Titan-Ice Computers' questionable business conduct?

b1scu1t

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EDIT: Update below http://mybroadband.co.za/vb/showthread.php/504002-Titan-Ice-Computers-questionable-business-conduct?p=9794836&viewfull=1#post9794836

If you have ever been given a credit note from Titan-Ice Computers, you might want to read this.
Just want to say I'm not out for conflict but I don't believe in keeping my mouth shut as this ordeal might be relevant to someone.

On 5 May 2012 I bought an Asus DSL-N10 ADSL Router from Titan-Ice Computers for R750. I gave it in for repairs a few months later after lightning damage and it was replaced by ASUS.
Unfortunately I received a faulty unit and ASUS support told me to return it.
On 22 Nov 2012 I gave it to Titan-Ice and after waiting 2 months, as well as buying another replacement unit at another online shop, I contacted Titan-Ice to hear why it’s taking 2 months to get a replacement unit. Getting back to me shortly thereafter, they informed me the supplier "lost" the router and I have the choice of waiting for a new unit as the supplier is out of stock or getting credit.
I chose to take credit as I already bought another router.
I was also informed that credit will only be passed once the supplier apparently tracks the lost router.
About a week later I was told that credit has been granted and it would take about a week for it to be finalized.
I decided to upgrade RAM with the credit and pay the difference with my credit card.
Titan-Ice told me I would need the ORIGINAL "Tax Invoice" in order to receive the full R750 credit, otherwise, with the RMA form they would only credit for somewhere around R629. (The phone was a bit noisy and I couldn't clearly hear the amount. I assume it's R629, the same price as on their website.
Failing to find the original, i phoned them and asked for a “Copy Tax Invoice” and within a minute they emailed a “Copy Tax Invoice” after searching for the router’s serial number.

When I went to collect the new RAM, I was told by the manager that they will not accept a “Copy Tax Invoice”. I told him that SARS will accept the “Copy Tax Invoice” and quite condescendingly he said that they’ve been in the industry for a bit longer than I have and submitting the "Copy Tax Invoice" would be illegal.

So what exactly do they propose a person does when you buy 5 items from them, return one item and they "only accept" the original “Tax Invoice” of which there IS only one, obviously leaving you with a "COPY"? What about your other 4 items?

I knew he was wrong but told him they’re not leaving me with much choice so I decided to take the R105 loss because I urgently needed the RAM for my studio/personal computer more than I need the R105 and I already drove 30km just to get there.
I’m no accountant so my word apparently didn’t count for much as I assume the manager thinks every customer is wrong, misinformed and/or just plain dumb.

Confronted with the facts (see below) the next day, although he still insisted he’s right, he now wants me to bring him an affidavit stating I did not claim the VAT on the original invoice, then only can he give me R750?
Not sure how he supposes I can claim the VAT for a private sale and how THIS all of a sudden became his reason why he deducted the VAT and only gave me R645 credit?
An affidavit?
Couldn’t find anything about this method of transacting on SARS’s website.
Is he going to submit the affidavit along with his tax return?

Quite ironic how he’s so concerned about my ethics and honest/correct way of doing business in this life.

The manager said that I could also have made a PHOTOCOPY of the ORIGINAL “Tax Invoice” and it would’ve been accepted.
According to him, all his information comes from his accountant.

So firstly, this manager and his accountant is very misinformed.

Quote:
http://www.sars.gov.za/Tools/Documents/DocumentDownload.asp?FileID=50880

“Amendments to sections 20(4) and 21(3) of the Value-Added Tax Act, 1991 in terms of sections 175 and 176 of the Revenue Laws Amendment Act (Act 45 of 2003) and section 104 of the Revenue Laws Amendment Act (Act 32 of 2004) and published in the Government Gazette No. 27188 dated 24 January 2005”

“5. LOST OR MISPLACED TAX INVOICES If a tax invoice in respect of a particular supply is lost, you may not request the supplier to issue another tax invoice as it is an offence to issue more than one tax invoice per taxable supply. In order to meet the documentary requirements for claiming input tax, you can request the supplier to issue you with a copy tax invoice as long as the document is clearly marked “copy”. A photostat copy which has been clearly marked “COPY” after it has been photostated can also be used in such instances.”

