Page 3 - KZN Business Sense 3.5
P. 3

KZN


            KwaZulu-Natal
            Business Chambers Council
        A DURBAN BUSINESS VISIONARY

        I  n just 10 years Durban     founded our business, Shree    company culture, and as a result   I do and as a result am able to

                                      Property Holdings in 2007,” said
                                                                     our sta members are also treated
           business visionary, Pran
                                                                                                    work hours on end without
           Shree, has transformed a
                                                                     exposed to a highly autocratic
        small family business into a mega   Shree.                   as family and team players. I was   realising the time.”
        property development enterprise,     e property development   leadership style and implemented     e company's meteoric growth
        optimising property solutions for   company, specialising in   this in my own business but once   trajectory has marked it as an
        a host of blue-chip clients.  warehousing, property          the younger generation joined the   enterprise committed to delivering
                                      management and construction    business, I saw how benecial a   high-quality products in a
          Shree, CEO of Shree Property   solutions, has quickly going on to   democratic leadership style was.”  competitive market as is indicated
        Holdings grew up in a family   become an award-winning                                      by the fact that it sells integrated
        business and has been involved in   enterprise in South Africa's     Shree commented that in order   solutions, rather than mere
        it since the age of 14.  Shree said   construction and development   to remain an employee of choice,   products.
        that he had sought much       sector.                        “It is necessary to adapt to
        inspiration for his career from his                          diversity and transformation by     Shree said, “e impact created
        father and his mother, who were     He said that the most prized   enabling mentorship and sharing   by business sustainability is for us
        both entrepreneurial by nature. He   highlight of his business life is   my knowledge and experience.”   not only to manage our triple
        continued, “My personal drive was   working with his family.  Shree   He said, “Today I can proudly say   bottom line, but to implement a
        fuelled by need for job creation   says, “I not only get to be a   I have a hand-picked team that has   green initiative strategy through   Pran Shree
        and observing the impact it had   husband and dad, but I get to   the necessary skills, knowledge   our product oering, that shall
        on a single employee being able to   share my professional life with my   and personalities to operate my   ensure the longevity of our   concluded, “I also enjoy spending
        feed a household.”            wife and children. When I wake   business and complement its   business. e opportunity arose   quality time with my wife and
                                      up in the morning, I get to chase   culture.”                 for us to invest more initial capital   children outside of the business.
          “My wife Annisha and I grew   my passion and spend time with                              into our buildings making them   My wife is my best friend and
        our retail butcher into a wholesale   my family.”              Growing the business was not   green rated and equipped with   condant. As a family we enjoy
        meat business, then we increased                             easy in its early stages. Shree said,   solar panel systems and water   travelling together and of course,
        our cold storage business into a     He further commented,   “When I founded my business in   conservation systems etc. is is   my most expensive hobby is my
        large storage facility for citrus for   “Working in a family business has   1984, as an Indian businessman,  massively demanded by blue chip   love for sports cars.”
        six months in a year. During our   added to our success as we all   it was dicult as I was not   clients looking to achieve their
        o-season period, with the    focus on our strengths and it   participating in a free market   own business sustainability.   Turn to page 8 for more information.
        unemployed sta component of   enhances the business as a whole.   environment. e secret to my
        250 people, and being supported   Since we are a family run business,   success lies simply in the fact that     When not working, Shree
        avidly by Annisha, together we   this ethos spills over into our   I am highly passionate about what   enjoys cycling and jet skiing. He
        SARS DISPUTES AND DELAYS



