EKONOMIESE VOORUITSIG

2007 BUDGET HIGHLIGHTS

BELASTINGNUUS VIR KLEIN BESIGHEDE

BV HELpS RISInG STaRS To REacH THEIR DREamS

Table Of COnTenTsDear client / Beste Kliënt

The past year at Boshoff Visser has seen much activity and we are pleased to share developments both on the economic front as they relate to your business and on the home front at Boshoff Visser.

Hierdie nuusbrief bied ‘n oorsig van belangrike ontwikkelinge wat gedurende 2006/7 in ons bedryf plaasgevind het. Lees meer oor die voorgenome Maatskappywet en die nuwe wetgewing vir belastingpraktisyns, wat daarop gemik is om die bedryf te reguleer — ‘n belangrike stap wanneer die gebeure in afgelope jare in ag geneem word. Ons kyk ook na die hooftrekke van die 2007–begroting, waarin Minister Manuel voorsiening maak vir ‘n netto belastingverligting van R12,4 miljard, waarvan R8,4 miljard in persoonlike inkomstebelastingverligting vir individue is.

We also look forward to an overhaul of the VAT Act and await more news on the Government’s pension plan. As always, Boshoff Visser is available to guide you through these and other legislation that affect you and your business.

By Boshoff Visser het dinge die afgelope jaar weer geroer. Ons finansiёle dienste afdeling staan op die punt om ‘n eie uittree–annuïteitsfonds te loods en die buitelandse eiendomsmark te betree. Lees meer daaroor later in die uitgawe. Ons Riversdal kantoor het in Septemer na die nuwe perseel in Dicksonstraat verskuif en die Heidelberg kantoor is sedert April in die splinternuwe kantore te Fouriestraat. Chris Schutte, voormalige ouditbestuurder van PWC op Worcester, is vanaf 1 April 2007 die nuwe direkteur van die Caledon kantoor. Joubert Jonck en Jennie Meyer is sedert Mei 2006 aangestel as direkteure by die Bellville en Mosselbaai kantore onderskeidelik.

We hope you enjoy this 2007 issue and look forward to being of service to you again this year.

Yours Sincerely / Die Uwe,

Pieter WesselsDirector/Direkteur

Ekonomiese Vooruitsig ....................3

2007 Budget Highlights ...................4

New Company Law Bill to Introduce Far–reaching Changes ......6

Proposed New Law on Tax Practitioners ..............................7

Small Business Amnesty Time is Running Out! .......................8

Klein Besighede: Belastingnuus ........9

BEE Update ...................................12

BV Helps Rising Stars to Reach Their Dreams ......................13

Boshoff Visser Looks Offshore to Reduce Local Risks.....................14

Lewendehawe as Bateklas .............15

Saving for Retirement How Prepared are You? ..................16

CRM Upgrade ...............................19

Testamente: Nuttige Wenke ...........20

Kan jy op jou Trust staatmaak? .......21

DISCLAIMERBoshoff Visser Plus is published by the Boshoff Visser Group. The content thereof is intended for the Boshoff Visser Group’s clients only. Reproduction in whole or part is prohibited without prior permission of the Boshoff Visser Group.

ENQUIRIES PO Box 5530 Tyger Valley 7536 Tel +27 21 914 9604Fax +27 21 914 9607 Email pieterwessels@boshoffvisser.co.za

www.boshoffvisser.co.za

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Die grootste verrassing in SA gedurende 2006 was die sterk binnelandse verbruik en investering, terwyl kapitaalinvloei ook aan die hoë kant verras het. Hierdie bestedingsbloei het gelei tot ’n skerp toename in die tekort op die lopende rekening, ’n verswakking van die rand en gevolglik hoër inflasie. Ons verwag dat SA huishoudelike besteding gedurende die jaar ietwat sal verlangsaam, vanaf die toename van 7% in 2006 tot sowat 5% in 2007.

SA se groei in bruto binnelandse produk (BBP) sal na verwagting vanaf ’n geraamde 4.9% in 2006 afneem tot 4.5% in 2007, terwyl die tekort op die lopende rekening behoort te vernou vanaf 5.8% van BBP tot 5.2%. Dit is te danke aan laer internasionale oliepryse wat SA se invoerrekening verlaag het, en die swakker rand wat uitvoer–ontvangste verhoog het. Die rand sal vanjaar waarskynlik matig verswak tot R7,50/$ teen die einde van die jaar. Verbruikersinflasie met verbande uitgesluit (VPIX) sal waarskynlik in die volgende paar maande ’n spits bereik onder 6%, en daarna geleidelik terugsak en die jaar op 4.8% afsluit, vergeleke met 5.1% in Desember 2006.

Hoewel SA aandele ná ’n styglopie van vier jaar nie meer uitstekende waarde bied nie, behoort hulle in vergelyking met ander plaaslike bateklasse nog steeds hoër opbrengste in 2007 en daarna te bied.

