Did you know that tax is payable on crypto asset transactions? SARS has intensified its focus on crypto asset trading recently, significantly improving its capacity to detect crypto activity and non-compliance with advanced analytics, extensive data-sharing arrangements with crypto exchanges, and a dedicated Crypto Asset Unit.  If you have crypto and have not declared it, our expertise and experience will prove invaluable.

A staggering 5.8 million South Africans hold a crypto asset, with Southern Africa boasting the largest uptake of Bitcoin in the world. SARS has not failed to notice the phenomenal growth of various digital currencies and crypto assets and is now dedicating substantial resources to ensure that crypto assets and trades are declared on taxpayers’ tax returns.             

How are crypto assets taxed?
While crypto assets are not considered legal tender, transactions or speculation in crypto assets are subject to the general principles of South African tax law. Normal income tax rules apply and affected taxpayers need to declare crypto assets’ income, and gains or losses in the tax year in which it is received or accrued. Income from crypto assets transactions can be taxed under “gross income” or it can be seen as a capital gain (and subject to CGT). Whether an accrual or receipt is revenue or capital in nature is tested under existing tax law, of which there is plenty.

Taxpayers are also entitled to claim expenses associated with crypto assets accruals or receipts, provided such expenditure is incurred in the production of the taxpayer’s income and for purposes of trade. Base cost adjustments can also be made according to the CGT rules. Gains or losses in relation to crypto assets can broadly be categorised with reference to three types of scenarios, each of which potentially gives rise to distinct tax consequences:

1. Crypto assets can be acquired through so called “mining” – the verification of transactions in a computer-generated public ledger through the solving of complex computer algorithms.
2. Investors can exchange local currency for a crypto asset (or vice versa) through crypto asset exchanges (which are essentially markets for crypto assets) or through private transactions.
3. Goods or services can be exchanged for crypto assets. Such transactions are regarded as barter transactions and the normal barter transaction tax rules apply.

The onus is on taxpayers to declare all income and gains related to crypto assets.     

Stricter enforcement
SARS has intensified its focus on crypto asset trading recently, significantly improving its capacity to detect crypto activity and non-compliance. They have done this by:

• Making greater use of advanced analytics, artificial intelligence, machine learning and algorithms
• Entering into data-sharing arrangements with crypto exchanges
• Establishing a dedicated Crypto Asset Unit

Since last year, SARS has been sending Audit and Request for Relevant Material Notices to taxpayers who have traded, invested or even used crypto assets for purchases. This is possible because SARS now has access to trading data directly from crypto exchanges. This includes information on taxpayers who have traded in crypto assets but may not have disclosed these activities on their tax returns. In addition, through multilateral agreements, SARS is exchanging information with other tax authorities globally, in line with global tax enforcement trends. What’s more, the establishment of SARS’ specialised Crypto Asset Unit is a clear indication that crypto asset taxation has become a priority.           

What must I do?
Taxpayers engaged in crypto asset transactions should ensure their tax affairs in this respect are fully compliant. Failure to comply could result in audits and investigations; interest and penalties at percentages as high as 200%, as well as further legal repercussions. The SARS Voluntary Disclosure Programme (VDP) provides an opportunity for taxpayers who have not declared their crypto holdings to achieve compliance and to avoid potential penalties and interest. However, the VDP has strict conditions, one of which is that the taxpayer must voluntarily approach SARS first, before SARS initiates further action. Once SARS has identified a taxpayer for audit, they can’t apply for the VDP.   

How we protect your interests
Relying on accounting and tax expertise is essential for correctly assessing any historical crypto tax liability and possibly making voluntary disclosures, correctly declaring current crypto asset transactions, and ensuring compliance requirements are met proactively. 

Accounting isn’t just something to worry about during tax season. It’s the engine room of every decision you make, from whether you can hire, to when you should scale.  Sadly, far too many businesses still cling onto accounting myths that affect every decision they make. These aren’t dramatic mistakes. They’re assumptions picked up over time that feel right but hold you back. It’s time to clear them out – and start seeing your business the way it really is.

