MASS MAIL 07 MAY 2007 - TAX AMNESTY - FORMALISING THE INFORMAL SECTOR

THE FOUNDATION FOR THE DEVELOPMENT OF AFRICA
"Participation Builds Unity"

"MADE IN AFRICA - FOR AFRICA"

FDA NEWSLETTER

MASS MAIL
O7 MAY 2007
TAX AMNESTY - FORMALISING THE INFORMAL SECTOR
(All)

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The AFRICA TRADE CENTRE / THE FOUNDATION FOR THE DEVELOPMENT OF AFRICA (FDA) proudly present you with the following information that may add value to Africa's development.
Please direct any correspondence to:
peter@africa-trade-centre.com

TAX AMNESTY - FORMALISING THE INFORMAL SECTOR

The wellbeing of any country depends on effective revenue collections!

All too often we 'hear' that 10% of the 'people' pay 90% of the tax collected.

How do we motivate the '90% of the people', currently not paying tax, to participate? - or contribute? - or from a government perspective - how can the government formalize the informal sector?

The majority of our people accept the fact that you need to pay tax - the age old saying comes to mind here: "There are two things you can't avoid - 'death' and 'taxes.'"

In an effort to formalize the informal sector and boost revenue collections, the South African Minister of Finance, Mr. Trevor A MANUAL, announced a tax amnesty for any individual, close corporation, unlisted company, trust, body corporate, association of persons, co-operative, insolvent estate or deceased estate meeting the following certain requirements:

* the individual or entity must have carried out a business;
* the gross income (turnover) of the business during the 2006 tax year was not more than ZAR10 million (around US$1,4 million)
* in the case of a company or close corporation all the shares or members' interests were held directly by individuals throughout the 2006 tax year.

Small businesses which are unregistered for tax purposes at the end of the 2006 tax year or which are registered but whose income from small business activities has not been declared or has been understated, will benefit from the amnesty.

The AFRICA TRADE CENTRE and THE FOUNDATION FOR THE DEVELOPMENT OF AFRICA have awarded this initiative a SPECIAL PROJECT SERVING AFRICA status.

It is efforts like this that have to be commended and used as an inspiration for other governments in the developing world - provided that the revenue collected is applied to the benefit of the people.

The South African Revenue Services amnesty period expires on 31 May 2007!

We highly recommend all South African businesses that meet the amnesty requirements as detailed above make use of this opportunity to 'legalize' - "It's the right thing to do"

For more detail contact:
Sicelo MKOSI (Mr.)
smkosi@sars.gov.za
00 27 (0)12 422 5546

Contact the Small Business Amnesty Unit
Call Centre number: 00 27 (0)860 12 12 20
Fax: 00 27 (0)11 602 5502
E-mail: sbau@sars.gov.za
P O Box 292
Groenkloof
0027
South Africa

Amnesty Website:
http://www.sars.gov.za:80/Small%20Business%20Amnesty/default.htm

SPECIAL PROJECT SERVING AFRICA
http://www.foundation-development-africa.org/africa_special_projects/tax_amnesty.htm

Once you have resolved your tax issues, do not forget to add your product and/or service to the AFRICA TRADE CENTRE's most comprehensive database of PRODUCTS AND SERVICES SERVING AFRICA - you will be pleasantly surprised at the rate this database is growing:
SEE:
http://www.fdapartners.net/products_services/index.htm

How can you participate?

All you have to do is complete this form and select an option:
http://www.fdapartners.net/com/fda_participation_form.htm

Take care
Peter

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