruptions, and the third wave of COVID-19 infections Real GDP is forecast to grow by 5.1 percent in 2021. Output is expected to return to pre-pandemic levels in 2022, a year earlier than estimated in February. This is largely the result of global demand, higher commodity prices and the easing of COVID-19 lockdown restrictions Household consumption has improved but has not fully recovered from the pandemic. Inflation is contained [...]

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Cecil Kilpin | Setember 2021 Newsletter

By |2022-01-19T17:02:14+02:00Oct 7th, 2021|Business, Finance + Economics, Goverment, Newsletter, Tax|

Medium Term Budget Policy Statement (MTBPS) set for the 4th of November 2021 Newly appointed Minister of Finance, Mr Enoch Godongwana. Will table the MTBPS on the 4th of November at 14h00. The MTBPS sets out the policy framework for the Budget that is presented every February, updates National Treasury's economic forecasts, adjusts the budgets of government departments and makes emergency changes to spending. The minister faces a tough challenge to balance the books. South Africa was facing an uphill battle prior to the pandemic and has pretty much exhausted all avenues of emergency funding to help the man in the street survive. At the recent National Investment Dialogue, the Minister presented a speech titled “Investment Challenges and Opportunities [...]

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Cecil Kilpin | August 2021 Newsletter

By |2022-01-19T16:45:20+02:00Sep 13th, 2021|Business, Finance + Economics, Newsletter, Tax|

Revising Your Estate Plan While one should review their estate plan annually, here are some key events which should ring a bell for an estate planner to revise their estate plan: Divorce  The Wills Act states that except where expressly otherwise provided, a bequest to a divorced spouse will be deemed revoked if the testator dies within three months of the divorce. This provision is to allow a divorced person a period of three months to amend their Will, after the trauma of a divorce. Should he/she fail to amend their Will within three months after their divorce, the deemed revocation rule will fall away, and the divorced spouse will benefit as indicated in the Will In addition, review beneficiary nominations on [...]

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Cecil Kilpin | July 2021 Newsletter

By |2022-01-19T16:46:43+02:00Jul 30th, 2021|Business, Finance + Economics, Goverment, Newsletter, Tax|

SASRIA & Fiscal Budget The South African Special Risks Insurance Association (SASRIA) will form a key part of the intervention to help insured businesses restore their operations. Together with reinsurers, SASRIA has already begun its claim administration process. Pay-outs will be provided to all covered businesses. Crucially, government has decided to provide full financial backing to SASRIA should it exceed its solvency limits. The National Treasury is putting in place the necessary arrangements to ensure that this commitment is met should it be needed. Qualifying uninsured businesses will be supported by the state, partly through a reprioritisation of the existing support mechanisms for Small Medium and Micro Enterprises (SMMEs). The Government is also engaging with relevant stakeholders (NEDLAC, banks, insurance companies and [...]

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