The PHOTOCOPIED version the manager asked for would actually have been illegal. (If it was not clearly marked as a “COPY”)
Ie. a copy tax invoice?

Secondly, his math is not quite up to par for business needs.
Noticing it only after further inspection later that day, you don’t simply deduct 14% (of R750) from R750 to deduct the VAT.
The correct amount would’ve been R657,89 not true?
R750 / 1,14 = R657,89
To verify. R657,89 + 14% VAT = R749,99
R750-14% (R105)= R645
R105?

Lastly and MOST importantly, I’m NOT making this ordeal public because of R105. Evidently I already decided, upon buying the RAM, that R105 wasn’t as urgent as the RAM.
Titan-Ice has been running since 1995. Pocketing even these small amounts and probably much larger amounts for the past who knows how many years is not just unethical and dishonest, frankly it would be considered theft and fraudulent.
Ignorance of the law doesn’t make you innocent though.

What about the person who got credit on an Intel i7 3970X Extreme Edition CPU costing R11999? You sir, possibly, according to their calculations, got robbed of R1679,86.

It’s for YOU that I’m making this public! THIS is the reason why I’m not keeping quiet.
If you accidentally stumble across this, maybe this helps you.

I saw a whole bunch of uncollected credit notes at their shop as the guy looked through them for mine, never mind all the years’ collected ones filed away. I can’t imagine that a lost or misplaced tax invoice is a rare phenomenon so someone else probably went through the same mess.

Is this business practice shady or is it just me?
 
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I dealt with them once, wont deal with them again.
 
If what they said were even remotely true, all our clients would be screwed as our first generated invoice always prints out as "Tax Invoice" and any additional copies are clearly noted as "Copy Tax Invoice" - this is a function hardcoded into this software package that is used industry-wide.

Your VAT calculation seems fine b1scu1t
750/114*014 = R92.105263157894736842105263157895 VAT
750/114*100 = R657.89473684210526315789473684211 Excl VAT

The wrong way of calculating VAT on R750incl would be:
750*0.14 = R105 VAT
750*0.86 = R645 Excl VAT

Tsk tsk tsk
 
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You should see the crap people issue as "tax invoices" - I'd say about 25%+ don't meet the legal requirements for tax invoices. SARS knows this, so they cut people some lack when it comes to claiming on borderline invoices.

only gave me R645 credit?
Credit notes should mirror the invoice 100% - including the VAT portion.

he now wants me to bring him an affidavit stating I did not claim the VAT on the original invoice, then only can he give me R750?
He is full of sht. The value of the credit note is entirely unrelated to whether it was claimed or not. Affidavit - lol - tell him he can fetch it at the small claims court.

his accountant is very misinformed.
The term "Accountant" isn't regulated in anyway (unlike CA), so you can call yourself an accountant if you scraped through accounting in matric. As a result the quality of "accountants" varies from brilliant to barely capable of adding 2 numbers. I'd imagine the Titan is a CC. CC's are required to have an "accountant". The brilliant flavored accountants have better things to do than battle with CC's bull.

All of the above, assumes of course that OP is correct - which might not be the case given that we've only heard one side of the story.
 
The term "Accountant" isn't regulated in anyway

All of the above, assumes of course that OP is correct - which might not be the case given that we've only heard one side of the story.

Interesting about the accountant term not being regulated. I think he is probably his own accountant and just said it to scare us off. :confused:
The confrontation the next day was handled by someone that studied accounting, and handled it much better than I would've since I already tried reasoning with him at his store the previous day and he had no problem making me look like a fool in front of other clients and his staff.

I know some will be sceptical and it's for the people that also received credit note that might at least want to have a look at the math :) I'm pretty sure someone else tried giving them a copy before.

