Tax laws trip up many small businesses | Fin24
  • Tripartite Alliance

    Cosatu wants Finance Minister Tito Mboweni to take his own advice and retire.

  • Good Reads

    Why nonfiction books are dominating South Africa's bestseller lists.

  • Fin24’s newsletter

    Sign up to receive Fin24's top news in your inbox every morning.


Tax laws trip up many small businesses

Sep 03 2013 12:02

Johanneseburg - Bureaucratic processes continue to be a problem for start-up businesses in the Western Cape, PricewaterhouseCoopers (PwC) said on Tuesday.

There was a lack of support from government and the cost of compliance was a huge burden on business owners, it said in a statement.

“If business fails to comply with the laws, the penalties are harsh. The new Tax Administration Act is less flexible as little discretion is permitted,” said William Eastwood, a partner at PwC's tax department in Cape Town.

The implementation of much of the tax legislation was found to be difficult.

It said entrepreneurs and small or family-owned businesses play a vital role in fuelling the country's growth and economic development, and stumbling blocks include the registration of businesses.

PwC said research showed that the average South African business takes about 200 hours per year to attend to tax compliance matters. This includes the completion and submission of 32 or 33 tax returns.

tax  |  entrepreneurs


Read Fin24’s Comments Policy publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Company Snapshot

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

Do you think government can solve the Eskom crisis?

Previous results · Suggest a vote