Latest news with #Moneyweb
The Citizen
22-05-2025
- Business
- The Citizen
Pressure on Sars to prevent tax increases in 2026
And reprioritised government spending must lead to 'positive outcomes'. All eyes are on Sars to make good on its promise to reduce the tax debt book, which currently sits at R400bn. Picture: Moneyweb The pressure is on the South African Revenue Service (Sars) to collect sufficient outstanding revenue to prevent additional tax increases of R20 billion in 2026. Finance Minister Enoch Godongwana said in his third budget for 2025 that he believes Sars will be able to raise an additional R35 billion that will be sufficient to close the current revenue gap. Kyle Mandy, a tax partner at PwC, says the R20 billion additional tax, which has not yet been specified, is probably the most contentious issue in the budget. There is now a lot of pressure on Sars to collect outstanding taxes on the back of the R7.5 billion over the medium-term additional investment from the National Treasury. Sars has indicated that it will be able to collect tax debts of between R20 billion and R50 billion per year. It was able to collect R95 billion in tax debt in 2024/25. ALSO READ: Sensible or underwhelming? Economists react to Godongwana's Budget 3.0 'There is clearly a reluctance on the part of National Treasury to pencil in revenue expectations from the investment in Sars until such time that Sars proves that they can deliver,' says Mandy. He explains that from a fiscal point of view, revenue is only accounted for when it lands in Sars's bank account. Currently, the tax debt book is around R400 billion, and all eyes are now on Sars to make good on its promise to reduce the debt book. Kabelo Moutloatse, tax accounting specialist at Latita Africa, welcomed the increased investment in Sars to ensure higher tax collections and compliance. 'That is something that we need to see more of to ensure that those who are operating outside of the system are brought in. There has been leakage in the past and that should be worked on.' ALSO READ: SA loses R30 billion in revenue due to illicit trade in cigarettes and liquor Growth-enhancing reforms Business Leadership SA (BLSA) says the focus on growth-enhancing structural reforms is encouraging, with the minister confirming the second phase of Operation Vulindlela's priority areas, which includes seeing through existing reforms in energy, water, logistics, and the visa regime, with new reform areas being local government, digital transformation, and addressing spatial inequalities. 'The R1 trillion allocation over three years on critical infrastructure is retained, which is important to support many of the above reforms and lift growth prospects.' ALSO READ: Godongwana cuts government spending to offset VAT shortfall Lower growth and inflation Budget 2.0 and Budget 3.0 made no inflationary adjustments for bracket creep or medical aid tax credits. In March, Treasury expected income of R19.5 billion from individual taxpayers, but this has now been revised downwards to R18 billion. Government has revised downwards the forecasts for economic growth and inflation, which will have a knock-on effect on revenue. 'So they are pencilling in lower-than-expected increases for salaries and wages,' says Mandy. He adds that removing the inflationary adjustment for the general fuel levy was not unexpected, given the withdrawal of the Vat rate increase of 0.5%. Moutloatse says this will certainly impact lower-income households. ALSO READ: Budget 3.0: First fuel levy increase in three years – Here's by how much Many businesses, particularly smaller businesses, will pass this increase on to consumer, reducing their already stretched disposable income. He adds that one of the key things in Godongwana's third take is the reprioritisation of spending, moving away from any tax increases. 'We need to see more accountability with programmes and when government spends money it should lead to positive outcomes.' This article was republished from Moneyweb. Read the original here.
