Bell pre-owned equipment can now be shopped online thanks to the launch of a dedicated global website, pre-owned.bellequipment.com , which is also accessible from the company’s website. Doug Morris, Bell Equipment’s Managing Director: Europe, Middle East and Africa, who has overseen the project, said: “Previously our efforts were localised, and we wanted to create an online solution to promote our pre-owned equipment globally. The website gives Bell operations, and dealers should they wish, access to a fully integrated platform to advertise their pre-owned Bell machines. This means that customers around the world can shop all the pre-owned equipment we have available from one user-friendly and convenient website. “We are thrilled with the result because it gives the group flexibility that did not exist before. For example, Bell UK can now sell its stock in South Africa or through our entire dealer network, and vice versa. The platform gives us the ability to easily manage an integrated internal stock system, upload to our website as well as publish to an external service provider to advertise internationally.” In keeping with the global theme of the website, customers can select their preferred currency and choose to have information displayed in either English, German, Russian, French or Spanish. The website is easy to navigate and groups machinery according to industry, namely: mining and construction, forestry, agriculture, roads and rehabilitation, crushing and screening, and application equipment. For each piece of kit there are several photographs and detailed information including the brand, year of manufacture, hours worked, the machine location and the selling price and contact details of the organisation selling the machine. This information can be used to refine a search. In addition, customers can generate an enquiry directly from the website.

An emerging coal mining group’s decision to invest in Bell Articulated Dump Trucks (ADTs) has a direct downstream benefit for three thousand five hundred employees at Bell Equipment as well as for the more than one thousand suppliers to the manufacturer that supply a vast variety of components that go into each Bell ADT. So said Bell Equipment Group Chairman, Gary Bell, at the official handover of 12 Bell B45E ADTs to the Alfieri Group at its Ikoti coal mine near Breyten in Mpumalanga recently. The ADTs, locally manufactured at Bell Equipment’s factory in Richards Bay, will be used in the coal sector around Breyten area, providing meaningful jobs in the area. Bell acknowledged that while the Alfieri Group had a choice of eight or more different manufacturers of haulage vehicles to choose from, its decision to acquire a wholly owned South African product proved yet again that ADTs manufactured and supported by Bell Equipment could compete on the global market and do so with confidence. “Despite current economic and social challenges within the country, Team South Africa has proven yet again that it can create a world-class product, and this is further borne out by the fact that only about 15% of our ADT production is sold in South Africa with the balance eagerly snapped up by wider world markets,” he said. Alfieri Director, Branden Moodley said the company had been “influenced by the consensus in the market that Bell ADTs were the haulage machines of choice and that Bell had shown us that they understood our business and the challenges we face. We thank Bell for taking us seriously and ensuring that we bought the correct trucks for the job”. The Mining Equipment Manufacturers of South Africa (MEMSA), of which Bell is a member, played a significant role in inviting key stakeholders to attend the event. Although numbers were restricted due to Covid-19 regulations and protocols, the Department of Mineral Resources and Energy’s Director General, Advocate Thabo Mokoena, the Department of Trade, Industry and Competition’s Shawn Moses (Regional Industrial Development Division) and Mzwakhe Mbatha (Automotive Sector Desk) were all in attendance, clearly demonstrating government’s support for the sector. MEMSA CEO, Lehlohonolo Molloyi highlighted MEMSA’s commitment to supporting member initiatives. He went on to say that “the more we support local innovation, the more we can create local jobs”. MEMSA is a champion of proudly South African mining equipment manufacturing companies working hard to positively impact on the national economy through manufacturing, job creation and skills development, which is in line with government policy and its drive to support local content. In addition, on behalf of MEMSA, he thanked stakeholders for supporting local mining equipment manufacturing companies saying that their support of the mining supply chain is greatly valued. Caption: Dirk Coetzee (Ikoti Coal Mine Manager), Mzwakhe Mbatha (Department of Trade, Industry and Competition: Automotive & Truck Industry), Enock Mabaso (Bell Equipment Sales Representative), Lehlohonolo Molloyi (MEMSA), Aubrey Potgieter (Bell Equipment Middelburg Branch Manager), Bruce Ndlela (Bell Equipment Director of Business and Public Sector Development), Branden Moodley (Director: Alfieri Holdings Pty Ltd.), Gary Bell (Bell Equipment Group Chairman), Zabilon Inama (Director: Alfieri Holdings Pty Ltd.), Advocate TS Mokoena (DMRE) and Coen Bezuidenhout (Mining Engineer: Ikoti Coal Mine).

