1. Quarterly reportback on Diocesan Finances
Saturday 23rd July 2016
AGENDA
Welcome  
General update on developments since 23rd April meeting: Peter Goldhawk
Audits to 2014 complete, 2015 almost to be signed very soon
Once 2015 audit has been finalised, a definitive current position will be produced
Tax challenge from SARS for 2005 to 2014 has been finalised (more later)
New Diocesan Executive Officer being sought for September start
Taxation update – to 2014 thus far Sidney Place 
Contributions notified for 2016 thus far Sidney Place
Unauthorised debit balances with the Deposit Fund Peter Goldhawk

2. Quarterly reportback on Diocesan Finances - Saturday 23rd July 2016
AGENDA - continued
Parish returns for 2015 still outstanding Peter Goldhawk
Independent verifiers Peter Goldhawk
Appointment requires DFB approval
Appeal for more volunteers
Discussions regarding banking underway
General / closure / Grace 

3. Quarterly reportback on Diocesan Finances
Saturday 23rd July 2016
AGENDA
Welcome  
Update on developments since 23rd April meeting: Peter Goldhawk
Audits to 2014 complete, 2015 almost to be signed very soon
Once 2015 audit has been finalised, a definitive current position will be produced
Tax challenge from SARS for 2005 to 2014 has been finalised (more later)
New Diocesan Executive Officer being sought for September start
Taxation update – to 2014 thus far Sidney Place 
Contributions notified for 2016 thus far Sidney Place
Unauthorised debit balances with the Deposit Fund Peter Goldhawk

4. Quarterly reportback on Diocesan Finances - Saturday 23rd July 2016
AGENDA
Welcome  
General update on developments since 23rd April meeting: Peter Goldhawk
Audits to 2014 complete, 2015 almost to be signed very soon
Once 2015 audit has been finalised, a definitive current position will be produced
Tax challenge from SARS for 2005 to 2014 has been finalised (more later)
New Diocesan Executive Officer being sought
Taxation update – to 2014 thus far Sidney Place 
Contributions notified for 2016 thus far Sidney Place
Unauthorised debit balances with the Deposit Fund Peter Goldhawk

5. Taxation – what we told you in April
Assistance from Deloitte on how to proceed was sought and received
SARS letter of 10th February was responded to within the deadline.
We have been exempted from submitting a tax return for 2005 and 2006
SARS have agreed to constitutional amendment being processed at Provincial Synod
We have lodged a formal objection to the SARS assessments for 2009 – 2012
We have paid the tax and interest that we believe is due for 2009 – 2012 (R2.2 million)
SARS have agreed to 2013 tax return being submitted by 29th April 2016 – on target
SARS have agreed to 2014 tax return being submitted by 30th May 2016.
Income tax return for 2015 will be completed on time in second half of this year.
We are getting on top of tax issues thanks to Billy Joubert, Santha Moodley and Tammy Arendse at Deloitte, Terry Chamberlain (especially!) and David Butcher in the Diocesan Office, and Peter Goldhawk. Once SARS has issued revised assessments, tax payable will be recovered from parishes that had commercial income.

6. Taxation – what we told you in April
Assistance from Deloitte on how to proceed was sought and received
SARS letter of 10th February was responded to within the deadline.
We have been exempted from submitting a tax return for 2005 and 2006
SARS have agreed to constitutional amendment being processed at Provincial Synod
We have lodged a formal objection to the SARS assessments for 2009 – 2012
We have paid the tax and interest that we believe is due for 2009 – 2012 (R2.2 million)
SARS have agreed to 2013 tax return being submitted by 29th April 2016 – on target
SARS have agreed to 2014 tax return being submitted by 30th May 2016.
Income tax return for 2015 will be completed on time in second half of this year.
DONE
We are getting on top of tax issues thanks to Billy Joubert, Santha Moodley and Tammy Arendse at Deloitte, Terry Chamberlain (especially!) and David Butcher in the Diocesan Office, and Peter Goldhawk. Once SARS has issued revised assessments, tax payable will be recovered from parishes that had commercial income.
UNDERWAY

7. Tax assessments and payments thus far
Tax assessed for 2009 R
Tax assessed for 2010 R
Tax assessed for 2011 R
Tax assessed for 2012 R
Tax assessed for 2013 R
Tax assessed for 2014 R
Total tax due R
Add interest on late payment R
TOTAL DUE TO SARS: 2009/14 R
Taken by SARS on 27 Aug 2015 R
Taken by SARS on 2 Oct 2015 R
Payment by us on 16 Mar 2016 R
Balance now due 29 Jul 2016 R
Borrowed by the Diocese

8. Example of tax as presented in April
Collections
2 000
Dedicated Giving
2 200
Donations
1 000
(a)
Rent from church hall
(b)
Gross Income
6 200
(c )
Hall expenses
-600
TOTAL INCOME (pre-tax)
5 600
(d )=5% of (b)
5% of gross income
310
Calculation of tax
Rent from hall
Less hall expenses
(e ) = (a) - (c)
Profit from hall
400
(d)
Less 5% of gross income
-310
(f )
Taxable income from hall 90
(g) = 28% of (f )
Tax: 28% of taxable income 25
(g) / (e )
Effective tax rate (tax divided by trading profit)
6.3%

9. Example of tax as presented in April
Collections
2 000
Dedicated Giving
2 200
Donations
1 000
(a)
Rent from church hall
(b)
Gross Income
6 200
(c )
Hall expenses
-600
TOTAL INCOME (pre-tax)
5 600
(d )=5% of (b)
5% of gross income
310
Calculation of tax
Rent from hall
Less hall expenses
(e ) = (a) - (c)
Profit from hall
400
(d)
Less 5% of gross income
-310
(f )
Taxable income from hall 90
(g) = 28% of (f )
Tax: 28% of taxable income 25
(g) / (e )
Effective tax rate (tax divided by trading profit)
6.3%
However… SARS applies an “Interpretation Note” that reduces the deductible expenses and therefore increases the tax payable

10. SARS reduces deductible expenses
Total rent received
1 000
5% exempted
310
Exempted rent as % of total rent
31%
Total expenses of trading
600
Disallowed – 31% of expenses
-186
Deductible expenses (no longer 600 )
414

11. Tax calculation required by SARS Effect: increases the tax
Applies now
No longer
Collections
2 000
Dedicated Giving
2 200
Donations
1 000
(a)
Rent from church hall
(b)
Gross Income
6 200
(c )
Hall expenses
-600
TOTAL INCOME (pre-tax)
5 600
(d )=5% of (b)
5% of gross income
310
Calculation of tax
Rent from hall
Less deductible hall expenses
-414
Taxable profit from hall
586
400
(d)
Less 5% of gross income
-310
(f )
Taxable income from hall
276 90
(g) = 28% of (f )
Tax: 28% of taxable income 77 25
Effective tax rate (tax / trading profit)
19.3%
6.3%

12. Quarterly reportback on Diocesan Finances - Saturday 23rd July 2016
AGENDA
Welcome  
General update on developments since 23rd April meeting: Peter Goldhawk
Audits to 2014 complete, 2015 almost to be signed very soon
Once 2015 audit has been finalised, a definitive current position will be produced
Tax challenge from SARS for 2005 to 2014 has been finalised (more later)
New Diocesan Executive Officer being sought for September start
Taxation update – to 2014 thus far Sidney Place 
Contributions notified for 2016 thus far Sidney Place
Unauthorised debit balances with the Deposit Fund Peter Goldhawk

13. Parish Annual Contributions for 2016 – (1)
Increase
2015 Income
% given
BRYANSTON 0%
12%
SUNNINGHILL
11%
ORCHARDS
21%
ROSEBANK
-3%
15%
CATHEDRAL
50%
WELTEVREDEN PARK 5%
HALFWAYHOUSE
LINDEN 8%
10%
PARKTOWN 4%
19%
RANDBURG 7%
PARKVIEW
-5%
18%
NORTH RIDING
96 000
124% 6%
FLORIDA
37%
BEDFORDVIEW
FOURWAYS GARDENS
84 000
-29%
ORLANDO HOLY CROSS
90%
MEADOWLANDS
BRAMLEY
40 000
-13%
KAGISO St Bartholomew
24 000   ? 3%
PARKHURST
66 000
BOSMONT
51 600
30%
MOROKA
33 684
RANGEVIEW
35 124
-36%

14. Parish Annual Contributions for 2016 (2)
Increase
2015 income
% given
CORONATIONVILLE
90 000 7%
12%
DISCOVERY
18 000
-14% 2%
MOHLAKENG
14 548 3%
PIMVILLE 0%
NEWCLARE
DIEPKLOOF St James
48 000
13%
AUCKLAND PARK
44 844
19%
JABAVU
TLADI
ALEXANDRA
50 400
40% 8%
ORANGE GROVE
63 600 6%
10%
ORLANDO ST JOHN
28 800
20% 4%
SENOANE
30 000
29% 5%
DIEPKLOOF St Stephens
24 000
87%
MZIMHLOPHE
149%
EMDENI
YEOVILLE
ROODEPOORT
16 200
BEKKERSDAL
KENSINGTON -
-100%

15. Schedule L: Parish Contributions
The contributions shall be divided into two types:
A parish contribution, which shall represent the amount needed to meet the stipends, the Diocesan portion of the pension contributions and such allowances as Synod may approve, of the clergy of that parish. Such contribution shall be paid by debit order on the 15th of each month and each parish shall ensure that sufficient funds are available to meet the debit order.
A parish contribution to the diocese, which shall be an amount volunteered by the parish to contribute to the estimated expenditure of the Diocese for the following year, other than as set out in paragraph (a) above.
If the [Diocesan Finance] Board is not satisfied that the contribution volunteered by the parish represents a fair proportion of the income of that parish, it shall delegate representatives of the Board to meet with the Churchwardens and Parish Council of that parish to discuss the matter, and attempt to agree a contribution to the satisfaction of both parties. In the event of failure to reach agreement, the matter shall be referred to the Bishop whose decision shall be final, and subject neither to appeal nor review.

16. Quarterly reportback on Diocesan Finances - Saturday 23rd July 2016
AGENDA
Welcome  
General update on developments since 23rd April meeting: Peter Goldhawk
Audits to 2014 complete, 2015 almost to be signed very soon
Once 2015 audit has been finalised, a definitive current position will be produced
Tax challenge from SARS for 2005 to 2014 has been finalised (more later)
New Diocesan Executive Officer being sought for September start
Taxation update – to 2014 thus far Sidney Place 
Contributions notified for 2016 thus far Sidney Place
Unauthorised debit balances with the Deposit Fund Peter Goldhawk

17. Quarterly reportback on Diocesan Finances - Saturday 23rd July 2016
AGENDA - continued
Parish returns for 2015 still outstanding Peter Goldhawk
Independent verifiers Peter Goldhawk
Appointment requires DFB approval
Appeal for more volunteers
Discussions regarding banking underway
General / closure / Grace 

18. The End
Thank you for attending
Next reportback: 10 September 2016