BEE WISE IN SEPTEMBER – FRONTING IS A CRIME
A few developments have been brought to our attention in the past few weeks, but Fronting seems to be in forefront.
Yesterday Deputy President Cyril Ramaphosa broached this subject in his address to the National Council of Provinces. He stated “that the BBBEE Advisory Council had become aware of the “growing” practice, and agreed that penalties should be imposed on offenders.”
“If you are found guilty of fronting, your business could face a penalty of up to 10% turnover, as well as 10 years in prison for individuals”
Whilst this statement is very clear in the punishment there has been no clarification as to what the definition of Fronting is. Whilst our understanding is that benefit has to be shown to the Previously Disadvantaged and the transaction has to be fair, we will strive to work closely and obtain more detailed clarification from the DTI in this regard.
Bbbee Wise assures their clients that there is no need to Front as Ownership Options are available at minimum effect to the company. Bbbee Wise offers solutions that are 100% aligned with the BBBEE Codes in all aspects of our Advisory and please be assured this advice is 100% legal.
Bbbee Wise Supports Transformation and will assist your company in a hassle free transition whilst maintaining your core business and simultaneously improving your sales and bottom line. Contact us for a specialised consultation.
As a PRIORITY ELEMENT in the Amended Codes Skills Development is a necessity to all companies wanting to maintain their BBBEE status.
Section 12H of the Income Tax governs SARS to provide incentives for Registered Learnerships. These Tax incentives only apply to Registered Learnerships that for a 12-18 month period. The period to apply for TAX Rebates expires on the 1st October.
Skills Development need not cost your company a fortune. If managed correctly Bbbee Wise will assist you in ensuring you receive your SARS rebates as well as SETA rebates and this will save your company money.
Bbbee Wise has a specialist division, SD Wise, with highly skilled Skills Development Facilitators who can assist you with: SARS, SETAS, Skills Development Plans and Employment Equity.