Local original equipment manufacturer, Bell Equipment, has expanded its range of water tankers and now offers eight tank sizes having introduced 16 000-litre and 50 000-litre offerings. Bell Equipment Product Manager, Warren Swart, represents the company’s custom-made machines that are designed and manufactured by its dedicated Bell Application Equipment (BAE) division. This includes the Versatruck programme that comprises derivatives based on the chassis of the acclaimed Bell E-series Articulated Dump Truck range, such as Water Tankers. According to Warren, one of the primary purposes of a Water Tanker is dust suppression and the 50 000l tank was designed following interest from larger mining companies requiring more capacity for dust suppression on longer runways. “During dry seasons, dust suppression is a critical part of safety in mining and construction operations, from visibility improvements to pulmonary disease prevention. We are also able to offer firefighting options to provide an additional benefit with one of our customers recommending our 38 000l water tank for mitigating fire risks in tall structures due to the remote water cannon stream reaching heights above 30 metres.” The 50 000l tank is paired with the B60E powerhead making it one of the largest articulated water tankers available on the global market. While it enables Bell to offer a full range of tank sizes, the B60E Water Tanker importantly offers commonality of parts to the growing number of customers running fleets of B60Es. At the opposite end of the scale, the 16 000l Water Tanker was developed specifically with Bell Equipment’s Australian customers in mind. “Meeting the unique requirement to have a smaller articulated water tanker in tight industrialised areas stands as a testimony to our longstanding skill of listening to our customers’ requirements and innovating solutions to meet these needs. The 16 000l water tank compliments the 38 000l water tank commonly sold into Australia with a top fill chute only, which excludes the standard dam or reservoir filling solution we have available. External plumbing is also kept to a minimum and guard rails are used to increase safety when an operator is required to climb on top of the water tank.” BAE enables Bell Equipment to give focus to the design and manufacturing of specialised products for individual markets and ensures that quality standards are on par with the rest of the Bell range. With regards to the Water Tanker design, Warren explains that the centre of gravity is kept low to reduce the risk of rollovers, while a fully engineered baffle system prevents water surge and slosh, providing increased stability for greater safety. In addition, tanks are coated internally with a dual epoxy paint lining as standard to prolong the life of the tank. “Most of the truck is built through Bell Equipment’s standard high quality production facility while the Water Tankers, as specialised vehicles, are manufactured on our BAE line. This ensures that we remain cost competitive, while providing the time that our specialised vehicles require to meet our world-class quality standards. We adhere to international welding quality standards for earthmoving and construction equipment (AWD D14.3) with the inclusion of additional Bell specific quality inspection processes, such as a pressurised leak test on all tanks produced,” he adds. “Our water tanks are engineered to perfectly integrate with our E-series ADTs as a complete unit, however they can be purchased separately and retrofitted to our E-series ADTs,” he continues. “Our water tanks can be customised to meet the customer’s requirements with a wide range of options. To mention a few, we offer a manual water cannon with a long-range spray nozzle and a remote water cannon that is remotely controlled using a joystick inside the cab. This cannon has an adjustable fog/stream pattern and a variety of flow settings between 1 100 and 3 200 litres per minute. Both water cannons feature high quality components making them highly suitable for heavy duty applications,” says Warren. “Other options include additional batter spray valves that expand the spray pattern horizontally. A range of rear spray bars are available beginning with a gravity fed dribble bar that delivers an even spread pattern covering the width of the vehicle. Penetration spray bars are also available, with either nozzles or holes, and are pressurised by the pump to create a jet of water which is not affected by wind. “These options are complemented with the design of an in-cab control panel for all water tank functions. This provides an ergonomically sound control environment for the operator inside the cab. The in-cab control panel increases productivity and ensures operations are never interrupted by the need to exit the cab and manually open external valves.” However, perhaps the most important feature is that since Bell, as an OEM, builds both the main chassis and the additional component required by the customer – in this case the water tank – the finished product enjoys full factory support. This means that wherever in the world a customer takes a Bell Versatruck solution, they can be guaranteed of Bell Equipment’s technical support offered through the company’s global network of customer service centres and dealers. Bell powerhouse pairings for the company’s range of water tanks: 16000 - Bell 2304E/Bell 2806E 18000 - B18E 23000 - B25E 27000 - B30E 35000 - B40E 38000 - B45E 43000 - B50E 50000 - B60E The B25E and B30E are also available with a diesel bowser option with plans to expand this range to match the current water tank range.