Verlede jaar het die FTSE/JSE Alle Aandele–indeks (ALSI) met ’n opbrengs van 41.2% alle vooruitskattings oortref. Die mark het aansienlik gestyg in vergelyking met oorsese markte, rekordhoë buitelandse invloei gelok en die jaar op ’n prys/verdienste–verhouding (PV) van 17.3 keer afgesluit, teenoor 15.8 keer aan die einde van 2005. Die huidige stygmark is reeds die tweede langste en tweede sterkste stygmark in die Suid–Afrikaanse geskiedenis. Op beide ’n historiese en ’n vooruitskouingsgrondslag is ons mark–PV hoog, en dit kan selfs hoër styg — alles hang af van die wêreldmarksentiment. Hierdie styging dui op laer opbrengste vorentoe, van sowat 12% op ’n volgehoue grondslag oor die langer termyn.

Hoewel dit miskien teleurstellend lyk vergeleke met die afgelope vier jaar se opbrengste, is dit nog steeds aantreklik in vergelyking met die opbrengste wat effekte– en

geldmarkte waarskynlik oor die langer termyn sal oplewer. Kontant sal na verwagting 6% tot 7% oor die langer termyn lewer, en effekte omtrent 8%, terwyl inflasie struktureel steeds laer neig. Aandele sal beslis hierdie syfers oortref.

Hoewel aandele tans duur lyk teenoor kontant, is die grootste risiko vir die belegger herbeleggingsrisiko. Die hoofrede waarom kontant tans aantreklik is, is dat dit ’n redelik hoë reële opbrengs van ongeveer 5% bied. Inflasie behoort egter binnekort ’n spits te bereik, en rentekoerse sal waarskynlik ook oor die medium termyn daal. Dit sal die opbrengste op kontant laat daal.

Op ’n relatiewe grondslag is die SA aandelemark op ’n gelyke vlak met wêreldmarkte, wat ’n sterk styging oor die afgelope paar jaar verteenwoordig. Intussen lyk die PV van die wêreldmark, in ooreenstemming met sy historiese langtermyngemiddelde, besonder aantreklik teenoor effekte–opbrengste. Die vooruitsig lyk steeds gunstig vir wêreldmarkte en –ekonomieë vir die jaar vorentoe.

Die grootste korttermynrisiko vir die SA aandelemark in 2007 bly die moontlikheid van grootskaalse buitelandse verkope, wat nie net markwaardes sal ondermyn nie, maar ook die land se reeds groot tekort op die lopende rekening nadelig sal raak en ’n bose kringloop aan die gang sal sit. Oor die langer termyn lyk vooruitsigte vir ontluikende markte egter nog steeds gunstig, met inagneming van hul sterker groeivooruitsigte as dié van ontwikkelde ekonomieë.

eKOnOMIeseVOORUITSIGDie wêreldomgewing sal in 2007 waarskynlik SA–vriendelik bly, solank die moontlike verlangsaming in wêreldwye ekonomiese groei nie skerper is as wat verwag is nie, sentrale banke nie uitermate aggressief is nie en kommoditeitspryse nie skerp daal nie.

Bron: OMIGSA FundamentalsFebruarie 2007

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Geoktrooieerde Rekenmeesters en Finansiële Dienste

standvastige persoonlike diens.Ongeveer 150 werknemers by ons 11 takke verseker u van die hoogste gehalte professionele diens. Ons personeel sluit gegradueerdes, gekwalifiseerde rekenmeesters en finansiële beplanners in. Hulle is ons firma se grootste bate. Met behulp van kennis en ondervinding bedien ons ‘n wye reeks kliënte, wat wissel van individue tot maatskappye wat in verskillende sektore van die ekonomie bedrywig is. Vir verdere inligting en ‘n volledige uiteensetting van ons dienste, besoek gerus ons webwerfby www.boshoffvisser.co.za

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PERSONAL INCOME TAx AND BRACKET ADjUSTMENTS

The 2007 budget provided net tax relief of R12,4 billion, of which R8,4 billion was in personal income tax relief to individuals. This is in line with previous years, with savings significant for low income earners and those over age 65.

2006/20070–100 000 18% of each rand

100 001–160 000 R18 000 plus 25% above R100 000

160 001–220 000 R33 000 plus 30% above R160 000

220 001–300 000 R51 000 plus 35% above R220 000

300 001–400 000 R79 000 plus 38% above R300 000

400 001 and above R117 000 plus 40% above R400 000

2007/20080–112 500 18% of each rand

112 501–180 000 R20 250 plus 25% above R112 500

180 001–250 000 R37 125 plus 30% over R180 000

250 001–350 000 R58 125 plus 35% above R250 000

350 001–450 000 R93 125 plus 38% over R350 000

450 001 and above R131 125 plus 40% over R450 000

2007/2008 2006/2007Primary rebate 7 740 7 200

Secondary rebate 4 680 4 500

Tax threshold below age 65 43 000 40 000

Tax threshold age 65 and older 69 000 65 000

Interest exemption below age 65 18 000 16 500

Interest exemption age 65 and older 26 000 24 500

Exemption in respect of foreign interest and taxable foreign dividends increases from R2 500 to R3 000 of the total exemption limit.

