BEE and job creation cannot coexist

I’ve just read a piece about the new EDF (Enterprise Development Fund) that will be rolled out under the NEF’s control.

The thing is, yet again, the BEE drum is the one that’s beating the loudest. Essentially, black-owned and managed businesses will be the only ones eligible for this funding.

The way I see it, you can have one or the other. Either you’re committed to job creation, OR you are committed to BEE.

In case you’re wondering why, let me explain.

If job creation is a priority, then any business with a viable plan, that has the potential to create jobs, for anyone in the country, should be a priority. It doesn’t matter, as far as I know, what race the person who is doing the hiring is – it’s the job, and the salary, that matters.

On the other hand, if it’s BEE that is a priority, then government is essentially saying that they don’t care if anyone else can create jobs, because it’s not the jobs themselves that are important, but getting the right colour bums in the managing seats.

Given our huge unemployment problem, it seems like folly to be restricting any enterprise, with the potential of creating jobs, from accessing the assistance they need to do so. I might be wrong, but if a white person can create 10 or 20 jobs, for example, with their business idea, are the jobs not more important than the colour of the entrepreneur?

Our government needs to give us all a straight answer on the BEE / job creation dilemma. Are they more interesting in maintaining the tenderpreneur mentality, or are they interested in real economic reform.

If it’s the former, then it’s business as usual I suppose. However, if it’s the latter, then the policies surrounding small business development definitely need an urgent rethink.

We are an emerging economy. We are a nation crippled by unemployment.

Maybe it’s time that those became the driving factors in policy with regards to business development, rather than the current one, which seems to be: if you’re not black, we don’t want your jobs.

via BEE & job creation cannot coexist: News24: MyNews24: Your Story

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SARS employees might abuse their position

COLIN WOLFSOHN: Look, their whole principle of separating and making our ordinary Tax Act simpler, without these administrative provisions, is very good, no question about it. We understand where SARS is coming from in terms of cases of genuine crooks or people, as we say, like an Enron kind of case. We are concerned on a practical basis though, whether all these provisions…because this Act is written in the basis where everything is perfect and we’ve seen, unfortunately, cases in the past where you might have SARS employees who don’t interpret these legislations pieces totally accurately and, if I can use the wrong wording, might abuse their position. That kind of situation concerns us but hopefully with proper training of SARS officials that things will improve. 

via What the new Tax Administration Bill covers – Tax | Moneyweb

We have had instances where SARS employees have abused their position and unfairly interpreted the VAT Act to the total and unnecessary disadvantage of the taxpayer. Arrogant and unprofessional behaviour like that should never have been allowed to take place. It echoes the harshness and intolerance of Apartheid racism.

Funders welcome proposed tax incentive for angel investors

However, the draft law proposes to open the incentive so that all taxpaying entities can benefit from deductions, and to remove the R750000-a-year threshold for deductions. It also proposes to lift the turnover threshold of those small businesses that can qualify for investments from a venture capital company from R10m to R20m, and from R100m to R300m for a junior mining company. It also proposes to allow investors to take controlling stakes in the qualifying venture capital fund they invest in.

via BusinessDay – Funders welcome proposed tax incentive for angel investors