The tax implications for loans from the Trust or to the Trust may come across as a veritable technical nightmare - but following these simple rules will make sure you stay on the right side of the South African Revenue Service (SARS). It's down to whether the Trust owes the Trustee money or if the Trustee owes the Trust. When a Trustee owes money to the Trust, also known as a "debit loan account", then any dividends garnered from the amount owing need to be declared in the Trustee's personal name. If the Trustee or the Beneficiary has an interest-bearing loan from the Trust, the loan can be split amongst family members or spouses. This will prevent tax implications. But, if a Trustee transfers money from his/her loan account to that of a descendant - then tax implications will apply. This may, however form part of the Trustee's annual donation of R100 000. The R100 000 donation exemption is written off against total interest. It is also important to consider that Trustee or Beneficiary loan accounts should be placed in the Family Trust to reduce the risk in personal name. A credit loan account, where the Trust owes a trustee money, has different rules which apply. The first is that the Trust is required to pay interest on the loan to the Trustee. This rate is the repo rate +1%. If the interest amount exceeds R100 000, then the Trustee must declare these earnings in their personal name as interest received as part of the person's income. If the interest amount falls below the R100 000 threshold, then the donation mechanism that is available to Trustees can be used to decrease the loan account. Decreasing the Credit Loan Account is possible by either using the deemed donation mechanism of 20% or if the Trust has the necessary cash flow, it can pay the Trustee. If the Trust pays this money to the Trustee, it cannot exceed the loan amount. If the payment exceeds that of the loan amount, then the balance will need to be recorded as part of the Trustee's normal income. It is important to note that any funds that are transferred from the Trust to the Trustees or Beneficiaries will have an impact on the loans, and all loan accounts are required to have a life insurance policy attached to them. A loan that does not bear interest is if a Trustee pays money into a Residential Trust for the purchase of a residential property. There is a strict limitation that this only applies to one residential property where the trustee is required to reside in. Interest on loans for rental or investment properties will apply. To ensure that your loan accounts within your Trusts are all in order and above board, contact Wealth Masters to gain access to their specialists who will be able to assist you. For more information and insight click here We hope you enjoyed this article. If you have any questions and/or comments, relating to this topic, then please send them to us via the button below, and we will address them in our weekly Talking Points video, which we release every week on our Youtube channel If you enjoyed INVESTMENT ADVISORY: Don't purge your property portfolio , then click on the video below to watch our in-depth Talking Point relating to the topic. Here is your unique link to allow your members to register for our ongoing webinar:

Article by Emile Grobbelaar Continuing from our previous article to clarify and explain the costs involved with a property purchase, the following are costs that must get considered when you are in the market or buying a property: INITIAL CHARGES: HOME LOAN: Home Loan Initiation Fee The bank charges a Home Loan Initiation Fee to process the home loan application. This amount is, sometimes, still payable even if the bank rejects the home loan. On occasion, the banks could exclude the amount from transactions where the Bond Registration Costs are included in the purchase price of the property and will have to be paid by the buyer It will be in your best interest to budget for this amount. Amount: Some banks work on a base fee plus a percentage of the loan amount, while others charge a flat rate. When to pay: Once off, on registration of your bond. Who to pay: The amount will most likely get debited to your home loan account (added to your outstanding balance). Who the money is for: The bank. MUNICIPAL PROVISION for RATES and TAXES: This charge covers all rates and taxes that need to be paid in advance by the buyer, usually for three months Amount: The amount payable for rates and taxes vary from one local authority to another, following the valuation of the property. Make provision for about three months' value of the Rates Amount per month. When to pay: Once off, before the property transfer. Who to pay: The Transferring Attorneys OR Directly to the Local Authority. Who the money is for: The Local Authority. WATER & ELECTRICITY DEPOSIT: These days, most properties, Freehold and Sectional Title, have prepaid services installed. Sometimes it is managed by the local municipality, and sometimes by an independent service provider. Should the property not have prepaid electricity installed, the following is required: Amount: Contact your local municipality to find out what the amount is. When to pay: Once off. Who to pay: The Local Authority. Who the money is for: The Local Authority. ONGOING HOME LOAN CHARGES: ADMINISTRATION FEE: The bank charges the Administration Fee to administer the home loan account. Amount: You can expect to pay around R 69.00 Monthly Service Fees, depending on whether you have taken out the bank's in-house homeowner's insurance. The Service Fee will be a lesser amount if you make use of the bank's insurance. When to pay: Monthly. Who to pay: The amount will most likely get debited to your home loan account. Who the money is for: The bank. HOMEOWNER'S INSURANCE: This insurance is required chiefly on freehold properties, as the structure of a Sectional Title property is insured by the body corporate through their group insurance. The bank will insist that you take out a homeowner's Insurance Policy to cover the property and the permanent structures against natural disasters like fire or storm damage. Amount: The amount will vary depending on the value of your property. When to pay: Monthly. Who to pay: The amount will most likely be debited to your home loan account. Who the money is for: The Insurance Company. HOME LOAN PROTECTION ASSURANCE: If you don't already have a Life Assurance Policy to cede as security, you need to take out Home Loan Protection Assurance, i.e.: Death Only Disability Only Retrenchment Only Death & Disability Death & Retrenchment Disability & Retrenchment Death, Disability & Retrenchment Amount: The amount depends on the outstanding balance of your home loan. Get quotes from several companies, and do not just take the bank's product because it is convenient. When to pay: Monthly. Who to pay: The amount will most likely be debited to your home loan account if you have taken this product through the bank. Who the money is for: The Assurance Company. Depending