WELCOME TO TERM 2 OF 2023
The majority of South Africans will be feeling the rand’s weakness most acutely through inflation and interest rate hikes. An unstable economy, electricity crisis, petrol and food prices going up has a direct effect on parent’s ability to pay their school fees.
Education is a very important aspect of society and without money schools are not able to provide quality education. In South Africa, schools do not get a lot of financial support from government. Schools always need to keep the business aspect in mind when providing quality education.
Operating a business involves many factors and managing a school is no different. It provides students a venue for learning under the guidance of skilled educators and staff. Parents pay school fees in exchange for high quality education. It takes a stable source of funds to secure a school’s finances.
One of the key financial performance areas is managing your bad debt. Public schools, ensure that you process your exemptions timeously and focus on collecting from those that owe. Issue your Section 41 Final Demand Letters as early as possible (April) and rehabilitate your parents by handing them over at the legislated three months (August). For private schools, ensure that you hand over your bad payers as soon as possible.
NEW MANAGING DIRECTOR
With CeeBee’s exceptional growth, the Directors have decided to expand the board of directors. Simone Porter, the General Manager Legal was promoted to Managing Director and will be joining Douglas Brake, Charleen Brake and Alvina Barnett on the board of Directors.
Simone grew up on the West Rand in Roodepoort and matriculated from Hoërskool Noordheuwel in 2009. Simone went on to study LLB Law at the University of Johannesburg and finished her degree in 2014. After doing her 2 years of articles she was admitted as an Attorney in 2017.
Simone started as an in-house Attorney at CeeBee on the 15th of March 2017 and has been working at CeeBee for 6 years now. While in the employ of CeeBee, Simone received certifications for Finance for Non-Financial Managers from the University of Cape Town and Business Management Fundamentals from the University of Stellenbosch.
Simone is married and a mother to a 3-year-old son. Her husband is also an Attorney, working as an accredited SARU Rugby Agent for In Touch Sports.
Congratulations Simone!
Simone Porter
PRESCRIPTION OF SCHOOL FEES
Prescription is a term in our Law, which provides that the debt is no longer enforceable.
It means that once the debt has prescribed, you can no longer take steps to recover it.
It means that once the debt has prescribed, you can no longer take steps to recover it.
Section 11 of the Prescription Act 68 of 1969 makes provision for the time periods of when debt will prescribe.
Section 11 (a)(iii) and (d) states that the periods of prescription of debts shall be the following—:
- 30 years in respect of—
- (iii) any debt in respect of any taxation imposed or levied by or under any law;
- (d) save where an Act of Parliament provides otherwise, three years in respect of any other debt.
So, the question arises, whether School Fees, being governed by the South African School Act, will only prescribe after 30 years?
The short answer is no, School Fees are not a tax, even though they are governed in terms of an Act.
School fees are determined by the Governing Body of each school and accepted by the parents, and therefor falls out of the ambit of being a tax.
Click on the links below, for further information
- Read the full article
- Liability of payment of public school fees PER 2011 Vol 14 no 6
- Feedback from DBE on prescription of school fees
- Section 126B of NCA
- Section 157B of National Credit Act
Legal Update from the Desk of Megan Oosthuizen (BCom)(LLB)
CeeBee In-house Attorney
NEW CLIENTS
We have welcomed the following new clients this quarter:
Gauteng:
Laerskool Nellie Swart; Hoërskool Goudrif; Duo Edu Senior Onafhanklik; Summerhill Preparatory; Summerhill College; All Saints Academy; Unica School; Linksfield Primary School & Rietondale High School.
Free State: AJ Jacobs Primary School.
KZN: Port Shepstone High School & Lincoln Heights Secondary.
Eastern Cape: Aliwal Noord Hoërskool & St Francis College.
West Rand: Indigo Blue Learning; Randfontein Christian Academy & Westonaria Primary School.
Western Cape: Hoërskool Hexrivier; Knysna High School; Hoërskool Hopefield & Laerskool Mikro.
North West: Victory Primary School; Laerskool Sanddrift & Thornhill Primary School.
Limpopo: Orchid Primary School. Mpumalanga: Chazon Tekna School & Laerskool Sabie.
