As finance minister Pravin Gordhan delivered his much awaited budget speech, business owners, entrepreneurs and shareholders alike, all hung their heads in dismay at the socialist tones of the 2017 budget speech.
As the adage goes, ‘we do not create the wind, we can but only adjust the sails.’
These trying circumstance necessitate that we are pro-active about how we best manage our money. An area where many, even the most seasoned professionals fall short is in the realm of taxation. SARS are becoming increasingly militant in their collection process’ and as such business owners need to better navigate these waters.
There are 4 steps we suggest to better equip business owners going forward:
- We need to better educate ourselves on the taxation framework and exactly how the system operates. To know the system is to know how to best achieve your financial goals.
- Structure our affairs in the most tax efficient means possible, taking advantage of absolutely all breaks and incentives available. In this regard, there are many (not very well advertised) incentives available to business’, which serve to reduce the tax burden of the business.
- Execute our plans efficiently, ensuring that we are not caught up by any legislative hurdles or ‘curve-balls’ thrown by SARS. If we fail to plan, we plan to fail.
- After execution, we need to be pro-active in anticipating future regulatory hurdles and changes and start the process from 1-3 again.
Someone once told me “You don’t hire a locksmith to cut a Diamond, that’s the Diamond cutters job. Always get the best people for the job”. We at INCfin continually strive to put our customers in the best possible position financially.