Axiomatic Insights – October 2019

Axiomatic Insights - October 2019 In this edition, we include a number of recent developments in the employee benefits industry (a Tribunal decision and a Conduct Standard) as well as feedback on the Financial Sector Conduct Authority’s recent conference. Section 37C – when there is only one dependant  Background  On 25 September 2019, the Financial…
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IS TAX ASSISTANCE TO EXPATS TAXABLE OR NOT?

IS TAX ASSISTANCE TO EXPATS TAXABLE OR NOT? Several companies appoint a tax consultant, often one of the accounting firms, to assist expatriate employees (“expats”) to complete their tax assessments and to deal with associated queries and objections. This service sometimes includes the taxes in both the host and home country. The question is often…
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The Psychology Of Initiatives Part 2

The Psychology Of Initiatives | PART TWO LONG TERM INCENTIVES In Part One we examined the impact of behavioral psychology on incentives in general. A plethora of academic studies have shown that: Executives are risk adverse and prefer a smaller guaranteed amount to a possible bonus of higher value; and Employees do not place the…
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The Psychology Of Initiatives Part 4

The Psychology Of Initiatives | PART FOUR CONCLUSION In this four-part series we delved into the world of behavioral psychology with the express intention to understand how this field of study influences incentives. We stated in Part 1 that HR personnel are now required to be a strategy swami, a finance guru, an operations rock…
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The Psychology Of Initiatives Part 3

The Psychology Of Initiatives | PART THREE SHORT TERM INCENTIVES Behavior psychology provides valuable insights into incentives and rewards and understanding this science, does enable us to better understand the drivers or motivators of incentives. It is axiomatic that HR practitioners must become behavioral psychologist Jedi’s in order become an incentive ninjas. However, when it…
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The Psychology Of Initiatives Part 1

The Psychology Of Initiatives | PART ONE Introduction In the past, we have often said that HR personnel are now required to be a strategy swami, a finance guru, an operations rock star and now unfortunately, we add another discipline to the requirements – you will need to be a behavioral psychologist Jedi. Why? Because…
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IDENTIFYING TOP TALENT

IDENTIFYING TOP TALENT: A SCIENTIFIC AND STRATEGIC METHODOLOGY PROBLEM STATEMENT There is little doubt that most, if not all, companies in South Africa are being impacted by fierce competition, tough macro-economic conditions, squeezed margins and concomitantly, lower profitability. The economy shrank in the first quarter of 2019 by 3.2%, and one of the consequences of…
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GUIDANCE NOTE | NIGERIA | TAX STATUS OF GRATUITIES

GUIDANCE NOTE | NIGERIA | TAX STATUS OF GRATUITIES There has been significant debate in Nigeria in the recent past regarding the taxability of gratuity payments to retired employees. The confusion was created by the ambiguous provisions of different legislation where: Section 3 of the PIT Act does not list gratuities as taxable income –…
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