Most business owners aren’t careless with money. They obsess over profit margins and expenses, and carefully analyse their bank balances. Over time, however, many people fall for accounting myths that sound like common sense. These myths crop up in meetings, tax chats, and casual conversations – and they stick. The problem is, some of these ideas distort the way you see your business. They can make you feel more profitable than you are, hide looming cash problems, or cause you to delay decisions until it’s too late.  Busting these myths won’t only sharpen your numbers – it might unlock the growth that’s been out of reach for too long.     

Depreciation is just a paper loss
Depreciation is often described as being a “non-cash” expense, which leads some to think it’s not a real cost. But depreciation is very real. It reflects the wear and tear on your assets, equipment, vehicles, and even your office fittings. (Buildings tend to be an exception to this rule.) Like it or not, that slow erosion of value is going to affect your business eventually.  Ignoring depreciation can leave you thinking you’re operating at higher margins than you really are. This, in turn, can lead to decisions (like expanding your business or cutting prices) that the business may actually not be in a position to make. It’s therefore essential to treat depreciation as part of your real cost base, because sooner or later, you’ll need to replace what’s wearing out.          

Profit equals cash
Because this one feels so intuitive, it can trip up even the most astute entrepreneurs. Your business is profitable, so there should be money in the bank. The thing is, profit is an accounting measure while cash is what you actually have on hand. And the two often travel on different timelines. Unpaid invoices, stock that hasn’t moved, loan repayments … these can all put pressure on your cash position, even when your income statement says you’re in the clear. Profit without cash flow can land you in hot water fast. It’s often the reason otherwise “profitable” businesses go under. Don’t get caught only watching your bottom line.       

If there’s money in the account, we’re doing fine
That moment of checking the bank balance and breathing a sigh of relief? We all do it. But a healthy balance today doesn’t mean all your bills are paid, or that your tax obligations aren’t just around the corner. It certainly doesn’t mean you can afford that new delivery van without checking the books first. A snapshot of your bank balance is just that – a snapshot. It says nothing about what’s coming in, what’s going out, and what’s already spoken for. Operating without a cash flow forecast is like driving with your eyes locked on the rear-view mirror.              

Tax is something to worry about at year-end
By the time year-end rolls around, your tax position has already been shaped by a hundred small decisions. Wait until then, and there’s not much you can do about it, except write the cheque. Tax planning is an all-year activity. There are dozens of factors that will affect your liability – from choosing the right structure, to timing your asset purchases, handling employee salaries and paying out dividends. A little foresight early in the year can save you a massive headache in February. Don’t be one of those businesses that only speaks to their accountant after the damage is done.     

Accountants are just for compliance
We aren’t just here to file returns and send invoices for you. We can help you read the story your numbers are telling. That includes where you’re leaking cash, how sustainable your margins are, and what your break-even point really looks like. 

Growth always means more sales
Growth feels good: bigger orders, more customers, faster turnover. But unless that growth is well managed, it can be lethal. More sales can mean more expenses, more staff, more stock, and more space. If your margins are thin, or if customers are slow to pay, rapid growth can tie up all your cash in working capital and leave you with nothing to operate on.  Before chasing sales targets, it’s worth asking, can we afford to grow? And is this growth profitable?

We can always fix the books later
When you’re flat out running a business, bookkeeping often takes a back seat. But bad books make for bad decisions. They hide problems, delay action, and lead to missed opportunities. Clear, current numbers are the foundation of everything from pricing and hiring to raising capital. Without them, you’re guessing. And guessing can be an expensive habit.             

The final word
Don’t feel embarrassed if you’ve been taken in by some of these myths. They’re common, they sound plausible, and they’re often repeated. But they also limit your options, distort your view, and slow your progress.  Accounting is not about ticking boxes. Done right, it’s about clarity. And with clarity come better decisions and better growth.  

