AccTax Services

23/09/2020

INDIVIDUAL TAX RETURN DEADLINE (Employees & Businessmen)

AccTax Services wish to remind the public that in view of the Year of Assessment 2020-21 (Income year 30 June 2020), the last day & date for electronic submission of the INDIVIDUAL TAX RETURN is Thursday, 15th of October 2020. Note that all filings and payments are effected electronically. Persons (Employees, Business Owners et. al) who are concerned:

1) Individuals (persons) that have been allocated a TAN (Tax Account Number)
2) Individuals deriving a Chargeable Income whether a TAN has been allocated or NOT
3) Individuals deriving a Net Income exceeding the Income Exemption Threshold
4) Individuals deriving a Gross Income (as opposed to Chargeable Income) from business exceeding Rs 2 Million
5) Individuals whose emoluments have been withheld (for e.g. PAYE) and/or whose income has been subjected to TDS (Tax Deducted at Source)

Note above list is not exhaustive; while some are conditional. You are requested to contact your accountant or the MRA for more information.

TAX RATE as follows:

10% for 1st Rs 650,000
15% For amount exceeding above

PENALTY & INTEREST as follows:

Late submission penalty - Rs 2,000 per month till return is submitted up to a maximum of Rs Rs 20,000 (Rs 5,000 for small enterprise)

Late Payment Penalty - 5% on Tax Payable (2% for small enterprise)

Additional Interest on Late payment - 0.5% of the balance of Tax Payable.

Note that above is a guide and you are requested to refer to your accountant or the MRA for additional information.

You can also contact any of our members on:

Mob/WhatsApp/SMS: 5477 1050 (WhatsApp & SMS 24/7)
Office: 696 1801 (Office hours)
Email: [email protected] & [email protected]
Website: [email protected]

03/06/2020

VACANCY for Accounts & Admin Executive

We are currently looking for an Accounts & Admin Executive that will be seconded to one of our client at Ebène.

Main responsibilities:

a) Responsible for the finance functions by providing a quality accounting and administration service leading to effective administration and management of the group under our supervision

b) Assisting in the preparation of periodic management reports and taking optimal decisions for sites under their supervision

c) To monitor and ensure compliance with established workflow processes and procedures. To propose procedures where required

d) To manage debtors & payables as much as cashflow of the group

e) To ensure all necessary filing such as NPS, NSF, VAT, TDS etc. are effected in a timely manner

Profile & Qualifcation:

i) Dynamic, Motivated, Focused, Pleasant personality with an all-rounder attitude

ii) Excellent leadership, administration, interpersonal and communication skills coupled with a high level of integrity

iii) Able to work independently and/or in team in a dynamic work environment.

iv) At least 3 years work experience hands-on all-round experience working in an accounts/finance office and in a team leader position will constitute an advantage

v) Degree in Finance/Accounting / ACCA Part- Qualified or equivalent

Note:

Candidate with sufficient experience will also be considered.

Please send your CV, motivation letter & salary expectation at [email protected] or [email protected]

20/04/2020

Self-Employed Assistance Scheme & Wage Assistance Scheme (for Employers) - Whom exactly?!!

A brief to Business Owners......

We would like to start by noting that AccTax Services explained in the past (by way of several posts) the need for businesses & companies to comply with the relevant laws. As goes the legal principle: "ignorantia legis neminem excusat" or put it simply - "ignorance of law excuses no one".

While AccTax Services mainly cautioned about the potential liability from non-adherence of the laws - the current impact is that what is technically due might not legally due. So let's brief again hoping this will be taken seriously by business owners.

Self-Employed: Defined as someone who is carrying on a business without having incorporated a "Company". Can be an employer as well. But how can you prove you are self-employed?

1) It is a legal requirement that you hold a Business Registration Certificate (BRC) & a Number will be assigned to your business (BRN). So that's a record our authority possess to know you are self-employed.

2) Payment of trade licence. Every year, in order to trade - a relevant licence needs to be paid for. That's another record held by the relevant authority.

3) Filing of Annual Tax Return (irrespective of if Tax is payable). Trading income/expenses with ensuing profits/losses need to be filed by the individual. That's another evidence of trading the relevant authority would have proving you are indeed a trader/self-employed business person.

4) Registration as Employer for your employees (ERN). That includes monthly filing & payment of NPF, NSF, Levy etc. Further evidence you actually have a business - and also are eligible to make a claim as employer.

