Public Interest Score (PI Score)

The Public Interest Score is a numerical value used to determine the level of public interest in a company. The PI Score is calculated based on a company’s annual turnover, the number of employees, and the extent to which the company has access to the public through its shareholders and long term loans.

The PI Score is used to determine certain requirements and regulations that a company must adhere to. For example, companies with a PI Score of less than 350 are exempt from having to appoint an auditor however a company is required to obtain an independent review if its PIS is greater than or equal to 100 but less than 350.

According to section 30(2) of the Companies Act 71 of 2008, a company that meets this threshold must have its annual financial statements reviewed by an independent accounting professional who is registered with a recognized professional body. The independent review must be conducted in accordance with the International Standards on Review Engagements.

Independent reviews of financial statements are an essential tool to ensure the accuracy and reliability of these statements. In South Africa, independent reviews are conducted in accordance with the Companies Act 71 of 2008 and recognized accounting standards

What is an Independent Review

An independent review is a limited assurance engagement that provides a moderate level of assurance on the accuracy of financial statements. Unlike a full audit, an independent review does not require extensive testing of financial information or a detailed analysis of internal controls. Instead, the focus is on identifying any material misstatements that may exist in the financial statements.

Independent reviews in South Africa are typically conducted by registered accountants who have the necessary expertise to provide a professional and objective assessment of the financial statements. The accountant must adhere to recognised accounting standards in carrying out the review.

The review process involves obtaining an understanding of the business and its operations, performing analytical procedures, and making inquiries of management. The accountant will then prepare a report that provides an opinion on the accuracy of the financial statements. If material misstatements are identified, the accountant will work with management to resolve these issues.

Independent reviews are an important part of the financial reporting process in South Africa. They provide stakeholders with the confidence that the financial statements are accurate and reliable. In addition, they can identify potential areas for improvement in the financial reporting process, allowing businesses to improve their operations and provide more transparent and reliable financial information.

If you are a business owner, it is important to engage a registered accountant to perform an independent review of your financial statements to ensure compliance with the Companies Act 71 of 2008.

Should you require any further information contact us now.

Contact Us

Telephone: 031 563 1259

Email: info@hdigroup.co.za

Address: 7 Canford Park, 53 Anthony Road, Durban North

By HDI Group
HDI Auditing Incorporated | HDI Accounting and Taxation Incorporated 

Monthly Bookkeeping and Payroll

Bookkeeping is the process of recording and organizing financial transactions of a business. It involves maintaining accurate and up-to-date records of income and expenses, bank statements, invoices, and receipts. Payroll, on the other hand, involves calculating and processing employee salaries, tax deductions, and other employee benefits. By hiring a professional firm like HDI to handle your bookkeeping and payroll, you can free up your time and focus on other aspects of your business. We use specialized software both computer or cloud based and have the necessary expertise to ensure that your financial records are accurate and up to date. We would also provide you with regular management accounts or cloud access which can help you make informed business decisions and avoid any potential financial discrepancies and penalties.

VAT201, EMP201 & EMP501 Registrations & Submissions

In South Africa, businesses are required to submit VAT201, EMP201 and EMP501 returns to the South African Revenue Service (SARS) every month or bi-monthly for VAT and bi-annually for the EMP501s. VAT201 is a value-added tax return that reflects the VAT charged on sales and the VAT paid on purchases. EMP201 is an employer declaration of employee tax and includes details such as PAYE, UIF, and SDL, EMP501 is a summary of the EMP201’s and your employees annual tax certificate, IRP5. Submitting accurate and timely VAT201 and EMP201 returns is crucial to avoid penalties and interest charges. We have the necessary expertise and knowledge to ensure that your VAT and employee tax submissions are accurate and submitted on time. We know how to minimize your VAT liability by claiming all allowable inputs and how to structure your salaries in the most tax cost-effective manner.

We can also deal with SARS on your behalf and register for company for VAT or Payroll taxes.

Annual Financial Statements and Tax Planning

Preparing annual financial statements is a legal requirement for all South African companies. These statements include a balance sheet, income statement, and cash flow statement. They provide a snapshot of a company’s financial performance and position. We can prepare annual financial statements that comply with the South African Companies Act and International Financial Reporting Standards (IFRS). We are also able to audit or independently review your annual financial statements and can also provide advice on tax planning to help minimize your tax liabilities and maximize your tax savings.