The Citizen
22-05-2025
- Business
- The Citizen
Treasury slashes early retirement costs
Revised down from R11bn estimated in the 2024 MTBPS to R5.5bn across 2025/26 and 2026/27. The early retirement programme aims to rationalise and rejuvenate the public service while retaining critical skills and promoting the entry of younger talent. Picture Shutterstock The allocation for the early retirement programme has been revised down from R11 billion estimated in the 2024 Medium-Term Budget Policy Statement to R5.5 billion across 2025/26 and 2026/27. 'This budget also retains the provisional allocations for early retirement, allocations for Prasa and the municipal trading entity reforms announced before, but at a slightly lower level than anticipated in the March 12 budget,' says Finance Minister Enoch Godongwana in his speech. Re-introduced last year, the incentive aims to rationalise and rejuvenate the public service while retaining critical skills and promoting the entry of younger talent. In 2019 there was a similar offer, but it didn't solve the problem. ALSO READ: Budget 3.0: not austerity budget, but a redistributive budget 'This initiative is expected to motivate 15 000 public service employees to apply for early retirement in 2025/26 and 2026/27, with R5.5 billion allocated to support the programme', says National Treasury Director-General Dr Duncan Pieterse. Initially, at R11 billion, the early retirement was to extend to 30 000 employees and translate to a R2 billion year cost saving. 'We halved the provision and so halved the number of employees who will benefit,' says Pieterse at a media briefing before Godongwana delivered his speech. Early retirement costs will come up to R5.5 billion for the two years. The government will spend R2.2 billion in the first year of implementation and then proceed to spend R3.3 billion in 2026/27. 'The March 2025 Budget Review provides details on key fiscal reforms, including a longer-term fiscal anchor and the reactivation of early retirement without penalties to support a sustainable public-service wage bill. These reforms are in progress,' says Pieterse. ALSO READ: Godongwana cuts government spending to offset VAT shortfall Hefty public wage bill The public sector wage bill has weighed heavily on the fiscus for years, and attempts to rein it in have been largely unsuccessful. Moneyweb reported that SA's wage bill breached R700 billion in 2023. Tabling the budget for the 2023/2024 financial year, Godongwana said he expects compensation for workers in the employ of the public service to reach R701.2 billion, surpassing a level he once thought would be reached in 2025. In 2019, former finance minister Tito Mboweni introduced a public sector salary freeze for three years in an effort to control the ballooning wages. But in the 2023/24 financial year, public service wages increased. Pieterse noted discussions with organised labour on the process for people to apply for early retirement are underway in the Public Service Co-ordinating Bargaining Council (PSCBC). 'The allocation will be revisited on the conclusion of these consultations as part of the next budget process, although functions that are not parties to the PSCBC process – such as the Department of Defence – can proceed with implementation,' he says. This article was republished from Moneyweb. Read the original here.
IOL News
15-05-2025
- Business
- IOL News
Misleading Narratives and Sensational Claims: The Flawed Logic Behind the Banxso Scandal Story
Explore the troubling allegations against Banxso in the wake of a Moneyweb article, as we dissect the evidence—or lack thereof—behind sensational claims and the potential consequences for media integrity. The recent Moneyweb article titled 'Banxso refund scam escalates into sexual blackmail: Victim speaks out' presents a harrowing tale of digital manipulation and emotional trauma. However, while the human impact of such crimes deserves sympathy, the article makes a significant leap — suggesting, without hard evidence, that Banxso is somehow connected or responsible for the actions of the criminal network behind this scam. This inference rests almost entirely on an alleged use of the same email address once associated with Banxso, any further indicators as to how the perpetrators gained the victims confidence have not been shared within the article. That threadbare link forms the foundation for a serious public accusation, yet no concrete evidence is offered to support a claim of corporate wrongdoing. 'There's a big difference between a bad actor impersonating a platform and the platform being complicit,' noted a regulatory advisor familiar with South Africa's financial services licensing regime. 'From what I've seen, the story relies on implication, not investigation. 'By the article's very inferences the FSCA are guilty of running a WhatsApp scam not the victims of identity theft.' This is in clear reference to an alert issued on the FSCA's (Financial Service Conduct Authority) social media pages a few weeks ago where they chastised the usage of an AI generated deep fake video impersonating their commissioner Mr. Unathi Kamlana to sell a trading tool called NBSG Securities or Nedbank Securities. The notice further highlights this is a scam and the use of logos and names is unauthorised. Banxso has consistently denied any role in this or any other scam. Through its attorneys, Hanekom Attorneys, the company has reiterated that no data breach has occurred, and that no client data has been compromised or sold. 'Our client has not sold, shared, or otherwise disseminated client data to unauthorised third parties. Any suggestion to the contrary is false and defamatory… Further, our client has not experienced any confirmed data breach to date,' reads a formal letter submitted to the publication prior to release. They further assert 'In the circumstances, whilst our client again unequivocally denies the allegations and reaffirms the robustness of its security protocols, we formally request that any future enquiries be submitted in a bona fide manner, clearly delineating new and verifiable information warranting a response. Failing which, our client reserves the right to decline any further engagement on the subject matter.' Yet Moneyweb published the story — one in a string of articles targeting Banxso — while giving minimal weight to these denials. This raises questions about intent, especially given the timing of events.
