Key Service Areas

Accounting Services

At PK & SON, we understand the importance of rendering a quality accounting function that enhances business success. With the changes in the way business is being conducted today, many organisations prefer to outsource non-core activities such as accounting functions while they focus on operation and strategy. This has led to a growing demand for outsourced accounting and secretarial services and we have a dedicated team of experts in this area. At PK & SON, we do not only keep your records, we provide advice and solutions to your business. Our services include; 

– IFRS Reporting; 

– BEE deals; 

– Asset verification (Tangible and Intangible); 

– Financial statement preparation and presentation; 

– GRAP compliance. 

Taxation

With the ever changing fiscal policies that impacts on taxation landscape, businesses today require proper tax advice and planning in order to align their strategic goals to the ever changing regulatory environment. The Tax Administration Act (No. 28 of 2011) that came into operation in 2012 seeks to simplify administrative provisions, and promote a balance between the powers and duties of SARS and the rights and obligations of taxpayers and to make this relationship more transparent. Our main objective is to offer affordable and efficient tax solutions that will give you peace of mind. With our team of professional tax consultants and chartered accountants who are very knowledgeable in taxation, we will assist your business in modern day tax planning and tax computations relevant to your business. 

Our services will help you meet your compliance obligations and your business goals. Our range of services includes; 

– Tax computations and filing of Returns; 

– Global tax services; 

– Transaction tax services; 

– Transfer pricing tax administration; 

– Voluntary disclosure programme; 

– Debt management. 

Wealth Management

PK & SON has partnered with reputable investment companies to offer a wide range of investment advice and tailor-made investment solutions to medium and high net worth individuals. PK Wealth managers with their vast knowledge will build you tailor-made investment solutions based on your short, medium and long-term goals. 

PK Financial Wealth managers will help you enjoy the following benefits; 

– Tax advisory services; 

– Estate Planning; 

– Local and offshore investment solutions; 

– Wealth Protection. 

Audit and Assurance

PK & SON is a member of the Independent Regulatory Board of Auditors (IRBA) and Institute of Internal Auditors (IIA) and we conduct audits to organisations in various industries. With our multi-disciplinary audit team who have deep sector knowledge, we apply the right methodologies in our audit approach thereby guaranteeing you a quality service output. We aim to produce reports that will help your decision-making functionality and good corporate governance. We also issue attestation reports. These are reports outside financial statement audits and are based on examinations, reviews or agreed upon 7 

procedures and may be client-specific or standard to a particular sector. 

Deal Structuring

Business Rescue

Businesses that are financially distressed and operating in insolvent conditions are required to take advantage of the business rescue proceedings in line with Chapter 6 of the Companies Act 2008 (Act 71 of 2008). Business Rescue is a process of restructuring companies that are financially distressed and unable to pay debts. PK & SON has a team of experienced rescue practitioners who will take a holistic approach to restructuring and re-organising your distressed business entity. Once appointed, our practitioners will conduct a pre-assessment of your business to determine whether your business can be rescued or not, since not all businesses can be rescued. 

Requirements of a Business Rescue 

For a business rescue to be approved, the following elements must be evident; 

– A reasonable prospect that a company can be rescued must be present; and 

– A demonstration that a business rescue will achieve better returns for creditors than liquidation. 

Our scope of service: 

Pre-Assessment: This will be conducted to determine viability of the business rescue; 

Commencement: Filing the required documents with CIPC and convening stakeholder meeting and developing business rescue plan; 

Implementation: Implementing proceedings according to the business rescue plan; 

Termination: Upon restoring the company to profitability, a formal notice of termination will be filed with CIPC and our practitioners will then handover control of the business to original owners. 

During the business rescue proceedings, you will enjoy the following benefits: 

 A moratorium in respect of creditors that will relieve you from the pressure of creditors while the rescue plan is being rolled out; 

  • A number of contractual obligations will either be suspended or cancelled during business rescue proceedings; 

  • Jobs will be saved than in the event of liquidation; 

  • Creditors will stand to get a better dividend than in the event of liquidation. 

Mergers and Acquisitions

As many companies are now struggling to survive as a result of an increase in cut-throat competition, Mergers and Acquisitions (M&A) as a form of corporate restructuring has become a trend these days. A merger is a consolidation of two or more companies into a new entity with new ownership and management structure while an acquisition takes place when one bigger entity takes the ownership of another smaller entity. At PK & SON, we have highly experienced and skilled consultants who will offer guidance and advise you in matters and transactions relating to M&A. A spectrum of activities will be undertaken with precision for a successful M&A deal to be realised. 

Our scope of service; 

  • Finding businesses or assets that have to be acquired or sold; 
  • Finding buyers and willing sellers; 
  • Linking buyers to sellers; 
  • Offering advice on transaction terms and pricing; 
  • Deal planning and strategy; 
  • Deal structuring; 
  • Offering advice on tax; 
  • Sourcing finance for the deal; 
  • Finalising the M&A deal; 
  • Deal closure. 

Below are the benefits you will enjoy following M&A deal; 

  • Consolidated power and control of two entities; 
  • Synergistic benefits as result of the greater value of the consolidated entity. 
  • Cost-savings through economies of scale; 

Due Diligence

Due diligence is a process of evaluating potential investments and verifying all material facts from supporting documentations and other sources relating to that investment. Are you looking at transforming your business and considering new investment opportunities to buy, sell or finance? Then due diligence is the first step to achieving your goals. At PK&SON, we help clients make better deal decisions by performing due diligence, assessing revenue growth and cost reduction opportunities to determine an investment’s full potential. 

Issues you may be facing: 

– Planning to purchase a business? 

– Planning to sell or buy products or services on credit with companies you don’t have a history with? 

– Planning to enter into a strategic partnership with someone or a company? 

– Planning to enter into a contract with a person you do not know? 

Our due diligence offerings takes a risk-based approach with the overall objective of giving 10 

our clients accurate information that guarantees them high comfort levels and investment certainty. 

PK & SON will support you in reviewing all applicable documentations and conducting comprehensive business analysis, compliance analysis and the generation of reports backed recommendations for decision making. 

Mergers and Acquisitions

As many companies are now struggling to survive as a result of an increase in cut-throat competition, Mergers and Acquisitions (M&A) as a form of corporate restructuring has become a trend these days. A merger is a consolidation of two or more companies into a new entity with new ownership and management structure while an acquisition takes place when one bigger entity takes the ownership of another smaller entity. At PK & SON, we have highly experienced and skilled consultants who will offer guidance and advise you in matters and transactions relating to M&A. A spectrum of activities will be undertaken with precision for a successful M&A deal to be realised. 

Our scope of service; 

  • Finding businesses or assets that have to be acquired or sold; 
  • Finding buyers and willing sellers; 
  • Linking buyers to sellers; 
  • Offering advice on transaction terms and pricing; 
  • Deal planning and strategy; 
  • Deal structuring; 
  • Offering advice on tax; 
  • Sourcing finance for the deal; 
  • Finalising the M&A deal; 
  • Deal closure. 

Below are the benefits you will enjoy following M&A deal; 

  • Consolidated power and control of two entities; 
  • Synergistic benefits as result of the greater value of the consolidated entity. 
  • Cost-savings through economies of scale; 

Due Diligence

Due diligence is a process of evaluating potential investments and verifying all material facts from supporting documentations and other sources relating to that investment. Are you looking at transforming your business and considering new investment opportunities to buy, sell or finance? Then due diligence is the first step to achieving your goals. At PK&SON, we help clients make better deal decisions by performing due diligence, assessing revenue growth and cost reduction opportunities to determine an investment’s full potential. 

Issues you may be facing: 

– Planning to purchase a business? 

– Planning to sell or buy products or services on credit with companies you don’t have a history with? 

– Planning to enter into a strategic partnership with someone or a company? 

– Planning to enter into a contract with a person you do not know? 

Our due diligence offerings takes a risk-based approach with the overall objective of giving 10 

our clients accurate information that guarantees them high comfort levels and investment certainty. 

PK & SON will support you in reviewing all applicable documentations and conducting comprehensive business analysis, compliance analysis and the generation of reports backed recommendations for decision making. 

Forensic Services

PK & SON forensic team is equipped with knowledge and skills to help you manage fraudulent risks and address economic crime in your organisation. Our forensic services deal with the prevention, detection and investigation of fraud or misconduct. At PK & SON we believe that prevention is better than cure, as such our forensic team have proven track record in forensic consulting on matters relating to fraud, corruption, negligence, maladministration, poor governance and controls. 

Our forensic team will work with you to identify areas of risks inherent in your organisation through a process of engagement. We do not only investigate fraudulent cases but we also help in the implementation of remedial actions. 

Issues you may be facing; 

  • You may have identified or suspected an incident of fraud; 
  • You may have suffered loss or damage as result of a breach of contract; 
  • You may have disputes with employees, creditors, service provides; 
  • You may want to review compliance; 
  • You may be facing security risk in your business. 

 

“Don’t wait until it’s too late – let the forensic division of PK & SON assist you in managing risk proactively” 

Below is our full spectrum of forensic services; 

– Fraud and corruption Investigations; 

– Money laundering investigations; 

– Compliance Investigations; 

– Theft investigations; 

– Business Intelligence Investigations; 

– Anti-corruption policies and Codes of Ethics; 

– Dispute Resolution; 

– Litigation Support 

– Risk Management 

In the event of a legal action being taken, our forensic team will assist in collating information and establishing material facts and evidence that will be used as a basis for criminal and or civil action. 

Business Valuations

There are a number of situations and circumstances that may require your business to undergo valuation. Business valuation is a process of determining the economic value of the owner’s interests in the business. Our valuation services are targeted mainly at unlisted companies since listed companies already have a quoted price. 

Situations that may require you to value your business; 

 You may be considering selling your business; 

 You may be considering buying a business; 

 Determining capital gains tax; 

 For estate planning 

 For restructuring purposes 

 Wanting to borrow 

PK & SON has a division that specialises in business valuations and our team has vast knowledge gained from various industries. Upon engagement, our team will conduct an assessment of your business to determine the most suitable valuation model. 

Corporate Governance

Corporate governance is a system of rules, practices and processes by which a company is directed or controlled in accordance to the Companies Act. These set of rules are aimed at ensuring that the company achieves its goals legally and ethically in an environment of accountability to stakeholders. At PK & SON we understand that every organisation requires a governance strategy that will guide it to achieving its growth strategies. Our governance team will assist you in building and implementing strategies suitable for your business and in line with King Codes of corporate governance. 

Our range of governance services 

 Implementing governance framework; 

 Compliance Assessments; 

 Board Evaluations; 

 Leadership Assessments; 

 Business strategy facilitation; 

 Ethics Assessments; 

 Review and development of policies 

 Governance and Compliance Training 

Transfer Pricing

Transfer pricing is the method by which companies within a common group or ownership use to determine the cost at which goods and services are supplied to each other. 

The OECD recommends intergroup pricing rules based on the arm’s-length principle and countries with transfer pricing legislation generally follow the recommendations of OECD. Even though South Africa is not an OECD member country, Section 31 of the South African Income Tax Act contains provisions that require cross-border-related party transactions to take place at arm’s length conditions in line with OECD guidelines. 

The Act requires that conditions made or imposed between inter-company transactions should not differ from those which would be made between unrelated enterprises in a similar situation. Practice Note 7 (PN7) issued by SARS provides guidance on procedures to be followed in determining arm’s length prices and sets out SARS’ view on documentation and other practical issues. 

According to the OECD Guidelines, the party being evaluated (tested party) will most often be the less complex party in terms of functions performed. In adherence to this guideline, PN7 explicitly states a preference for using the South African party as the tested party in evaluating the arm’s length nature of transfer prices applied. 

The arm’s length nature of inter-company transactions is evaluated by data sampling obtained from transactions between unrelated parties and this data can be obtained through various means. 

There are five specified methods for estimating an arm’s length charge for transfers of tangible property. 

  • The comparable uncontrolled price method; 
  • The resale price method; 
  • The cost plus method; 
  • The comparable profits method; and 
  • The profit split method 

The taxpayer must select and apply the method that provides the most reliable estimate of arms-length price. In addition to these five, the taxpayer can also use unspecified methods if it gives the most reliable estimate.

PK & SON is here to help you

In order to avoid the penalties and added tax burdens imposed by tax authorities due to transfer pricing adjustments, multinational corporations must seek the services of tax specialists who will assist with developing and implementing transfer pricing solutions that are suitable for your business. At PK & SON, our team of tax specialists has deep knowledge of transfer pricing policies and is here to help you manage your transfer pricing risks. 

Our transfer pricing services are as follows; 

  • Planning 

We conduct a tax risk analysis and then develop a transfer pricing plan and policy that suites your tax conditions. 

  • Valuation 

We perform due diligence to determining the right transfer price of the underlying asset by applying the right methodologies applicable to every organisation. 

  • Compliance and Documentation 

Our tax team will assist with the preparation of transfer pricing documentation reports that analyse the arm’s length nature of the intragroup prices. 

  • Audit Defence 

The burden of proving that inter-company transactions are at market value lies with the taxpayer hence at PK & SON we go an extra mile to assist our clients with all aspects of defending their transfer prices before the tax authorities and with local audit teams. 

Dispute Resolutions

The tax dispute resolution process, as enshrined in the Tax Administration Act, was designed to ensure an efficient and simple resolution of tax disputes. The Act requires that any taxpayer who is in disagreement with the assessment or decision by SARS must lodge their objection within a certain period in accordance to the rules and in a prescribed manner and terms. 

Tax related disputes require the services of seasoned tax specialists who have broad knowledge of dealing with SARS. Our tax consultants have handled numerous tax disputes over the years and have gained in-depth knowledge of resolving tax disputes fairly, efficiently and within a prescribed period in favour of taxpayers. At PK &SON, we provide assistance to corporate taxpayers and individuals who are having disputes with SARS. 

PK & SON can assist by: 

  • Checking the SARS assessments for accuracy; 
  • Requesting reasons for assessments; 
  • Drafting grounds for objections and appeals; 
  • Filing a notice of objection; 
  • Assisting you during SARS audits; 
  • Representing you at ADR meetings, Tax board or Tax Court; 
  • Negotiating the best settlement with SARS. 

TRUSTS

A trust is a fiduciary relationship in which the trustor/donor/founder gives the trustee the right to hold title to property or assets for the beneficiaries. Trusts are governed by Trust Property Control Act 57 of 1988. 

Types of Trust 

There are three types of Trusts we deal with: 

1) Inter-Vivos Trusts or Living Trusts: This is created by living persons through an agreement, for e.g. family trust or an employee share ownership trust (ESOPS). There are two types of Living Trusts, namely Discretionary Trusts and Vested Trusts. Discretionary trusts is when trustees have full discretion at all times about how much each beneficiary is to benefit and when. In Vested trusts, the benefits of the beneficiaries are set out in the trust deed. 

2) Testamentary trusts: This is created in terms of a Will (sometimes known as Will Trust) and comes into effect after the death of the founder/donor. Testamentary trusts are usually created to hold assets on behalf 

of minor children, since minor children cannot in terms of South African law, inherit anything (in the absence of a trust, assets from the deceased estate left to minor children are sold, and the money is paid to them when they reach adulthood). 

3) Bewind Trusts: These are created as trading vehicles providing limited liability and certain tax advantages to the trustees. 

WHO CAN BE A TRUSTEE?

– You can appoint a family member or a friend, who is over 18 years of age and who is a South African resident to act as Trustee. 

– You can also appoint a professional Trustee Company, or a corporation that specialises in legal, accounting or financial planning. 

– You may also name yourself as a Trustee or co-Trustee. 

– In the event of husband and spouse being appointed as Trustees, it is recommended to include an independent outsider as well. 

– There is no prescribed minimum number of trustees but based on experience the ideal number is 3 trustees. 

WHICH ASSETS CAN BE HELD IN A TRUST?

– Investments 

– Land or property 

– Cash 

– Valuable assets; such as paintings, furniture, jewellery etc. 

HOW TO TRANSFER ASSETS IN THE TRUST?

– Sale agreement 

– Donation 

Loan account 

PK & SON SERVICE OFFERING

At PK & SON, we provide specialist services in the formation and administration of trusts. We are committed to offering service levels that are speedy and efficient without compromising on quality.