Tax Return Submissions

In addition to annual financial statements, businesses are required to submit tax returns to SARS. These returns include income tax returns, provisional tax returns, and as already mentioned VAT and PAYE returns. We can assist with the preparation and submission of these returns to ensure that they are accurate and submitted on time. It is more important than ever to ensure returns are done on time as from 2023 SARS will be issuing administrative penalties for all late submissions and this administration penalty will be levied monthly until you become compliant with SARS. We also provide advice on tax planning and assist with any tax-related queries from SARS.

In conclusion, hiring a professional firm such as HDI to handle your monthly bookkeeping and payroll, assist with VAT201 and EMP201 submissions to SARS, and offer comprehensive services such as preparation of annual financial statements and tax planning and submission of relevant tax returns is crucial for any business. By outsourcing these tasks to professionals like us, you can free up your time, reduce your financial risks, and ensure compliance with South African financial and tax regulations.

Contact Us

Telephone: 031 563 1259

Email: info@hdigroup.co.za

Address: 7 Canford Park, 53 Anthony Road, Durban North

By HDI Group
HDI Accounting and Taxation Incorporated

We want to take a moment to remind you of the importance of having a reliable and professional accounting and tax firm on your side and we are pleased to offer our services to ensure that your tax affairs are handled with the utmost care and expertise.

Our firm has a team of qualified accountants and tax professionals who are dedicated to providing you with accurate and timely accounting and tax advice. We understand that tax laws and regulations can be complex and ever-changing, which is why we make it our mission to stay up-to-date on all the latest developments to ensure that you are receiving the best possible service.

In addition to our Tax Services, we also offer a range of Audit Services and Accounting Services to assist you with your day-to-day financial needs. From bookkeeping to audited financial statements, our team is equipped to handle all your accounting needs.

If you are interested in learning more about our accounting and tax services, please do not hesitate to contact us.

Contact Us

Telephone: 031 563 1259

Email: info@hdigroup.co.za

Address: 7 Canford Park, 53 Anthony Road, Durban North

By HDI Group
HDI Auditing Incorporated | HDI Accounting and Taxation Incorporated

So, if you are a global online shopper or a business importing stock into South Africa, you may find yourself in trouble if you have already imported goods 3 times or more and do not have an importers code. When your next shipment is stopped, you will be required to provide an importers code before any goods will be cleared and allowed entry into South Africa. Should you fail to provide one SARS Customs can levy a fine of up to R3000.00 or more if you are not in possession of an importers code.

This financial penalty would be for the contravention of this Law and in these cases, your goods will be stopped, delayed or detained but worse still should you be unable to provide an imported code after a certain number of days your goods can be seized and destroyed.

The good news is to get an importers license is a once-off registration. You may need to renew your license, but the time has not yet been set but it may be as long as 10 years. Once issued you can import with peace of mind knowing you are compliant.

If you are a prospective importer The HDI Group can assist you in registering for your importers code.

Why choose The HDI Group to assist you with your SARS Customs Registration:
• Getting an Import / Export License is quite a complicated process with various application forms that need to be filled out in detail.
• You also have to do two completely different processes for both an Import or an Export License.
• We will make the application on your behalf and deal with the relevant Customs Offices where a Customs and Excise client code will be allocated to you.
• You never have to come into our offices or go to a SARS customs office. You are welcome to come in if you would like, but it is by no means necessary to get your license.
• There is some requirements and documents that must accompany the application however we will guide you through the process.
• Our service is fast and efficient, we have helped many South African businesses get their Licenses already.
• Turnaround time when applying for an Importers Code from SARS in approximately 5 – 10 business days.

Contact Us

Telephone: 031 563 1259

Email: info@hdigroup.co.za

Address: 7 Canford Park, 53 Anthony Road, Durban North

By HDI Group
HDI Auditing Incorporated | HDI Accounting and Taxation Incorporated

Who is provisional tax for?

If you earn any of the following income greater than R 30 000 per year and your total taxable income is greater than the tax threshold, then you will be a provisional taxpayer: Rental Income, Interest and Investment Income, Business Income, Capital Gains etc. Provisional tax is also payable by all companies which automatically fall into the provisional tax system. A provisional taxpayer is defined in paragraph 1 of the Fourth Schedule of the Income Tax Act, No.58 of 1962.

