Taxing authorities from Tennessee to New Jersey are reporting shortfalls and lags in collections activities, says Forbes
That's why US tax
authorities are becoming more aggressive and seizing assets to make up revenue shortfalls.
And SARS is on a similar tax
collection drive at the moment.
Just look at Julius Malema for proof.
The National Prosecuting Authority's Asset Forfeiture Unit has pounced on Julius Malema and attached a R4 million farm, which is now being auctioned off, according to IOL
That's because Malema could owe SARS up to R16 million, says MoneyWeb
But it's businesses that are the hardest hit when SARS does a tax audit
The problem is, there are lots of grey areas involved in tax
, where businesses can be breaking the tax
laws without even knowing it.
The most common tax
type business owners struggle with?
It's up to you to pay over CGT correctly and keep track of all the assets your business disposes of…
SARS won't remind you about this as it can't keep track of your assets, so there's no set deadline for this that applies to everyone, to remind you when your capital gains tax
And if you're under a tax audit
, you'll face huge penalties from SARS if it finds hidden assets that you haven't included as 'assets and liabilities' in your business tax
That's why FSP Business
suggests you update your business' asset register.
Make sure that you've listed property as well as any kind to assets that are movable or immovable, tangible or intangible, says SARS
Fill out the 'assets and liabilities' section of your tax return correctly!
Then be sure to mention any assets you've disposed of in the 'assets and liabilities' section of your tax
If SARS does audit your business, at least you'll have proof of accounting for all your assets correctly, which means there's less chance you'll face penalties from SARS.