ampersand

1st QUARTER 2005

NEWS, VIEWS ATTITUDES OF A 21ST CENTURY FIRM

NEW PLACE. SAME FACES.

Cameron & Prentice has finally burst at the seams and moved to bigger and better premises.

Situated in the hub of Pinelands, our “new” home Despite our move to bigger and better things, the
has been refurbished to accommodate our same fresh faces of Cameron & Prentice continue
expanding staff and business needs. The space is to keep the cogs turning. Making sure our clients

open, inviting and has been designed to allow an feel right at home.

easy and accessible work flow.

Complete with five client meeting rooms we

expect and hope we'll be seeing more of our
clients in the months ahead.

WHAT'S IN

NEW CORPORATE IDENTITY

Tell us what you think.

MAKE A PLAN
Smart estate planning is essential.

AUDIT CHECKLIST
Why it makes cents to have one.

RISING STARS
New recruits you just might be
seeing more of.

GAINING GROUND
Just another point you should know
about capital gains.

We're up running: www.campren.co.za

www.campren.co.za t: 021 530 8444 f: 021 531 6600 info@campren.co.za
 LOOKING GOOD
A new year. A new corporate identity. A new approach to
Cameron & Prentice communication. Get ready, because
you’re going to hear a lot more about Cameron & Prentice.

It’s taken time and a lot of clear service to our clients. We want to
ED’S DESK strategic thinking, but Cameron & improve on that and ensure our
Prentice is well on track and uniquely clients, staff and suppliers are always
Welcome to your first read of positioned in the market as a 21st in touch with what’s happening at
Ampersand. Some of you are century accounting firm that has Cameron & Prentice. And always in
definitely scratching your head and been built on the foundations touch with what’s happening on a
trying to work out the rather odd of experience, integrity and day-today basis in the industry.
name of our newsletter. It’s quite commitment. Three words In fact, you’ll notice our new
simple really. Ampersand means you’ll notice crop up website is highly interactive and
“&”. That common little symbol that rather regularly in the constantly kept up-to-date
means “and”. And just for the company of Cameron & with key and topical
record, that ampersand now forms a Prentice. information.
prominent part of our new corporate
identity. Hence the name of our Naturally, our new positioning Interpersonal
quarterly newsletter. demands and deserves a fresh communication
new look. Our new logo captures remains our first priority.
A lot is happening at Cameron & the very image we wish to portray. Despite our new image,
Prentice. Bits and pieces that you This look has now been rolled out to our doors are always open and we’re
may have noted already – our new several communication elements always available for a chat. We
premises, our new website, a few including corporate stationery, a recognise that it’s the very strength
new faces around the office. It’s website, signage, and has even behind the success of Cameron &
exciting stuff and we’re proud of our influenced the interior design of our Prentice. It’s a strength we’re
new direction. new office in Pinelands. Our move planning to keep with us well into the
into more effective communication future.
Ampersand will work to keep you in
has been driven by our commitment
touch and up-to-date with what’s
to continued outstanding,personable
going on in our world of accounting
and business, and to provide you
with relevant and interesting
information that impacts you.

For example, in this issue you’ll find

key information about capital gains
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www.campren.co.za t: 021 530 8444 f: 021 531 6600 info@campren.co.za
 CAPITAL GAINS
NOOSE T I GHTENS
Non-resident or resident?
Chris Norris outlines a few key
capital gains issues that you
need to know about when
buying and selling property.
Recent changes to capital gains
tax laws now mean that where
immovable property is bought
from a non-resident,
purchaser must withhold
percentage of the purchase
price and pay it over to the
Receiver to cover the seller’s
capital gains tax liability.
The percentages that must
be withheld are: 5% - where
the seller is a natural person, 10% -
where the seller is a company, and
15% - where the seller is a Trust.
The withholding tax must be paid over
within 14 days of being withheld or
the purchaser will be liable to pay the
Receiver a penalty of 10%
interest on the outstanding amount.
Where the purchaser fails to pay the
withholding tax and knew, or should
Preparing for financial year end?
reasonably have known that the
seller was a non-resident, the
GETTING PERSONAL
purchaser will be personally liable WITH ESTATE PLANNING
for paying the withholding tax.
This provision will not apply if Estate planning is an important aspect
the estate agent or conveyancer of our individual financial futures.
did not advise the purchaser that Peter Prentice discusses the process of
the seller is a non-resident and effective estate planning.
that the withholding tax provisions
A little thought and effort now will go a
may apply. Where this is the case, long way in ensuring your last wishes are
the estate agent and conveyancer effectively carried out, and in doing so,
the
will be jointly and severally liable maximising the amount your beneficiaries
a
for the withholding tax. derive from your estate by reducing the
burden of estate duty.
The seller can apply to the
An estate plan is like a fingerprint in that
Receiver for a directive that every individual has a unique set of
a reduced amount is circumstances requiring a tailormade
withheld if it can be estate plan.
demonstrated by the seller that Estate planning starts with a thorough
his ultimate capital gains tax analysis of your existing asset position
liability will be less than the standard combined with an in-depth understanding
of your current thinking regarding asset
withholding percentage. This could be
distribution on your death.
the case, for instance, where the
Remember, your will and estate plan must
seller is making a capital loss on the
encompass your last wishes. The
sale.
complexity of the estate plan will depend
upon many factors including, but not
These provisions would also apply to
and limited to, the value of our estate, family
non-resident purchasers and to
structure, life expectancy and marital
situations where the seller is a South status.
African company that has non-
Mechanisms used to reduce estate duty
resident shareholders.
may include inter-vivos or testamentary
trusts, donations, life insurance, usufructs
and disposition of assets prior to death.

