“Goodbye Caird – Hello EconoBEE” – EconoBEE August 2006 Newsletter
“Goodbye Caird – Hello EconoBEE”
by Keith Levenstein
Many people will know I used to run Caird Consulting from my own offices. Caird is closing down, but EconoServ has started a new division, EconoBEE. EconoBEE will offer BEE advice, consulting on BEE issues, assistance, and EconoBEE Scorecard – a computerised BEE scorecard. I am of course the author of EconoScorecard. EconoBEE Scorecard is vastly improved over EconoScorecard. The good news is we will be offering all legal users of EconoScorecard support and a FREE upgrade to EconoBEE Scorecard, once the new Codes of Good Practice are issued, hopefully this month or early next month.(*)
New Codes to be issued this month?
By Gavin Levenstein
It had been reported that the dti will issue new codes of good practice this month. Further reports say that the codes could be gazetted shortly thereafter. It looks like they are now aiming at September.
There were over 200 submissions to the dti over the previous codes, so we are all eagerly awaiting the latest information. We are not expecting serious changes to the codes. However we expect the codes to be simplified to make it easier for all companies to fully comply with BEE.
We see it as vitally important for the codes to be finalised and gazetted. This is to avoid the great amount of confusion about broad-based black economic empowerment. Please see Business Report of 8th August 2006.
QSEs will be able to do their own self rating.
Reported by Gauteng Business
It has been confirmed by Lionel October, deputy director general of the dti that QSEs (qualifying small enterprises) can do their own BEE self rating. This is good news in that it will save many small businesses a fair amount of money in appointing a ratings agency to do their BEE ratings each year. He also indicated that the new codes will make it easier for businesses to comply. We hope that it will remove some of the extra admin associated with BEE compliance. We believe that, if government makes it easier to comply, there will be a better chance that companies like yours will comply.
Tax Incentives for Structuring BEE Deals
by Cathy Bryant, Cathy Bryant Attorneys
The income tax act has made allowances for businesses to do BEE deals. There are many tax breaks, especially when creating employee trusts to the benefit of both the company and employees. EconoBEE is offering a half day workshop in Sandton on 21st September during which I will be covering the legal, and business issues and showing you how you can best structure your next BEE deal. For more information please visit www.econobee.co.za
A gift for all readers
By Keith Levenstein
We have analysed the codes and produced two very nice Excel spreadsheets showing the scorecards in detail – one for QSEs and one for Generic. You can use the Excel spreadsheets to produce your own scorecard, or try to understand how it works. We will happily email you the QSE scorecard or Generic scorecards in Excel format once the new codes are released. If you want us to email these documents to you please send an email to firstname.lastname@example.org and tell us which spreadsheet you require.
(*) Conditions apply.