on the home loan package, some of the abovementioned costs can be absorbed into the mortgage loan. Speak to your banker or financial adviser for more information and to double-check these costs. OPTIONAL COST: THE DEPOSIT: A Deposit is an initial payment you make to secure the purchase of your property. NB - Your deposit is not there to pay the extra costs involved in purchasing property, i.e. Bond Fees, Transfer Duty, Attorney's Costs, and so on. It is a cost on its own. Amount: The amount of your Deposit depends partially on how much money you have available (savings) to put down. However, in recent years, banks have changed their lending criteria, and you may not be able to obtain bank finance without a Deposit. These days, most banks only approve 80% bonds for trusts, so you will, most likely, need to prepare for a 20% deposit if you want to proceed with the transaction if you have applied for a 90% or 100% bond. Remember: The bigger the Deposit, the smaller the home loan repayment. When to pay: Once off, upfront. Who to pay: The Transferring Attorneys. Who the money is for: The Transferring Attorneys hold the Deposit in an interest-bearing Trust account until your bond (home loan) is registered and the property gets transferred into your name. You will pay over the money to the bank (or directly to the Seller if you are not taking out a home loan to purchase the property. The interest accrued on this amount in the Trust account will be paid back to you. We hope that the above and the previous article helped you better understand the charges and statement of account received from conveyancers and to make sure that any service provider does not drive up the costs you are paying. Here is your unique link to allow your members to register for our ongoing webinar:

Article by Nikita Pienaar Warning: the following article contains a lot of technical information, and we do not recommend you use these methods without first consulting with our team of experts. These methods can be dangerous and very costly if the correct steps and proper legal documentation are not in place. This article is intended to educate and inform. Usufruct & Bare Dominium Full ownership of property consists of two rights, namely the right of ownership (bare dominium) and the right to use (usufruct). These rights are split between two people/entities; one would have the use, and the other would have the ownership. Usufruct is one of the many laws used to transfer property ownership from one entity to another. As property investors, it is essential to grasp the various laws, as not every sale and opportunity will be the same, nor will they always follow the "normal" sales process we have grown to know. How to calculate Usufruct & Bare Dominium NB: It is important to note that these calculations and values are just for illustrative purposes. We are experts in the field, so please allow us to assist you when calculating the correct values. Calculating Usufruct: Determine the fair market value of the property Annual value = 12% of the capital value Estimation of life expectancy (The age should always be factored with the next birthday after the date when the new holder acquired the right) Fair Value of the Property x 12% x life expectancy = Bare Dominium Calculating Usufruct: Determine the fair market value of the property minus the Bare Dominium If the property gets rented, who declares the income? The person who holds the Usufruct , known as the Usufructuary , has the right to use the property and enjoy the profits and benefits, provided the property is not damaged or modified in any way. The Usufructuary is not obligated to live on the property during the agreed period. They are within their rights to rent the property out to someone else and gain a rental income from it. The Usufructuary must then declare the income in their personal income tax return. While the Usufructuary may rent out the property, it may not be sold or left to another person. At the end of the agreed period, the Usufructuary must give the property back to the rightful owner or heir. Alienation of Land Act Agreements This is another law that we often use to take over the ownership of a property from distressed buyers. This is a great law to use if you want to take over a bonded property from a Seller but do not currently have the transfer fees. But be aware this is not a formal "transfer" of the property. With an ALA transaction, you will sign an instalment sale agreement with a Trust, where the Trust pays off the purchase price to the purchaser. The Trust can take "occupation" of the property immediately and get the rental income. However, the bond and the property remain in the Seller's name. The land must be intended to be used for residential purposes, which includes a Sectional Title unit. Transferring property with an instalment sale The purchase price gets paid to the Seller for a period of more than 12 months, and the instalments will usually cover the Seller's bond payments. There is no obligation to pay a deposit, but it may be advisable to include a deposit to cover a possible estate agent's commission, if applicable. The transfer will only be registered to the new owner (Trust) after the total purchase price has been paid to the Seller. Once the bond is paid off, it means the total purchase price is settled and then only will the transfer will take place. Some other important details of an ALA transaction: The Trust must buy the property at market value. The sale agreements should be recorded against the Title Deed of the property by registration in the Deeds Office within 90 days of the signature of the sale agreement. The Seller may not receive any payment in terms of the agreement before the title deed registration in the Deeds Office. The bank where the bond is held has to be informed of the sale of this contract. This will ensure that the Seller cannot take out any other bonds over the property or sell the property without the buyer's (Trustee's) consent. If a buyer of land in instalments has already paid 50% or more of the purchase price, the buyer may demand that the Seller pays a transfer to them. The buyer will take over the payment of the mortgage bond, as well as the rates and levies of the property. It is important to remember that when registering the contract, you want the property to be vacant so you can place a tenant. You do not want the Seller, who could not afford the bond, to be your tenant because there is a great chance that they will default on the rental payment. What if the buyer purchases a property with a more significant market value than the outstanding bond it is taking over? The difference will be brought in as a deposit and paid by creating a loan account for the Seller in the Buyer's Trust. The Trust then pays the Seller an amount equal to their bond instalments. Using the purchase price paid by the buyer to the Seller, along with a deposit, the buyer can take over the property upon registration of the Alienation of Land Act Agreements , and all the Seller's obligations in terms of the mortgage bond registered over the property, including the monthly bond instalments. The buyer must simultaneously pay the balance of the purchase price to the Seller. As you can see from all of the details shared, there are several ways in which you can purchase/take ownership of a property, depending on the circumstances. But, as we mentioned, these are not laws that we recommend you use without the guidance of our trained professionals. If you are a paying member of the Wealth Masters Club and you would like more information about this, then please contact us at services@wealthmastersclub.com . If you are not yet a member, then join thousands of others who will be streaming our online training for free this weekend. Click on the links below in the upcoming events section to register today. Here is your unique link to allow your members to register for our ongoing webinar:

Article by Dehan Kriel Who pays tax? Personal tax is compulsory for anyone who receives money from an employer or other form of income and who has the following deductions: Medical Aid, Retirement Annuity, and, Tax-Free and standard investments. The current tax season for regular taxpayers was shorter, spanning from 1 July 2022 to 24 October 2022. Provisional taxpayers must still complete and submit their returns between 1 July 2022 and 23 January 2023. Tax thresholds In order for you to establish whether or not you need to file a tax return, it is essential to understand the different tax thresholds and what constitutes taxable income. The tax threshold for the 2022 assessment year for regular taxpayers gets calculated as follows: Under the age of 65: R87 300 Over the age of 65: R135 150 Over 75: R151 100 However, if you earn less than R500 000 from a single employer, have no other sources of income, and do not claim any deductions for business expenses, you do not have to submit a tax return. Auto-assessments SARS will again be auto-assessing many taxpayers, and it is vital to understand how this process works and the associated deadlines. To perform the auto-assessment, SARS will gather information from third parties, like employers, financial institutions, retirement fund administrators and medical aid schemes. SARS will use this information to prepare an automatic tax return on your behalf. You will receive this notification via SMS at the beginning of the tax season. Previously, taxpayers had to either 'accept' the auto-assessment or 'reject' it by editing the return. This year is different. If you are happy with your auto-assessment, you do not have to do anything. If unsatisfied with your auto-assessment, you can access your tax return online, make changes, and resubmit it. However, it is essential to note that taxpayers only have 40 days from the date of assessment to reject the auto-assessment; this means time is of the essence. Penalties SARS has become a lot more stringent regarding penalties for late submissions based on taxpayers' taxable income. Penalties can range from R250 per month to more than R16 000 per month for every month the taxpayer is non-compliant and can continue to get charged for up to 35 months. Avoid being complacent and quietly accepting the auto-assessment, as SARS may not have all your information which can result in you paying more tax than is necessary or possibly missing out on a well-deserved rebate. Documentation Your employer provides your IRP5 and IT3(a) certificates regarding your salary, which has been paid or has become payable. An IRP5 discloses the total salary earned for the assessment year and the employees' complete tax deducted or withheld. An IT3(a) shows an employee's salary from which there have been no tax deductions. If you have any investments, you may also require an IT3(b) certificate, which your investment provider provides, summarising any local or foreign interest and dividends earned. If you have disposed of any investments during the tax year, you will need an IT3(c) summarising the disposals you have made relating to investments. An IT3(s) certificate is issued to a taxpayer by a bank or financial services institution with information related to a tax-free savings account. The ideal tax-saving structure Because most of our clients are property investors, we have many clients asking questions about properties that received rental income in their personal capacity, causing them to pay a lot of personal tax with all the profits that form part of the taxable income. The Wealth Masters System will be the best solution to protect properties in a TTS Trust Structure. Our team will assist you with all the necessary answers and will divide the taxable income in the Trust amongst the beneficiaries and the minor child to the maximum of R 91 425.00 per annum for the 2023 tax year, which can save you a great deal of unnecessary taxes. Suppose you are concerned about the cost of transferring a property into a Trust. In that case, we already have the solutions in place by using an ALA agreement and the Usufruct agreement . Our in-house legal team will assist you effortlessly throughout the entire process. Holding your property in a Trust has many benefits, including the fact that the assets will be secured against creditors' claims because, in a Trust, the assets are set free from debt claims. Let us help you If you would like our team of Accounting experts to assist you with your upcoming tax submissions and to ensure you get the maximum benefit from your returns, then contact us at services@wealthmastersclub.com. Depending on your needs, the Destinata Accounting services for personal tax submissions begin from just R550. Here is your unique link to allow your members to register for our ongoing webinar:

Article by Morne Janssen Understanding the concept of " fair value " is essential, as you may need to have adjustments made to your assets or investments, and a mistake here could cost you dearly. Fair value is the price agreed upon between the buyer and seller for the sale/purchase of an asset. The fair value would be the amount reflected on your financial statements. We can determine an asset's fair value by analysing sales and purchases of similar assets, growth potential, and replacement costs. In the instance of a property sale, this will get done by the agent valuing the property. Due to several factors relating to growth and loss (impairment loss), an asset's fair value and current book value could differ substantially. Let's take, for instance, the recent looting in KZN as an example of fair value that needed adjustment. As a result of the looting and destruction, many people lost some value in their property. The value captured in the books then had to be adjusted as they overstated the property's value in the last annual financial statements. Even though they were not necessarily affected by the strikes, the value of similar properties in the surrounding areas was also diminished. Fair value adjustments are not necessarily