In this year’s Budget, I’d like to see a number of things: I would like to see attention being focused on travel allowances and taking the process of travel reimbursements to its logical conclusion. I would like to see the Employment Tax incentive Act continuing for the sake of the youth of the country… What I’m scared of in the Budget is the raising of personal income tax rates.
When it comes to Artificial Intelligence (AI), the law of copyright may be one step behind. Copyright is governed in terms of the Copyright Act which protects certain defined “works” including computer programmes, films, and literary, musical and artistic works. Up and until recently, these works have been created exclusively by humans. The advances in AI, however, have resulted in the possibility of an AI creating its own works with little, or even no, human input.
State owned enterprise ESKOM is insolvent and illiquid such that its ability to meet operational costs and long-term debt obligations appears unlikely.The Institute for Accountability in Southern Africa (Accountability Now) is questioning how ESKOM is to continue to trade in the present circumstances which would, in Accountability Now’s opinion, be contrary to section 22 of the Act on any reasonable interpretation.
As State Owned Enterprises (SOEs) continue to struggle under severe financial pressure, perhaps it is time for them to consider business rescue to alleviate continued financial distress and to avoid potential personal liability of directors who continue to run these companies and rely on the inevitable call up of a government guarantee.
Transfer pricing relates to the transfer of goods or services between members of a multinational group which are tax residents in different countries. Instead of increasing existing taxes or levying new taxes, a way to tackle the looming budget deficit may be to properly implement transfer pricing rules and to ensure appropriate enforcement by the South African Revenue Service (SARS) of such rules.
High political drama in the opening weeks of Parliament aside, most South African business and personal taxpayers are expecting tax hikes across the board from the Finance Minister’s Budget Speech on 21 February. Government already faces a yawning budget deficit, aggravated by the need to find billions of rand to fund a new and unbudgeted-for commitment to free tertiary education.
Many South Africans feel that they woke from a nightmare and that the morning is near. Hearing that Mr. Ramaphosa wants to put South Africa first and that he wants to get people employed is viewed with cautious optimism. Many South Africans still feel the sting of a hostile and selfish national leadership and it will take time to regain the people’s trust.
ENTERPRISE PROFILE | KR (Kele Rammopo) is a brand and communication strategist who operates on a freelance basis. KR is currently a member of the Hlumani Trust, a brainchild of Ebony + Ivory. Her competencies include; Brand and Communication Strategies, Research, analysis and reporting, consumer research, brand climate checks and article writing.
President Cyril Ramaphosa will deliver his maiden State of the Nation Address (SONA) on 16 February 2018. The annual speech kicks off the Parliamentary year and focuses on the country’s current political and economic situation.Regarding the latter, South Africa experienced deteriorating economic conditions during 2014-2017, and there is great hope for an improvement in economic growth during 2018 under the new administration.
Ahead of the 2018 Budget Speech, Treasury’s options to raise revenue are becoming increasingly limited. Treasury will need to think outside the box this year if it is to make any meaningful difference to its current revenue shortfall, estimated to currently stand at around R50.8 billion.