The scrapping of the proposed VAT increase in Budget 3.0 resulted in a budget shortfall, necessitating alternative sources of funding.  One of these is the increased collection of outstanding tax debt. It’s a challenge SARS has accepted, Treasury has financed with an additional R4 billion in funding, and the media is touting as “Project AmaBillions”. This is how it will affect you – and how we can assist.

Removing the contentious proposed VAT increases from Budget 3.0 led to a shortfall in revenue that necessitated new revenue sources. One of these is the inflation-linked fuel levy increases of 16c for petrol and 15c for diesel, which became effective on 4 June and will impact all individuals and entities in the country.  Another alternative revenue source is going to come from SARS’ upping its collection of outstanding tax debt – with Treasury expecting an additional R20 billion to R50 billion per year from intensified debt collection efforts.

The tax measures contained in Budget 3.0 will raise an additional R18bn in 2025/26. A further R20bn in as-yet-unknown tax measures are postponed to Budget 2026 – unless SARS collects an extra R35bn in outstanding taxes. SARS has accepted the challenge and Budget 3.0 allocated a further R4 billion to SARS to fund the debt recovery. (In addition to the R3.5bn previously allocated to the cause.)

‘Project AmaBillions’?
In what the media refers to as “Project AmaBillions” and what SARS calls its “compliance programme”, an intensified effort will be made to collect a greater slice of the estimated R800 billion in unpaid taxes – the so-called “tax gap”.  SARS reported that just over R400 billion of the tax gap consists of undisputed uncollected debt. The rest is made up of a further R100 billion in debt currently under dispute, more than 54 million returns outstanding dating back several years, and 156,000 South Africans with substantial economic activity who are not registered taxpayers, or are not filing their tax returns. SARS says that it will focus on the undisputed debt, while accelerating work on collecting all debt by dutifully implementing its compliance programme. In the last financial year SARS recruited and trained more than 800 new employees to collect debt, mainly via telephone calls and legal instruments. These efforts, says SARS, must result in a minimum collection of R20 billion.

To meet its revised revenue estimate this year, SARS is:

• Closing the tax gap, with a focus on undisputed debt.
• Broadening the tax base, targeting hard-to-tax sectors in the informal economy, particularly small enterprises and self-employed individuals.
• Using advanced data analytics and artificial intelligence to detect tax-compliance risks and improve overall compliance rates.
• Combating the illicit economy.

How does it affect me? 
As SARS significantly steps up its revenue collection efforts, those eligible to pay tax – whether registered taxpayers or not – can expect less lenience and more SARS queries, verifications, audits and collection efforts. In fact, the South African Institute of Chartered Accountants (SAICA) has been quoted in the media warning that the pressure on SARS to collect significantly more tax this year may result in “heavy-handedness” by SARS in its treatment of taxpayers. SARS confirms that it upholds the rights of taxpayers to exercise their rights in law, which include among others, asking for payments to be deferred or paid in instalments, or to dispute the debt. Taxpayers must also be wary of scams – the well-publicised increase in debt collection activity at SARS will be matched by an increase in financial scams by fraudsters pretending to be SARS employees or appointed debt collectors. 

How we protect your interests
Even with SARS’ well-funded and intensified focus on compliance and debt collections, our specialist tax team will continue to ensure that your interests remain protected. Our up-to-date tax expertise and best practices ensure you have clarity on your specific tax obligations, and that all these tax commitments are met accurately and timeously. We can confirm the legitimacy of any SARS communications to protect you from scams and respond promptly and professionally to legitimate enquiries on your behalf. This includes swiftly rectifying any non-compliance issues, and handling demands for outstanding tax debts correctly.

We also monitor that SARS follows the correct legal processes – including adhering to timeframes and procedures in respect of assessments, refunds, dispute resolution, and instituting debt collection measures such as unauthorised bank account withdrawals – to ensure your taxpayer rights are respected.

Failing to understand your ideal customer, wastes time, energy and resources. According to a report by CB Insights, 42% of startups fail because there is no market need. In other words, many companies are failingsimply because they didn’t define or validate their target audience properly. So, how do you determine your real audience, and then refine that group as your business evolves? Here are our top five tips.