The South African
14-05-2025
- Business
- The South African
Good news: Why Durban's hotels are nearly FULL this week
With thousands of visitors pouring into the city, Durban's hotels are almost fully booked this week. The city's hosting of events is responsible for this uptick in guests. Hot off the back of the clash between Kaizer Chiefs and Orlando Pirates, Durban is hosting another big gathering this week. The Africa Travel Indaba 2025 trade show kicked off at the Inkosi Albert Luthuli International Convention Centre on 13 May. According to Moneyweb , the indaba will draw thousands of visitors. That explains the high occupancy rates in the city, even after the Nedbank Cup Final concluded on the weekend. Speaking to Moneyweb, Jaya Naidoo, East Coast general manager of the Federated Hospitality Association of Southern Africa, said: 'Hotel occupancy in Durban and Umhlanga is ranging from 80% to 90% during the Indaba.' The indaba, which was opened by Deputy President Paul Mashatile yesterday, is expected to draw thousands of visitors to Durban and its hotels. Over 1300 exhibitors are taking part in the trade show, and it's possible that as many as 2500 to 2600 international guests will attend. With so many travellers, even the Hilton Durban Hotel, which boasts more than 320 rooms, has reopened. This is the first time the establishment has been fully open after the havoc caused by the COVID-19 pandemic. The African Travel Indaba is hosted by South African Tourism to promote both the country and the African continent. The three-day event wraps up on 15 May. But it's not the only event keeping hotels in Durban busy this week. The Second G20 Tourism Working Group also brought international delegates to the KZN city this week. As reported by SA News, KwaZulu-Natal Premier Thamsanqa Ntuli said that it was a proud moment for the province: 'This is more than a meeting. It is a statement that KwaZulu-Natal is ready to lead, connect, and contribute on the global stage. We are honoured to host the world's tourism leaders and share our vision for a sustainable tourism economy that creates jobs, drives growth, and uplifts communities.' Durban has struggled in recent years, leading the eThekwini Municipality to launch a programme to revitalise the city centre last month. But this week, it's not just Durban's hotels that are thriving among all the events taking place. KZN Tourism and Film Authority interim CEO Sibusiso Gumbi told Moneyweb : 'Eateries around the city will be buzzing and enjoying the economic benefits of hosting an event of such magnitude.' Let us know by leaving a comment below or send a WhatsApp to 060 011 0211. Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X, and Bluesky for the latest news.
