n Tax Breaks Newsletter - Small business turnover tax : a blessing or a curse? : turnover-based tax
|Article Title||Small business turnover tax : a blessing or a curse? : turnover-based tax|
|© Publisher:||Moneyweb (Pty) Ltd|
|Journal||Tax Breaks Newsletter|
|Author||B.D.O. Spencer Steward|
|Publication Date||Apr 2009|
|Pages||6 - 7|
On 1 March 2009, the presumptive turnover-based tax for micro businesses was eventually introduced.
The grounds for the new tax are very much founded on pragmatism rather than being any form of incentive. According to a survey conducted by SARS, a small business would typically spend in excess of R7 000 per annum on basic tax compliance, whereas related services such as accounting services, which are necessary to meet one's tax compliance burden exceed, on average, R36 000 per annum. It is, in fact, acknowledged by the policymakers that many taxpayers are overwhelmed by the tax system.
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