Proposed changes to the B-BBEE Codes - October 2012

[Yvonne]

I constantly check on this forum to see if any proposed changes in the B.E.E. codes are discussed as surely this is one of the most essential factors affecting many of the members of this forum.
I seem to have missed any references to the latest proposal.

The proposals announced this month, and now out for public opinion, include increasing the ceiling for exemption for SME's to R10,000,000 (Ten million).

How can we find out from what date this would take effect?

[Yvonne]

Surely the proposed changes are as important to many other forum users as they are to our business?

Can anyone shed some light on when the proposal will come into effect?

This information is vital for our business as we were in the process of considering selling off a division of the company, almost exclusively due to inability to comply with the B.B.B.E.E. codes as we have exceeded our turnover this financial year, and would no longer be considered an exempt S.M.E.

Would so appreciate some comments.

Thanks

[Dave A]

I'm hoping to get a gap to look at the published draft in detail next week. There's a 60 day period for comment which gives us to the end of November.

I'll be sure to make some posts on the subject then.

In the meantime, I can say the draft changes the EME turnover limit from R5 million to R10 million.

I'll also say that running through the draft is no easy task as it is a list of amendments to the existing legislation rather than a published revised version. You end up flicking backwards and forwards between two documents and I'm probably going to have to lock myself away from society for a day or two to get the job done.

[Yvonne]

Thanks for the heads-up that the proposal is now on hold.
Major, major issue for our company, we were selling off a division solely due to ceiling earnings of exemption for B.B.E.E.
Took a risk and did not go ahead!

This Business Forum is no longer keeping its members informed as to serious issues that have implications for small businesses.
Very disappointed.

[Dave A]

This Business Forum is no longer keeping its members informed as to serious issues that have implications for small businesses.
Very disappointed.

Point noted.

[Blurock]

This Business Forum is no longer keeping its members informed as to serious issues that have implications for small businesses.
Very disappointed.

I do not agree. The members keep the members informed. There is no guru sitting somewhere pressing all the buttons. We, the members, are the Forum, we should be on the ball and share information. We should not wait for someone else to do things for us. That is the difference between The Forum SA and the rest of the business community.

[Dave A]

The challenge as I see it is both Yvonne and Blurock are right.

For now (and for here), all I can say is I have been working on solving the problem.

[BusFact]

Blurock is far more right than Yvonne (IMHO). If you require detailed up to date professional opinion, pay a professional.

If you want advice and help of a general nature, based largely on experience, then this is a very good place to be.

[Dave A]

If you want advice and help of a general nature, based largely on experience, then this is a very good place to be.

I gently suggest that's not a particularly accurate assessment, particularly the "based largely on experience" bit. Ordinarily I'd just absorb it as a point of view to consider going forward, but in this case I can't leave it as it is effectively dissing some of our expert, (and may I remind you, totally voluntary) members who do a heck of a lot of work helping out around here.

Questions in the accounting forum are for the most part being answered by qualified people (who happen to also be very experienced).

The tax forum also has its share of subject matter experts.

And of course the electrical forum is full of qualified electricians, to the point it seems some are under the impression that this is a forum primarily for electricians.

In fact in each forum, at some point there's been at least one subject matter expert that has taken a leading role.

Yes, you must be cautious as to who's advice you take on board - it might well not be a subject matter expert. At times even probably not a subject matter expert. And some problems really can't be solved by just raising it on a forum - they really require you to sit down with an expert...

The problem I see that arises from the thrust of the OP is we currently don't have a single subject matter expert on BEE active on TFSA that is prepared to voluntarily contribute their expertise on the subject. And before anyone starts pointing fingers at BEE experts, arguably it is a situation that could arise on any other topic.

It's a "systems" problem in that the TFSA free model doesn't generate sufficient funds to cover the gaps by "hiring it done", which is the way a commercial venture would probably solve it. And of course if you start paying for certain contributions, all the volunteers start wondering whether they shouldn't be paid too.

Whatever it'll take to solve the problem musn't disrupt the current "ecosystem" which, I'm given to understand, by comparison to most other free sites acquits itself very well on the quality front.

Just chatting about it now, I do believe there's a solution I can try...

[BusFact]

Point taken. There are professional experts on the forum who are fantastic as per the examples you gave. My point is more that its unreasonable to expect or rather demand, professional advice on a free forum.

Anyway hopefully you can wave your magic wand again and come up with a BEE solution

[AndyD]

The problem I see that arises from the thrust of the OP is we currently don't have a single subject matter expert on BEE active on TFSA that is prepared to voluntarily contribute their expertise on the subject.

It might be that one or two less reputable 'experts' in days gone by have made it less desirable for newer people in this field with a good reputation to become heavily associated with that forum.

Would there be any mileage in a spring clean or archiving of some of those little episodes and a relaunch so to speak or would you prefer the history, no matter how chequered, to remain.