So to conclude - we are not discouraging anyone to seek the assistance he/she believes is well deserved. But we know briefly what the Authorities required us to comply with in the first place. Did we do that? Can we now insist on the assistance even when we failed? Can we prove we were actually self-employed & employers when we did not respect any legislation? Just ensure we remain in a position to justify our position upon potential queries.

Disclaimer: That's a layman analysis for a better understanding & we re-iterate that our intention is not to discourage or encourage any applications as the business owners are solely liable for their actions. The purposes of this post are simply to clear any confusions & to serve as a guideline going forward. For more professional advice, feel free to contact our representatives at AccTax Services.

Thank you,
The Management
Tel/WhatsApp/Messsage: 5477 1050
Office (during office hours): 686 1801
Email: [email protected] OR [email protected]
Website: acctaxservices.com

26/03/2020

COVID-19 FINANCIAL SUPPORT FOR ENTERPRISES

Hi all,

In case some of you guys have missed what is being offered as support to your enterprise.

Note that AccTax Services remain available to assist you in case of confusion - free of charge during this difficult period. But note due to the sudden many requests being made for all sort of issues in conjunction with our limited resources, we might be very concise & will come back to you at a later stage if needed.

For above related queries, please WhatsApp on 54771050 & a representative will revert to you.

Thank you
Acctax Services
Management

08/01/2020

Why outsource your Accounting, Bookkeeping or even Administrative tasks? Wise or not!! Let’s see….. (Analyse Scenario & proceed with reading below)

While the scenario is non-contractual, it DOES represent a fair comparison between insourcing & outsourcing the relevant costs. From above analysis, a clear SAVING of Rs 70,000 can be seen.

On top of above, outsourcing with AccTax Services has the following ADDITIONAL advantages:

1) Monthly close monitoring of the Admin/Accounts Clerk at no costs

2) All filings (Annual Return, VAT, Income Tax etc.) are included in the monthly fee & we would already be acquainted with the business

3) Provision of expert advice including communication to & assistance in applying amendments to the relevant laws (VAT, Income Tax, Company related etc.)

4) Provision of Management Accounts when needed

5) No impact of End of Year bonus to the business

6) Possibility of seconding the Admin/Clerk with the Company paying simply a fixed monthly fee

7) No need of having Admin office with simply the operational premises (Restaurants for example)

8) Ad-hoc assistance & advice in finance related matters (Including Cash flow Management)

9) Dealing with Banks, suppliers & other stakeholders on your behalf

10) Deal with relevant Authorities (MRA, RoC, Municipalities & Councils etc.)

With AccTax Services looking safely after your accounts & finances, this can only allow the company/business in focusing more and more on core operations & ensure its success - without any undue stress.

Feel free to contact us on 5477 1050 or email us on [email protected] for any queries or clarifications you might have.

07/01/2020

You are looking to have your OWN business but do not know where or how to start?? Let's make your life easy.

Do meet any member from our team of professionals & we will walk you through the basics of carrying on a business as much as its implications. Not only you will be able to make a better assessment & take a better decision, but you might up SAVING money.

How much will a conversation with our people cost you? NOTHING – it’s all FREE. How much venturing out in the unknown might cost you? Your whole business.

So grab the opportunity & take a wise step before it’s too late.

For existing business people already confused with their numbers, reporting status or administration – do feel free to converse with us & we will guide you.

Feel free to email, text or even WhatsApp us on [email protected] & 5477 1050 respectively & one of our team members will revert to you.

06/09/2019

06/09/2019

DEAR EMPLOYEES & BUSINESSMEN

WE WANT TO CONGRATULATE YOU FOR NOT FILING YOUR TAX RETURN

Yes you read right.

AccTax Services would like to congratulate you - who will not be submitting your Income Tax Return (Season 2019) and who will be liable to fines & penalties.

Does the irony hurt?!!

If yes, then it should not. The option of not submitting Income Tax Return as opposed to submission lies in the hands of the employee, business owners et al. So you clearly had the choice & decided to be liable to those fines & penalties.

At AccTax Services, we understand that businessmen, employees etc. are not well conversant with accounting, finance & taxation technicalities. But seriously – “ignorantia legis neminem excusat” i.e. “ignorance of law excuses no one". It’s not because you were unaware that you will escape liability.