When do I have to submit and pay provisional tax?

Provisional taxpayers are required to submit provisional tax returns also known as IRP6’s twice a year, the first provisional return needs to be submitted 6 months into the financial year and the second provisional return needs to be submitted at financial year end. There is also an optional third provisional return, also know as a top-up return. If you are an individual provisional taxpayer or a corporate taxpayer with a 28 February year end, your first provisional return will be due by 31 August 2022 and the second by 28 February 2023.

What happens if I am supposed to file a provisional return but don’t?

We are talking about SARS and tax here so, yip you guessed it – interest & penalties!! … and to make things even worse there is no longer a registration or de-registration process to be a provisional taxpayer. The onus is on the taxpayer to determine if he or she is liable for provisional tax, and to request and submit an IRP6 return via eFiling.

What penalties do provisional taxpayers face and how to avoid them

• Late Payment Penalty

If you file your provisional tax return and pay after the deadline SARS will automatically raise a 10% penalty on the balance due and also raise interest at the prescribed rate which is linked to prime.

• Under-Estimation Penalty

SARS expects you to accurately calculate your estimate, there is however some parameters your estimate can fall within to be safe. To prevent taxpayers from reporting lower numbers or incorrect numbers SARS imposes hefty penalties for understatement. This penalty is calculated at 20% of the difference between the normal tax payable for your estimate and tax you should have paid on your actual taxable income.

• Late Submission Penalty

SARS does not take late submissions of tax returns and/or payments lightly! Even one day late is considered late enough to make you pay a penalty. If you miss the deadline or do not file at all SARS will consider you submitted a NIL return and this will result in a 20% under-estimation penalty being imposed.

Reversal of Provisional Tax Penalties – Is it possible?

These penalties may seem harsh, but they exist to discourage taxpayers from deliberately underpaying their tax or postponing paying it so it is extremely hard to object and get these reversed.  If you have a genuine reason for paying or submitting late, and you can provide detailed evidence to back it up then it is possible to get SARS to reverse your penalty – or at least part of it.

We know it is painful and time consuming but it is very necessary to do your provisional return accurately if you do not want to be lumped with penalties and placed in SARS bad books ….. and believe it or not there is actually such a thing! Repeat offenders get less leniency from SARS when it comes to disputes and objections!

If you need assistance with any of your tax compliance, contact us.

HDI Accounting and Taxation

Telephone: 031 563 1259

Email: info@hdigroup.co.za

Address: 7 Canford Park, 53 Anthony Road, Durban North

Photo by Nataliya Vaitkevich: Pexels

By HDI Group
HDI Auditing Incorporated | HDI Accounting and Taxation Incorporated

• The Audit, Accounting and Tax Division is registered with the Independent Regulatory Board of Auditors (IRBA) as well as with the South African Institute of Chartered Accountants (SAICA). Apart from the above we also have management registered with South African Institute for Business Accountants (SAIBA), South African Institute of Professional Accountants (SAIPA) and tax practitioners who are registered with their various bodies including the South African Institute of Tax Professionals (SAIT).
• The Financial Planning Services Division  is registered with the Financial Services Conduct Authority (FSCA). and assists clients with risk solutions and wealth creation. HDI Financial Services is an Authorised Financial Services Provider, FSP 10003.
• The IT Solutions Division is registered with Microsoft as a Microsoft Partner and provides clients with a 24-hour IT help desk and onsite support for all information technology solutions.

Contact Us

Telephone: 031 563 1259

Email: info@hdigroup.co.za

Address: 7 Canford Park, 53 Anthony Road, Durban North

By HDI Group
HDI Auditing Incorporated | HDI Accounting and Taxation Incorporated

What is Business Ethics?

By definition, business ethics refers to the standards for morally right and wrong conduct in business.

In today’s business environment amidst growing scrutiny of business practices, it’s more important than ever for companies to carry out work the right way. Business owners should never underestimate the link between business ethics and business success.

Why are good ethics so important to businesses?

Ethics Improves Your Business Reputation

The main reason why business should establish business ethics is to promote integrity among their employees and gain trust from key stakeholders, such as investors and most importantly from their customers and clients.

Business Ethics help you Retain Top Talent

Good ethics in business starts at the top. If you’re a business owner or manager, it’s important to lead by example. When employees see you make ethical choices, it lets them know that they can have confidence in the company; they know that you’ll do right by them and your customers. This boosts morale and as word spreads about how you treat employees well, you’ll draw in good workers. Having strong employee retention rates will help you save money over time on recruitment costs and training.

Limit Risk with Good Business Ethics

Businesses that practice good business ethics face less risk for fines and other legal trouble. Sure, the law and regulations are complicated, but a lot of trouble can be avoided just by doing what’s morally right. If business decisions are made with that in mind, you can save the stress of having to defend your company against lawsuits, fines and penalties.

Social and Ethics Committee, does my Company require one?

As we discussed above, a key emphasis has been placed on companies to consider their social, economic and environmental impact of their business activities on the societies in which they operate. As companies grow and become larger, their accountability to society increases which makes it more important for Companies to ensure that their operations are being effectively monitored in this regard.

What is the Companies Act requirements?

The Companies Act, No. 71 of 2008, as amended (“the Act”) prescribes that all state-owned companies, companies listed on the Johannesburg Stock Exchange and private companies, with a Public Interest Score above 500 in any two of the preceding five (5) years, must constitute a Social and Ethics Committee in accordance with Regulation 43 of the Companies Regulations.

Responsibilities of the Social and Ethics Committee

The Committee’s responsibilities include monitoring the company’s activities with regards to social and economic development, good corporate citizenship, environment, health and public safety, consumer relationships and labour and employment. In relation to identifying and evaluating corruption risks, the Committee should further ensure that the company implements a Corporate Compliance Programme in accordance with a practice note released by the Companies and Intellectual Property Commission (“CIPC”).

Composition of a Social and Ethics Committee

When constituting the committee, the membership must comprise of a minimum of three directors and/or prescribed officers of the company. One of these members must be a non-executive director who is not involved in the day-to-day management of the business or has been within the previous three financial years.

CIPC issued the guidelines on 19 November 2018 for Social and Ethics Committees that are required for certain entities, which can be found on the CIPC website: Guideline for Corporate Compliance

Whilst the Companies Act prescribes when a company should constitute a social and ethics committee it is in the best interest of a company to operate ethically no matter how big or small they are. Trustworthy companies are better at attracting and keeping customers and clients, talented employees, and capital which leads to success.

The HDI Group believes in the business principles of being Ethical, Honest, Patient and Straight Forward.

Contact Us

Telephone: 031 563 1259

Email: info@hdigroup.co.za

Address: 7 Canford Park, 53 Anthony Road, Durban North

By HDI Group
HDI Auditing Incorporated | HDI Accounting and Taxation Incorporated

The much-anticipated Property Practitioner Act 22 of 2019 (the “Practitioners Act”) came into operation on the 1st of February 2022,  with this commencement the Estate Agency Affairs Act 112 of 1976 (Estate Agency Act) which presently governs the regulatory framework dealing with estate agency affairs was repealed.

The Act places several new obligations on property practitioners, not all of which are contained in the EAA Act. The principal obligations placed on property practitioners under the Act are as follows:

• mandatory display of a Fidelity Fund Certificate (FFC);
• property practitioner not entitled to remuneration in certain circumstances;
• maintaining mandatory indemnity insurance;
• complying with a prescribed code of conduct;
• complying with the Property Sector Transformation Charter Code;
• providing certain mandatory disclosures as regards the property in all agreements relating to a property transaction;
• providing a warranty as regards the validity of the property practitioner’s FFC in any agreement relating to property transactions;
• inclusion of certain prescribed minimum information on all written communication and marketing material, as well as certain additional information in respect of franchisees; and
• certain limitations on relationships with other property market service providers.

Non-compliance with the provisions of the Act bears the risk of incurring significant penalties, such as repaying any fees received for a property transaction, and practitioners may be issued with a fine. Furthermore, any person convicted of an offence in terms of the Act is liable to pay a fine, or to imprisonment for up to 10 years.

Reporting deadline, 4 months after financial year end.