a requirement when the difference is minimal but more when the movements in the market are substantial. The process of fair value adjustments is as follows, and we will use the example above to illustrate the process: The property is a two-bedroom apartment bought seven years ago by Peter, and the fair value is R1 000 000,00 in the financial statements. Over time the property slowly increased in value and could be sold for approximately R1 200 000,00 due to improvements or fair value. Suddenly mass unrest took place in Durban, which destroyed the local market, causing the value to hit an all-time low. The drop in value pushed homeowners of similar properties to sell at a reduced rate of R700 000,00. Peter noticed the drop in prices around the vicinity of his property and realised he had to make a fair value adjustment on his property to keep it in line with the current market value, even though he decided not to sell it. The fair value adjustment doesn't always need to be included in your income statement if the adjustment is insignificant but should get included when the amount is substantial. Alternatively, you can decide to have the adjustment in your annual financial statements when the asset gets sold, and there is a profit or loss that will be realised on the sale. Fair value adjustments have no impact on the property's purchase price, as this will stay the same. A fair value adjustment is made to adapt your property's value so as not to overstate or understate it in your annual financial statements. An example of a fair value adjustment done on investment would be, for instance, owning shares in a non-listed company that deals with a lot of stock. What would happen if a natural disaster struck one of the company's warehouses and they lost half of their stock? The company would suffer from stock losses, hurting its share price. In this case, it would get classified as an impairment loss, and the fair value would decrease. It is important to note that fair value adjustments cannot be made on listed shares, as the JSE constantly regulates these amounts. With regards to your accounting, the entries would get done as follows: If the fair value of the property increases, your Accountant should debit your valuation account, and your income should be credited. Still, we will debit your income and credit the valuation account when the fair value decreases. An impairment loss is when the fair value adjustment decreases due to a sudden asset or investment value loss. Be aware that this differs from the depreciation of an asset. Depreciation is the steady decline of value over the expected life of an asset. It would help if you thought of impairment loss as a sudden "turbo" depreciation over a certain period. It is crucial to ensure that the value of your assets and investments is always correct, as this can impact the solvency of your Trust. If the liabilities in your Trust are more than the assets, it will not be solvent and will affect your Trust's ability to apply for loans. If you are required or need to make a fair value adjustment on any asset in your trust or company, contact your Accountant to assist you with the process. However, keep your paperwork to back up any assertions to avoid audits. Here is your unique link to allow your members to register for our ongoing webinar:

MENTORSHIP OF BURSARY STUDENTS An exciting and mutually beneficial approach for business success Jacquie Bhana Each year, around this time, students start their university careers, which provides a great opportunity for organisations to reflect on their young talent pools. Many organisations focus mainly on the recruitment of graduates over bursary students. However, there is enormous benefit in recruiting students who are entering university, straight from school, and sponsoring their bursaries. This approach must be seen as a business imperative, as a way of re-imagining their future teams, and not as a corporate social investment intervention. There are two ways of looking at the benefits of such a programme:  Firstly, funding bursaries goes a long way to addressing the countrywide problems of student funding; and  Secondly, companies can recruit the best students, each of whom can be seen as a ‘fresh canvas’, ready to be taught workplace processes and ways of working, early in their careers. Companies can grow their human resources with excellent, first-class talent by building current teams with new thinking, and cleverly combining the new with the experienced as well as with institutional knowledge. Currently I work with a number of bursary students and have had some great insights into this process. I have worked to enable my mentees to have clear direction, focus and achieve quantifiable success in the businesses they are working. I have assisted them to take ownership of their roles, and encouraged them to learn and develop into the people they would like to be. Within the organisations they are employed, I have focused on nurturing them to become effective, efficient, happy and productive contributors to business success. Underprivileged schools are a great place to recruit potential bursars. Businesses that include these schools in their strategy will find that there are a number of excellent students with much potential. I currently work with a number of such students and they have proven to be hard working, striving to make it against all the odds. These students are hungry for knowledge. They possess certain life skills that students from more privileged backgrounds do not always possess, such as problem solving and critical thinking. In addition, these students and their communities have a strong loyalty to the brand of the organisation that sponsors them. This loyalty helps with the future recruitment of bursary students, and as such, organisations will naturally attract great students. Other advantages of this strategy are as follows: 1. If the bursary student pool overall is oversubscribed with a diverse group of candidates, employers have the luxury of selecting those who best fit the organisation’s goals and values. Those who do not join the organisation have had the benefit of work experience and are more employable. 2. Certain life skills and business skills can be developed during the students’ university studies, so that transition into the business world is much easier, and candidates will be more productive and effective on appointment. Skills such as business skills, presentation skills, building confidence, work ethic, business writing and communication are all examples of skills that are essential in the world of business. I have had interesting conversations with mentees on topics ranging from relationships, to mental health and dressing appropriately. 3. Students have a fresh perspective and are more confident about sharing ideas around innovation, as they have not yet been socialised and have not developed early fears of strictly conforming and fitting into the business. 