Sole proprietor literally means “the only owner”.
A person, a company or a trust can be the proprietor of a business. For example, a company ABC Elastics (Pty) Ltd runs a business called Special Elastic Suppliers. It trades with that name and is is the owner of that business, so it can be termed the proprietor of the business, even the “sole proprietor” of that business.
But usually when we use the term “sole proprietor” we are referring to an individual human (not a company) who owns/runs a business.
In order to establish your Sole Proprietorship in South Africa, kindly follow the following procedure:
- Trade Name Registration – apply to register your t/a (trading as) name
- Tax Registration – apply for an income tax number for yourself (if you do not have one; this same tax number is used for the business because you are/own the business)
Other registrations for your sole proprietorship include:
- VAT Application – register your business for Value-Added Tax (if needed or if 12-month turnover is R1m or more)
- Annual Work – annual financial statements and tax return – after your first period of trading ending 28 February.
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JOHANNESBURG – The South African Revenue Service Sars has uncovered thousands of unregistered high-net worth individuals HNWIs following a year-long investigation and has developed a DNA of these individuals that will allow it to discover thousands more.Its countrywide investigation has uncovered 9 300 HNWIs those earning a gross income of more than R7m per year or who have assets in excess of R75m who could be costing Sars R48bn in revenue, see chart. In a press statement released in April, Sars only had about 360 individuals in this income category registered.
via Moneywebtax – Sars uncovers 1000s of missing rich tax cheats – Income tax
If you are rich and under-declaring, come to Fixed Accounting where we legally help you to pay less tax.
Over the past few years, significant changes have been effected to the provisional tax rules. However, not all provisional taxpayers have kept abreast of these changes. The result? These taxpayers often do not fully understand their tax obligations and end up over-paying or, worse, under-paying their tax and having to fork out significant amounts of cash to pay the South African Revenue Service (SARS) the resultant penalties, additional tax and interest for non-compliance.
This article sets out the more important tax rules of which individual provisional taxpayers should be aware. It also highlights some common pitfalls that are usually overlooked and provides some tax tips.
via Payment pitfalls for provisional taxpayers – Personal Finance Tax | IOL Business
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Banking detail changes will be verified before profiles can be updated.
SA Revenue Services (Sars) has implemented new fraud prevention procedures and processes regarding the way in which taxpayers‘ banking detail changes will be implemented.
From now on, any changes to banking details will be verified before an individual or company banking profile can be updated and if any refunds are due, these will only be processed after the receipt and verification of the new banking details.
The new procedures will improve security and reduce fraud. Banking details can be changed in person at any Sars branch or the change can be made when an individual Income Tax return is submitted. Supporting documents must be provided.
As part of the general Sars encouragement of electronic submissions, banking details can also be changed via the Sars eFiling system when submitting an ITR12 Individual Income Tax return, but Sars may still ask the taxpayer to go to a branch to verify the change.
via Moneywebtax – Sars`s stringent new fraud measures – Income tax
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The South African Revenue Service (SARS) has extensive powers to collect tax. These powers are contained in various tax laws and are intended to facilitate the prompt collection of tax that is due. There have been a number of court cases dealing with the limitations of SARS’ collection powers.
The Western Cape High Court recently gave judgment in a case dealing with SARS’ collections powers. The case related to a judgment obtained by SARS against Fastmould Specialist CC in respect of Value-Added Tax (VAT) and employees’ tax. The VAT Act and the Income Tax Act both contain provisions allowing SARS to obtain judgments against taxpayers by filing a statement with the clerk or registrar of any competent court. The taxpayer is not afforded an opportunity to oppose the granting of the judgment.
via Court affirms SARS’ power to collect tax