The tax–free fringe benefit for medical aid contributions will be limited to a fixed amount of R530 (previously R500) each for the taxpayer and first dependant and R320 (previously R300) for each additional dependant. Medical aid contributions and qualifying medical expenses that exceed 7,5% of taxable income may be deducted.

Where the recipient of a travel subsidy must spend at least one night away from his/her usual residence on business and, if the accommodation is in SA, the allowance or advance can be used to pay for:

Meals and incidental costs up to R208 (previously R196) per dayIncidental costs up to R63,50 (previously R60) for each day within the periodAccommodation outside SA up to $200 (previously $190) per day

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CORPORATE INCOME TAx

The corporate tax rate remains unchanged at 29%.The secondary tax on companies (STC) rate decreases from 12.5% to 10%.It is proposed that the STC be replaced with a dividend tax in 2008. This reform will happen in two phases. The first phase reduces the rate of STC to 10%. This will apply to all distributions and will become effective from 1 October 2007. The second phase, commencing in 2008, will entail conversion to a dividend tax on shareholders, enforced through a withholding tax at company level. This will involve renegotiations of several international tax treaties.The turnover limit for eligible small businesses remains at R14 million. Tax rates changed in line with the individual tax thresholds to R43 000 and are as follows:

R0–43 000 0% R43 001–R300 000 10% R300 001 and above 29%

SMALL BUSINESSES

SARS is currently offering a tax amnesty to small businesses. Please read more about this on page 8.

STAMP DUTy

It is proposed that all secondary trade in shares (listed or otherwise) be subject to a single securities tax. The Uncertified Securities Tax Act (UST Act) will be renamed the Securities Tax Act and would include unlisted shares.

Stamp duties on short–term leases (less than five years) will be abolished. The relationship between the VAT Act, Transfer Duty Act and stamp duties on long–term leases will also be examined.

VAT

The VAT rate remains unchanged at 14%.

ESTATE DUTy

The basic exemption for estate duty is adjusted from R2.5 million to R3.5 million for individuals from 1 March 2007.

DONATIONS TAx

The annual exemption for donations tax is adjusted from R50 000 to R100 000 per annum.

CAPITAL GAINS TAx

The annual exclusion increases from R12 500 to R15 000 for individuals and trusts.The annual exclusion in the year of death increases from R60 000 to R120 000.It is proposed that gains on the sale of shares held for more than 3 years will trigger a capital gains event. This should help determine whether the sale of shares should be taxed on income account or be subject to capital gains tax.

RETIREMENT FUNDS

Retirement Fund Tax has been abolished. From 1 March 2007, no tax will be imposed on the interest or rental income of retirement funds.

PUBLIC BENEFIT ORGANISATIONS

The threshold for tax deductible donations for both individuals and companies increases from 5% to 10% of taxable income to encourage charitable contributions. Given the important role that PBOs play, the tax–free income threshold of the greater of 5% of gross income or R50 000 has been adjusted to greater of 5% of gross income or R100 000. PBOs will be placed on par with other employers in respect of skills development levy.

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The approach of the Department of Trade and Industry (DTI) is that “company law should promote the effectiveness and development of the SA economy”. “The new bill aims to increase flexibility and efficiency in SA’s company law, while strengthening transparency, corporate governance and protection for stakeholders,” says Pieter Wessels, director, Boshoff Visser.

The Close Corporation Act will remain in force to regulate smaller companies, though the proposed Companies Act provides for its possible repeal later. A company’s ombud, rather than a tribunal as envisaged earlier, has been proposed to adjudicate legal disputes.

The draft creates three categories of companies: not–for–profit companies (successors to the section 21 firms); for–profit companies that are held by the public; and for–profit companies known as “closely held companies”. The bill also introduces public–interest companies, which have a greater responsibility to the wider public, and are subject to more demanding disclosure and transparency provisions.

The draft includes an important new capital–maintenance regime based on solvency and liquidity. Instead of having “complex and artificial” capital–maintenance rules, the new law will require directors to ensure compliance with solvency and liquidity requirements.

The Bill creates an independent regulatory board with the following objectives:

to register accredited tax advisers

to prescribe appropriate standards of qualification for accredited tax practitioners

to implement a code of professional conduct

to institute disciplinary proceedings against practitioners who do not comply with these standards

Under the new Bill, tax practitioners who uncover fraud and other tax irregularities related to their clients will be compelled to report this. The tax practitioner and the client will then have 30 days to take steps to remedy the situation. Where the reportable irregularity is not rectified by the client, the tax practitioner is compelled to send a written report detailing the irregularity to the regulatory board of tax practitioners and forward a copy of the report to the client.

“It is in the interests of the public that tax practitioners are subject to rules governing their conduct, as is the case with the FAIS Act and accredited financial advisers. To this end, all Boshoff Visser directors and qualified staff are registered as tax practitioners,” says Pieter Wessels, director, Boshoff Visser.

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NewCOMpany law bIll TO INTRODUCE FAR–REACHING CHANGES

Corporate governance also received attention. The bill adds flexibility in areas such as the form of shareholder meetings, the exercise of proxy rights and the standards for adoption of resolutions.

