The new Minister of Finance didn’t have much time to prepare for the Medium Term Budget Speech (MTBS) but he carried it off well.The MTBS is a three year outlook for the government budget and was introduced by Trevor Manuel to increase transparency into our...
“The question isn’t at what age I want to retire, it’s at what income.” George Foreman There are many things to consider when you retire. One thing to be careful of is the amount of money you cash in from your retirement savings. Taking cash from your...
It has become a global phenomenon measuring Tax Freedom Day, the day up to which you work to pay your taxes – only after Tax Freedom Day do you start working for yourself. In 2018 it takes us South Africans 133 days or 39% of...
“Never take your eyes off cash flow because it’s the life-blood of business” (Richard Branson) The Companies Act is underpinned by the assumption of liquidity and solvency – directors and owners are mandated to ensure the business can meet all its short term obligations. The best way...
“What people really want is fairness. They want people paying their fair share of taxes” (Barack Obama) In the Medium Term Budget Speech (MTBS) last October, Finance Minister Gigaba laid out some frightening numbers – tax revenue was not rising as predicted and expenditure was inexorably...
This budget is one of the most anticipated for many years with many questions still needing answers: How will the expected tax increases pan out? Will the Minister of Finance and his deputy keep their jobs? Will the budget incorporate “radical economic transformation” which has...
2016 was our annus horribilis with drought, political uncertainty, low commodity prices, rising inflation and a weak currency. From such a low base, economists are arguing things should get better. What will drive the economy in 2017? Balance of Payments Our economy has been running a substantial trading deficit...
“A fox knows many things, but a hedgehog one important thing" (Ancient Greek poet Archilochus) Just how accurate are we when forecasting? This is particularly important as upsets occur more and more frequently – last year the world was stunned by Brexit and by Donald Trump’s victory. Looking...
“Parting is such sweet sorrow” (Shakespeare) One of the predicted negatives from the Companies Act (the Act) and the King Codes was it would be difficult to find directors. The Act and King Codes put extensive liabilities on directors, encouraged annual appraisal of directors, term limits...
"We have to show that we will stick to our undertakings on consolidation, but on the other hand we have got to be very mindful that fiscal consolidation in the absence of growth does damage growth further." (Finance Minister Pravin Gordhan in his Medium Term...