Tributum Newsletter #5

After the mention of the Proteas in Newsletter 4 no more cricket. Good performance under pressure is difficult, whether in your personal or professional life. Different people react differently to stress and pressure and our tendencies toward “flight or fight” sometimes lead to the incorrect decisions or actions being taken, not to mention the procrastination approach.

This is what the All Blacks call “blue head” and “red head” response when under pressure. Blue head is when you are calm and collected, know what needs to be done and confidently execute your decision making and implementation. Red head is the opposite – rabbit in the head lights decision making and action. So – how do you get to make better “blue head” decisions? Through practice of course. The All Black approach training like a test match, so that they can approach the test match like training.

When you are cooking that dinner for you and the kids, imagine you’re cooking it for your boss. When you are reading that book quiz yourself on some of the facts afterwards. When you are watching that TV show or movie, see how many character names you can remember afterwards. When you are having that negotiation about curfew with your teenager, treat it like negotiating a deadline with a client. Then, when that real crises then rolls around you are better equipped to act blue head.  Practice makes perfect.

Tax filing season opens in July. Busy times lie ahead for tax practitioners as tax returns are to be filed and queries from SARS have to be dealt with. For taxpayers expecting a refund it will feel like Christmas in July. Just remember to act blue head when it comes to filing your tax return. Don’t take any chances if that refund is smaller than expected. Pay the tax you need to pay, its not worthwhile taking chances that will cost you a lot more in the end. Also, don’t spend the refund before you receive it, SARS can be a notoriously bad payer sometimes.

Expect the usual media hype from SARS about the levels of tax compliance and number of tax returns submitted, as if that is indicative of taxpayer morality. That is just testing how many of the people already in the system are submitting their returns. The real test should be how many of the tax returns submitted result in more tax being collected by SARS. In fact, should the ultimate test not be whether SARS is getting the people outside the system to also comply?

Remembering that Al Capone eventually ended up in jail because of tax fraud it is great news that the likes of Gavin Watson from Bosasa are being called to answer SARS on the various allegations of bribery and corruption made during the Zondo commission. Maybe SARS, with new head Edward Kieswetter leading the charge, will have a better appetite and more success in bringing some sort of justice to South Africans who are generally law abiding and pay our taxes. Blue heads are required in South Africa’s socio-economic and political environment. Keep yours. Until next time.