It avoids explicit standards for directors’ conduct, but introduces new rules in the form of a codified regime of directors’ duties. Liabilities of directors and company executives are clarified. To improve accountability, the draft proposes that it will be an offence, punishable by a fine or up to 10 years’ imprisonment, for a director to agree to a false or misleading financial statement, or to be reckless in the conduct of a company’s business.

Company financial statements will have to contain details of remuneration received by directors and managers.

The rescue of businesses in financial difficulties will also be reformed. The existing law covering judicial administration of failing companies is replaced with a modern rescue regime, largely self–administered by the company with independent supervision.

The reforms draw on international law such as the Chapter 11 Bankruptcy Law in the US. Under SA’s proposed new act, a business rescue plan can be triggered by management or by creditors. It recognises the interests of shareholders, creditors and employees and provides for their participation in the development of a business rescue plan.

Employees are recognised as creditors, with a voting interest to the extent of any unpaid remuneration.

The DTI intends taking the bill back to cabinet in about June this year.

Source: www.financialmail.co.za 01/03/07

For decades, SA companies were regulated by legislation that was out of touch with the needs of modern businesses. It took government 34 years to overhaul the Companies Act of 1973, but the product — released in draft form in March this year — has already found initial approval from the corporate sector.

prOpOsed new law ON TAx PRACTITIONERS

Approximately 17 000 tax practitioners are registered with SARS. The Regulation of Tax Practitioners Bill aims to ensure that all tax practitioners are appropriately qualified, adhere to ethical practices and are held accountable for their professional conduct.

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WHO CAN APPLy?Small businesses with a turnover of less than R10 million in 2006 can apply for amnesty. The business can be owned by an individual, a close corporation, an unlisted company, a co–operative or a trust. Shares in a business owned by a close corporation, unlisted company or co–operative must be held by individuals. A similar rule applies to trusts.

WHAT TAxES FALL UNDER THE AMNESTy?Even if you apply for amnesty, you will still need to pay the following:

Income tax on your profit for the 2006 year.

A levy of 2% to 5% on your 2006 profit to clear your past taxes. There will be no levy for profits under R35 000.

You can get amnesty for income tax on profits and secondary tax on dividends up to the start of the 2006 tax year.

You can also get amnesty on VAT, PAYE, contributions on payroll to skills development levies and UIF, and withholding tax on royalties up to 28 February 2006.

You will not have to pay any fines, interest and penalties. Once you get amnesty from SARS, they may not make a criminal case against you as long as you have been honest about your income.

WHAT CAN yOU NOT GET AMNESTy FOR?For income you received in the form of a salary or wageFor taxes you have already paidFor taxes that become payable because you submitted a tax return before applying for amnesty

If SARS has already informed you that they want to audit or investigate you

HOW TO APPLyThis is a once–off opportunity for small businesses to become legal and to clear past tax bills. To apply, fill in the small business tax amnesty application form (SBA001) available at www.sars.gov.za or any SARS office. You can also call their hotline on 0860 12 12 20 or contact one of the Boshoff Visser directors for assistance.

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WAT KWALIFISEER AS ‘N KLEIN BESIGHEID?

Alle maatskappye (of beslote korporasies) met ‘n omset van onder R14 miljoen — hierdie limiet bly onveranderd. As jy as eenmansaak of vennootskap of trust handeldryf, kwalifiseer jy nie.

Feitlik alle tipe besighede met ‘n paar uitsonderings. As jy persoonlike dienste lewer, moet jy minstens vier werknemers hê (ook met sekere vereistes).

Net natuurlike persone mag lede wees in die maatskappy/BK.

Jy mag net in een so ‘n maatskappy/BK ‘n belang hou.

HOE LyK DIE VOORDELE?Belastingkoerse het vanjaar ietwat verander, in lyn met die individuele belastingdrempels van R43 000. Jy sal dus nou geen belasting op die eerste R43 000 wins betaal nie. Daarna teen slegs 10% tot R300 000 wins en bo R300 000 teen 29% wat vir maatskappye geld.

Eis depresiasie teen 50:30:20 op bates wat gebruik word in jou bedryf.

Eis depresiasie van 100% in jaar een vir bates wat vir vervaardiging gebruik word.

WAT BETEKEN DIT IN RAND EN SENT?As jou eenmansaak R400 000 se belasbare inkomste het in ‘n jaar, gaan jy in die nuwe jaar ongeveer R105 000 se belasting daarop betaal. Indien jy dit bv. in ‘n BK wat kwalifiseer as kleinsakekorporasie doen, gaan jy ongeveer R55 000 belasting betaal, wat neerkom op ‘n besparing van ongeveer R50 000.

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sMall busIness aMnesTyTime is Running OuT!In February 2006, the Minister of Finance announced a tax amnesty for all small businesses, including taxi operators, to allow them to get their tax affairs in order. Small businesses have until 31 May 2007 to apply.

KLEIN BESIGHEDE

belasTInGnuusDie Begroting vir 2007 het nie baie verrassings ten opsigte van belasting vir klein besighede ingehou nie. ‘n Oorsig van die huidige geskiktheidskriteria vir klein sakeondernemings en hul belastingsituasie verskyn hieronder.