The commencement of the PPA has also introduced changes to trust account requirements which intend to bring about welcome administrative and financial relief to many Property Practitioners. Before the commencement of the Act, all practitioners were required to open trust accounts, regardless of whether they actually handled trust monies or not. These trust accounts, in use or not, would accrue bank fees and forced businesses to undergo full annual audits which proved to be expensive.  Under the new Act, it is no longer a requirement for all practitioners to have trust accounts and now, only Property Practitioners who are involved in handling of trust monies are required to have trust accounts. This also applies when using intermediaries with their own compliant trust accounts.  The amendment of trust account requirements enables simpler and more affordable annual reviews for businesses.

Should you require any further information for your accounting and audit compliance requirements contact us.

Contact Us

Telephone: 031 563 1259

Email: info@hdigroup.co.za

Address: 7 Canford Park, 53 Anthony Road, Durban North

By HDI Group
HDI Auditing Incorporated | HDI Accounting and Taxation Incorporated

As your business grows it is essential to have trusted financial, accounting and tax professionals managing your financial records and tax compliance as well as providing you and your business with strategic financial advice. After all, the busier you get, the more complex financial management becomes and the less time you will have to maintain your books and accounting records, not to mention all the while trying to make sense of all the data and worrying about your IT environment.

Through an integrated service environment, we minimize your risks and maximize opportunities, we call this the HDI Connected Intelligence. This strategic approach will give you or your business the advantage.

HDI Group – The Integrated Advantage

Driven by our commitment to delivering practical business solutions that businesses need to succeed, The HDI Group has become recognized as Durban’s leading independent business services solutions provider since our establishment in 1994. Informed by our business and industry knowledge and with a clear focus on client’s needs, we offer a range of fully integrated services in the areas of audit, Accounting, tax, statutory, consulting, financial advisory, wealth creation and information technology.

Audit, Accounting, Taxation

Going beyond merely meeting statutory requirements, HDI Auditing, Accounting and Tax empowers clients to perform better. We listen to our client’s needs, consider the implications and tailor our approach to realize the maximum benefit. Harel Davidson Incorporated provide audit assurance and consulting services to clients thereby improving their external financial reporting and complying to the relevant regulatory requirements. HDI Accounting and Taxation Incorporated and HDI Accounting Incorporated offers all other accounting, taxation, and statutory services, these services include Independent Reviews, Annual Financial Statements prepared in terms of the International Financial Reporting Standards (IFRS) and IFRS for SME’s and compilations. We also offer a full range of Secretarial and Administrative Services such as company registrations and amendments and CIPC annual returns.

Freeing clients up to focus on their core business, our accounting and payroll related services include data capture and bookkeeping, compilation and submission of Tax, VAT, PAYE, SDL, and workmen’s compensation. We advise and assist both corporate and individual clients in complying with all aspects of tax-related legislation and regulations in South Africa and best of all we deal with the South African Revenue Service, so you don’t have to!

The directors and management who head the Audit, Accounting and Tax division offer a wide range of knowledge, expertise, and experience, all are registered with their relevant professional bodies which include Independent Regulatory Board of Auditors, South African Institute of Chartered Accountants, South African Institute of Business Accountants, South African Institute of Professional Accountants as well as South African Institute of Tax Professionals.

Financial Services

For independent advice or a review of your existing portfolios, HDI Financial Services offer a host of the best financial planning solutions available in South Africa. These services include, life insurance, dread disease and disability cover, income protection and investments. Our approach considers Discovery, Hollard Life, Liberty, Momentum, Old Mutual, Sanlam, Sygnia, FMI and Allan Gray products to ensure clients enjoy only the best benefits of truly independent financial advice. Other services that HDI Financial Services offer includes, financial planning, group benefits, Investment, retirement and estate planning, Investment management, medical aid, and medical insurance.

IT Solutions

HDIT Solutions is a Microsoft Certified partner who supplies and implements hardware and software solutions across Durban and South Africa.  Our approach ensures that the risks associated with the deployment of new technology both hardware and software are reduced, while at the same time offering clients a competitive total cost of IT ownership and peace of mind that comes with having access to 24-hour backup. Our complete range of services includes, structured service level agreements, infrastructure project management, network design and implementation, hardware maintenance, disaster recovery, WAN services system integration, Microsoft select agreements and migration & 24-hour help-desk.

HDI Group – The smart way to grow your business

Contact Us

Telephone: 031 563 1259

Email: info@hdigroup.co.za

Address: 7 Canford Park, 53 Anthony Road, Durban North

By HDI Group
HDI Auditing Incorporated | HDI Accounting and Taxation Incorporated