Fundamentally, businesses start because business owners believe they see a gap and aim to fill it. Their target market is built into the essence of the business. And yet, statistics show that at least one third of those business owners were wrong all along. Many entrepreneurs think their product or service is for “everyone”, but trying to serve everyone usually means you end up serving no one well. Identifying and refining your real audience is critical to creating effective marketing campaigns, building better products, and sustaining long-term growth. Here are five practical tips to help you better define and refine your target market.

1. Start with the problem you’re solving
As a business owner, the first thing you need to do is identify the specific problem your product or service addresses. Ask yourself: Who has this problem? Who is actively looking for a solution? The more precisely you can answer these questions, the closer you are to identifying your core market. Once you understand the problem, look at existing customer data or run surveys to determine the people most likely to benefit from your solution. Don’t make assumptions. Focus on the why behind their purchasing decisions.

2. Build a customer persona (and revisit it often)
A customer persona is a semi-fictional profile of your ideal customer based on research, data, and interviews. Include details like age, job title, income, goals, frustrations, preferred social media platforms, and buying behaviours. Giving your customer a name and a story will help you recall the important aspects of the person you are serving. But remember, a persona isn’t static. As you grow and collect more data, revisit and refine this profile. According to Sales For Startups, companies that use updated personas achieve 73% higher conversion rates than those that don’t.

3. Segment your audience
Not every customer will have the same needs or behaviours – and just because someone falls into your target market, doesn’t mean they are automatically going to buy from you. Audience segmentation allows you to create more tailored marketing strategies. Start with basic segments like age, location, or purchase behaviour. Then drill down into psychographics such as values, attitudes, and lifestyle. For example, two people buying your eco-friendly cleaning product might do so for different reasons: one for health reasons, the other out of environmental concerns. Understanding these motivations enables you to craft more resonant messaging.

4. Use analytics to refine your focus
Data should drive your decisions. Use website analytics, social media insights, email open rates, and CRM (customer relationship management) data to understand who’s engaging with your content, who’s buying, and who isn’t. Look for patterns: Which landing pages convert best? Which demographic clicks through the most? Your accountant can help you lift accurate sales data for different periods. This can be used to track the success or failure of special offers, product launches and other sales events to narrow down the areas that are working. According to a survey by Salesforce, 76% of marketers say data-driven decision-making is crucial in campaign performance. By comparing your ideal audience to actual customer behaviour, you can adjust your messaging or target more profitable segments.

5. Actually talk to your customers
The most underrated source of insight is your customers themselves. Schedule interviews, send out surveys, or talk to users after a successful sale. Ask open-ended questions like:

• “Why did you choose us?”
• “What alternatives did you consider?”
• “What almost stopped you from buying?”

These conversations will undoubtedly uncover objections you hadn’t considered, new segments you didn’t plan for, or even product ideas for future growth. And remember: customers are often more honest in conversation than on email.

While most businesses focus on funding or tangible assets, true value often lies in intellectual capital. A company’s people, ideas, systems, and relationships are the intangible resources that drive success. But they are often neglected or even forgotten. To thrive long-term, founders must recognise, nurture, and retain the knowledge and creativity that set their business apart.

In the rush to raise capital, improve profitability or streamline efficiency, business owners often miss what truly drives their success: the knowledge, relationships, and systems that power everything behind the scenes. Whether you’re a one-person start-up or a growing enterprise, your intellectual capital is the secret key to your future triumphs. It is therefore vital that this intangible resource is protected before it vanishes. Doing so could be the most profitable decision you ever make.

Understanding intellectual capital
Intellectual capital is grouped into three categories: human capital (skills and experience), structural capital (systems, intellectual property (IP), databases) and relational capital (customer relationships, brand reputation and partnerships). A recent study by Ocean Tomo revealed that intellectual capital now constitutes approximately 90% of the S&P 500’s market value – a significant increase from 68% in 1995. That includes patents, know-how, trade secrets, brand equity, and team knowledge.  With numbers like this, it’s absolutely essential that you audit your intellectual capital just as you would your balance sheet. What processes are unique to you? Who on your team holds key relationships or institutional memory? Are your best ideas captured anywhere, or do they leave when someone resigns?        