RMBAM 225mm x 360mm Retail English.FH11 Thu May 03 13:38:13 2007 Page 1C M Y CM MY CY CMY K

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SMALL AND MICRO ENTERPRISESThresholds for Exempted Micro Enterprises (EME) have increased from R300 000 to R5 million based on annual turnover

Thresholds for Qualifying Small Enterprises (QSE) have increased to between R5 million and R35 million based on annual turnover

The weighting is now 25% for all the elements

QSEs can now select 4 out of the 7 pillars to add up to 100%

Indicators have been further simplified for small enterprises

GENERIC SCORECARD (MEDIUM TO LARGE ENTERPRISES)

Qualification from R35 million turnover and aboveCompliance with all 7 pillars must add up to 100%Generic scorecard indicators have dropped from 42 to approximately 23Specific targets for procurement from Black–owned enterprises Specific targets for procurement from Micro’s and QSE enterprisesWeighting for employment equity has increased from 10 to 15 pointsThe skills development element has decreased from 20 to 15 pointsThe skills development element has increased from 10 to 15 points

The socio–economic development element has decreased from 10 to 5 points

WHAT DO THE REVISED CODES MEAN FOR yOUR BUSINESS?

Less onerous BEE compliance requirements for small and micro enterprises

Less time spent by medium to large enterprises trying to achieve BEE compliance thanks to a reduction in the number of indicators

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SCHOLARSHIP PROGRAMMEThe Boshoff Visser scholarship programme is in its fifth year. Albert van Rensburg, our first scholarship student, completed his Honours degree at the University of Stellenbosch last year and is busy with his Board exams. Albert started his traineeship at our Grabouw office in January 2007. Chanita Paulsen passed her Grade 12 in 2006 with an “A” average from Gerrit Du Plessis High School in Riversdale and started her traineeship at our Riversdale office this year while continuing her studies through UNISA.

Our first “corporate” golf day, held at the Strand Golfclub in November last year, raised about R10 000 for the student scholarship programme.

Boshoff Visser’s support of sport both at school and professional level is well established.

We sponsor the following:The annual interschool matches between Langenhoven (Riversdale) and Swellendam High School (main sponsor)

Swellendam Primary School's annual rugby and netball day (main sponsor)

Bellville High School athletic team at the prestigious MTBS athletics meeting held in February (co–sponsor)

The Swellendam Canola Festival

The Vlakte Marathon from Heidelberg to Witsand

The Megaweek in Bredasdorp

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bV Helps rIsInG sTars TO REACH THEIR DREAMSBoshoff Visser’s social outreach programmes are becoming increasingly entrenched and we are excited at the positive outcomes of these initiatives. In addition to the activities below, we support several schools, churches and public benefit organisations in the areas in which we operate.

Bee updaTe

Specific targets for procurement from Micro’s and QSEs will create growth opportunities for these enterprises

Black owned businesses will get preferential procurement regardless of their level of contribution

Preferential procurement implications favour companies with a higher level of contribution

The finality of the codes will facilitate decision making for management in the implementation of the BBBEE initiatives and policies

WHAT NExT?The legislation of BBBEE into law will encourage transformation throughout the economy.

The public and private sectors will prefer to interact and procure from companies with a higher BEE status.

There will be clarity on penalties around the issue of BEE fronting and shams.

For more information on BEE, compliance with the new codes, etc. please contact any of the Boshoff Visser directors.

Source: DTI website, Kbongabee website

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On 6 December 2006, Parliament approved the Codes of Good Practice on Broad–Based Black Economic Empowerment (BBBEE). The main features of these new codes and their impact on your business are explained below.

SPONSOR OF SPORTING EVENTS

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Offshore investments are one option of diversifying the overall investment asset base, thus managing and reducing the overall investment risk. Many investors feel that due to the stability of the rand in recent years there is no need to invest offshore. On the contrary, from a hedge perspective, if the rand is relatively strong, it provides an opportunity to buy into foreign economies cheaply, thus getting more “bang for your buck”. In fact, the exceptional returns generated by some of the local offshore unit trust funds are not necessarily due to exceptional returns in the respective foreign markets but rather due to normal expected foreign returns coupled with the positive impact of converting the foreign currency returns back to a weakening rand.

Currently, an individual investor can invest up to R2 million offshore. One way to use this allowance is to invest directly in offshore property via a true offshore trust company. The proceeds are not converted back to rands and therefore offer an investor the opportunity to invest the proceeds elsewhere in the world. Although this requires more effort, investing offshore directly can also be less costly than through rand–denominated offshore unit trusts or investing directly into a foreign collective investment scheme (unit trust).

Boshoff Visser is creating a Boshoff Visser Offshore Investment Company and will be targeting the offshore property market in the United Kingdom, focusing mainly on the commercial and leisure industry. The UK property market is established, well secured and information is first rate. According to data from the International Property Databank (IPD), the UK property market historically has provided consistent and solid long–term returns, outperforming equities, gilts and inflation.

