There is a lot individuals can do to look after themselves in terms of financial planning, Matthew Lester told the Rhodes Business School Forum Tuesday 2 September.
There is a lot individuals can do to look after themselves in terms of financial planning, Matthew Lester told the Rhodes Business School Forum Tuesday 2 September.
Lester, a tax consultant and associate professor at the business school, talked about the opportunities inherent in the new retirement fund in an understandable manner.
His informative and comical presentation on financial planning explored ways to get enough capital for 20 years of retirement.
“If interest rates are not going to increase, somehow we need to get into equities,” he said.
“R40 billion a year of the taxpayer’s money is spent on encouraging people to make provision for their retirement.” He succeeded in getting the audience to think about ways to provide for their old age.
Lester was joined at the podium by Judge Dennis Davis of the Western Cape High Court and Chair of the Davis Tax Committee (DTC), to which Lester was recently appointed. Davis is also the presenter of the popular 'Judge for Yourself' show on eNCA/eTV.
In a paper titled "Balancing South Africa's imperatives and ensuring a sustainable economy", Davis explained that the first issue the DTC took on is “the case of small and medium size businesses that are thought to be a major generator of employment".
The committee also tried to create a normative framework on how tax should fit into the grander scheme, as well as cases of VAT, state duty and the controversial question of mining tax.
Davis said that some solutions could lie in the introduction of a proper property relief programme. Thus, VAT could be increased if problems of property relief were introduced to the system. He added, however, that “part of our problem is that the tax system alone is not sufficient”.
“With South Africa losing about R30 to R50 billion to corruption, it is about time that we face this problem and faced it properly,”
Davis said. The World Bank has named South Africa as the most successful tax transfer system in the world.
“This tells us that the system is working,” Davis said.
The DTC is currently reviewing South Africa's tax systems to align them with the National Development Plan.