4. They are still in a competitive environment at tertiary institutions and it is a great time to build on ideas at this early stage in their careers. They want their ideas to be taken seriously, and there is a willingness to learn. 5. It helps to build a diversified and inclusive workforce. Students are far more inclined to engage with business colleagues and socialise with them. They are far less encumbered and are more robust at interpersonal communication than the older workforce. 6. They usually have great technology skills, which will go a long way towards building overall technology use and innovation in organisations. One part of this strategy that worked extremely well in one of the businesses that I partner with, was the complete involvement by the leadership team in the recruitment, induction, availability and visibility of the leadership team, including the CEO. The process affirmed the seriousness of the programme to participants, and helped the leadership remain in touch with the students. After all, the investment is huge, and this strategy helps to build a solid business model of introducing new employees to a long term, successful and structured capability building process that adds value to the business. The end result of this innovative approach to bursary students is a vibrant, robust and exciting programme with a great talent pool from which to select the best candidates. HOME | Jacquie.Bhana (jacquiebhana.co.za)

Article by Jonique Groenewald The Trust Property Control Act, 57 of 1988 , defines a Trust as "an arrangement through which the ownership in property of one person is by virtue of a Trust instrument made over or bequeathed …to the Beneficiaries designated in the Trust instrument, which property is placed under the control of another person. It also goes on to note that "the Trustee, to be administered or disposed of according to the provisions of the Trust instrument for the benefit of the person or class of persons designated in the Trust instrument or for the achievement of the object in the instrument." To simplify, it means the Founder of the Trust places the Trust's assets under the control of the Trustees to get administered in the best interest of the Beneficiaries. The position and rights of Trust Beneficiaries must be clearly understood when the Trust gets formed and while it is administered. This article will examine the role of Beneficiaries of a Trust if they have any powers and/or rights, and who can or cannot be Beneficiaries Beneficiaries as the Object of a Trust As only Beneficiaries can receive benefits, they are an essential object of a valid Trust. Without a clearly defined object , a Trust cannot come into existence. The Beneficiaries, for whose benefit the Trust gets created, are then seen as the object of the Trust. Beneficiaries can be defined by name , such as Jane Doe, Peter Max, etc. They can also be defined as an identifiable class of people, for example, The descendants of Jane Doe or the siblings of Peter Max etc. An unidentifiable class cannot be Beneficiaries. For example, the friends of Jane Doe – this is not sufficiently defined. More often than not, we suggest that Beneficiaries be mentioned in an identifiable class of people and not by name, as this would make the compliance processes in terms of the Financial Intelligence Centre Act (referred to as "FICA"), a lot more complicated. Mentioning each Beneficiary by name means you would need to apply for FICA clearance for each Beneficiary mentioned by name - which is an administrative nightmare. Defining Beneficiaries as an identifiable class also ensures that the Trust does not easily run out of Beneficiaries, which would lead to all assets getting forfeited to Government. Another Trust can also be the Beneficiary of a Trust where there are other named Beneficiaries. We also prefer that the Trust gets mentioned by an identifiable class such as any Trusts established to benefit the Beneficiaries – to simplify FICA. In terms of the Chief Masters Directive 2 of 2017 , Beneficiaries are included when it comes to amendments to the Trust Deed in the following instances: 1. Suppose the Trust Deed stipulates that the Beneficiaries must be involved in a decision to amend the Trust Deed or deregister the Trust. In this case, the Trustees must include the Beneficiaries in such decisions. 2. Should the Trust Deed stipulate that the Beneficiaries are not required to be involved in deciding to amend or deregister the Trust, the Trustees do not have to involve the Beneficiaries in such decisions. However, where an amendment clause of a Trust Deed states that Trustees cannot amend specific provisions of the Trust Deed, the Trustees would need the consent of Beneficiaries to amend the provisions as the Trustees are prohibited from amending it on their own. 3. When the Trust Deed does not mention the involvement of Beneficiaries in deciding on amendments, but the Beneficiaries received benefits from the Trust, the Trust Deed can only be amended or terminated with the consent of such Beneficiaries We do, however, have to consider case law too. Case law has also confirmed the inclusion of Trust Beneficiaries in amending a Trust document. In Ferreira and Another v Van der Merwe N.O and Others [2019] it was held that "where Beneficiaries to the Trust had previously accepted benefits, these Beneficiaries are considered to form part of the parties who signed the contract and will therefore form part of the agreement to amend the Trust Deed." Furthermore, it needs to get noted that as soon as a Beneficiary receives distributions from the Trust, removing them as a Beneficiary may be a complex process, as they will have to consent to it. In Conclusion It is crucial that the Trust Beneficiaries get chosen wisely and that it reflects a specific family's circumstances or the intention of the Founder. It is of the most significant importance that the Trust document gets set up in a way that promotes these intentions. Your Independent Trustee, who has the knowledge and necessary legal expertise in drafting and setting your Trust instrument, can advise on whether your Trust Deed's clauses align with your intentions for the Trust Beneficiaries. Contact us to assist you with upgrading your membership status to enjoy all the benefits of being part of the Club. Here is your unique link to allow your members to register for our ongoing webinar:

