Yes, it is that time of the year where we all learn the truth of the age old saying: There’s only 2 certainties in life: Death and Taxes. All Companies are Provisional Taxpayers and must therefore make an estimate of their taxable income for the 12-month period, ending Feb 2022. https://www.sars.gov.za/types-of-tax/provisional-tax/
If you have had a cracker of a year and celebrated profits, you will have to open that wallet and pay provisional tax in February. You must however ensure that cashflow is available to make this payment and not to the detriment of your other creditors. Your working capital may be invested in stock or raw materials or your debtors have delayed their payments to you and this may have constrained your cashflow.
The ever-efficient SARS will not accept an excuse of insufficient cashflow to waive penalties and interest. It is therefore critical that you plan your cashflow to ensure that your tax commitments are met but this may leave a shortfall that you may find difficult to fill. Finrock understands these challenges and we have a solution!
Finrock can convert your debtors to cash! We will advance up to 75% of your debtors’ book or unpaid invoices which you can then use in your business to make up your shortfall arising from your provisional tax payment. You can use this additional cashflow to deliver on your orders and keep your customers happy. The 25% balance will be paid to you once your customer pays, less our small discount fee.
