« Put your BEE certificates on your website | Main | The DTI's big stick »

July 11, 2011

Comments

Richard Ferrer

It needs to be on net profit after tax, rather than dividends, so as not to further increase incentives to 'fiddle the books'. As it is so many (Pty) Ltd businesses find ways to declare very low profits, especially those involved in importing, or exporting, either goods or materials. I visited a company recently who had a turnover of some R 100 million, and looking at the type of business, margins and cost structures, I estimated that net profit after tax would be about R 8 milllion. Well it was declared at about 15% of that level. Here BEE gets something, albeit at a very diminished level. But if it was based upon dividends paid to the owners, there simply wouldn't be any!!

Verify your Comment

Previewing your Comment

This is only a preview. Your comment has not yet been posted.

Working...
Your comment could not be posted. Error type:
Your comment has been saved. Comments are moderated and will not appear until approved by the author. Post another comment

The letters and numbers you entered did not match the image. Please try again.

As a final step before posting your comment, enter the letters and numbers you see in the image below. This prevents automated programs from posting comments.

Having trouble reading this image? View an alternate.

Working...

Post a comment

Comments are moderated, and will not appear until the author has approved them.

Your Information

(Name is required. Email address will not be displayed with the comment.)

Blog powered by Typepad

Your email address:


Powered by FeedBlitz

October 2024

Sun Mon Tue Wed Thu Fri Sat
    1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30 31    

Twitter Updates

    follow me on Twitter