“But you know what Mr. AccTax, I didn’t do it last season & no one said anything about it - what are you on about??!!” – questions the innocent one. We tend to respond by requesting the innocent one to go through the relevant sections of the Income Tax Act 1995.

“But you know what Mr. Acctax, I didn’t make any profit” – says the ignorant one. We tend to respond by requesting the ignorant one to refer to the relevant sections of the same Act (on non-submissions) the penalty that is stated therein. We furthermore question the ignorant one on his notion of accounting profit/loss & taxable profit/loss as if he/she knew – he/she would not have asked that question.

“But why do you not quote those sections & tell us clearly what you really mean” – says the casual reader who now realises he/she might be required to submit that return. We tend to respond by saying that:

1) We have previous posts whereby we explained most of the things you need to know; &
2) If you are still not convinced, it’s not the actual quotes that would convince you. But let’s be honest – you make good clients for the MRA & they need you.

So what’s our point exactly – it’s that “prevention is better that cure”. It would cost you much less (as much as nothing financially speaking) to inquire & prevent than to actually become liable & pay. That would mean:

1) Less stress that might be harmful both for the business/es as well as that individual/s;
2) No unwanted surprises as we might not be prepared for those fines & penalties (plus actual liability); &
3) The businessman would be in a position to concentrate on his operation than the ensuing administration.

So you still have time. Be wise.

At AccTax Services, we remain available for a FREE chat should you be in doubt of your status. Do not hesitate to call us as the only cost you would bear for a free advice would be – the phone call. (Although we take no engagement to respond to all calls during the last two weeks of September – so don’t wait for the last minute)

In any case, either through AccTax Services or any other professional service provider – do the necessary.

AccTax Services
The Management,
Phone, SMS &/or WhatsApp: 5477 1050
Email: [email protected]

14/01/2018

A PRACTICAL GUIDE TO DOING BUSINESS – by AccTaxservices

We all want to do business. But what are its implications and/or requirements?

The Layman’s answer: “Buy, sell and Bob’s your uncle”.

The “I know everything’s” answer: “Buy, sell and Bob’s your uncle. Don’t worry, I know how it works, trust me”.

Real answer: A bit more complicated that above. But what does “complication” means here?? Two possible answers:

Complication Answer 1:
1) Appoint the so-called accountants (they are everywhere);
2) Pay them to complicate things (they will blame you, you wouldn’t know);
3) Consequently pay the authorities (their bonuses get ready from your fines and penalties);
4) Then pay the accountants again to clear their mess while they further complicate things;
5) Finally pay a proper accountant to do exactly what needs to be done (Maybe after experiencing a series of so-called accountants).

Normally, in that case:
a) This is done by the laymen and the “I know everything” categories;
b) The businessmen never get to know what went wrong and think administrative and accounting costs are inherently expensively;
c) They (businessmen) would be normally be those who have no ideas of what are the basic implications and/or requirements to operate a business;
d) By the time the proper accountant is to be paid – cashflow is already an issue;
e) And let’s be honest – more that 60% of those businesses close down and their owners proudly inflate the unemployment rate.

Complication Answer 2:
1) The businessmen get acquainted with the basic requirements and implications for doing business;
2) They understand where their priorities lie and how to manage their available resources;
3) They consequently appoint the appropriate accounting and other service provider/s and the resulting appointment/s and related fees become what the complication was meant to be – sounds easy? Well it actually is in that case. But note what was needed!!

Normally, in that case:
a) The businessmen know their strengths and weaknesses (they have done their homework);
b) Success is not guaranteed but the risk for failure is partially mitigated;

Great – now we know businessmen should be wise – but still – what are ‘requirements’ “implications” etc. that need to be understood?? The “homework” is still outstanding!! So rather than getting those answers from so-called accountants, we list them below (note that these are the things that need to be considered and would depend on the business model, volume of trade, licensing types amongst others):

1) Type of Business Structure

Doing business is regulated under the Mauritian law mainly through the Business Registration Act 2002 and Business Facilitation (Miscellaneous Provisions) Act 2017. Any business (including a dholl-puri seller) falls under these acts and it MUST avail a BRC.

By business structure, we mean that the businessman can trade himself (known as Individual) or may decide to Set up a company (normally Domestic & Small Private Company).

Should the latter be opted for – requirements of the Companies Act 2001 applies.

Selling in the famous “acheter, vender etc.” in facebook, with a view of making profit (in conjunction with other badges of trade) is Trading.

2) Licensing

To trade – be it as an individual or Company – a trading license is important. This is regulated by the Local Government Act 2011. Without the appropriate license, trading is illegal.

3) Tax

Two main types of taxes will impact the business. Income Tax that is regulated through the Income Tax Act 1995 together with several Finance Acts & Value Added Tax through the VAT Act 1998. VAT is applicable based on conditions that very likely exist within your business which would require registration and Income Tax would need to be computed – even if it is a loss making business.

The need to consider other taxes such as TDS, APS, Custom Duties, PAYE etc. would also be very important (especially if the business rents, contracts, employs people etc.)

4) Filing to authorities

We spoke about the need to compute taxes, VAT, PAYE, TDS etc. But filing of all those information in a TIMELY manner and in the required format is more important. Don’t do it and pay fines and penalties.

5) Other laws and regulations that would affect the running of a business

Several other laws and regulations impinge on the smooth running of the business such as:
a) Code Civil
b) Small Enterprises and Handicraft Development Authority Act 2005
c) Competition Act 2007
d) Consumer Protection Act 1991
e) The Food Act 1998
f) Employment Rights Act
g) Employment Relations Act etc.

So there you go, the homework is done if you read carefully and understood above. The list is not exhaustive but applies to most business while specific laws apply to specific businesses based on their activities. Further details are available but remember – you are a visionary, a businessman – not an accountant or lawyer.

Once a basic understanding of above has been grasped by the businessman, a decent selection of the accountants can be made while appropriate administrative strategies can be devised such as - “do we outsource accountancy services” or “do we have in-house clerks and accountant”. (At AccTaxservices, we assist FOR FREE, in assessing that strategy).

AccTaxservices also requests potential and actual businessmen to shop around and discuss with more than one service provider to ensure a good decision is taken. But before that – ensure the above mentioned minimum understanding is grasped.

On that – AccTaxservices wishes our Clients, the Business community and others who follow us a Happy New and especially wise year 2018.

AccTaxservices
The Management,
Phone, SMS &/or WhatsApp: 5477 1050

05/03/2017

Laws for businesses_REALITY OR MYTH

We recently did a survey on some businesses and were very much taken aback on the responses of a particular question we asked. Note that it’s not the only question whose responses stunned us but this one was very basic or at least we believed was a non-issue and it goes as follows:

“How much is knowledge of the laws related to businesses important to you?”

And the answer we received in most cases can be resumed as follows: “We are a small business and that’s not important for us AND we are not lawyers and are not supposed to know the laws”

How true is that? Reality or Myth? That’s what we discuss below.

Since we all live in the Republic of Mauritius, we all know that there are certain laws that we should abide by. For example, we all know that we should not kill another person. But what we do not realise is that this is actually stated in our laws and that’s why we cannot murder someone. So what happens if someone, out of ignorance of the laws, murders another person? Would the penalty not apply to him/her because he/she ignored that law? We all know that this is not the case and he/she will be prosecuted. So the general rule is that: Ignorance of the laws is no excuse. That applies to business laws as well.

Now, with reference to the importance of these laws for small businesses, we understand that the mindset of the businessmen are like: “we don’t care about the laws and would only consider those when the authority knocks on our door and will settle the matter.” Unfortunately, what they don’t realise is that it might be too late and the impact can be so damaging that it could jeopardise the going concern of the business. A real case example is where a business was trading on cash basis and used to make a good margin started to expand rapidly due to the availability of liquid but did not know when they had exceeded the VAT registration limit whereby the gross income (what they deemed as gross income) actually included VAT and they could not afford the VAT payable after an assessment was made. Also, fines and penalties for non-filing of return with or without any tax to be paid are high and unnecessary for small businesses and these have discouraged a lot of businesses. It’s also important to note that not having any tax to pay is separate from the fact that a return is necessary (Income tax). Employing people also have several legal implications that businesses need to be aware of.

The examples list above is not exhaustive and this is why we encourage businessmen and potential businessmen to acquaint themselves with all these laws, be it a big, medium or very small business as we reiterate: “Ignorantia juris non excusat”.

Our people at ACCTax services remain at your disposal for any questions or queries you may have and feel free to contact us. And yes, we don’t charge any (hidden) fee for free advices.

On that, we thank you.

Management
ACCTax Services
5477 1050