Article by Ruan Lerm As a Wealth Master, you always need to be ready for new opportunities, and with new opportunities comes the need for the correct structures. While we always advocate for a water-tight TTS Trust Structure, you will sometimes be required to set up a company, depending on your portfolio and investments. This article will give you an overview of what you need to do in a simplified manner. Should I register my company? Most Entrepreneurs and Self-Employed business owners start by trading in their name as Sole Proprietors. At some point, it will start making more sense to formally register a company, as it comes with certain legal benefits. One benefit is asset protection, which ensures personal assets' safety in a lawsuit. It can also make it easier to apply for and receive funding. Destinata Business Management provides business registration services and will be with you every step of the way. What type of business should you register? Before you can determine this, you need to ask three questions: Is your company for-profit or not? How many Founders are in the business? How many people will have control over the business? A non-profit company gets incorporated for public benefit, and the business will not distribute the income and property to its incorporators or members. On the other hand, for-profit companies get categorised as companies without restrictions on the transfer of their shares and income. There are four distinct forms of a for-profit company, namely: A private company A public company A state-owned company A personal liability company. Where and how do I register my company? In South Africa, all businesses will register with the Companies and Intellectual Property Commission (CIPC). After you've determined which type of company you would like to register, you will need the following documents: Notice of incorporation Memorandum of incorporation Supporting documents Notice of Incorporation Type of Company A list of four names to be checked by the Commission The reserved name and reservation number Incorporation date Financial year-end The Head office registered address Number of Directors Memorandum of Incorporation Details of Founders Number of Directors or alternate Directors in the business How much share capital exists Supporting Documents Certified copies of your ID and all indicated Directors and Incorporators Proof of address for all of the Directors or Members How to make sure I get the company name I want? Your preferred company name should be unique for two reasons, if someone else took the name, then CIPC won't accept it, and you want to be discovered easily online without competing with several other businesses sharing your name. Our team can assist you in checking whether your desired name is already in use. Registering your business with SARS You need to register your business with SARS and appoint a representative within 60 business days of starting your business. You will see an Income Tax number on your disclosure documents received from CIPC. You should submit this tax number with the following documents on the sars.gov.za website, with the following documents: Company disclosure documents and income tax number Representative appointment letter Representative details and personal income tax number Representative-certified ID Representative proof of address You will also need to submit an image taken on the day the request is submitted, clearly showing the individual in question holding up a copy of the Identity Document and a note that reads "Update my details." If you are a paying member of the Wealth Masters Club, you have access to our experts who specialise in creating and administering new businesses. If you want assistance, click on the link below, share more details of your query, and our team will get in touch to assist you. Contact us to assist you with upgrading your membership status to enjoy all the benefits of being part of the Club. Here is your unique link to allow your members to register for our ongoing webinar:

Article by Annemarie Schutte When transacting on behalf of a Trust, it is essential to familiarise yourself with and to take the following factors into account: Are you a Trustee or an Agent of a Trust? What powers and duties do you have regarding the Trust Deed, Trust Property Control Act or Resolution? One must recognise the difference between a "Trustee" and an "Agent of a Trust". A Trustee is authorised by the Master of the High Court (section 6 of the Trust Property Control Act 57 of 1988) by a Letter of Authority issued by the Master of the High Court. The Trustees must act according to their powers in the Trust Deed and duties imposed by common law. All decisions made by the Trustees should be unanimous. When a Trust Deed makes provision for delegation of powers, it is essential to remember that this does not relate to areas where the Trustees call for discretion when carrying out their management and control duties, which agrees with the principle that fundamental decisions relating to the Trust need to be taken by the Trustees. Even though the Trustees may delegate the implementation of these decisions to others, the responsibility ultimately remains with the Trustees. In Niewoudt and another NNO v Vrystaat Mielies (Edms) Bpk 2004(3) SA 486 (SCA), the Court stressed the importance that decisions regarding the Trust should be reached unanimously by the Trustees, as the Trustees are in joint control of the Trust Assets. The Court noted that Trustees could delegate powers to a single Trustee. This decision must be made in writing and signed by all Trustees; otherwise, the decision is considered null and void. On the other hand, an Agent is appointed by the Trustees, to act on a decision already made by the other Trustees. Therefore, the Trustees make the decisions mutually and may appoint an Agent to execute the decisions. An Agent's appointment and the specific action/mandate must also be made in writing and signed by the Trustees. The Agent will be authorised to perform the particular actions regarding the Resolution. I often receive Trust Deeds drafted by other institutions, which provide for "Alternate Trustees", where a Trustee delegates its powers to an independent third party when they cannot fulfil their duties. By law, a Trustee cannot delegate its decision-making power without a letter of authority signed by the Master of the High Court. Any decisions and transactions made on behalf of a Trust, where an "Alternate Trustee" participated, are invalid and of no force and effect. Only the Trustees authorised by the Master of the High Court may act and transact on behalf of the Trust. If a Trustee cannot fulfil their duties at any time, the Trustee should resign from their role, and the remaining Trustees should appoint another Trustee. In summary, a Trustee has authority from the Master of the High Court with specific powers and duties. When a Trustee accepts this position, they also carry the powers and responsibilities of the Trust Deed and the Trust Property Control Act and must act in terms thereof. The Trustees of a Trust appoint an Agent to execute a unanimous decision made by the Trustees. Speak to your Trust Advisor to ensure your Trust Deed is in alignment with the Trust Property Control Act and South African Case Law and that you, as Trustee, act per your prescribed powers to receive the benefits an adequately managed Trust Structure has. Contact us to assist you with upgrading your membership status to enjoy all the benefits of being part of the Club. Here is your unique link to allow your members to register for our ongoing webinar: