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Davis committee to mull wealth tax

May 3, 2017
Pfumo Tax and Accounting
4/30/2017
Edition 4

Davis committee to mull wealth tax

The Davis tax committee has begun its investigations into a possible wealth tax.

It has asked for submissions — by end-May — on the possibility of a land tax, a national tax on the value of property (over and above municipal rates) and an annual wealth tax. Oral submissions will be heard during a workshop planned for June.

The need for additional sources of tax revenue is due to become even more urgent if the recent credit ratings downgrade of SA to junk status has a significant effect on the government’s borrowing costs and on the rate of economic growth.

The committee noted that SA had three forms of wealth taxes — estate duty, transfer duty and donations tax — which bring in about 1% of tax revenue.

Capital gains tax is considered by some to be a form of wealth tax but the committee said it was a form of income tax. It considered capital gains tax in its reports on estate duty and did not plan to consider it further in its inquiry into the possibility of a wealth tax.

Gordhan established the Davis tax committee in 2013 to investigate the role of the tax system in the promotion of inclusive economic growth, employment creation, development and fiscal sustainability.

In doing its work, the committee takes into account recent domestic and international developments and the long-term objectives of the National Development Plan (NDP).

The committee is required to take into account broad tax policy objectives such as revenue-raising to fund government expenditure; social objectives like building a cohesive and inclusive society, which can be met partially through a progressive tax system; and the redistribution of resources

 

*Source: Business Day by Linda Ensor.

This months Featured Customer of the month is…

Aura Skin Care (Pty) Ltd

This week’s featured client is dedicated to all the hard working moms out there that need a little ‘R&R’ this Mother’s Day.

Aura Skincare Clinic & Nail Bar is nestled in the heart of Parkhurst. They offer a fantastic range of treatments; microblading, eyelashes, nail treatments and the best facials in town to keep you young and make sure you are stress free and well pampered with brilliant skin care advice.

Glynne Mitchell, the owner and head therapist, received her three year Diploma in Health and Skin Care Therapy as well as Spa Management and Holistic Therapy from the prestigious Camelot Health and Skincare Therapy College in Houghton.

They aim to make your experience as blissful as possible and to always be mindful that they are making you beautiful.

Treatments include facials, facial enhancements, epilfree hair remover, massages, manicures, pedicures, waxing, threading, eyelash extensions, sugaring and spray tans.

For more information:

Call or SMS them on: 071 889 8572
or email: info@auraskincare.co.za
or visit their website: www.auraskincare.co.za

Did you know?

Pfumo is a proud supporter of ‘Stand with Stan’.

A charity dedicated to providing prosthetic limbs to those who can’t afford them.

Stan is looking for donors to commit to as little as R50-00 a month to assist in returning mobility to someone less fortunate.

If you think you can help, please contact Stan on the below details:

Email: info@standwithstan.co.za
Web: www.stanandrews.co.za

NB. Thank you to all those that have responded thus far and for your generous pledges and donations!

Don’t forget your 30 seconds fix!

30 SECONDS…

Pfumo is committed to providing the highest standards of accounting principles.

As with any industry, there exist various ‘standards’ companies aspire to achieve.

We at Pfumo apply the ‘International Financial Reporting Standard’, (IFRS), for SMEs.

This Standard is not only designed to meet the needs and capabilities of small and medium-sized entities but is also the most widely accepted standard globally.

We use this “tool” when compiling both your financial statements and also in our bookkeeping processes to ensure consistent and reliable information for our clients to use and grow their businesses

Pfumo Tax and Accounting Services (Pty) Limited is a proud member of Business Networking International, Legacy chapter.

http://www.bni-jhb.co.za/bni-johannesburg-north-bni-legacy/index.php