If you are interested in discussing offshore property investments, please contact Eugene van Rensburg or Kobus Lourens.

VIER PRIMêRE BATEKLASSEDie vier groot bateklasse is aandele, eiendom, effekte en kontant. Daar is wel ander bateklasse soos skilderye, edelmetale, persiese matte, munte, ens., maar ‘n beleggingsmandjie bestaan gewoonlik uit dié vier tradisionele bateklasse. Een van die dilemmas in die beleggingswêreld vandag, is om ‘n bateklas te identifiseer wat beide ‘n groeiende inkomste jaarliks én ‘n mate van kapitaalsekuriteit bied. Eiendom (verhoogde hure jaarliks) en aandele (verhoogde dividende) is die enigste twee bateklasse wat aan beleggers ‘n groeiende inkomste bied. Albei bateklasse dra onderliggende risiko’s met aandele wat aan hoë volatiliteit blootgestel word. Lewendehawe is die een bateklas wat aan beleggers ‘n groeiende inkomste met ‘n redelike mate van kapitaalsekuriteit bied. Lewendehawepryse hou tred met inflasie oor die medium tot lang termyn (3 tot 5 jaar). Die aanteel van lewendehawe bied beleggers kapitaalgroei, en produkpryse styg met inflasie oor die medium tot lang termyn.

Lewendehawe sluit hoofsaaklik melkkoeie, skaapooie en vleiskoeie in. Die feit dat diere aanteel, maak die belegging eintlik ‘n piramiedskema wat in die guns van die belegger werk.

BELEGGINGSVOORSTELBoshoff Visser Finansiële Dienste (BVFD) het marknavorsing gedoen en besluit om aan beleggers ‘n lewendehawebelegging te bied wat op ‘n professionele basis bestuur en gekoördineer word. ‘n Maatskappy word opgerig waarin beleggers ‘n aandeel bekom teen R1,00 per aandeel. Die res van die belegger se fondse word as ‘n lening aan die maatskappy oorgedra. Die maatskappy is verantwoordelik vir die aankoop en bestuur van die lewendehawe. Beleggers sal vir ‘n tydperk van vyf jaar belê en ‘n aandeelhouersooreenkoms wat beleggers hiertoe bind word opgestel. In geval van dood, permanente ongeskiktheid of insolvensie, sal ‘n belegger se aandeel en leningsrekening terugbetaalbaar wees. ‘n Direksie van 3 lede word verkies om beleggers se belange binne die maatskappy te verteenwoordig. BVFD sal die fonds bestuur en beleggers deurentyd op hoogte van die maatskappy se vordering hou.

Kontak gerus vir Kobus Lourens of Eugene van Rensburg indien jy enige vrae het.

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BOSHOFF VISSeR lOOKs OffsHOre TO REDUCE LOCAL RISKS

lewendeHawe AS BATEKLAS‘n Nisbeleggingsbateklas wat die afgelope tyd meer aandag kry, is die aankoop van lewendehawe/vee vir verhuring. Alhoewel die beginsel reeds jare bestaan, het die vraag na huurdiere die afgelope 2–3 jaar konstant gestyg. Hierdie vraag is aangewakker deur boere wat stelselmatig hul boerderye begin diversifiseer het na meer vee as saaigewasse. Sodoende poog die boer ook om sy risiko’s te beperk.

In recent years, South African investors have experienced exceptional returns from the local equity market. Although the outlook for this market may still be positive, one can’t assume that this trend will continue and investors should address the risk of having all their eggs in one local basket.

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It’s not surprising that many people focus on goals, hoping to hit the big jackpot and retire “early”. The current government pension is clearly not sufficient and many pensioners today need additional financial resources to cover basic living expenses. It is therefore very important to discuss your retirement planning objectives with a reputable financial advisor to ensure you’re financially prepared when you retire.

BOSHOFF VISSER RETIREMENT ANNUITy FUNDOne way of saving for retirement is by participating in a Retirement Annuity Fund (RA). An RA is a legal entity with its own set of rules, which must be approved by the Financial Services Board and the South African Revenue Services. As a member of an RA fund, you contribute to the RA and the trustees of the Fund invest and manage the assets.

TAx ADVANTAGESRAs are a very tax efficient way to save for retirement as annual contributions are tax deductible, subject to the greater of:

15% of income from non retirement–funding employment* or

R3 500 less allowable pension fund contributions or

R1 750

In addition, from 1 March 2007, investment income (taxable growth) in an RA, such as net rental income and interest, will not be taxed (previously 9%).

You can receive a benefit from the RA from age 55 (unless you are permanently disabled) but it must be withdrawn before age 70. A maximum of one–third of your investment can be taken as a tax–free lump sum with the balance used to purchase an annuity.

Generally, the one–third tax–free portion is determined based on the greater of R120 000 or R4 500 for every year you have been a member of

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saVInG fOr reTIreMenTHOw PRePaRed aRe YOu?

the RA. From 1 October 2007, the maximum tax–free amount of the lump sum will be increased from R120 000 to R300 000. The next R300 000 will be taxed at a rate of 18%, and a flat tax rate of 36% will be applied to any amount above R600 000. This change in legislation will put more money in your pocket and you should therefore wait until after 1 October if you are planning to retire or mature a retirement annuity.

