SARS has struck in Norway and I just know I have it. Mrs Carruthers assures me that the mixture of distilled water and colouring that the GP will prescribe is hardly worth venturing out into the snow for. This has meant a tense time indoors expecting the worst.
I was thinking of this when writing an article about staying current with SARS (the one you have in SA). This was prompted by a forum discussion on the subject of tax clearance certificates, as well as the news that yet another hero had his business account cleaned out by SARS – this time just before Christmas. I was surprised because I was given to believe that, after October 13 last year, they were no longer allowed to do this.
Anyway, the money for salaries and factory rents ended up paying for a new pothole somewhere on the road to Nkandla.
There are, I think, two types of entrepreneur, and you and I are the wrong kind.
There is the teenage nerd like Bill Gates or Steve Jobs who starts out while still living at home with zero risk and the deep encouragement of parents who hope that the runt of the litter will make enough money to snag himself a mate. That is pretty much his dream as well, as soon as he has finished this last bit of DOS… (This is the kind that employs a lot of people and is featured on TV in all sorts of programmes, and is what the government thinks we all are.)
And then there is you and me. (I am making an assumption here, based on having met 25,000 entrepreneurs over the past 15 years. I have met just two of the boy-wonder type.)
You and I start with huge risk and a family relying on us to bring home some bacon by the end of this month. We usually start after losing a job, and usually because no new job is on the horizon. At least, not a job big enough to meet Mrs Carruthers’ needs. (I do not say this in her presence because then I will lose the benefit of her wonderful presence.)
And we start with zero encouragement from our parents who are afeared that we might return home on an extended visit with our extended family.
This means that we are human first, and business second. Mr Gates, for instance, can afford a bevy of PAs (personal assistants) whereas many of us can barely afford a PU (picker upper) to follow the kids.
It also means that our businesses are driven as much by our moods as they are by anything else.
And when SARS strips your accounts a few days before Christmas they gut your heart at the same time. It is like finding out that your wife is just a little bit pregnant. By another man. Your world rocks, and not in a nice way. If your bank account is not sacrosanct, then what is?
About the easiest way I can think of to know that you are current with SARS is to apply for a tax clearance certificate – even if you do not need one. This will quickly identify what SARS thinks about your status – and theirs is the only opinion that matters.
Which reminds me, the fine people at CIPC (which used to be CIPRO) are once again planning to deregister thousands of firms in March. In theory they should send you a letter asking if you want to protest, but they seem to have the same disdain for rules as SARS has.
The moment a firm is deregistered it ceases to exist. If it has assets they go to the government. (This is a very real problem if your fully paid home is inside a company that is deregistered, or the office block you work from.)
It is easy to fix before it happens. But the consequential damage it causes can make it impossible to fix afterwards. Do yourself a favour and go here. In the “Name Search” box at the bottom left hand side – enter your business name, and it will display a list of businesses. Choose yours. If your “Current Enterprise Status” status is not “In Business” then you have a problem.
Now, if you don’t mind, I am off to bed again. I want to be well for the business month I am hoping to enjoy in South Africa next month.