The Citizen
14-05-2025
- Business
- The Citizen
Taxpayer battling with a crypto tax nightmare for months
Owing Sars R1.7m from profits he has not made. A Sars official has provided some insight, and hints that there may have been some 'misapplication' in this case. Picture: Shutterstock A taxpayer has been battling with the South African Revenue Service (Sars) for months after receiving an additional assessment of an eye-watering R1.5 million from crypto trade income. The taxpayer made only one deposit of R185 000 with a crypto trading platform in 2021, and subsequently withdrew about R70 000. He was left with an additional assessment of more than R1.7 million after penalties were included. John Godsiff, the aggrieved taxpayer, says the additional assessment was issued on 10 March, and on 13 March he sent a lengthy letter to Sars when he became aware of the additional assessment. He claims he received correspondence from Sars from an unfamiliar address, and when checking his eFiling profile, there was no correspondence verifying the email from Sars. The additional assessment was only placed on his profile at a later stage and could be verified as authentic. ALSO READ: Are you making money with crypto assets? Sars is looking for you 'Bald and threatening' claim The amount was payable on 17 March. According to Godsiff, R16 000 was extracted from his bank account on the same day. Sars presented a 'bald and threatening claim' of the sum of R1 738 398 without supplying 'any helpful background' about where the amount had been sourced, nor any detail as to how the amount had been calculated. Godsiff approached Moneyweb on 18 March, noting that he had attempted to contact Sars via its helpline and had also tried to deal with the matter via the eFiling system. He received no feedback from Sars following his lengthy letter. Sars spokesperson Siphithi Sibeko declined to discuss the matter, noting that Sars is prohibited by Chapter 6 of the Tax Administration Act from divulging any taxpayer information. 'In this respect, Sars will not be commenting. The taxpayer concerned can approached [sic] the nearest Sars Branch and all his questions will be addressed therein.' Following several attempts to obtain an interview with a Sars official to understand how a taxpayer can end up in this situation, Andrew Wes – head of corporate income tax product, process and design at Sars (who was involved in establishing Sars's approach to cryptocurrencies) – explained the process. ALSO READ: Sars' spotlight on crypto traders signals new era of accountability, say experts Treatment of crypto profits The general approach to crypto assets is to treat them as an asset with intangible value – taxpayers will be taxed as if a transaction was a barter transaction. 'The general approach is that crypto assets are to be treated like any other asset for income tax purposes,' Wes told Moneyweb this week. This approach was set out in a media statement in April 2018 when Sars noted that it will continue to apply normal income tax rules to cryptocurrencies and will expect affected taxpayers to declare cryptocurrency gains or losses as part of their taxable income. The onus is on taxpayers to declare all cryptocurrency-related taxable income in the tax year in which it is received or accrued. Failure to do so could result in interest and penalties. ALSO READ: Sars is spying on your social media accounts – Here's why Taxpayer's additional assessment Godsiff's additional assessment for the 2022 tax year indicated an amount of more than R1.5 million for 'income other than turnover' classified as crypto asset profits. He received an understatement penalty of more than R646 000 for 'omission of income' and a penalty of R85 294 due to the underestimation of provisional tax. Godsiff noted that he did not sell any of his funds (besides withdrawing around R70 000) to be able to make such a profit. Two days before he was supposed to pay the additional assessment, he had an amount of R102 217, with a cash balance of R4 153 in his account on the crypto platform. ALSO READ: Unjustified debt collection measures cause unnecessary taxpayer distress Clear as mud Following a visit to a Sars office, he lodged a notice of objection, a remission of penalties, and a suspension of payment. Subsequently, he received a statement of penalty with a null balance and a confirmation of the suspension of payment. 'The position is as clear as mud,' he said. His income tax assessment for the 2023 year was equally 'confusing'. The assessment indicated that he owed Sars an amount of R1.7 million, yet the assessment summary information indicated a net debit amount of 0.00. According to Godsiff, he has not received any further correspondence from Sars. Wes did not comment on the Godsiff matter, stating only that it had been escalated. However, he gave a simple example of how the process is supposed to work. The onus remains on the taxpayer to declare crypto profits or losses and to keep all documents that will offer a reasonable level of proof when there is any request for supporting documentation or in the case of a dispute. If a taxpayer buys crypto assets worth R100 000 and later sells them for R1.2 million, they have a crypto asset profit of R1.1 million, which is subject to tax. 'To the extent that the process deviates from this example there is some misapplication,' said Wes. This article was republished from Moneyweb. Read the original here.