I will definitely be willing to sign an affidavit for all of this, obviously the telephonic confrontation was handled by one and witnessed by a second person and I will even be willing to upload the documentation they gave me, if that's not against some kind of rule on the forum? Just want to be sure first :)
I can also take the affidavit stating everything as it is here and ask the manager to verify and sign it. He wouldn't want to but he won't be able to object to any details.

Anyone can phone their shop and ask a staff member if they will accept a "Copy Tax Invoice" to pass full credit. :)
 
Tax fraud to me ... Maybe SARS should have a little inspection.
Now he claimed the VAT twice. The R105 that he stole from you and he's going to claim it again when he files his tax returns
 
Report them to SARS, let him explain to them his double VAT deduction thingy.
 
he now wants me to bring him an affidavit stating I did not claim the VAT on the original invoice

What you claim or don't claim doesn't have anything to do with anyone except SARS.

I was told by the manager that they will not accept a “Copy Tax Invoice”
They require the document for their own internal records. They have to accept the documents that they issue themselves. SARS would also accept a copy of a tax invoice. We work with SARS regularly and they are quite reasonable when it comes to supporting documentation.

The purpose of the credit note is to reverse the original transaction from the seller's side. Otherwise the seller would have a 'fake' sales invoice which overstates Sales and increases his output VAT(That he has to pay to SARS). I don't know why he wouldn't want to issue the credit note as per the invoice. He has to refund you your VAT portion.

I don't believe he consulted his accountant on this matter, any accountant would know that this is incorrect.

Report suspicious activity here: https://secure.sarsefiling.co.za/AdHocCaseSourcing
 
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Well, this post cost them (Titan Ice) much more than R105...
 
To be fair to both parties, I just want give an update.
The Manager phoned me this morning and admitted fault. Asked me for my bank details so I'm assuming the affidavit is not necessary anymore.

Very curiously I had to ask about the actual issue I have with this entire ordeal, how long has this has been carrying on for? I was told that this was only a mistake under special circumstances as well as the person normally handling this, was absent that day. So me not having an original tax invoice was a rare phenomenon?
I have to say, judging from past experience, I find it kind of hard to believe the average manager lets staff do things differently than what a manager himself would, or is it just me? How else did one of the staff members tell me 3 days before that I need the original invoice and if I'm not wrong, the very same staff member went to ask the manager if the copy is acceptable when I handed it to him at the shop, only to come back and tell me it isn't?
Would the person normally working with this, really have accepted a copy? :-/
Just my 2c

Told him I think his accountant has no clue what he's doing because apparently the accountant says an original tax invoice makes the process easier/better (for lack of a better word). Since Thursday (7 Feb) till now, it went from illegal to somewhat acceptable?
C'mon, I'm not some naive fool.

Offering to have something delivered to my house out of goodwill, I kindly declined. I just don't believe in being nurtured, I only want what is fair and honest, nothing more, nothing less, and the damage is done and now I will look for another shop I can trust to have my back.

I wouldn't be surprised if I'm bad mouthed behind my back right now for the public scrutiny, but hey, sooner or later every bully will meet his match and if learning things the hard way might make their next customer's experience better, then so be it, I'll be the a--hole this time. THIS was the reason I didn't keep my mouth shut. My conscience is clear.

If they're reading this, I hope they and hopefully others realize not to underestimate the average joe walking through your doors. If you don't do your own research, a customer will publicly do it for you.
 
mehhh, they saw this thread, saw report to tax man and tried to make nice with you....
 
This thread is No 3 on my Google search for Titan Ice. Not a good idea to have negative posts on the one of the biggest SA websites
 
To be fair to both parties, I just want give an update.

Thx for the update. I'm glad they came to their senses. I'm also quite intrigued about the 'actual' reason behind all of this. You do not tell the client something is illegal unless you are 110% sure of your facts.
 
This is very def a case of seeing this thread, then trying to make nice with you specifically so that you don't report them to the tax man.

They are more than 100% definitely still pulling the same shyte with their other clients.
 
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