•Tax adjustments(e.g. depreciation; accounting gains vs CGT provisions; non-tax-deductible expenses; tax-exempt income, etc
•Trading stock on hand at year-end
•Division of partnership profits
•Value of agricultural crops held in pooling arrangements
•IT3 data, for taxpayers with investment income
•IRP5 data, for taxpayers with remuneration income
•Actuarial valuations (insurers)
•Bonus pay-outs (relevant for the payer and for the recipient).
Taxpayers are advised to review their systems to ensure that these estimates can be initiated after 10 or 11 months so that the provisional tax estimate can be finalised in time for the actual payment at year end. As indicated above, the new rule takes effect on 1 January 2009, meaning that companies with January or February year-ends are immediately affected.
Are you ready to perform the estimate?
Source: By Mark Badenhorst and Bennie Botha (TaxTALK)