Culture and contracts
You have to understand that your people are the carriers of knowledge. Their experience, relationships with clients, and systems know-how can be invaluable. Unless you plan carefully, when someone leaves they often take that intellectual capital with them. Retention doesn’t just come from compensation. It comes from fostering a culture of recognition, curiosity, and inclusion. The 2023 Gallup “State of the Global Workplace Report” stated that, “employees who have had opportunities to learn and grow are 2.9 times more likely to be engaged.” It is therefore essential that you ask your accountant to make space in your budget for learning programs, and other leadership developing initiatives. But culture alone isn’t enough. It’s important to also back up your culture with a legal framework that protects you. This includes NDAs (non-disclosure agreements), IP assignment agreements, and clear clauses in employment contracts covering confidentiality and ownership of work.  

Capture knowledge before it walks
Most businesses operate through a web of undocumented processes from verbal know-how, to “we’ve always done it this way” workflows. That’s risky. Developing internal playbooks, knowledge bases, and SOPs (standard operating procedures) is one of the most effective ways to turn intellectual capital into something transferrable and scalable. Use tools like Notion, Confluence, or even simple shared drives to document repeatable knowledge. Then embed this into your onboarding and training cycles.     

Nurture innovation and learning
Intellectual capital isn’t static. Like any asset, it can appreciate or depreciate. One of the best ways to nurture it is by creating space for learning, experimentation, and cross-pollination of ideas. Encourage teams to attend industry events, run internal hackathons, and allocate budget to learning and development. Even better, reward creative problem-solving that moves the business forward.           

Make intellectual capital part of your valuation
It’s vital that your intellectual capital becomes a cornerstone of your company valuation. Whether you’re pitching to investors, selling your business, or applying for funding, it’s important that you document your competitive advantages. Have you built a repeatable system others can’t match? Developed internal tools that boost efficiency? Retained staff with rare skills? All of this translates into value. Only by showing how your business can thrive even if the best individuals leave, can you give future investors the knowledge they need to trust you.

The Tax Filing Season for the 2024/2025 year of assessment will officially open on 7 July 2025.  Find out here what the deadlines are and which of them apply to you. Also discover what to do if you are auto assessed – and if you are not. Hot tip: streamline your 2025 tax season by simply relying on our expertise.

Tax Filing Season 2025 officially opens on 7 July this year. This covers the 2024/2025 year of assessment: the period between 1 March 2024 and 28 February 2025. During filing season, taxpayers complete and submit their tax returns, declaring their income and deductions to allow SARS to determine their final tax liability for the period under assessment. This year, for the first time, the majority of non-provisional taxpayers will be automatically assessed.         

Dates to Diarise

Auto assessed? Here’s what to do…

• If you have been auto assessed, you will receive notification by SMS and/or email directly from SARS after 7 July. (Be sure to check with us that the notification you receive is legitimate!)
• Access your auto assessed income tax return through any of SARS’ channels, such as the SARS MobiApp or SARS eFiling, to review and verify the completeness and accuracy of the information it contains. (Be sure to check with us if you are uncertain of any aspect of the auto assessment!)
• If you are satisfied with the auto assessment, and there is money owing to SARS, it must be paid to SARS by the stipulated date. If there is a refund due to you, it will be paid directly to your bank account within 3 working days, if your details with SARS are correct.
• If there is missing and/or inaccurate information on the auto assessed tax return, pertaining to either income or expenses which may affect the outcome of the auto assessment, it must be declared to SARS by submitting a ITR12 tax return by the 20 October 2025 deadline.     
  
  

Not auto assessed? Here’s what to do…

Non-provisional taxpayers who are not auto assessed can start filing their tax returns from 21July 2025 until 20 October 2025. Provisional taxpayers (certain individual taxpayers and all companies) as well as trusts can start filing returns from 21July 2025 until 19 January 2026.           