SAVE AUDIT TIME. SAVE COSTS. Paradoxically, an estate plan is a living

document in that it requires immediate
updating with any change in
Check out our audit checklist at www.campren.co.za

Most companies are now preparing for financial year end and the circumstances; for example, a new
annual audit that goes along with it. Changes in audit and accounting addition to the family, a divorce or a new
standards to comply with international requirements have resulted in marriage.
increased audit time – and therefore increased audit fees.
Estate planning is not a subject that would
You can actively minimise these costs by producing crucial normally keep you awake at night unless
information required by auditors.
you were the beneficiary that was
We’ve put together a comprehensive pre-audit checklist, posted it on inadvertently disinherited.
our website www.campren.co.za, and suggest your financial
We are positioned to assist you in
officer considers it prior to your annual audit.
formulating your estate plan.

www.campren.co.za t: 021 530 8444 f: 021 531 6600 info@campren.co.za

 NEW RECRUITS
Every year we take on a handful of recent
graduates. Take a look at the fresh faces
who'll be joining us this year.

Denzel Brown, Gauvain Booyens and Gary Isbister

graduated from the University of Stellenbosch.

Lara Forsyth graduated from the University of

Stellenbosch and obtained her graduate diploma in
accounting/CTA from the University of Free State.
Denzel,
Gauvain
(Lara no and Gar
y

Q A
t prese
nt)
just ask...
Q: When do I need to submit a statement of assets and Q: What assets and liabilities must be included and do I reflect them at cost or market value?
liabilities to the Receiver? A: All assets and liabilities, including all foreign assets and liabilities, must be included in
A: All taxpayers who carry on a business or the statement. This includes personal effects such as household furniture and jewellery.

profession for their own account or in Assets must be reflected at cost and not at market value as using market values may

partnership, or who earn income from farming distort the Receiver's capital reconciliations and give rise to unnecessary queries

must submit details of their assets and liabilities regarding undeclared income and unexplained increases in net worth.

as at the end of the tax year. In addition, any

taxpayer that receives a tax return that requests Q: Is there any benefit in setting up a company Q: Is there any tax advantage in paying a
a statement of assets and liabilities, must Provident Fund for directors? salary to my spouse for work done in my
submit the necessary information. A: There are definite advantages in setting
business?

up a non-contributory provident fund for A: There are definite advantages in

directors as employer contributions are paying a spouse a salary if it can be
generally tax deductible (within certain justified based on work actually done,
Q: When do I have to register as a provisional

limits), and if properly structured, the and also if the income will be taxed at a
taxpayer?

A: You must register as a provisional taxpayer if contributions are not taxable for the lower rate than you would pay. The
you receive any income (other than salary) employees. It must be clear from the salary should actually be paid and the
exceeding R10 000 per annum, such as interest documentation that the liability for level of payment should not be
income or rental income. You must also register payment of the provident fund excessive when compared with an
if you are a director of a company or member of contribution is that of the employer, and if "open market" salary for the type of
a close corporation. The onus is on the taxpayer any form of salary sacrifice is involved, work done. Remember to pay over
to register and registration must be done within this must be properly structured so as not PAYE, UIF and skills levies on the
30 days of becoming liable. to fall foul of tax laws. salary.

ANDY

Recent extensive renovations to a southern

suburb shopping centre have had an immediate
and positive impact on surrounding
commercial rentals by as much as R3 to R5
per square metre.

www.campren.co.za t: 021 530 8444 f: 021 531 6600 info@campren.co.za