Contact
BEE

Management accounts still OK for BEE verifications?

“My manufacturing business has been growing steadily and I expect it will go above the R50 million turnover mark this financial year. That said, its not a given, and I’m hesitant to spend on BEE planning before I’m sure we will go over this mark. Will I be able to first wrap up the financial year and thereafter do the necessary BEE expenditure and verify the business using management accounts for the first quarter after the financial year-end?”

In August 2020, the South African National Accreditation System (SANAS) issued a communication to B-BBEE verification agencies that measured entities shall not be permitted to conduct a B-BBEE audit using management accounts outside of their financial period. SANAS also encourages the use of financial statements rather than management accounts. 

However, given that a company’s financial audit may only be completed some time after their financial year-end and there could be urgency in obtaining a BEE certificate, a company would be allowed to use management accounts for the same period as their financial year for purposes of undergoing a BEE verification. 

So, to answer your question. You will not be allowed to verify using management accounts that fall in the period after your financial year. If a verification agency does allow this, which would be highly unlikely, you run the risk that should SANAS pick up this non-compliance, your BEE certificate could be cancelled.

Our advice is to rather conduct proper BEE planning now, an exercise that should in any event be conducted well in advance of your financial year-end, and in that planning evaluate the various scenarios for if your turnover fails to exceed/does exceed the R50 million turnover mark. With some careful planning and with the help of your BEE consultant you should be able to prepare for both scenarios and not run the risk of a poor BEE certificate due to inadequate planning.

September 14, 2021
Can a body corporate withhold a clearance certificate?

Can a body corporate withhold a clearance certificate?

by | Sep 20, 2024 | , , ,

Once an offer to purchase is signed and the transfer process begins, sellers of units in a sectional title scheme face several challenges, including the obligation to ensure that all dues to the body corporate are settled. This requirement, mandated by Section 15B(3)(a)(i)(aa) of the Sectional Titles Act 95 of 1986, restricts the transfer of sectional titles unless a conveyancer’s certificate confirms that all monies due to the body corporate have been paid or provisions satisfactory to the body corporate have been made. A conveyancer can however only issue the required certificate after receiving a body corporate’s assurance, in the form of a levy clearance certificate, that all amounts due to the body corporate have been paid or that provision for payment thereof has been made.

Simplifying estate late property transfers

Simplifying estate late property transfers

by | Sep 20, 2024 | , ,

Property transfers following the passing of an individual can be a complex and emotionally challenging process, particularly when dealing with the estate of a loved one. Estate late property transfers entail a series of legal steps and requirements that must be followed to ensure a smooth and lawful transition of ownership. This article aims to provide a simple guide to estate late property transfers, outlining the key concepts and considerations involved.

Sign up to our newsletter

Pin It on Pinterest