“Venture capital embraces tax breaks” – A recent article written by Stephen Timm of BDlive which includes commentary by a director of Hobbs Sinclair, Mr. Neill Michael Hobbs.
If your tax advisors are still in the business of finding loopholes to lighten your tax load, your tax planning tactics are out of date. SARS has spent the last two decades and vast resources closing down tax schemes and structures that companies and individuals were using to minimise their tax burden. A more cost-effective tactic that SARS adopted in combating tax evasion was to lower the effective tax rate to a rate acceptable to the taxpayer, at the same time increasing the penalties for misbehaviour.
In order to have a healthy working capital, a business needs to make sure that it has enough capital to pay for day-to-day running costs.
Any risk-averse investors will be keenly interested in venture capital as an addition to their investment portfolios. The low-yielding BOND market, fully priced property market and volatile stock market have resulted in private equity becoming the flavour of the month.
I understand that not everybody loves working with numbers and that some people are bored to tears pouring over financial statements, which are often prepared by the company’s financial or administrative person and are usually filled with irrelevant detail. The truth is, a good set of management accounts should be everyone’s responsibility – making sure that all aspects of business are covered.
When investing into Africa, some are of the opinion that companies and investors should not be using off-shore tax structures to avoid paying tax in Africa as this dilutes investment, and minimises income in countries that need it most. However, Mauritius proves it is a good course to consider, and a credible one at that, if the sheer numbers of investors are an indication