HINTS BEFORE INVESTING IN AN RAReview the annual fees charged by the RA on your investment as this can have a considerable impact on your overall return, especially over a long–term investment period.

Read the rules of the RA as many charge fees for discontinuance/reducing contributions or transferring to another RA (some even prohibit transferring). If you don’t, you could end up with a high–cost and inflexible RA product. Draft legislation is currently under review which will allow RA members to move their investment savings from one RA to another RA of their choice.

HOW ARE RAs INVESTED?Thanks to the tax advantages, there is no need for an RA to invest in very aggressive portfolios. The investment portfolio must be geared towards securing long–term growth with a low to medium risk profile and is bound by Regulation 28.

Boshoff Visser is busy creating a transparent, cost–effective, flexible and portable RA called the Boshoff Visser Retirement Annuity Fund (BVRA). BVRA members will not be penalised for starting or stopping contributions and can contribute lump sums or pay monthly/annually as excess funds become available. There will also be no penalty fee or prohibition to transfer to another RA. The RA’s investment portfolio will be managed by Boshoff Visser, which has over R100 million in equity funds under management in its BV/PSG conservative investment portfolio, and a proven track record of generating consistent, above–average returns.

COMMERCIAL PROPERTy INVESTMENT CONSORTIUMA commercial property investment consortium is another way to supplement your retirement nest egg. Investors pool together to buy a commercial property which offers income and capital growth over the desired investment period. Once the commercial property is paid off, it provides a solid annuity income to investors via the income stream from tenants. Over the last two years, the Boshoff Visser Property Group (BVPG) has created a number of successful commercial property investment consortiums, acquiring strong retail and industrial properties in excess of R100 million. BVPG also offers property management services and is constantly on the lookout for new commercial property investment opportunities.

If you are interested in learning more about BVRA or commercial property investment opportunities, please contact Eugene van Rensburg or Kobus Lourens.

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The importance of saving from an early age and setting up a retirement nest egg cannot be emphasized enough. Thinking about retirement can be stressful — an undetermined amount of money is needed to last an unknown length of time in a highly volatile financial environment, taking into account changes in cost of living, medical care, inflation and taxes.

*Non–retirement funding income consists of, for example, commission, performance bonuses and other ad hoc income which are not used to calculate contributions to a pension or provident fund. One can invest up to 15% of taxable income if not contributing to a pension fund.

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The new system enables electronic filing of all communications, advice and documentation information that is shared across a wide area in the Western Cape.

Client data is now even more safely stored and easily accessible with staff able to access client data remotely when visiting customers at their offices. “The data is very easy to find, “comments Kearney Theron, Chief Executive Officer, “The whole customer portfolio is electronically stored and can be retrieved easily in the office and on customer sites. It couldn’t be simpler.” Maximizer’s user–friendly interface also makes it accessible to 20–year–old geniuses and

CRM UPGRADE

MaxIMIses effICIenCyThe installation of a new CRM system, Maximizer Enterprise 9, not only complies with legislation regarding the storage of client records, but has also improved customer care, productivity and revenue at Boshoff Visser.

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55–year–old professionals who do not have a long history of computer use. The new product not only fits the needs of our staff but also benefits our clients.”

Another significant benefit for the group has been the ability to cross–sell products and services. Maximizer Enterprise enables Boshoff Visser’s financial consultants to get a clear, easily accessible picture of what services clients are already using and what services they might benefit from in future, enabling them to meet clients’ real needs. As a result, the company has grown 20% in the past year and attributes a healthy percentage of this growth to the benefits achieved using Maximizer Enterprise.

Into the future, the system can be customised to fit the company’s needs as it continues to grow and develop and will ensure that Boshoff Visser’s service remains highly efficient and seamless.

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EKSEKUTEURDie eksekuteur is die persoon of instansie wat jou boedel beredder. Hy/sy moet jou persoonlike omstandighede ken. Jy kan ook ‘n familielid as eksekuteur aanstel; onthou net dat die Meester van die Hoërhof vereis dat iemand met ondervinding sodanige familielid bystaan indien hy/sy nie die nodige kundigheid het nie. Die voorgeskrewe vergoeding waarop ‘n eksekuteur geregtig is, is 3,5% (BTW uitgesluit) van die bruto bates van jou boedel, maar jy kan vooraf ‘n vaste fooi beding.

BEPLANNINGBoedels wat behoorlik beplan word, is makliker om af te handel. Jy behoort gereeld ‘n boedelontleding en –beplanning te laat doen, en wees bereid om daarvoor te betaal — so verseker jy aansienlike besparings op beredderingskoste, boedelbelasting en KWB.

HERSIENINGHersien jou testament jaarliks. Pas dit dadelik aan wanneer jou persoonlike omstandighede verander, bv. ‘n erfgenaam wat sterf of ‘n bate wat jy aangeskaf het. Vernietig dan die ou weergawe van jou testament om verwarring te verhoed.

ORGANISERINGMaak seker dat jou eksekuteur weet waar jou testament, transportaktes, wapenlisensies, voertuigregistrasies ens. geliasseer is.

MINDERjARIGESIndien jy minderjarige kinders het, moet jy voogde aanwys. Dit moet uiteraard vooraf met die voogde bespreek word. Indien die bates wat jou

KAN jy OP jOU TrusT sTaaTMaaK?

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Bogenoemde uitspraak en talle ander maak dit duidelik dat daar sekere basiese beginsels is waaraan jou trust en die trustees van jou trust moet voldoen.

Dit sluit in die volgende:

Maak seker jou trust is geldig. Dit beteken dat daar minstens drie partye betrokke moet wees, nl. 'n oprigter, minstens een trustee en minstens een begunstigde. Al die partye teken die trustakte wat die ooreenkoms skriftelik uiteensit. So nie, kan die trust later ongeldig verklaar word.

Die Wet op Beheer op Trustgoed vereis dat die oorspronklike, skriftelike trustakte by die Meesterskantoor geliasseer word. Die kantoor reik aan die trustees 'n magtigingsbrief uit wat hulle in staat stel om namens die trust op te tree.

Die Meester van die Hoërhof vereis nou dat daar minstens een trustee moet wees wat nie ook 'n begunstigde van die trust is nie, m.a.w. 'n “onafhanklike“ trustee.

Maak seker dat die trustakte nie die oprigter en/of trustee(s) magte gee wat die indruk kan skep dat hulle die trust kan beheer nie. Die sake van die trust moet só bedryf word dat die trustbates duidelik onafhanklik van enige individu se bates bedryf word.

Trustees moet sorg dat notules van besluite gemaak, behoorlike rekeningkundige boeke en rekords bygehou, en jaarlikse finansiële state opgestel word.

Dit moet vir die algemene publiek wat met die trust sake doen, duidelik wees dat hulle met 'n trust besigheid doen en nie met 'n individu (bv. die oprigter) nie.

Maak seker jou trust is vir inkomstebelasting geregistreer en dat dit jaarliks 'n opgawe indien, selfs al verdien dit nie belasbare inkomste nie.

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Verskeie hofsake het in die afgelope paar jaar die geldigheid van trusts aangeval. Die belangrikste hiervan is die nou reeds bekende Badenhorst–saak waarin die Appèlhof uitspraak gelewer en sekere belangrike regsaspekte vasgelê het.

TESTAMENTE nuTTIGe wenKe

kinders moet vererf in trust gehou moet word, moet jy in jou testament voorsiening maak vir die skepping van ‘n testamentêre trust en die aanstelling van trustees.

TRUSTSIndien jy reeds ‘n inter vivos trust het, moet jy seker maak dat jou testament uitvoering gee aan die trustakte en nie in botsing daarmee is nie.

WETLIKE ASPEKTEMaak seker dat jou testament aan die vereistes in die Wet op Testamente voldoen. Dit moet bv. onderteken wees deur die testateur in die teenwoordigheid van twee bevoegde getuies.

VEILIGE BEWARINGSorg dat jou oorspronklike testament veilig bewaar word. Indien jy nie self die oorspronklike bewaar nie, kry ‘n afskrif om by jou persoonlike dokumente te liasseer.

KRy KUNDIGE ADVIESKry iemand met die nodige kundigheid, soos ‘n prokureur of rekenmeester, om jou met die opstel van jou testament te help.

BOEDELBELASTINGDie eerste R3,5m van elke individu se boedel is vrygestel van boedelbelasting. Indien jou boedel meer as dit beloop, maar jou gade sin nog nie, moet jy dit oorweeg om sekere bates aan jou gade te skenk. Indien jul gesamentlike boedel meer as R7m beloop, moet julle ander tegnieke oorweeg om boedelbelasting binne beheer te hou. Dit wat aan ‘n gade bemaak word, is vrygestel van boedelbelasting. Jy hoef dus geen boedelbelasting te betaal solank jou gade leef nie. Die langslewende sal dan op sy/haar boedel betaal indien dit bo R3,5miljoen is wanneer hy/sy te sterwe kom.

LIKIDITEITJou boedel moet likied wees om afgehandel te word. Oorweeg ekstra lewensversekering as dit lyk asof daar nie genoeg kontant is om alle laste en kostes te betaal nie. So sal jy verhoed dat bates verkoop moet word om kostes te betaal.

boshoff Visser is ‘n vooraanstaande ouditeurs– en finansiële dienste firma in die wes–Kaap en lewer ‘n wye reeks finansiële dienste teen hoogs kompeterende pryse wat nommer pas is vir enige onderneming. Ons bied ‘n omvattende reeks finansiële dienste wat onder meer die volgende insluit:

ReKeNINGKUNDe • OUDITeRING • FINANSIËLe BePLANNING • RISIKOBeSTUUR BeLeGGINGSBePLANNING • INKOMSTeBeLASTING BePLANNING •TeSTAMeNTe

B O S H O F FV I S S E R

Geoktrooieerde Rekenmeesters en Finansiële Dienste

Vooruitstrewende oplossings.