Tributum Newsletter #13
Hello
How much things change in a month! The world will never be the same hereafter, and we will remember the next couple of months for the rest of our lives. In this difficult time, I know WHO I believe in, and that gives me peace.
The following words from the Just Jinger song “What he means” should resonate with all of us, regardless of what book you read (and even if not):
“If there is grace
in this world
If there is light on this earth
Let us use it
Let us see it
Starting right now
Can we be down with
ourselves
Respectful and mindful of one, of one another
Your significant other
Your sister your brother …”
A week after the President’s first address on lockdown SARS published its explanatory notes on the Covid 19 tax measures (link: http://www.treasury.gov.za/comm_media/press/2020/20200329%20Explanatory%20Notes%20on%20COVID%2019%20Tax%20measures%20-%2029%20March%202020.pdf). The main features are the following:
- Relief mainly to be provided for business with less than R50m in turnover.
- Only 80% of the calculated PAYE liability from 1 April 2020 to 31 July 2020 is payable to SARS. The balance of unpaid PAYE will be payable to SARS in 6 monthly installments from September 2020.
- For provisional tax the relief is much larger. For first payments due between 1 April 2020 and 30 September 2020 only 15% of the liability will be payable and where a second payments is due between 1 April 2020 and 31 March 2021 only 65% of the liability will be due. Unpaid tax should be paid with a 3rd payment to avoid interest.
We have also seen various banks provide relief to the banking clients and the SA Reserve Bank has relaxed liquidity requirements on the banks in order to allow them these proposals. Moody’s have downgraded SA Government Bond to junk status – under the circumstances harsh but probably inevitable. All things point to a “black swan” event, but I think people’s health and safekeeping is paramount now and we would need to deal with the economy thereafter.
I am sure that during this time you will be watching your fair share of TV. I have set the goal of watching some of my favourite business movies with my kids over the next 3 weeks. I already had the privilege of sharing “The pursuit of Happyness” with them this past weekend. That speech to his son on the rooftop basketball court gets me every time – go watch it.
For this week I have “Jerry Maguire” and “Moneyball” lined up. Movies about sport yes, but the message for business is profound. Do you have a favourite business movie? If so, please share the title in the comments section so we can all have a look.
Until next time, stay safe, stay healthy, stay home.