Change in depreciation reports higher profit

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A change in the policy of accounting for depreciation (from written-down-value method to straight-line-method) enabled tyre manufacturer MRF Ltd overcome the impact of high raw material (rubber) prices and rupee depreciation, and report a higher net profit for 2010-11. (The company follows October-September financial year.)

Net profit for 2010-11 stood at Rs 619.42 crore, against Rs 353.98 crore for last year, thanks to the exceptional item of Rs 404.23 crore, representing “excess depreciation of earlier years.”

via Change in depreciation accounting helps MRF report higher profit

Ask Fixed Accounting to change your banking details online

Tax rates around the world: Individual income ...

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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 taxpayersbanking 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

Top tips for filing your 2011 tax return

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Don’t wait until the last day of submission to file your return. In the past the e-filing server could not handle all the traffic on the last day. As a result, many people were unable to submit their returns on time. SARS will not give extended deadlines;

Disclose everything, even the smallest amount of interest. Many people also don’t disclose a lump sum paid out by a pension/provident fund. This will cause SARS to include the taxable amount in the assessment, but disallow the tax deducted from it, which will result in the taxman claiming a large sum of money;

Get your medicalaid claim right. A common error is to not show how many members were on the medical aid during the year. This must be completed to ensure that SARS applies the correct tax break for all members concerned;

When there is a medical-aid code 4005 on your IRP5, you are not allowed to insert your medical contributions again (next to code 4040) in the medical-aid section of the tax return. You must insert a “0” in this column;

It is compulsory to keep a detailed travel logbook to show all the kilometres travelled for work, and make sure it is up to date. It is against the law to prepare a logbook with incorrect figures or to ask someone (even your tax consultant) to compile one for you;

When completing your travel claim, make sure to use either the actual cost method or the travel claim method. When using the travel claim method, do not fill in any actual costs like fuel, maintenance costs or wear and tear. SARS will use the default calculation on the actual costs. In most cases the travel claim method is the most effective way to claim against your travel allowance;

If you have been out of South Africa for more than 183 days, of which 60 days must be consecutive, you are allowed to claim a foreign exemption under section 10(1)(o)(ii).

Initially, SARS will disallow the claim, which will result in an assessment showing a large amount due to SARS. You will have to object to this assessment to claim for the exemption. You also need to submit copies of your passport, employment contract and a breakdown of the days you were out of the country as supporting documents;

via Top tips for filing your 2011 tax return – Business LIVE