Welcome to our monthly newsletter. Not much is happening in the month of June other than the usual VAT and EMP returns.
A date to remember is 1 July as it marks the start of the 2014 filing season for individuals. And to ensure you stay on the right side of the taxman, we have dedicated this issue to look at SARS’ verification and audit process which they have substantially escalated.
As always, thank you for your continued and loyal support. We are sure that you will find this newsletter interesting and useful. Please feel free to share this with friends and colleagues (use the “Forward this newsletter” link below).
It’s an honour to serve you!
The Beancounter Team
BIG BROTHER IS WATCHING
The number of SARS audits conducted in 2013 rose by 42% over the previous year with a total of 15% of all taxpayers being audited in 2013. It is clear – SARS is serious.
Then how do you stay on the right side of the taxman? The answer is simple: declare the correct information. But even this gets complicated, as you need to have the correct paperwork and follow the correct rules. Many taxpayers rely on professionals to guide them.
Unfortunately these professionals are not always fully up to date with their clients’ tax affairs or are simply giving the wrong advice. The end result: taxpayers are charged with hefty penalties or even sequestration (ask Mr Malema).
Taxpayers have no choice but to accept a greater responsibility and ensure they use full time professionals who understand their tax affairs.
And if you think you won’t be audited, think again:
- SARS have been investigating high net worth persons and has already identified 467 of them for further investigation.
- SARS recently gained access to data from all South African banks comparing deposits received vs income declared.
- When you buy new property, SARS needs to clear the transaction. Surely you can’t buy an expensive property and declare low income at the same institution.
- It is true. The most tip-off’s SARS receives are from the people you used to trust the most. The ex-wife, ex-boyfriend, ex-employee or anyone you might have crossed with an unpleasant meeting can become your worst nightmare.
Just be honest when doing your taxes and get good advisors – even if you did not intentionally play the numbers, you will still get a lot of trouble. And remember, even though Wesley Snipes killed all those vampires in Blade, he still did not manage to kill off the taxman… He ended up in prison!
WHAT OUR CLIENTS SAY
After struggling to find a good accounting firm for YEARS, we have been very happy with Anina and The Beancounter’s services. It is a pleasure having you onboard. Should you ever require any form of customer reference in the future please do not hesitate to contact me. – B Gomes