Calculation / estimate of damage - how to

!!! Calculate your damage !!!

…with help of tax declarations

If you already have the tax declarations for the fiscal years 2019 and 2020, it’s easy:

Compare the profit or loss of 2019 and 2020.

If you have more than one sector, for example a cattle farm and a hunting farm, then you only need to take into account the hunting farm share, because the cattle farm share has not been influenced by Corona measures, but mainly by the drought.

Your loss consists of the difference between your profit in 2019 and your profit in 2020 for the respective period from March to February.
Still occurring or future losses will be dealt with in a later stage.

… without tax declaration

If you

are not subject to tax (less than N$ 50,000 annual profit)
have no monthly costs/revenue or profit / loss evaluations,

then the only thing that helps is to calculate it from your bank account and cash book.
You do not need a tax consultant for this phase.

So how do you calculate your loss, even without a tax consultant and without a tax return?
To do this, you need to access your bank account and your cash book.

1. Comparison period

In order to calculate / estimate the damage, you compare

the period March 2019 to the end of February 2020 (fiscal year)
and the period March 2020 to the end of February 2021 (fiscal year).

2. Bank account

You calculate the income (i.e. turnover) and the operating expenses.

3. Cash book

Here too, you calculate the operating income and expenditure.
Revenue is turnover from customers, but not if you have withdrawn money from your account to fill the cash register.
If you did not keep a cash book, you may have collected receipts “in a shoe box”. Then only one thing helps:
Compile and add up the cash slips corresponding to operational expenditure.
If you haven’t even collected receipts, then compile your ATM debits and take a reasonable (!) percentage of them as operational expenses.
In this case, however, you must tick “estimate” in the form.

4. Determination of profit or loss

You calculate the profit or loss in the two years per year as follows:

Revenue bank account
plus receipts cash register
less operating expenditure bank account
less operating expenditure cash register

5. Loss assessment

6. A few more tips and hints

The easiest way to calculate is with Excel. If you don’t know Excel, you might know someone in your family who can help you.
If you worked partly or wholly in “black labour”, i.e. had undocumented operating cash flows (income and expenditure): Too bad!!
You better not claim these, because it cannot be ruled out that the Namibian tax authorities will get “on it” at some point, and then there might be trouble.

!!! Calculate the damage of your employees !!!

Some companies have certainly cut costs and thereby reduced their losses by retrenching staff or imposing salary cuts.

This has not harmed your company, but it has harmed your employees.

Attention: This does not apply to freelancers! Since they are self-employed, they can claim their damages independently.

If this applies to your company, please proceed as follows:

Determine the wage and salary costs in the specified period 2019 and in the specified period 2020.

Then please enter the difference between the 2019 and 2020 salary costs in the registration form as the employees’ loss.

In doing so, you have fiduciarily claimed your employees’ damages as part of fiduciary duty as a business representative.

If you are reimbursed for these employees’ damages in the class action, you hereby commit to retroactively distribute the amount paid to the affected employees on a pro rata basis.