                                      before it can become a binding   which it acknowledged certain   •  SARS Audits and Refunds:      process which must be carefully
                          Darren Britz
                          Admitted    authority and feared by SARS.  shortcomings in the tax system.     Where you have a VAT or      executed, as the “pay now, argue
                          Attorney of the   It cannot get involved in tax   SARS, however, also pointed out     customs audit, there is oen a      later” principle is well
                          High Court of
                          South Africa   technical disputes, so their   that the Ombud’s ndings were     consequence of additional taxes      entrenched in our law. e
                          BA LLB      mandate nds very limited      made in relation to less than 1% of     payable or refund delayed where      reprieve under section 164(2) is
                                      application.                   refunds which SARS processed     your supporting documents are      a valuable tool in instances
                                                                     and it therefore refuted that delays     not spot-on. e approach by      where SARS hold the ocers of
                                        e Oce of the Tax Ombud     of refunds were a systemic       SARS to prevent fraudulent VAT     the company personally liable
                                      had to get special permission from   problem. e jury is still out as to     claims cannot be faulted, thus a      for its tax debts, which, we have
                                      the then Minister of Finance,   who is correct, as obviously the     good investment of your time is      found, is an increasing trend.
                                      Pravin Gordhan, before it could   Tax Ombud only investigated     to revisit that you have the
                                      investigate, based on numerous   certain cases and no-one is sure     correct processes and      •  Tax Clearance: Where you have
                                      complaints and the perceived   whether this is genuinely only 1%     procedures in place and are      a tax dispute you can still get a
                                      inadequacies of the South African   or the tip of the iceberg.    legally compliant. ere are      tax clearance certicate by
                                      tax system. ese complaints were
                                                                                                      unfortunately some instances
                                                                                                                                    following the correct legal
        L                             founded on allegations that SARS   e Legal Approach            where SARS refund auditors      process. Consider using an
                                      ocials were exploiting the tax
                                                                                                      have broken their own rules and
                                                                                                                                    experienced hand, as you only
                                                                       In our experience, we tend to
            egal Equal Footing
          e normal everyday          system to unreasonably delay the   agree that SARS is not       procedures. Consider an       have one opportunity to get this
                                                                                                                                   right.
                                                                                                      approach to make clear that you
                                                                     systemically being obstructive in
                                      payment of refunds.
        interaction with SARS has been                               the manner in which it deals with     hold SARS accountable to the
        analogised with that of a turbulent   Tax Ombud and SARS Disagrees  tax disputes. is, however, gives     law. is is the quickest and      Becoming tax savvy enough to
        ight. Flying is generally a     In the Ombud’s Final Report   little comfort when a spurious     most secure means of ensuring    apply the tax laws in your favour is
        pleasant process, but once you   issued on 28 August 2017, the   audit nding is made against you,     you are payed your dues.  key to levelling the playing eld
        have been through a rough one,   honourable retired Judge B M   there is an overdue VAT or                                when going toe-to-toe with SARS.
        ying is never quite the same.  Ngoepe found that the tax system   Customs refund or you have a   •  Tax Additional Assessments:    In our experience, once a tax
        e same symbiotic relationship   allowed for SARS to unduly delay   long-standing dispute with SARS.     e process of a tax audit oen    attorney invokes the appropriate
        normally applies to taxpayer and   the payment of veried refunds,                            results in an additional tax    legal mechanism, a SARS auditor
        SARS. e system is designed to   that this was a systemic issue and     e Tax Administration Act     assessment, with the now    would rather assess the merits,
        operate smoothly and eectively,   that the tax system did not   became eective 1 October 2012     standard 100% penalties and    take steps to understand the
        however, every now and again,   suciently protect taxpayers.  and the Rules on Dispute       interest being raised. e best    taxpayer’s position and thereby
        perhaps due to a taxpayer being                              Resolution, which are in the     stage to get a qualied tax    seek to resolve the matter. is is
        mischievous or SARS ocials     e Final Report is quite     process of being revised, were     attorney involved is even before    far more advantageous than
        chasing a collection target, the   damning and portrays a certain   promulgated under section 103.     this additional tax assessment is    following SARS’ lead and which
        taxpayer soon learns of the   segment of SARS as being devious   e Rules are binding on both     raised, as SARS needs to give    can be a painful and drawn-out
        turbulence that can be        in its treatment of taxpayers.  SARS and taxpayer, and are key to     you “reasons” under rule 6 and    process.
        experienced with SARS.        e perception was also noted   putting the taxpayer on equal     you must be aorded the
                                      amongst certain taxpayers that   footing with SARS. ese are both     opportunity to respond thereto    C: 082 933 5953
        Tax Ombud Involvement         SARS was deliberately obstructive   functions of law and having a     under Rule 7.         darren@taxconsulting.co.za
                                                                                                                                  www.taxconsulting.co.za
          Where we take over a complex   in its treatment of tax disputes in   qualied attorney with litigation
        matter of a taxpayer, one of the   order to delay payment of funds  experience is crucial, albeit that   •  Tax Collection: Where you have
        tell-tale signs of an uninformed   to the taxpayer.          you almost never end up in Tax     any SARS tax assessment
        strategy is where the Tax Ombud                              Court. Tax matters are won, or     pending against you, as soon as
        has been approached. In reality,     On 4 September 2017, SARS   lost, long before they reach the tax     you indicate a dispute, you must
        the Tax Ombud remains toothless   issued a brief media release in   litigation stage.         apply for suspension of payment
        and requires a drastic law change   response to the Final Report, in                          under section 164(2). is is a






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