Some 14,700 rich Americans worried about a U.S. government crackdown on offshore tax cheats came forward to participate in a tax amnesty program, the top U.S. tax official said on Tuesday.
Participation in the Internal Revenue Service's amnesty program was "unprecedented" and the final number was nearly double the agency's estimate in October, U.S. Internal Revenue Service Commissioner Douglas Shulman told reporters in a telephone briefing.
The IRS amnesty program, which ended in October, offered reduced penalties for wealthy Americans who voluntarily disclosed previously undeclared foreign bank accounts and assets. "We were flooded with people coming in the final days of the program," Shulman said.
"The IRS has never got anything like that in response to prior initiatives," said Barbara Kaplan, a lawyer for high net- worth clients in New York. "It's a little higher than I anticipated based on the pace of my own practice and the panic that was out there."
While agency officials were still analyzing the amount of offshore assets and bank accounts disclosed, Shulman said "we are talking about billions of dollars coming into the U.S. treasury" from the amnesty program.
Of the 14,700 newly disclosed accounts, Shulman said many involved bank accounts in Switzerland and Europe, but assets were also hidden in more than 70 countries.
"The whole game around bank secrecy, around offshore (tax) evasion is changing" because of pressure from the U.S. Justice Department and from international capital markets, he said.
At the center of the U.S. efforts to combat tax evasion abroad is a case against Swiss banking giant UBS AG, which led the bank to agree to reveal the names of 4,450 client accounts.
Shulman also said the outpouring of hidden offshore accounts does not affect in any way the obligation of UBS to turn over those American account-holder names. There had been some speculation that success in the amnesty program would cut the obligation of UBS to turn over accounts.
"Some have misinterpreted this," Shulman said.
Although the amnesty program has ended, Shulman encouraged Americans with hidden offshore assets to continue to come forward and talk with the IRS about them. "It will be much worse for them if we find them first," he said.
CRITERIA
The U.S. and Swiss governments also released on Tuesday the criteria it used to arrive at the 4,450 accounts that parties agreed UBS would eventually turn over to U.S. authorities.
The Swiss Justice Department said it would hand over the names of wealthy U.S. clients of UBS with accounts holding more than 1 million Swiss francs ($986,200) where there is a reasonable suspicion of tax fraud.
Accounts of a lesser size could come under the deal where there is a "scheme of lies" identified, according to the document.
It describes suspicious activity that could be interpreted as tax fraud including the use of debit cards, cell phones or wire transfers to hide accounts.
Shulman said the agreement will give the U.S. accounts it is most interested in -- those where taxpayers exhibited the most egregious behavior, those that would be hardest for the U.S. to identify and accounts with the largest holdings.
Submission of data to U.S. authorities applies to UBS accounts held between 2001 and 2008 by U.S. citizens.
More than 14,700 U.S. taxpayers came forward to disclose billions in offshore bank accounts in 70 countries under a voluntary Internal Revenue Service program allowing most to avoid criminal prosecution as long as they pay what they owe, IRS officials said Tuesday.
A flood of people came forward in the last days before the amnesty program expired Oct. 15, IRS Commissioner Doug Shulman said. The final total far surpasses the number who disclose offshore accounts in a typical year — about 100 — and comes amid a broad U.S. crackdown on international tax evasion at Swiss bank UBS AG and other institutions.
"To put it simply, this is a historic milestone for the nation's hardworking taxpayers," Shulman said in a conference call from Washington.
The total in taxes, interest and penalties collected from those in the voluntary disclosure program will be in the "billions of dollars," Shulman said. The disclosures involved accounts on every continent but Antarctica.
Taxpayers flocked to the amnesty program after the U.S. reached an agreement in August with the Swiss government and UBS to obtain names of 4,450 U.S. taxpayers believed to be hiding assets in secret bank accounts. Earlier this year, UBS paid a $780 million penalty under a deferred prosecution agreement filed in a Florida federal court that included disclosure of an additional 150 names.
Seven of those people have been charged criminally, with at least two getting sentenced to prison time.
Shulman said the combination of the UBS disclosures and the amnesty program have fundamentally changed the offshore tax landscape, particularly in Switzerland where bank secrecy was the tradition for centuries.
"It shows we are serious about piercing the veil of bank secrecy," he said. "The whole game has changed."
Also Tuesday, the IRS and Swiss unveiled the criteria being used to determine which American UBS accounts will be disclosed under the August agreement.
Accounts being targeted include those that contained 1 million or more Swiss francs at any time between 2001 and 2008; instances in which there was clear fraudulent actions, such as false documents; and accounts that earned an average of 100,000 francs a year for at least three years.
The Swiss have until the end of August to hand over the names. Swiss officials said the first 400 names will be chosen by the end of this week, with another 100 expected to be ready by the end of the month. Those taxpayers who are picked for disclosure can appeal to Switzerland's top administrative court.
Tuesday, November 17, 2009
Switzerland Bank Investigations
BERN, Switzerland – American clients who each hid more than 1 million Swiss francs in undeclared bank accounts with UBS AG between 2001 and 2008 could have their details turned over to the U.S. government, Swiss officials said Tuesday.
The Swiss Justice Department unveiled the criteria used to determine which 4,450 UBS customers risk disclosure to U.S. tax authorities as part of a deal to end a major tax evasion investigation against the bank.
The Internal Revenue Service had initially sought the names of some 52,000 American clients at UBS believed to be hiding nearly $15 billion. UBS resisted initially, but then agreed to disclose 4,450 names.
Those targeted in the disclosure also include Americans, living in the U.S. or elsewhere, who controlled offshore company accounts in 2001-2008, the Swiss government said.
Where there is evidence the clients engaged in "fraudulent behavior," such as by falsifying documents, the threshold for disclosure is lowered to 250,000 francs. Customers who earned an average of over 100,000 francs a year for at least three years will also be targeted.
The equivalent amounts in U.S. dollars vary widely, as the greenback lost over a third of its value against the Swiss franc during the period. One million francs bought about $600,000 in 2001, while seven years later they were worth over $900,000.
Switzerland agreed in August to hand over details about the accounts of up to 4,450 American suspected of serious tax evasion, after UBS acknowledged that its advisers had for years helped thousands of American clients hide billions of dollars from the Internal Revenue Service.
The move was widely seen as a break with Switzerland's storied tradition of banking secrecy for foreigners, and coincided with a broader effort to shake off the Alpine country's image as an uncooperative tax haven following sustained pressure from Washington and other major governments.
Swiss authorities have until the end of August 2010 to hand over the names to their U.S. counterparts.
UBS's reputation suffered considerably while it was under the spotlight for helping tax evaders, and investors are hoping the deal will allow the bank to regain customer trust.
Washington's ambassador to Bern, Donald S. Beyer Jr., said last week that some 9,000 Americans with offshore accounts in Switzerland had already come forward voluntarily to take advantage of a U.S. government amnesty program.
This could lower the number of Americans whose account details the Swiss have to hand over, according to the agreement.
The amnesty program promised no jail time and reduced penalties for Americans who turned themselves in for failing to report foreign bank accounts.
Swiss officials said the first 400 American clients will be selected for disclosure by the end of the week. A further 100 will be chosen by the end of the month. Affected customers can appeal the decision before Switzerland's top administrative court, which has the final say.
Most of the thousands of rich people whose UBS (UBSN.VX) bank accounts are to be handed over to U.S. authorities are suspected of serious fraud rather than simple tax evasion, Swiss authorities revealed on Tuesday.
The account details of about 4,450 people are due to be handed over to settle a bitter row over bank secrecy under a deal struck with the United States in August.
The saga has dented Switzerland's reputation as a center of banking discretion and threatened at one point to bring UBS to its knees.
The Swiss Justice Department said around 4,200 of the accounts are to be handed over on the grounds of "advanced and serious fraud." The category covers accounts with assets of at least 1 million Swiss francs ($986,200) and 100,000 francs in average revenues over at least three years, the Swiss Justice Department said.
About a further 250 accounts are suspected of a lesser offence -- of knowingly providing U.S. tax authorities with false information or setting up vehicles to dodge tax.
The submission of information on clients suspected of dodging U.S. taxes by stashing away money in secret accounts, promises to end years of investigation and uncertainty for UBS.
Submission of data to U.S. authorities applies to UBS accounts held between 2001 and 2008 by U.S. citizens resident in the United States.
Switzerland has claimed its banking secrecy remains intact, but some private bankers say it is no longer a selling point for its banks, which will need to offer other skills like wealth management and legacy planning to attract clients.
The country will also hand over the names of U.S. citizens holding offshore company accounts with UBS if they are suspected of tax fraud or similar, regardless of whether they were resident in the U.S. or elsewhere.
Earlier on Tuesday, UBS set an ambitious target for annual pretax profit of $15 billion, vowing to rebuild the loss-making bank and win back clients after the subprime crisis and U.S. tax row.
The Swiss Justice Department unveiled the criteria used to determine which 4,450 UBS customers risk disclosure to U.S. tax authorities as part of a deal to end a major tax evasion investigation against the bank.
The Internal Revenue Service had initially sought the names of some 52,000 American clients at UBS believed to be hiding nearly $15 billion. UBS resisted initially, but then agreed to disclose 4,450 names.
Those targeted in the disclosure also include Americans, living in the U.S. or elsewhere, who controlled offshore company accounts in 2001-2008, the Swiss government said.
Where there is evidence the clients engaged in "fraudulent behavior," such as by falsifying documents, the threshold for disclosure is lowered to 250,000 francs. Customers who earned an average of over 100,000 francs a year for at least three years will also be targeted.
The equivalent amounts in U.S. dollars vary widely, as the greenback lost over a third of its value against the Swiss franc during the period. One million francs bought about $600,000 in 2001, while seven years later they were worth over $900,000.
Switzerland agreed in August to hand over details about the accounts of up to 4,450 American suspected of serious tax evasion, after UBS acknowledged that its advisers had for years helped thousands of American clients hide billions of dollars from the Internal Revenue Service.
The move was widely seen as a break with Switzerland's storied tradition of banking secrecy for foreigners, and coincided with a broader effort to shake off the Alpine country's image as an uncooperative tax haven following sustained pressure from Washington and other major governments.
Swiss authorities have until the end of August 2010 to hand over the names to their U.S. counterparts.
UBS's reputation suffered considerably while it was under the spotlight for helping tax evaders, and investors are hoping the deal will allow the bank to regain customer trust.
Washington's ambassador to Bern, Donald S. Beyer Jr., said last week that some 9,000 Americans with offshore accounts in Switzerland had already come forward voluntarily to take advantage of a U.S. government amnesty program.
This could lower the number of Americans whose account details the Swiss have to hand over, according to the agreement.
The amnesty program promised no jail time and reduced penalties for Americans who turned themselves in for failing to report foreign bank accounts.
Swiss officials said the first 400 American clients will be selected for disclosure by the end of the week. A further 100 will be chosen by the end of the month. Affected customers can appeal the decision before Switzerland's top administrative court, which has the final say.
Most of the thousands of rich people whose UBS (UBSN.VX) bank accounts are to be handed over to U.S. authorities are suspected of serious fraud rather than simple tax evasion, Swiss authorities revealed on Tuesday.
The account details of about 4,450 people are due to be handed over to settle a bitter row over bank secrecy under a deal struck with the United States in August.
The saga has dented Switzerland's reputation as a center of banking discretion and threatened at one point to bring UBS to its knees.
The Swiss Justice Department said around 4,200 of the accounts are to be handed over on the grounds of "advanced and serious fraud." The category covers accounts with assets of at least 1 million Swiss francs ($986,200) and 100,000 francs in average revenues over at least three years, the Swiss Justice Department said.
About a further 250 accounts are suspected of a lesser offence -- of knowingly providing U.S. tax authorities with false information or setting up vehicles to dodge tax.
The submission of information on clients suspected of dodging U.S. taxes by stashing away money in secret accounts, promises to end years of investigation and uncertainty for UBS.
Submission of data to U.S. authorities applies to UBS accounts held between 2001 and 2008 by U.S. citizens resident in the United States.
Switzerland has claimed its banking secrecy remains intact, but some private bankers say it is no longer a selling point for its banks, which will need to offer other skills like wealth management and legacy planning to attract clients.
The country will also hand over the names of U.S. citizens holding offshore company accounts with UBS if they are suspected of tax fraud or similar, regardless of whether they were resident in the U.S. or elsewhere.
Earlier on Tuesday, UBS set an ambitious target for annual pretax profit of $15 billion, vowing to rebuild the loss-making bank and win back clients after the subprime crisis and U.S. tax row.
Most Corrupt Countries
Afghanistan has slipped three places to become the world's second most-corrupt country despite billions in aid meant to bolster the government against a rising insurgency, according to an annual survey of perceived levels of corruption.
Only lawless Somalia, whose weak U.N.-backed government controls just a few blocks of the capital, was perceived as more corrupt than Afghanistan in Transparency International's Corruption Perceptions Index.
Iraq saw some improvement, rising to 176 of 180 countries, up two places up from last year. Singapore, Denmark and New Zealand were seen as the least corrupt countries in the list based on surveys of businesses and experts.
In Afghanistan, President Hamid Karzai's inability or unwillingness to tackle cronyism and bribery the past five years have resulted in an increase of support for the Taliban insurgents. That has prompted calls by the Obama administration for Karzai to tackle the practice or risk forfeiting U.S. aid.
Since 2001, the U.S. Congress has appropriated more than $39 billion in humanitarian and reconstruction assistance for Afghanistan, according to a report by the U.S. Special Inspector General for Afghanistan Reconstruction. European nations send about 1 billion euros ($1.49 billion) a year, a total of 9 billion euros since 2002.
International donors are increasingly questioning how much of the billions of dollars in aid might have been misappropriated.
The report said examples of Afghan corruption ranged from the sale of government positions to daily bribes for basic services.
Karzai unveiled an anti-corruption unit and major crime fighting force on Monday after heavy pressure from Washington.
In reaction to the report, Ershad Ahmadi, the deputy director general of the High Office of Oversight and Anti-corruption in Afghanistan, said that "corruption is a phenomenon that will not go away overnight. It is a problem that will continue to be with Afghanistan for a long time.
"Until we achieve that sort of national awakening that business as usual is not in the interest of a peaceful and prosperous Afghanistan, you will not be able to achieve success in your anti-corruption campaign," Ahmadi said.
Robin Hodess, Transparency's director of policy and research, said Tuesday that for a country to improve on the corruption perceptions index, it is imperative that "citizens believe that they have a government that works for them."
The governments have to show "that there is the political will to respond to the needs of the people," Hodess said.
In Iraq, corruption has become widespread since the U.S.-led invasion that toppled Saddam Hussein in 2003 with scarcity of serious government measures against corrupted officials.
That has undermined the largest nation-building efforts with siphoning billions of dollars away from the country's struggling economy, increasing frustrations among Iraqis mainly over corruption, lingering violence and poor public services.
A Bertelsmann Foundation report used in the corruption index noted that in Iraq "non-security institutions remain weak and debilitated. The Iraqi leadership faces many structural constraints on governance, such as a massive brain drain, a high level of political division, and extreme poverty."
The United States, which was in 19th place compared with 18th last year, remained stable despite Transparency's concerns over a lack of government oversight of the financial sector.
The report also pointed out that the U.S. legislature is another reason for concern, as it is "perceived to be the institution most affected by corruption."
There were some bright spots in the new report — Bangladesh, Belarus, Guatemala, Lithuania, Poland and Syria were among the countries that improved the most.
___________________________________________________________________________________
A look at the world's 10 most corrupt and 10 least corrupt countries according to the Corruption Perceptions Index report published Tuesday by watchdog Transparency International.
The world's ten most corrupt countries:
1. Somalia
2. Afghanistan
3. Myanmar
4. Sudan
5. Iraq
6. Chad
7. Uzbekistan
8. Turkmenistan
9. Iran
10. Haiti
The world's ten least corrupt countries:
1. New Zealand
2. Denmark
3. Singapore
4. Sweden
5. Switzerland
6. Finland
7. Netherlands
8. Australia
9. Canada
10. Iceland
Only lawless Somalia, whose weak U.N.-backed government controls just a few blocks of the capital, was perceived as more corrupt than Afghanistan in Transparency International's Corruption Perceptions Index.
Iraq saw some improvement, rising to 176 of 180 countries, up two places up from last year. Singapore, Denmark and New Zealand were seen as the least corrupt countries in the list based on surveys of businesses and experts.
In Afghanistan, President Hamid Karzai's inability or unwillingness to tackle cronyism and bribery the past five years have resulted in an increase of support for the Taliban insurgents. That has prompted calls by the Obama administration for Karzai to tackle the practice or risk forfeiting U.S. aid.
Since 2001, the U.S. Congress has appropriated more than $39 billion in humanitarian and reconstruction assistance for Afghanistan, according to a report by the U.S. Special Inspector General for Afghanistan Reconstruction. European nations send about 1 billion euros ($1.49 billion) a year, a total of 9 billion euros since 2002.
International donors are increasingly questioning how much of the billions of dollars in aid might have been misappropriated.
The report said examples of Afghan corruption ranged from the sale of government positions to daily bribes for basic services.
Karzai unveiled an anti-corruption unit and major crime fighting force on Monday after heavy pressure from Washington.
In reaction to the report, Ershad Ahmadi, the deputy director general of the High Office of Oversight and Anti-corruption in Afghanistan, said that "corruption is a phenomenon that will not go away overnight. It is a problem that will continue to be with Afghanistan for a long time.
"Until we achieve that sort of national awakening that business as usual is not in the interest of a peaceful and prosperous Afghanistan, you will not be able to achieve success in your anti-corruption campaign," Ahmadi said.
Robin Hodess, Transparency's director of policy and research, said Tuesday that for a country to improve on the corruption perceptions index, it is imperative that "citizens believe that they have a government that works for them."
The governments have to show "that there is the political will to respond to the needs of the people," Hodess said.
In Iraq, corruption has become widespread since the U.S.-led invasion that toppled Saddam Hussein in 2003 with scarcity of serious government measures against corrupted officials.
That has undermined the largest nation-building efforts with siphoning billions of dollars away from the country's struggling economy, increasing frustrations among Iraqis mainly over corruption, lingering violence and poor public services.
A Bertelsmann Foundation report used in the corruption index noted that in Iraq "non-security institutions remain weak and debilitated. The Iraqi leadership faces many structural constraints on governance, such as a massive brain drain, a high level of political division, and extreme poverty."
The United States, which was in 19th place compared with 18th last year, remained stable despite Transparency's concerns over a lack of government oversight of the financial sector.
The report also pointed out that the U.S. legislature is another reason for concern, as it is "perceived to be the institution most affected by corruption."
There were some bright spots in the new report — Bangladesh, Belarus, Guatemala, Lithuania, Poland and Syria were among the countries that improved the most.
___________________________________________________________________________________
A look at the world's 10 most corrupt and 10 least corrupt countries according to the Corruption Perceptions Index report published Tuesday by watchdog Transparency International.
The world's ten most corrupt countries:
1. Somalia
2. Afghanistan
3. Myanmar
4. Sudan
5. Iraq
6. Chad
7. Uzbekistan
8. Turkmenistan
9. Iran
10. Haiti
The world's ten least corrupt countries:
1. New Zealand
2. Denmark
3. Singapore
4. Sweden
5. Switzerland
6. Finland
7. Netherlands
8. Australia
9. Canada
10. Iceland
Thursday, November 12, 2009
SOUTH AFRICAN TAXES
Sars may act as ‘judge and jury’
Proposed changes to tax law give officials ‘absolute power’, writes Ilham Rawoot.
Sars, unions reach wage agreement
A wage agreement between the South African Revenue Service and unions was reached on Wednesday following industrial action during this month.
Unions reject Sars wage offer
Both unions embroiled in a wage dispute with Sars have rejected the tax collector's latest wage offer, they said on Tuesday.
Court dismisses Sars bid to stop strike
A court on Monday dismissed an application by the South African Revenue Service (Sars) for an urgent interdict against strike action by its workers.
Sars employees down tools
Thousands of South African Revenue Services employees downed tools on Monday demanding better pay, a union said.
Sars, unions reach interim agreement to stop strike
The South African Revenue Service and two public sector unions reached an interim agreement to suspend strike action on Friday.
Sars workers to strike
South African Revenue Service workers plan to strike after wage talks reached an impasse, the Public Servants' Association said on Thursday.
Law society rejects 'draconian' powers sought by Sars
The "draconian" powers sought by Sars in terms of draft legislation should be rejected as unconstitutional, the Law Society of SA said on Thursday.
Why it's best to beat the tax deadline
February 5 2009 was the deadline to submit your 2008 income tax returns. The penalties have increased significantly but you do have a grace period.
Trade deficit down
Sars on Wednesday revised the country's trade deficit for 2008 sharply lower after excluding gold temporarily imported for refining purposes.
2010 big shot skips SA
2010 Mbombela stadium's project manager Chris Grib is on the run because of alleged tax evasion.
Niehaus: Kebble debt dispute resolved
ANC spokesperson Carl Niehaus and trustees of Brett Kebble have reached an agreement over money they want from him, Niehaus said on Friday.
Invest your bonus in an RA
The tax benefit of investing your bonus in an RA means that the receiver of revenue helps pay for your retirement.
Search on for South Africans in Mumbai
There were an unspecified number of South Africans staying at the Taj Mahal Hotel, one of the sites of attacks by militant gunmen.
Sars runner-up in global software award
The Sars has been awarded a silver medal in innovative technology at the annual Adobe Max Awards in North America.
Sars complains of 'last-minute' culture, extends deadline
The deadline for income tax returns has been moved to December 5, giving taxpayers more time to submit their returns, says the SA Revenue Service.
Powder-laced envelopes found at Sars office
Three powder-laced envelopes and a threatening note was found at the Vereeniging South African Revenue Service offices.
Businessman says Sars 'tough guys' are out to get him
The South African Revenue Service was out to destroy his life, super-rich businessman Dave King said on Tuesday.
SA September trade deficit widens
South Africa's trade deficit widened to R7,1-billion in September, from a R5,12-billion shortfall in August, the Sars said on Friday.
The end of tax returns?
Sars aims to achieve a return-free tax system for the majority of salaried individual taxpayers within the next five years.
Stiff sentences for defrauding SARS
Jail terms of 15 years each have been imposed on a man and a woman who defrauded the South African Revenue Service.
Now it's tougher to hide from the taxman
The new system forces employers to place more pressure on wayward tax employees, writes Barrie Terblanche.
July trade deficit widens to R14,3bn
SA recorded a trade deficit of R14,3-billion in July compared with June's R180-million shortfall, the South African Revenue Service said on Friday.
Sars extends office hours to help taxpayers
Offices of Sars will stay open longer from Monday to accommodate the anticipated increase in employers wishing to submit their payroll records.
Zuma's innocence or guilt of 'most pressing interest'
Determining whether Jacob Zuma is innocent or guilty is of the "most pressing interest", says the National Prosecuting Authority in court papers.
Trade deficit narrows in May
Exports of R56,24-billion and imports of R57,90-billion in May resulted in a trade deficit of R1,66-billion, Sars said on Monday.
Manuel commends Sars staff
Finance Minister Trevor Manuel commended the staff of the South African Revenue Service (Sars) for having exceeded the revenue target for the last tax year. He was speaking on Thursday at the launch of Sars's 2008 filing season. "When I speak to my international colleagues, they can't match the figures," he said.
Focus shifts to employers for 2008 tax season
The South African Revenue Service on Thursday announced details for the 2008 tax season, that for the first time puts specific emphasis on the central role of employers in the personal income tax system. Changes would be introduced that would impact on the legal obligation of employers who administer payroll taxes such as Paye, UIF, Site and SDL.
SA trade deficit narrows
South Africa's trade deficit narrowed to R5,03-billion in March from February's figure of R5,8-billion, the South African Revenue Service (Sars) said on Wednesday. "March exports of R51,15-billion and imports of R56,18-billion resulted in a deficit of R5,03-billion," Sars said.
'Not fair' that govt taxes Eskom
The huge increase in the electricity price was the result of poor planning and management on the government's part, so it should not be allowed to get tax income from that, a media report said on Friday. The government would get a R4-billion boost in taxes if Eskom was allowed to increase its prices by a nominal 60%.
Tax-refund scam hits consumers
Con-artists posing as South African Revenue Service (Sars) officials are trying to take tax refunds back from an unsuspecting public, the South African Banking Risk Information Centre (Sabric) warned on Tuesday. "Sars is currently refunding individuals who are entitled to tax refunds and thus the storyline is quite believable," said Sabric.
Opposition grows to arms shipment for Zimbabwe
Opposition to a shipment of arms being offloaded in Durban and transported to Zimbabwe increased on Thursday when South Africa's largest transport workers' union announced that its members would not unload the ship. A government spokesperson said the country could not stop the shipment from getting to its destination.
R43m scanner unveiled at Durban's harbour
A scanner costing R43-million -- the first of 18 -- has been put into operation at Durban harbour's container terminal, the South African Revenue Service (Sars) said on Tuesday. Leonard Radebe, head of customs at Sars, said the scanner would improve turnaround times at the congested Durban terminal.
SA exceeds 2007/08 tax-revenue target
South Africa exceeded its tax-revenue target by more than R800-million in the 2007/08 financial year due to strong economic growth and efficient collections. The Treasury said the South African Revenue Service (Sars) revenue service collected $571,807-billion in taxes.
SA February trade deficit narrows to R5,8bn
South Africa's monthly trade deficit narrowed to R5,8-billion in February, compared with January's R10,2-billion shortfall, the South African Revenue Service said on Monday. Compared with the previous month, exports rose by 19,28%, largely due to a sharp rise in vehicle exports, while imports increased by 6,44%.
The big split
Since September last year, divorcees have been able to receive a portion of their ex-spouse's pension fund without waiting until retirement. But confusion about the taxation of these funds and whether divorce orders prior to the change in legislation qualify has meant that the payment has often not been made.
'No syndicate' targeting air travellers at OR Tambo
Foreign nationals arriving at OR Tambo International Airport will not be required to furnish customs officials with their addresses, the border control operational coordinating committee said on Monday. Committee chairperson Humbulani Ravele told a press briefing: "As a precautionary measure, customs officials removed the address fill-ins on the forms."
Sars keeps mum over Zuma tax returns
As the National Prosecuting Authority was revealing in papers submitted to the Constitutional Court how African National Congress president Jacob Zuma allegedly failed to declare his income to the taxman, the South African Revenue Service (Sars) on Friday was keeping mum.
January trade deficit widens to R10,2-billion
South Africa's monthly trade deficit widened to R10,2-billion in January, compared with December's R1,2-billion gap, the South African Revenue Service said on Friday. Compared with the previous month, exports fell by 8% while imports increased by 13%, largely due to a rise in imports of minerals products and machinery.
Police seize R54m-worth of cocaine at OR Tambo
About R54-million-worth of cocaine, smuggled into the country from Brazil, was confiscated at Johannesburg's OR Tambo International Airport on Sunday, police said. Police in São Paulo, Brazil, had notified South African authorities on Saturday that a plane heading to OR Tambo was carrying cocaine
A tax checklist for private investors
February 28 marks the end of the tax year in South Africa. There are 10 points South African private investors need to tick off before then, relating to retirement savings, capital-gains tax, travel-expense claims, donations, offshore investment and more.
Zuma turns to highest court in graft case
African National Congress leader Jacob Zuma has asked the Constitutional Court to strike down a court ruling allowing seized documents to be used against him in a corruption case. Zuma and his lawyer Michael Hulley argued that prosecutors and investigators had acted illegally when they raided and seized documents.
Sars simplifies VAT registration
Value-Added Tax (VAT) registration would be easier from this month, the South African Revenue Service (Sars) said on Friday. Sars said the new VAT-registration process reduced the paperwork required for registration and provided for the instant issuing of VAT registration numbers over the counter at Sars branches.
Record number of tax returns in 2007
More than three million tax returns were filed in the 2007 filing season, the South African Revenue Service said on Wednesday. Taxpayers have eight days left to submit tax returns but this can only be done electronically. Outstanding tax returns must be submitted by January 31 to avoid penalties.
Africa to get together to solve tax problems
Tax collectors from 39 countries around the world meeting in an Organisation for Economic Cooperation and Development-sponsored conference on Friday agreed to support a further conference specifically on taxation in Africa. The conference will be hosted by the South African Revenue Service, and will take place in May this year.
Scorpions reveal new Zuma evidence
New allegations against African National Congress deputy president Jacob Zuma have been included in an affidavit before the Constitutional Court, South African Broadcasting Corporation news reported on Friday. Johan du Plooy, a senior special investigator for the Scorpions, said investigations had uncovered substantial new evidence against Zuma.
Committee hopes to alleviate border congestion
National, provincial and local government departments, together with state agencies in the various provinces, will work together to manage congestion at the country's busiest land border posts over the festive season, the border-control operational coordinating committee said on Thursday.
Keeping it in the family
No longer a tool for the rich, a family trust (inter vivos trust) created while you are alive, as opposed to a "testamentary trust" created after your death, is fast becoming the most popular estate-planning tool. Depending on the individual circumstances, there are many advantages and challenges to consider before creating a family trust.
Trade deficit: 'SA is now officially in trouble'
South Africa's monthly trade deficit jumped to a record R14,73-billion in October, compared to September's R4,3-billion shortfall, the South African Revenue Service said on Friday. Economists polled by Reuters last week had forecast a deficit of R6,8-billion.
September trade deficit lower at R4,3-billion
South Africa recorded a trade deficit of R4,3-billion in September, compared to August's R9,1-billion shortfall, the South African Revenue Service said on Wednesday. Economists polled by Reuters last week had forecast a deficit of R6,4-billion, but the number is notoriously volatile and hard to predict.
SA sees budget surplus over next three years
South Africa will record a budget surplus for the next three years due to higher-than-expected tax revenues and would invest more to boost infrastructure, the National Treasury said on Tuesday. In its Medium-Term Budget Policy Statement, the Treasury said robust economic growth over the past five years had provided for a more expansionary fiscal stance.
Rain doesn't stop Bok parade
Thousands of people in Pretoria turned up in rainy weather on Friday for a parade to celebrate the Springboks' victory in the Rugby World Cup a week ago. They were due in Johannesburg later in the day -- and in Soweto on Saturday, after a public outcry over the initial cancellation of that leg of the victory tour.
Sars says public's tax response could be better
The public's response to the South African Revenue Service's (Sars) call on tax returns is satisfying but nowhere near what is desired, Sars said on Monday. "We are satisfied, but it would have been better if we had gone as far as registering four million," said Sars spokesperson Adrian Lackay.
Non-tariff barriers block SADC goods flow
While the Southern African Development Community (SADC) has moved towards liberalising trade to make the flow of goods between countries easier and economically more rewarding, non-tariff barriers such as border delays continue to be a concern, a recent study found.
August trade deficit down slightly
South Africa recorded a trade deficit of R9,1-billion in August, compared with July's R9,4-billion shortfall, the South African Revenue Service said on Friday. Economists polled by Reuters last week had forecast a deficit of R5,3-billion, but the number is notoriously volatile and hard to predict.
Amnesty cut-off looms for small businesses
Small business owners have until 1pm on Saturday to submit their 2006 tax return and financial statements in support of their applications for the small business tax amnesty. "The South African Revenue Service [Sars] is encouraged by the number of queries and visits to our offices in the past week," it said on Friday.
Small business tax-amnesty deadline looms
Small businesses that have applied for tax amnesty must submit the required documents by Friday, the South African Revenue Service (Sars) said on Tuesday. "After the deadline Sars will commence with enforcement actions against taxpayers who have either not applied for amnesty or submitted an incomplete application," a Sars spokesperson said on Tuesday.
Ghosts come back to haunt the 'Iron Duke'
Irvin Khoza's troubles extend beyond the R66-million tax probe directed at him.
Proposed changes to tax law give officials ‘absolute power’, writes Ilham Rawoot.
Sars, unions reach wage agreement
A wage agreement between the South African Revenue Service and unions was reached on Wednesday following industrial action during this month.
Unions reject Sars wage offer
Both unions embroiled in a wage dispute with Sars have rejected the tax collector's latest wage offer, they said on Tuesday.
Court dismisses Sars bid to stop strike
A court on Monday dismissed an application by the South African Revenue Service (Sars) for an urgent interdict against strike action by its workers.
Sars employees down tools
Thousands of South African Revenue Services employees downed tools on Monday demanding better pay, a union said.
Sars, unions reach interim agreement to stop strike
The South African Revenue Service and two public sector unions reached an interim agreement to suspend strike action on Friday.
Sars workers to strike
South African Revenue Service workers plan to strike after wage talks reached an impasse, the Public Servants' Association said on Thursday.
Law society rejects 'draconian' powers sought by Sars
The "draconian" powers sought by Sars in terms of draft legislation should be rejected as unconstitutional, the Law Society of SA said on Thursday.
Why it's best to beat the tax deadline
February 5 2009 was the deadline to submit your 2008 income tax returns. The penalties have increased significantly but you do have a grace period.
Trade deficit down
Sars on Wednesday revised the country's trade deficit for 2008 sharply lower after excluding gold temporarily imported for refining purposes.
2010 big shot skips SA
2010 Mbombela stadium's project manager Chris Grib is on the run because of alleged tax evasion.
Niehaus: Kebble debt dispute resolved
ANC spokesperson Carl Niehaus and trustees of Brett Kebble have reached an agreement over money they want from him, Niehaus said on Friday.
Invest your bonus in an RA
The tax benefit of investing your bonus in an RA means that the receiver of revenue helps pay for your retirement.
Search on for South Africans in Mumbai
There were an unspecified number of South Africans staying at the Taj Mahal Hotel, one of the sites of attacks by militant gunmen.
Sars runner-up in global software award
The Sars has been awarded a silver medal in innovative technology at the annual Adobe Max Awards in North America.
Sars complains of 'last-minute' culture, extends deadline
The deadline for income tax returns has been moved to December 5, giving taxpayers more time to submit their returns, says the SA Revenue Service.
Powder-laced envelopes found at Sars office
Three powder-laced envelopes and a threatening note was found at the Vereeniging South African Revenue Service offices.
Businessman says Sars 'tough guys' are out to get him
The South African Revenue Service was out to destroy his life, super-rich businessman Dave King said on Tuesday.
SA September trade deficit widens
South Africa's trade deficit widened to R7,1-billion in September, from a R5,12-billion shortfall in August, the Sars said on Friday.
The end of tax returns?
Sars aims to achieve a return-free tax system for the majority of salaried individual taxpayers within the next five years.
Stiff sentences for defrauding SARS
Jail terms of 15 years each have been imposed on a man and a woman who defrauded the South African Revenue Service.
Now it's tougher to hide from the taxman
The new system forces employers to place more pressure on wayward tax employees, writes Barrie Terblanche.
July trade deficit widens to R14,3bn
SA recorded a trade deficit of R14,3-billion in July compared with June's R180-million shortfall, the South African Revenue Service said on Friday.
Sars extends office hours to help taxpayers
Offices of Sars will stay open longer from Monday to accommodate the anticipated increase in employers wishing to submit their payroll records.
Zuma's innocence or guilt of 'most pressing interest'
Determining whether Jacob Zuma is innocent or guilty is of the "most pressing interest", says the National Prosecuting Authority in court papers.
Trade deficit narrows in May
Exports of R56,24-billion and imports of R57,90-billion in May resulted in a trade deficit of R1,66-billion, Sars said on Monday.
Manuel commends Sars staff
Finance Minister Trevor Manuel commended the staff of the South African Revenue Service (Sars) for having exceeded the revenue target for the last tax year. He was speaking on Thursday at the launch of Sars's 2008 filing season. "When I speak to my international colleagues, they can't match the figures," he said.
Focus shifts to employers for 2008 tax season
The South African Revenue Service on Thursday announced details for the 2008 tax season, that for the first time puts specific emphasis on the central role of employers in the personal income tax system. Changes would be introduced that would impact on the legal obligation of employers who administer payroll taxes such as Paye, UIF, Site and SDL.
SA trade deficit narrows
South Africa's trade deficit narrowed to R5,03-billion in March from February's figure of R5,8-billion, the South African Revenue Service (Sars) said on Wednesday. "March exports of R51,15-billion and imports of R56,18-billion resulted in a deficit of R5,03-billion," Sars said.
'Not fair' that govt taxes Eskom
The huge increase in the electricity price was the result of poor planning and management on the government's part, so it should not be allowed to get tax income from that, a media report said on Friday. The government would get a R4-billion boost in taxes if Eskom was allowed to increase its prices by a nominal 60%.
Tax-refund scam hits consumers
Con-artists posing as South African Revenue Service (Sars) officials are trying to take tax refunds back from an unsuspecting public, the South African Banking Risk Information Centre (Sabric) warned on Tuesday. "Sars is currently refunding individuals who are entitled to tax refunds and thus the storyline is quite believable," said Sabric.
Opposition grows to arms shipment for Zimbabwe
Opposition to a shipment of arms being offloaded in Durban and transported to Zimbabwe increased on Thursday when South Africa's largest transport workers' union announced that its members would not unload the ship. A government spokesperson said the country could not stop the shipment from getting to its destination.
R43m scanner unveiled at Durban's harbour
A scanner costing R43-million -- the first of 18 -- has been put into operation at Durban harbour's container terminal, the South African Revenue Service (Sars) said on Tuesday. Leonard Radebe, head of customs at Sars, said the scanner would improve turnaround times at the congested Durban terminal.
SA exceeds 2007/08 tax-revenue target
South Africa exceeded its tax-revenue target by more than R800-million in the 2007/08 financial year due to strong economic growth and efficient collections. The Treasury said the South African Revenue Service (Sars) revenue service collected $571,807-billion in taxes.
SA February trade deficit narrows to R5,8bn
South Africa's monthly trade deficit narrowed to R5,8-billion in February, compared with January's R10,2-billion shortfall, the South African Revenue Service said on Monday. Compared with the previous month, exports rose by 19,28%, largely due to a sharp rise in vehicle exports, while imports increased by 6,44%.
The big split
Since September last year, divorcees have been able to receive a portion of their ex-spouse's pension fund without waiting until retirement. But confusion about the taxation of these funds and whether divorce orders prior to the change in legislation qualify has meant that the payment has often not been made.
'No syndicate' targeting air travellers at OR Tambo
Foreign nationals arriving at OR Tambo International Airport will not be required to furnish customs officials with their addresses, the border control operational coordinating committee said on Monday. Committee chairperson Humbulani Ravele told a press briefing: "As a precautionary measure, customs officials removed the address fill-ins on the forms."
Sars keeps mum over Zuma tax returns
As the National Prosecuting Authority was revealing in papers submitted to the Constitutional Court how African National Congress president Jacob Zuma allegedly failed to declare his income to the taxman, the South African Revenue Service (Sars) on Friday was keeping mum.
January trade deficit widens to R10,2-billion
South Africa's monthly trade deficit widened to R10,2-billion in January, compared with December's R1,2-billion gap, the South African Revenue Service said on Friday. Compared with the previous month, exports fell by 8% while imports increased by 13%, largely due to a rise in imports of minerals products and machinery.
Police seize R54m-worth of cocaine at OR Tambo
About R54-million-worth of cocaine, smuggled into the country from Brazil, was confiscated at Johannesburg's OR Tambo International Airport on Sunday, police said. Police in São Paulo, Brazil, had notified South African authorities on Saturday that a plane heading to OR Tambo was carrying cocaine
A tax checklist for private investors
February 28 marks the end of the tax year in South Africa. There are 10 points South African private investors need to tick off before then, relating to retirement savings, capital-gains tax, travel-expense claims, donations, offshore investment and more.
Zuma turns to highest court in graft case
African National Congress leader Jacob Zuma has asked the Constitutional Court to strike down a court ruling allowing seized documents to be used against him in a corruption case. Zuma and his lawyer Michael Hulley argued that prosecutors and investigators had acted illegally when they raided and seized documents.
Sars simplifies VAT registration
Value-Added Tax (VAT) registration would be easier from this month, the South African Revenue Service (Sars) said on Friday. Sars said the new VAT-registration process reduced the paperwork required for registration and provided for the instant issuing of VAT registration numbers over the counter at Sars branches.
Record number of tax returns in 2007
More than three million tax returns were filed in the 2007 filing season, the South African Revenue Service said on Wednesday. Taxpayers have eight days left to submit tax returns but this can only be done electronically. Outstanding tax returns must be submitted by January 31 to avoid penalties.
Africa to get together to solve tax problems
Tax collectors from 39 countries around the world meeting in an Organisation for Economic Cooperation and Development-sponsored conference on Friday agreed to support a further conference specifically on taxation in Africa. The conference will be hosted by the South African Revenue Service, and will take place in May this year.
Scorpions reveal new Zuma evidence
New allegations against African National Congress deputy president Jacob Zuma have been included in an affidavit before the Constitutional Court, South African Broadcasting Corporation news reported on Friday. Johan du Plooy, a senior special investigator for the Scorpions, said investigations had uncovered substantial new evidence against Zuma.
Committee hopes to alleviate border congestion
National, provincial and local government departments, together with state agencies in the various provinces, will work together to manage congestion at the country's busiest land border posts over the festive season, the border-control operational coordinating committee said on Thursday.
Keeping it in the family
No longer a tool for the rich, a family trust (inter vivos trust) created while you are alive, as opposed to a "testamentary trust" created after your death, is fast becoming the most popular estate-planning tool. Depending on the individual circumstances, there are many advantages and challenges to consider before creating a family trust.
Trade deficit: 'SA is now officially in trouble'
South Africa's monthly trade deficit jumped to a record R14,73-billion in October, compared to September's R4,3-billion shortfall, the South African Revenue Service said on Friday. Economists polled by Reuters last week had forecast a deficit of R6,8-billion.
September trade deficit lower at R4,3-billion
South Africa recorded a trade deficit of R4,3-billion in September, compared to August's R9,1-billion shortfall, the South African Revenue Service said on Wednesday. Economists polled by Reuters last week had forecast a deficit of R6,4-billion, but the number is notoriously volatile and hard to predict.
SA sees budget surplus over next three years
South Africa will record a budget surplus for the next three years due to higher-than-expected tax revenues and would invest more to boost infrastructure, the National Treasury said on Tuesday. In its Medium-Term Budget Policy Statement, the Treasury said robust economic growth over the past five years had provided for a more expansionary fiscal stance.
Rain doesn't stop Bok parade
Thousands of people in Pretoria turned up in rainy weather on Friday for a parade to celebrate the Springboks' victory in the Rugby World Cup a week ago. They were due in Johannesburg later in the day -- and in Soweto on Saturday, after a public outcry over the initial cancellation of that leg of the victory tour.
Sars says public's tax response could be better
The public's response to the South African Revenue Service's (Sars) call on tax returns is satisfying but nowhere near what is desired, Sars said on Monday. "We are satisfied, but it would have been better if we had gone as far as registering four million," said Sars spokesperson Adrian Lackay.
Non-tariff barriers block SADC goods flow
While the Southern African Development Community (SADC) has moved towards liberalising trade to make the flow of goods between countries easier and economically more rewarding, non-tariff barriers such as border delays continue to be a concern, a recent study found.
August trade deficit down slightly
South Africa recorded a trade deficit of R9,1-billion in August, compared with July's R9,4-billion shortfall, the South African Revenue Service said on Friday. Economists polled by Reuters last week had forecast a deficit of R5,3-billion, but the number is notoriously volatile and hard to predict.
Amnesty cut-off looms for small businesses
Small business owners have until 1pm on Saturday to submit their 2006 tax return and financial statements in support of their applications for the small business tax amnesty. "The South African Revenue Service [Sars] is encouraged by the number of queries and visits to our offices in the past week," it said on Friday.
Small business tax-amnesty deadline looms
Small businesses that have applied for tax amnesty must submit the required documents by Friday, the South African Revenue Service (Sars) said on Tuesday. "After the deadline Sars will commence with enforcement actions against taxpayers who have either not applied for amnesty or submitted an incomplete application," a Sars spokesperson said on Tuesday.
Ghosts come back to haunt the 'Iron Duke'
Irvin Khoza's troubles extend beyond the R66-million tax probe directed at him.
AFRICAN JOBS INCREASE REQUIREMENTS
If SA can’t create 500 000 jobs, then your job is on the line
President Jacob Zuma says we have to create 500 000 jobs by year-end. As a nation of dedicated whingers, we look at that stat, sit back and say, “We can’t do it”. Actually if we can’t do it then we need to figure out how much financial pain, we the employed, are able to bear in terms of a growing personal tax burden and rampant debt.
Individuals in South Africa are already the most heavily taxed in the world, those in jobs not only pay PAYE and VAT, we carry the can for those who can’t afford or refuse to pay vehicle insurance, hospital bills, traffic fines, school fees, university loans, property rates, electricity, water, sanitation, now a new health tax … the list gets ever longer.
If the fact that our unemployment figures exceeded 40% even before this recession, that 54% of our people live in poverty (Human Sciences Research Council), that 250 000 graduates were unemployed (Stats SA, 2008), that half of our matriculants have failed two years in a row and of those that pass about 7% will not find work, doesn’t bother you — then consider this: how much more tax can you bear?
Those already paying tax are going to be taxed more. The burden of a 30% electricity tariff hike will be carried by the small percentage already paying for electricity, not the majority that use it illegally. Road traffic fine collections at present, as an example, through websites and banks rely primarily on those with credit cards to pay, as for the rest? Ag suga, as a friend used to say — go whistle for it.
But wait a minute, so far what I have written gives more fuel to the whingers, to the self-pitying honourable (who probably largely form the 80% of South Africans prepared to pay (bribe) an official to get what they want — Morality survey, Sunday Times, June 2009).
There should be only one reason why we find work for 500 000 people before the end of this year and a million by the end of next year: because the economy demands it. Because if we are to get beyond economist lies about us “doing better” than other countries through this economic crisis (with the figures in paragraph three, we are doing well?) we have to get innovation and hard work back into gear.
Cosatu is right, big bonuses and ridiculously expensive cars as part of executive packages have to go — it’s happening elsewhere in the world, why not in this land of profound inequity?
You have to be really stupid or terminally ignorant not to see how fast and how badly this economy is sliding and to realise that we will not be out of this mess early next year, as some economists now say, we will be lucky to start lifting our head above water by 2013.
Take a look at this graph for South Africa’s GDP:
Source: Dr Azar Jammine, Econometrix June 2009
Still not scary enough for you? Try this and since this graph was published a month ago, Absa revealed this week that house prices have dropped a further 3.6%.
So your tax rate is going through the ceiling and your investments are collapsing through the floor. It doesn’t take huge leaps of awareness to understand that this economy has to grow; it simply has to, if this country is to have any chance of remaining a strong investment locale for foreign and domestic investors.
We don’t have enough strong reliable underpinnings in the economy of the 21st century to have the same whining approach of the late 20th century — mining, which built this country, is now a weaker sector than agriculture and our agricultural fortunes have been collapsing for at least two decades.
We are no longer a major grain exporter, many of our beef farms are now game farms and production generally is less than impressive.
So how is the rest of the economy doing? Economic data from the SA Reserve Bank show that debt summonses soared 14.4% in February and personal bankruptcies rose after hitting 40.4% in January. Wholesale trade dipped 8.9%, retail sales plunged 4.5% — a record drop.
In early April the National Treasury announced a programme to co-ordinate its borrowing with that of the six major state-owned entities. The Treasury will borrow R70.5 billion, the SA National Road Agency R13.3 billion, electricity utility Eskom R12 billion, Transnet R6.9 billion, the Development Bank of South Africa R6 billion, Airports Company South Africa R3.6 billion and the Trans Caledon Tunnel Authority R1 billion. So we’re all in debt and there is more; the total number of liquidations recorded for the first quarter of 2009 increased by 46.7% (from 687 to 1 008) compared with the first quarter of 2008, statistics released by Statistics South Africa show (April 28).
When comparing the first quarter of 2009 with the first quarter of 2008, there were increases of 58.7% in company liquidations (from 312 to 495) and 36.8% in close corporation liquidations (from 375 to 513). Labour lawyer Celeste Allen who runs the labour law course for AstroTech says that since November last year she has done little else but retrenchments, “with some companies into their third round of retrenchments”.
Is creating 500 000 jobs a pipe dream? We should have been committed to it years ago when economic growth was booming, instead those who should have been fuelling job creation were investing in holiday homes and bigger cars and even a stable of vehicles, a car for work, a vehicle for the weekend, another for game drives …
Zuma’s vision is that the 500 000 jobs should be via an expanded public works programme, certainly our streets could be cleaner — especially filthy Durban; we have a zillion potholes that need filling on a collapsing national road infrastructure (try the road between Johannesburg and Kimberley sometime for a terrifying experience) our public hospitals and schools could be considerably cleaner, they need repairing and walls painted.
Trevor Manuel, Minister of Planning in the President’s Office, has defended plans for this large-scale job creation saying the intention was not to create permanent jobs, but an emergency measure to stand between poor families and absolute starvation. Already social grants are swallowing an ever growing part of the budget, we need to put those people to work instead of creating, as we are, those who rely on social grants.
But we need to go beyond relying on government to create jobs, we know what its track record on delivery is — we need to create jobs and if you can’t employ one more person, then ensure instead of retrenching two more that you send them for training, Keep skilling your workforce let them know you are doing this instead of retrenching them, motivate them to produce more and better, it’s the path some of the world’s greater organisations are already taking — they intend being in business for generations more to come.
Toyota, which is experiencing its worst sales and profits ever, is not shedding jobs, it is continuing to pay workers and using downtime to train workers or use them on public service projects. Public service projects as a way of seconding employees rather than laying off staff is gaining ground.
New York-based law firm Simpson Thacher & Bartlett offers associates a year off to work on a public service project and get paid $60 000 plus benefits — less than half their normal pay but a lot better than being retrenched. FedEx has imposed graduated pay cuts, less for front-line workers and more for managers.
And on July 18, Mandela Day, take 67 minutes off work for you and your staff and get out there to make a difference in the lives of those who are really struggling in this economy. Barack Obama has called for something similar in the US, where he has called for a greater “service” ethos — a greater idea than writing cheques to charities for tax breaks.
There is more to life than buying a new car, getting a bigger house, if you intend remaining here, if you want to still be in business by this time next year, then you are simply going to have to work harder, with more imagination and greater empathy for those around you and that applies as much for South Africans as it does for Americans, Europeans … the world is in trouble, it requires something extra from the ordinary to get us out of it.
President Jacob Zuma says we have to create 500 000 jobs by year-end. As a nation of dedicated whingers, we look at that stat, sit back and say, “We can’t do it”. Actually if we can’t do it then we need to figure out how much financial pain, we the employed, are able to bear in terms of a growing personal tax burden and rampant debt.
Individuals in South Africa are already the most heavily taxed in the world, those in jobs not only pay PAYE and VAT, we carry the can for those who can’t afford or refuse to pay vehicle insurance, hospital bills, traffic fines, school fees, university loans, property rates, electricity, water, sanitation, now a new health tax … the list gets ever longer.
If the fact that our unemployment figures exceeded 40% even before this recession, that 54% of our people live in poverty (Human Sciences Research Council), that 250 000 graduates were unemployed (Stats SA, 2008), that half of our matriculants have failed two years in a row and of those that pass about 7% will not find work, doesn’t bother you — then consider this: how much more tax can you bear?
Those already paying tax are going to be taxed more. The burden of a 30% electricity tariff hike will be carried by the small percentage already paying for electricity, not the majority that use it illegally. Road traffic fine collections at present, as an example, through websites and banks rely primarily on those with credit cards to pay, as for the rest? Ag suga, as a friend used to say — go whistle for it.
But wait a minute, so far what I have written gives more fuel to the whingers, to the self-pitying honourable (who probably largely form the 80% of South Africans prepared to pay (bribe) an official to get what they want — Morality survey, Sunday Times, June 2009).
There should be only one reason why we find work for 500 000 people before the end of this year and a million by the end of next year: because the economy demands it. Because if we are to get beyond economist lies about us “doing better” than other countries through this economic crisis (with the figures in paragraph three, we are doing well?) we have to get innovation and hard work back into gear.
Cosatu is right, big bonuses and ridiculously expensive cars as part of executive packages have to go — it’s happening elsewhere in the world, why not in this land of profound inequity?
You have to be really stupid or terminally ignorant not to see how fast and how badly this economy is sliding and to realise that we will not be out of this mess early next year, as some economists now say, we will be lucky to start lifting our head above water by 2013.
Take a look at this graph for South Africa’s GDP:
Source: Dr Azar Jammine, Econometrix June 2009
Still not scary enough for you? Try this and since this graph was published a month ago, Absa revealed this week that house prices have dropped a further 3.6%.
So your tax rate is going through the ceiling and your investments are collapsing through the floor. It doesn’t take huge leaps of awareness to understand that this economy has to grow; it simply has to, if this country is to have any chance of remaining a strong investment locale for foreign and domestic investors.
We don’t have enough strong reliable underpinnings in the economy of the 21st century to have the same whining approach of the late 20th century — mining, which built this country, is now a weaker sector than agriculture and our agricultural fortunes have been collapsing for at least two decades.
We are no longer a major grain exporter, many of our beef farms are now game farms and production generally is less than impressive.
So how is the rest of the economy doing? Economic data from the SA Reserve Bank show that debt summonses soared 14.4% in February and personal bankruptcies rose after hitting 40.4% in January. Wholesale trade dipped 8.9%, retail sales plunged 4.5% — a record drop.
In early April the National Treasury announced a programme to co-ordinate its borrowing with that of the six major state-owned entities. The Treasury will borrow R70.5 billion, the SA National Road Agency R13.3 billion, electricity utility Eskom R12 billion, Transnet R6.9 billion, the Development Bank of South Africa R6 billion, Airports Company South Africa R3.6 billion and the Trans Caledon Tunnel Authority R1 billion. So we’re all in debt and there is more; the total number of liquidations recorded for the first quarter of 2009 increased by 46.7% (from 687 to 1 008) compared with the first quarter of 2008, statistics released by Statistics South Africa show (April 28).
When comparing the first quarter of 2009 with the first quarter of 2008, there were increases of 58.7% in company liquidations (from 312 to 495) and 36.8% in close corporation liquidations (from 375 to 513). Labour lawyer Celeste Allen who runs the labour law course for AstroTech says that since November last year she has done little else but retrenchments, “with some companies into their third round of retrenchments”.
Is creating 500 000 jobs a pipe dream? We should have been committed to it years ago when economic growth was booming, instead those who should have been fuelling job creation were investing in holiday homes and bigger cars and even a stable of vehicles, a car for work, a vehicle for the weekend, another for game drives …
Zuma’s vision is that the 500 000 jobs should be via an expanded public works programme, certainly our streets could be cleaner — especially filthy Durban; we have a zillion potholes that need filling on a collapsing national road infrastructure (try the road between Johannesburg and Kimberley sometime for a terrifying experience) our public hospitals and schools could be considerably cleaner, they need repairing and walls painted.
Trevor Manuel, Minister of Planning in the President’s Office, has defended plans for this large-scale job creation saying the intention was not to create permanent jobs, but an emergency measure to stand between poor families and absolute starvation. Already social grants are swallowing an ever growing part of the budget, we need to put those people to work instead of creating, as we are, those who rely on social grants.
But we need to go beyond relying on government to create jobs, we know what its track record on delivery is — we need to create jobs and if you can’t employ one more person, then ensure instead of retrenching two more that you send them for training, Keep skilling your workforce let them know you are doing this instead of retrenching them, motivate them to produce more and better, it’s the path some of the world’s greater organisations are already taking — they intend being in business for generations more to come.
Toyota, which is experiencing its worst sales and profits ever, is not shedding jobs, it is continuing to pay workers and using downtime to train workers or use them on public service projects. Public service projects as a way of seconding employees rather than laying off staff is gaining ground.
New York-based law firm Simpson Thacher & Bartlett offers associates a year off to work on a public service project and get paid $60 000 plus benefits — less than half their normal pay but a lot better than being retrenched. FedEx has imposed graduated pay cuts, less for front-line workers and more for managers.
And on July 18, Mandela Day, take 67 minutes off work for you and your staff and get out there to make a difference in the lives of those who are really struggling in this economy. Barack Obama has called for something similar in the US, where he has called for a greater “service” ethos — a greater idea than writing cheques to charities for tax breaks.
There is more to life than buying a new car, getting a bigger house, if you intend remaining here, if you want to still be in business by this time next year, then you are simply going to have to work harder, with more imagination and greater empathy for those around you and that applies as much for South Africans as it does for Americans, Europeans … the world is in trouble, it requires something extra from the ordinary to get us out of it.
SLAVERY WORLDWIDE
AMERICAN SLAVERY HISTORY:
*http://eh.net/encyclopedia/article/wahl.slavery.us
CHILD SLAVERY WORLDWIDE:
*http://www.globalmarch.org/worstformsreport/world/childslavery.html
MODERN DAY SLAVERY:
*http://www.renewamerica.com/columns/kralis/060718
*http://eh.net/encyclopedia/article/wahl.slavery.us
CHILD SLAVERY WORLDWIDE:
*http://www.globalmarch.org/worstformsreport/world/childslavery.html
MODERN DAY SLAVERY:
*http://www.renewamerica.com/columns/kralis/060718
SAFEST CITIES OF AMERICA
Norwood, Pennsylvania (5.7)
Southport, New York (8.8)
Pell City, Alabama (9.4)
Plattekill, New York (10.1)
Rockport, Massachusetts (14.7)
Bedford, Massachusetts (17.5)
Harvard, Massachusetts (18.0)
Chester, New York (18.7)
Highlands, New York (19.8)
Eliot, Maine (20.8)
Elmira, New York (22.2)
Holliston, Massachusetts (25.2)
Easton, Connecticut (25.3)
Dunmore, Pennsylvania (25.5)
Duxbury, Massachusetts (26.8)
Medway, Massachusetts (27.3)
Frankfort, New York (28.1)
Old Tappan, New Jersey (28.2)
Southborough, Massachusetts (29.4)
North Reading, Massachusetts (30.1)
Ridgefield, Connecticut (30.5)
Franklin, Massachusetts (31.1)
Cumberland, Maine (31.6)
Batesville, Indiana (32.1)
Corcoran, Minnesota (32.2)
Lenox, Massachusetts (32.9)
Westford, Massachusetts (33.8)
New Canaan, Connecticut (34.0)
Lincoln, Massachusetts (34.1)
Whitehall, Pennsylvania (34.5)
Hopkinton, New Hampshire (34.7)
Laguna Woods, California (34.7)
Medfield, Massachusetts (35.4)
Salem, Ohio (35.7)
Northville, Michigan (36.7)
Rowley, Massachusetts (37.6)
Stow, Massachusetts (38.3)
Wrentham, Massachusetts (38.7)
Norfolk, Massachusetts (38.9)
Bellbrook, Ohio (39.2)
Winfield, Illinois (39.6)
Louisville, Ohio (39.7)
Reading, Massachusetts (39.9)
Upper Saddle River, New Jersey (40.1)
North Caldwell, New Jersey (40.5)
Topsfield, Massachusetts (40.5)
Glen Rock, New Jersey (41.5)
Weston, Connecticut (41.5)
Holly, Michigan (41.5)
Spring Lake Heights, New Jersey (41.5)
Groton, Massachusetts (41.9)
Clay, New York (41.9)
Hillsdale, New Jersey (42.0)
Clarks Summit, Pennsylvania (42.0)
Huntington Woods, Michigan (42.5)
Powell, Ohio (42.8)
Allendale, New Jersey (43.8)
Houghton, Michigan (44.1)
Bethel, Connecticut (44.4)
Georgetown, Massachusetts (44.8)
Ocean Pines, Maryland (44.9)
Sharon, Massachusetts (45.1)
Mentor-on-the-Lake, Ohio (45.1)
Kinnelon, New Jersey (45.4)
Foxborough, Massachusetts (45.5)
Midland Park, New Jersey (45.5)
North Andover, Massachusetts (45.7)
Bernardsville, New Jersey (45.8)
Glendale, Missouri (45.8)
Avon, Connecticut (46.0)
Lake Bluff, Illinois (46.9)
Madison, Connecticut (47.0)
Maywood, New Jersey (47.2)
Lindenhurst, Illinois (47.5)
Crestwood, Illinois (47.6)
East Hampton, Connecticut (47.9)
North Branford, Connecticut (48.2)
Inverness, Illinois (48.5)
Salem, Indiana (49.5)
East Bridgewater, Massachusetts (49.5)
Glocester, Rhode Island (49.6)
Belmont, Massachusetts (49.6)
Kermit, Texas (49.6)
Maynard, Massachusetts (49.8)
Ballston Spa, New York (50.1)
Boxford, Massachusetts (50.4)
Bridgewater, Virginia (50.5)
Peachtree City, Georgia (50.6)
Brecksville, Ohio (50.6)
Waunakee, Wisconsin (51.3)
Chardon, Ohio (51.7)
Elkhorn, Nebraska (51.9)
Spotswood, New Jersey (52.0)
Syracuse, Utah (52.3)
Seven Hills, Ohio (52.4)
Brier, Washington (52.4)
Franklin Park, Pennsylvania (52.5)
Scituate, Massachusetts (52.7)
Westwood, Massachusetts (52.8)
Western Springs, Illinois (53.1)
Southport, New York (8.8)
Pell City, Alabama (9.4)
Plattekill, New York (10.1)
Rockport, Massachusetts (14.7)
Bedford, Massachusetts (17.5)
Harvard, Massachusetts (18.0)
Chester, New York (18.7)
Highlands, New York (19.8)
Eliot, Maine (20.8)
Elmira, New York (22.2)
Holliston, Massachusetts (25.2)
Easton, Connecticut (25.3)
Dunmore, Pennsylvania (25.5)
Duxbury, Massachusetts (26.8)
Medway, Massachusetts (27.3)
Frankfort, New York (28.1)
Old Tappan, New Jersey (28.2)
Southborough, Massachusetts (29.4)
North Reading, Massachusetts (30.1)
Ridgefield, Connecticut (30.5)
Franklin, Massachusetts (31.1)
Cumberland, Maine (31.6)
Batesville, Indiana (32.1)
Corcoran, Minnesota (32.2)
Lenox, Massachusetts (32.9)
Westford, Massachusetts (33.8)
New Canaan, Connecticut (34.0)
Lincoln, Massachusetts (34.1)
Whitehall, Pennsylvania (34.5)
Hopkinton, New Hampshire (34.7)
Laguna Woods, California (34.7)
Medfield, Massachusetts (35.4)
Salem, Ohio (35.7)
Northville, Michigan (36.7)
Rowley, Massachusetts (37.6)
Stow, Massachusetts (38.3)
Wrentham, Massachusetts (38.7)
Norfolk, Massachusetts (38.9)
Bellbrook, Ohio (39.2)
Winfield, Illinois (39.6)
Louisville, Ohio (39.7)
Reading, Massachusetts (39.9)
Upper Saddle River, New Jersey (40.1)
North Caldwell, New Jersey (40.5)
Topsfield, Massachusetts (40.5)
Glen Rock, New Jersey (41.5)
Weston, Connecticut (41.5)
Holly, Michigan (41.5)
Spring Lake Heights, New Jersey (41.5)
Groton, Massachusetts (41.9)
Clay, New York (41.9)
Hillsdale, New Jersey (42.0)
Clarks Summit, Pennsylvania (42.0)
Huntington Woods, Michigan (42.5)
Powell, Ohio (42.8)
Allendale, New Jersey (43.8)
Houghton, Michigan (44.1)
Bethel, Connecticut (44.4)
Georgetown, Massachusetts (44.8)
Ocean Pines, Maryland (44.9)
Sharon, Massachusetts (45.1)
Mentor-on-the-Lake, Ohio (45.1)
Kinnelon, New Jersey (45.4)
Foxborough, Massachusetts (45.5)
Midland Park, New Jersey (45.5)
North Andover, Massachusetts (45.7)
Bernardsville, New Jersey (45.8)
Glendale, Missouri (45.8)
Avon, Connecticut (46.0)
Lake Bluff, Illinois (46.9)
Madison, Connecticut (47.0)
Maywood, New Jersey (47.2)
Lindenhurst, Illinois (47.5)
Crestwood, Illinois (47.6)
East Hampton, Connecticut (47.9)
North Branford, Connecticut (48.2)
Inverness, Illinois (48.5)
Salem, Indiana (49.5)
East Bridgewater, Massachusetts (49.5)
Glocester, Rhode Island (49.6)
Belmont, Massachusetts (49.6)
Kermit, Texas (49.6)
Maynard, Massachusetts (49.8)
Ballston Spa, New York (50.1)
Boxford, Massachusetts (50.4)
Bridgewater, Virginia (50.5)
Peachtree City, Georgia (50.6)
Brecksville, Ohio (50.6)
Waunakee, Wisconsin (51.3)
Chardon, Ohio (51.7)
Elkhorn, Nebraska (51.9)
Spotswood, New Jersey (52.0)
Syracuse, Utah (52.3)
Seven Hills, Ohio (52.4)
Brier, Washington (52.4)
Franklin Park, Pennsylvania (52.5)
Scituate, Massachusetts (52.7)
Westwood, Massachusetts (52.8)
Western Springs, Illinois (53.1)
Wednesday, November 11, 2009
WORLD HUNGER
ROME – Nearly 200 million children in poor countries have stunted growth because they don't get enough to eat, according to a new report published by UNICEF Wednesday before a three-day international summit on the problem of world hunger.
The head of a U.N. food agency called on the world to join him in a day of fasting ahead of the summit to highlight the plight of 1 billion hungry people.
Jacques Diouf, director-general of the Food and Agriculture Organization, said he hoped the fast would encourage action by world leaders who will take part in the meeting at his agency's headquarters starting Monday.
The U.N. Children's Fund published a report saying that nearly 200 million children under five in poor countries have stunted growth because they don't get enough to eat.
More than 90 percent of those children live in Africa and Asia, and more than a third of all deaths in that age group are linked to undernutrition, according to UNICEF.
While progress has been made in Asia — rates of stunted growth dropped from 44 percent in 1990 to 30 percent last year — there has been little success in Africa. There, the rate of stunted growth was about 38 percent in 1990. Last year, the rate was about 34 percent.
South Asia is a particular hotspot for the problem, with just Afghanistan, Nepal, India, Bangladesh and Pakistan accounting for 83 million hungry children under five.
"Unless attention is paid to addressing the causes of child and maternal undernutrition today, the costs will be considerably higher tomorrow," said UNICEF executive director Ann M. Veneman in a statement.
Diouf said he would begin a 24-hour fast on Saturday morning. The agency also launched an online petition against world hunger through a Web page featuring a video with Diouf counting from one to six to remind visitors that every six seconds a child dies from hunger.
The U.N. children's agency called for more strategies like vitamin A supplementation and breast-feeding to be rolled out more widely. That could cut the death rate in kids by up to 15 percent, UNICEF said.
Not everyone agreed.
"It is unrealistic to believe malnutrition can be addressed by any topdown U.N. scheme," said Philip Stevens, of International Policy Network, a London-based think tank. "The progress UNICEF's report points to in improving nutrition is almost certainly a result of economic growth, not U.N. strategies."
The Rome-based FAO announced earlier this year that hunger now affects a record 1.02 billion globally, or one in six people, with the financial meltdown, high food prices, drought and war blamed.
The agency hopes its World Summit on Food Security, with Pope Benedict XVI and some 60 heads of state so far expected to attend, will endorse a new strategy to combat hunger, focusing on increased investment in agricultural development for poor countries.
The long-term increase in the number of hungry is largely tied to reduced aid and private investments earmarked for agriculture since the mid-1980s, according to FAO.
Countries like Brazil, Nigeria and Vietnam that have invested in their small farmers and rural poor are bucking the hunger trend, FAO chief Diouf told the news conference.
They are among 31 countries that have reached or are on track to meet the goal set by world leaders nine years ago to cut the number of hungry people in half by 2015, he said.
"Eradicating hunger is no pipe dream," Diouf said. "The battle against hunger can be won."
FAO says global food output will have to increase by 70 percent to feed a projected population of 9.1 billion in 2050.
To achieve that, poor countries will need $44 billion in annual agricultural aid, compared with the current $7.9 billion, to increase access to irrigation systems, modern machinery, seeds and fertilizer as well as build roads and train farmers.
Agriculture investment from the private sector is also considered vital, and FAO is hosting a two-day forum in Milan starting Thursday with executives and business representatives to discuss how to coordinate such efforts.
__
On the Net:
http://www.1billionhungry.org/
http://www.fao.org/
http://www.unicef.org/
__
Cheng reported from London. AP writer Ashok Sharma contributed to this report from New Delhi
The head of a U.N. food agency called on the world to join him in a day of fasting ahead of the summit to highlight the plight of 1 billion hungry people.
Jacques Diouf, director-general of the Food and Agriculture Organization, said he hoped the fast would encourage action by world leaders who will take part in the meeting at his agency's headquarters starting Monday.
The U.N. Children's Fund published a report saying that nearly 200 million children under five in poor countries have stunted growth because they don't get enough to eat.
More than 90 percent of those children live in Africa and Asia, and more than a third of all deaths in that age group are linked to undernutrition, according to UNICEF.
While progress has been made in Asia — rates of stunted growth dropped from 44 percent in 1990 to 30 percent last year — there has been little success in Africa. There, the rate of stunted growth was about 38 percent in 1990. Last year, the rate was about 34 percent.
South Asia is a particular hotspot for the problem, with just Afghanistan, Nepal, India, Bangladesh and Pakistan accounting for 83 million hungry children under five.
"Unless attention is paid to addressing the causes of child and maternal undernutrition today, the costs will be considerably higher tomorrow," said UNICEF executive director Ann M. Veneman in a statement.
Diouf said he would begin a 24-hour fast on Saturday morning. The agency also launched an online petition against world hunger through a Web page featuring a video with Diouf counting from one to six to remind visitors that every six seconds a child dies from hunger.
The U.N. children's agency called for more strategies like vitamin A supplementation and breast-feeding to be rolled out more widely. That could cut the death rate in kids by up to 15 percent, UNICEF said.
Not everyone agreed.
"It is unrealistic to believe malnutrition can be addressed by any topdown U.N. scheme," said Philip Stevens, of International Policy Network, a London-based think tank. "The progress UNICEF's report points to in improving nutrition is almost certainly a result of economic growth, not U.N. strategies."
The Rome-based FAO announced earlier this year that hunger now affects a record 1.02 billion globally, or one in six people, with the financial meltdown, high food prices, drought and war blamed.
The agency hopes its World Summit on Food Security, with Pope Benedict XVI and some 60 heads of state so far expected to attend, will endorse a new strategy to combat hunger, focusing on increased investment in agricultural development for poor countries.
The long-term increase in the number of hungry is largely tied to reduced aid and private investments earmarked for agriculture since the mid-1980s, according to FAO.
Countries like Brazil, Nigeria and Vietnam that have invested in their small farmers and rural poor are bucking the hunger trend, FAO chief Diouf told the news conference.
They are among 31 countries that have reached or are on track to meet the goal set by world leaders nine years ago to cut the number of hungry people in half by 2015, he said.
"Eradicating hunger is no pipe dream," Diouf said. "The battle against hunger can be won."
FAO says global food output will have to increase by 70 percent to feed a projected population of 9.1 billion in 2050.
To achieve that, poor countries will need $44 billion in annual agricultural aid, compared with the current $7.9 billion, to increase access to irrigation systems, modern machinery, seeds and fertilizer as well as build roads and train farmers.
Agriculture investment from the private sector is also considered vital, and FAO is hosting a two-day forum in Milan starting Thursday with executives and business representatives to discuss how to coordinate such efforts.
__
On the Net:
http://www.1billionhungry.org/
http://www.fao.org/
http://www.unicef.org/
__
Cheng reported from London. AP writer Ashok Sharma contributed to this report from New Delhi
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