CH Consulting
Tax Consultant in Cape Town

I am an accounting, tax and business system consultant based in Cape Town.My aim is to add value to your business by providing you with sound business advice and support services. I am of the opinion that well-structured and maintained business systems are at the foundation of making reliable and timely business decisions.I look forward to engage in a value-adding strategic relationship with you and to help you develop your business to its full potential.Chris Herbst, MIBA. I believe in modern technology to excel your business, but I still believe that logic and solid basics are invaluable.

We are an accounting, tax and business consulting firm based in Stellenbosch. We are registered accountants and tax practitioners based in Stellenbosch. Many tax professionals are also under the incorrect impression that this is within the ambit of the income tax act to use the basic amount as a first period estimate. It is clear that the basic amount serves as a minimum estimate when paragraph, and are read together. An important point to note is that paragraph does not absolve the taxpayer of the obligation to estimate the taxable income and instead fall back on the basic amount. the amount of normal tax calculated in respect of taxable income equal to such basic amount, at the rates applicable in respect of such year of assessment and after taking into account any amount of a rebate deductible in terms of this Act in the determination of normal tax payable; and. The conclusion is that the taxpayer should estimate taxable income and not rely on the basic amount as a default. In other words a business where the owners are the directors and have discretion in how they are going to structure their own remuneration, or how they are going to extract the profit from the company. The first factor to consider here is the interest rate that the company is charging the director. The company did not charge any interest to the director. For some reason many directors are under the impression that this is the least tax efficient. The influence of our fair rate of return/discount rate ( 15% in example ) has on the valuation, or how we determine the correct rate. Beta is the influence the general market risk has on the specific company. The general market risk premium is the added return for additional general risk in the market. Thus the investor would expect more return to compensate for the additional risk. On the other end of the scale a Beta of 1 will add the full impact of the market risk premium to the business. Lastly the company specific risk (RPu) is the what it says, the risk specific to this company. There may be a number of risk factors specific to a company, for example an inexperienced management team may cause the investor to take on more risk and thus expect for return. Let’s say in our case the company specific risk is 4%. As you are probably aware in the past a taxpayer would apply for a tax certificate which will then be either granted or denied based on the taxpayer’s status at the specific time of the application. This resulted in taxes only being put into order once a year and that is if a tax certificate was required. Same as before if the taxpayer applies for a tax certificate, the taxpayer will only be granted one if the taxpayer’s affairs are in order at the time of application. Thus the pin provides a continuous status of the taxpayer’s compliance status and no longer a point in time view. If the taxpayer is compliant at a specific point in time the taxpayer can still obtain a tax certificate and print it out.