Top tips to streamline your tax filing season 

• Verify all SARS communications received to protect yourself from scams.
• Check that all taxpayer and banking details are correct and updated with SARS to facilitate refunds and prevent identity theft and fraud.
• Prepare all required documentation early to avoid last-minute delays and to expedite a possible SARS verification or audit.
• Claim every tax rebate available to you to avoid paying more tax than required.
• Ensure that your tax return submissions comply with current regulations.
• Be certain to meet the submission deadlines to avoid penalties.

In the life cycle of every small business or start-up, one early trap catches many founders off guard: failing to separate personal and business finances. Whether you’re a seasoned entrepreneur or just starting out, maintaining clear financial boundaries is essential for protecting yourself and your business and ensuring long-term success. Here are five tips to help you draw the line.

Mixing personal and business finances is so easy, particularly at the beginning. The company needs something, but money hasn’t come in, so you extend a small loan. You pay yourself back, by paying for the groceries on the company card.  A recent report by the US Federal Reserve on economic wellbeing has revealed that 39% of small business owners use personal funds to cover business expenses. This creates unnecessary risk and could expose both parties to potential audits, bankruptcy and even criminal prosecution. So, how do you untangle personal and professional spending without creating more chaos? These are our five tips.         

1. Open a separate business bank account
   The first step is getting a separate bank account for your business. This small step already makes it so much simpler to keep all income, expenses, and taxes distinct from your personal finances – giving you clarity and protection in case of an audit. Once your account is open, ensure all business payments go in and out of it exclusively. Resist the temptation to make personal purchases on your business card even just once.
   
   
2. Apply for a business credit card
   A business credit card can be a powerful tool to keep finances clean and establish credit history for your company. It allows you to track spending, earn business-relevant rewards, and build a credit score separate from your personal one.  According to a 2022 Nav Small Business Survey, 45% of business owners didn’t even know they had a business credit score. This is a missed opportunity – strong business credit can help with financing, insurance, and vendor relationships down the line.
   
   
3. Pay yourself a salary (or draw consistently)
   Many business owners pay themselves sporadically or in large lump sums, depending on how much is left over each month. This creates cash flow chaos and a personal dependence on the business that’s hard to manage. Instead, create a set payment structure, either paying yourself a salary or a set amount on certain dates. This structure will help you plan personally and track business performance more accurately.
   
   
4. Use accounting software
   Manual spreadsheets can work in year one, but as soon as your business gains momentum, you’ll need robust tools. Software like QuickBooks, Xero, or Wave allows you to categorize expenses, reconcile accounts, and prepare for tax season with confidence.  A study by Intuit QuickBooks showed that 69% of small business owners who used accounting software reported greater clarity over their finances and fewer tax-related errors. Automating your bookkeeping and syncing accounts ensures your records are always up to date and SARS-ready.
   
   
5. Work with a bookkeeper or accountant from the outset
   It’s tempting to wait until tax time or a cash flow crisis to call in a pro. But a good accountant is a strategic partner, not just a compliance necessity. They can help you optimise deductions, structure your pay, and ensure your financial systems scale with your business.  According to a survey by the National Small Business Association, 42% of business owners spend over 80 hours per year on taxes. A qualified accountant or tax practitioner can reduce that significantly, while helping you avoid costly mistakes. Look for someone with experience in your industry and business model.

Youth Day on 16 June is a great time to consider the advantages of employing young people in your business – and to find out how SARS’ Employment Tax Incentive (ETI) can assist your company to do this at a reduced cost.  Key to unlocking the benefits of this tax incentive – and of having young employees – is the professional assistance we bring to ensure ongoing compliance with the numerous and ever-changing rules and administrative issues that come with this incentive. 

South African businesses are always looking for ways to foster growth and innovation while still reducing costs.  One way to achieve both is to employ young people. Young workers bring unique advantages that can transform your organisation. What’s more, the government subsidises part of the employment costs for qualifying young employees through SARS’ Employment Tax Incentive or ETI.

