Seeking a qualified service provider to conduct a comprehensive assessment of the IDC's doubtful debt allowance position for income tax purposes, aiming to increase the allowance to 85%. Proposals are due by June 4, 2026.
The Industrial Development Corporation (IDC) invites proposals from experienced service providers to conduct a thorough assessment of its doubtful debt allowance position for income tax purposes. The selected provider will be responsible for analyzing the current allowance, which ranges from 25% to 40%, and preparing a substantiated motivation to the South African Revenue Service (SARS) for an increase to 85%. This assessment should include a review of the IDC's lending portfolio, historical recovery trends, and the economic substance of the loan portfolio, ensuring compliance with the Income Tax Act.
The scope of work includes understanding the IDC's business and lending model, assessing credit risk, and analyzing bad debt write-offs and collateral realization. Deliverables will consist of a diagnostic report detailing portfolio risk characteristics, a formal written motivation to SARS, and supporting schedules and calculations. The successful bidder will demonstrate relevant experience in South African corporate tax and a thorough understanding of the objectives and deliverables required for this project, ensuring a robust submission that aligns with tax legislation and practices.
This tender is suitable for consulting firms with expertise in corporate tax, particularly those experienced in working with financial institutions and engaging with SARS on tax matters. Businesses should have a proven track record in conducting assessments related to doubtful debts and preparing tax submissions.