Cybercrime and the Role of Directors.
Directors duties under POPIA, PAIA,the Companies ACT and King IV
- Section 76(3(c) of the Companies ACT codifies the duty of care of a director by stating that he has a duty to perform his duties in good faith, in the best interests of the company and with due care, skill and diligence that would reasonably be expected of a person carrying out the same functions in relation to the company as those carried out by that director, and having the general knowledge skill and experience of that director
- In terms of the business judgement rule, directors are required to take reasonably diligent steps to become informed about POPIA.
- As the Responsible Party (who processes personal information), a company, or its board of directors, is required to appoint and register an Information Officer with the Information Regulator.
- Usually the role of the Information Officer is, by default, assigned to the Chief Executive Officer, Managing Director or an equivalent officer of a company
- Notwithstanding the delegation of authority to the Information Officer or IT Manager (in regard to the protection of cyber security), the board retains overall responsibility over POPIA compliance of the Responsible Party
- The board is required to implement a ‘POPI’ programme to ensure the protection of personal information for their ‘Data Subjects’ (employees, clients, customers, suppliers etc)
- The POPI programme should aim, inter alia, to identify risk areas, develop strategies and policies for POPIA, and ensure the implementation thereof within
- Cyber security and data protection policies are required to be developed and implemented, not only in compliance with POPIA, but in line with Principle 12 of King IV™.
- Section 22 of POPIA imposes a mandatory reporting obligation on the Responsible Party – to report a data breach, in writing, to the Information Regulator, where one has occurred.
South African Reserve Bank Issues Upgraded Banknotes and Coin.
The banknotes continue to pay tribute to South Africa’s first democratically elected president, Nelson Mandela, with his portrait retained on the front of the banknotes while the Big 5 animals are now illustrated as a family on the back. The preamble to the South African Constitution is printed in microtext around Madiba’s portrait and the country’s flag featured on the front and the back of the banknotes. The theme of the coin series is deep ecology, which acknowledges the interconnectedness of living organisms as an integral part of the environment. These themes are depicted by our fauna and flora on the coin.
Banknotes and coin are regularly upgraded in line with international best practice to combat counterfeiting and to stay abreast with technological advancements. In general, banknotes are refreshed in intervals of 6 to 8 years and coin in intervals of 20 to 30 years. In South Africa, the current Mandela banknote series was issued in 2012 and a commemorative series of banknotes was issued in 2018. The current coin series was issued in 1989.
The SARB does not demonetise its currency. All previously issued circulation banknotes and coin can be used as a means of trade together with the upgraded banknotes and coin. All circulation currency maintains its face value.
Supporting Documents for Approval of International Transfers (AIT).
- Relevant material that demonstrates the source of the capital to be invested. For more information regarding the supporting documents required in relation to the source of capital that you have specified on your application, refer to the section below detailing the requirements per source
- Statement of assets and liabilities for the previous three tax years (this should include disclosure of all investments, loan accounts and distributions from local and foreign companies, trusts, etc.)
- Applicable Power of Attorney where the TCS application is submitted by a person other than the taxpayer
Non-Resident Applications:
- Relevant proof that the taxpayer has ceased to be a resident for tax purposes in South Africa, including the date on which the Taxpayer ceased to be a resident is required to be submitted
- Detailed Capital Gains Tax Calculation schedule relating to any tax payable on deemed disposal of assets on the day before the taxpayer ceased to be a tax resident, in accordance to Section 9(H)(2) of the Income Tax Act.
- If, the non- resident application is for a family unit and one or more members of the family unit are registered for tax purposes, they must apply separately to be issued with a TCS Pin
Note: In respect of the withdrawal of retirement funds (lump sum benefits from pension preservation, provident preservation and retirement annuity funds) when South African Residents ceased to be resident for tax purposes in South Africa, payment of lump sum benefits to such individuals shall only be allowed if the individual member has remained non-tax for at least three consecutive years.
In addition to the general supporting documentation listed above, there are a number of specific documents that demonstrate source(s) of the Total Value of International Transfer that must be submitted. Should you require professional advice regarding the above, do not hesitate to contact us.
Tax Implications on the Leasing of Property.
For the Landlord:
- All income received from rental of a property is of a revenue nature and has to be declared as part of a landlord’s gross income.
- Deductions are available, such as: interest on bond repayments, repairs and maintenance, municipal rates and taxes, letting agent’s fees (if applicable), and expenses not recovered from the tenant, such as security, utilities or garden services. In the case of a sectional title scheme, the levy is also deductible
- In order for the deductions to be allowed the expenditure must have been actually incurred in the production of income and not be of a capital nature. The landlord must effectively be able to satisfy SARS that he is carrying on a bona fide trade through the rental of his property
- The cost of improvements, reconstructions or additions to the property cannot be deducted, as these expenses are of a capital nature. Improvements made to leasehold property in terms of a lease agreement by the tenant must be included in the income of the landlord. Either the stipulated amount or a fair and reasonable value will be included. There may be relief available for the landlord, in terms of Section 11(h) of the Income Tax Act
For the Tenant:
- The tenant can claim the rental expense as a deduction for tax purposes if the rental payment or expenditure was actually incurred in the production of income
- If improvements are made to leasehold property in terms of a lease agreement by the tenant, these must be included in the income of the landlord. Either the stipulated amount or a fair and reasonable value will be included
- The tenant may deduct such expenditure over the period of the lease. The landlord may be entitled to discount the value of the improvements over the period of the lease or 25 years, whichever is the shorter
Sincerely,