1. What young employees can bring to your business

   • Tech savvy: More comfortable with new technologies, young employees can accelerate digital adoption in your business.
   • Fresh perspectives: Young employees often introduce innovative approaches and creative solutions.
   • Adaptability: Young people tend to be more flexible and better equipped to respond to sudden changes and unexpected circumstances.
   • Fast learning: Fresh out of formal education, young people often learn more readily and are eager to apply their skills.
   • Energy and enthusiasm: The energy and optimism of younger workers can positively impact team dynamics and workplace morale.
   • Future-proofing: Young employees help businesses keep up to date with technological developments, emerging trends and the millennial and Gen Z markets.

2. How the ETI benefits local companies

   • The ETI makes it more cost-effective for companies to employ young people and to harness all the benefits mentioned above.
   • Essentially, this incentive subsidises part of your employment costs for qualifying young employees for two years. There is no limit to the number of qualifying employees that an employer can hire.
   • The young employees’ wages are paid by the employer in full, and the ETI is claimed by reducing the employer’s monthly Pay-As-You-Earn (PAYE) liability by the calculated ETI amount. This creates immediate positive effects on your cash flow.
   • It goes without saying that hiring more employees at a lower cost – and the boost of youthful energy they bring – will positively impact productivity and innovation in any company. Many South African businesses use the ETI to create a competitive advantage, build a talent pipeline for the future, and enhance their Corporate Social Responsibility credentials.

As a business owner, at some stage you will inevitably be asked to help an employee through a crisis in either their personal or professional life. How you respond to their bereavement, financial difficulties or workplace meltdown, will directly affect your other employees and your company culture. Supporting your staff can increase loyalty, improve morale, and strengthen team cohesion. But it’s not just about empathy – these situations can have long-term implications for productivity, reputation, and even your bottom line.

Employee engagement. It determines so much about the direction of a company, its staff productivity and how likely it is to succeed. According to a Gallup poll just 23% of South African employees are actively engaged, and the support offered by your company during difficult times is a key predictor of whether your employees are doing better or worse than that. Ignoring a personal crisis or mismanaging it can result in diminished trust, high turnover, and costly legal complications. On the other hand, getting it right can transform a tough moment into a team-building exercise that drives loyalty across your enterprise. Here are our five tips for handling an employee’s crisis with care, compassion, and professionalism.

1. Listen without judgement
   The first step in supporting someone through a crisis is simply to listen. Not all employees will be forthcoming, and many will fear repercussions or shame if they do share. By creating a psychologically safe environment where they feel heard and respected, you allow the conversation to unfold in a way that will allow you to help.  Listening does not mean solving. Ask what they need. Avoid overpromising or reacting too quickly. This is their experience, not yours, and your job is to provide space for them to express it.
2. Tailor your support to the individual
   There is no one-size-fits-all approach. While one employee might benefit from time off, another may prefer flexible hours or a change in responsibilities. Consider what reasonable accommodations can be made, in accordance with HR policies and employment laws. What’s important is that the support feels personal and meaningful, not generic or performative. You will likely want to speak to HR or, in a smaller business, ask for outside advice.
3. Communicate clearly (and privately)
   When an employee’s going through emotional turmoil, one of the most challenging aspects is managing the line between transparency and confidentiality. While you may need to inform certain stakeholders about changes in workflow or responsibilities, the nature of an employee’s crisis should never be discussed openly or speculated about in the office. Establish clear, private channels of communication and check in regularly. Let the employee know what’s being shared and with whom – and always ask for their consent where appropriate. Trust is fragile and you need to protect it.
4. Support your other employees too
   It’s not just the employee in crisis who needs help – often their direct manager, or co-workers will also be feeling overwhelmed, overworked or unsure how to proceed. Offering management training on crisis response, mental health first aid, and compassionate communication can improve outcomes for everyone involved.  Managers are on the front line of employee wellbeing, and giving them the right tools helps avoid missteps that could escalate the situation.
5. Make room in your budget for empathy
   There’s no denying that crisis support can come with financial implications, from offering extra leave to making temporary hires to cover the missed workloads and even therapy for the staff member. But investing in your people always pays off in the long run. This is where your accountant becomes more than a numbers person.
   A good accountant can help you identify inefficiencies, reallocate budget, and plan for contingency resources that empower your company to care for its people without compromising its financial goals.

