Consulting firms Cova Advisory and Xnovos have partnered to create a software system that can help companies in South Africa cope with the demanding requirements of the carbon tax, which was implemented in June.
The firms have signed a memorandum of understanding, committing to help meet demand for a comprehensive support package that simplifies the administrative burden of meeting the carbon tax requirements.
Xnovos CEO Eric Roberts says the firm already offers a tax accounting software package called TaxPacc that manages the corporate income tax lifecycle. It will now, in joint venture with Cova, apply the same logic to help corporates manage the carbon tax requirements.
The firms state that the partnership will combine Xnovos' knowledge of developing software to manage complicated tax calculations and Cova's in-depth understanding of the complexities of the carbon tax.
The new software is expected to be adopted by large corporates in the mining, manufacturing, steel and chemicals industries. The firms note that information for assessing carbon tax liability must be obtained from different sources, including from the foremen at smelters, company invoices and environmental experts.
Companies need to submit carbon tax returns from 2020 and, therefore, the software being developed will be ready to meet the applicable tax deadlines in March and July next year.