There’s a thin line between tax avoidance, which is legal, and tax evasion, which is a tax crime. Every taxpayer, corporate or individual, has the right and duty to ensure they don’t pay any more tax than what is legally required – but tax evasion can result in hefty penalties and even jail time.  In this article we establish where the line is, and why it is best navigated with the help of your accountant.

The line between tax avoidance and tax evasion can sometimes appear blurry, especially in complex transactions or fierce tax planning strategies. The comparison below is a good starting point:   

1. What is tax avoidance
   

   Tax avoidance refers to legal arrangements or transactions designed to reduce or eliminate tax liability, without breaking the law.       

   Examples of tax avoidance include:

   • Moving a company into a special economic zone for the sole reason of achieving a lower corporate income tax rate.
   • Timing the sale of capital assets to control the timing of capital gains and losses.
   • Getting your company to pay for a motor vehicle or other expenditure as it may, depending on the circumstances, be taxed at a lower rate.
   • Placing a large amount of your income into a retirement fund to obtain the highest deduction possible.
   • Investing in tax-free savings accounts (this applies to individuals only).
   • Often termed “permissible tax planning”, tax avoidance is legal and accepted. However, when tax avoidance becomes overly aggressive or artificial (i.e., lacking commercial substance), it may cross into what tax authorities consider “impermissible” or “abusive” tax avoidance. This, while not necessarily criminal, may be challenged under anti-avoidance rules such as the General Anti-Avoidance Rule (GAAR).
   • South Africa employs GAAR to counteract tax avoidance strategies that exploit loopholes. These rules allow tax authorities to disregard or re-characterise transactions that have the primary purpose of avoiding tax.

2. What is tax evasion?
   

   Tax evasion is characterised as the illegal act of deliberately and intentionally avoiding paying taxes, either by avoiding paying tax entirely, or by illegally reducing or deferring taxes payable. It can involve hiding or ignoring one’s tax liability by making false representations or statements, or hiding income or information that would otherwise be subject to taxation.

   Examples of tax evasion include:

   • Failing to file required tax returns
   • Making false statements on tax returns
   • Failing to declare income or deliberately underreporting income
   • Claiming personal expenses as business expenses
   • Over-declaring expenses, which may include falsifying invoices
   • Using multiple entities without legitimate business purpose
   • Moving money through multiple accounts to obscure its source
   • SARS uses data-driven insights, self-learning computers, and artificial intelligence to combat tax evasion, and is empowered to conduct criminal investigations into tax offences and work with the criminal justice system to prosecute offenders.
   • Tax evasion can result in severe penalties of up to 200% of the shortfall in tax, plus interest, and even jail sentences of five years or more.           

Best practices for legal tax avoidance

• Stay updated with ever-changing tax legislation to make informed decisions.

• Structure your business operations or transactions in a manner that legally minimises taxes – for example, operating as a sole proprietorship or a private company have different tax implications.

• Engage in permissible tax planning by adhering to all tax laws and regulations, and avoiding abusive tax schemes designed to exploit loopholes in the tax laws. 

• Utilise all tax deductions, credits, exemptions and incentives, including deductions for business expenses, tax credits for certain investments or activities.

• Comply with reporting requirements and avoid penalties and interest by filing accurate tax returns on time.       

• Maintain accurate records of all your financial transactions and tax-related documents to ensure all claims and deductions can be substantiated when required by SARS.  

• Ensure transparency and full disclosure by always providing full and accurate information on tax returns:  concealing information or providing misleading details can easily cross the line into tax evasion.