Seven easy ways to protect your business from tax fraud!
White collar crimes like fraud and minor theft tend to be blown off by businesses as petty or not worth prosecuting. The general attitude is: 'Everyone does it'. But you won't get away with it - nor should your employees. Here are seven steps you can use to protect your own business from fraud...
White collar crimes
are committed every day, according to Lungelo Hlongwa, MD of Anderson Harryson Consulting on Sunday World
We don't get to read about them that often he says, because nobody 'cares about some nerds who found a loophole in the company's processes and took a few hundred thousand or a few million rand!'
By somebody does care:SARS
A court-appointed curator will approach the North Gauteng High Court to interdict tax fraud accused David King from interfering in attempts to attach his property, reports Barry Bateman on EyeWitnessNews
King owes SARS
more than R2.6 billion, and has been engaged in litigation with SARS
for more than 11 years.
SARS isn't the only one concerned about rising tax fraud…
The five BRICS countries (Brazil, Russia, India, China and South Africa) have agreed to expand tax policy
co-operation and step up their fight against tax evasion
, according to RiaNovosti
'We agree to extend the cooperation on the issues of tax policy
and tax administration
, including development of a BRICS mechanism to facilitate countering abusive tax avoidance transactions, promotion of effective exchange of information,' said a joint communiqué quoted on Ria Novosti.
Here's how you can take steps to avoid tax fraud or evasion in your own company
Those in charge of payroll departments need to work very closely with the internal auditing
divisions of their companies to avoid fraud
from slipping in, says Hlongwa.
But traditional controls on their own won't guarantee your business is safe from swindlers, warns The Practical Accounting Loose Leaf
. A clever fraudster will cover his tracks well – and you won't know you've been defrauded 'til it's too late. It's not enough to just scrutinise your accounts every month to detect patterns that shouldn't be there. You must have good overall business controls
in place to ensure your employees don't even think of fraud
Follow these seven steps to ensure you have sound business controls
For more information on protecting your business against fraud click here...
Step 1: Communicate and enforce ethical values
Step 2: Make a strong commitment to efficiency
Step 3: As the manager or owner, participate in the day-to-day running of the business
Step 4: Let everyone know your approach to risk-taking and filter it through the entire organisation
Step 5: Make sure you can achieve your company goals with the structure you choose
Step 6: Assign responsibility and authority to employees
Step 7: Implement proper HR policies and procedures when you recruit, orient, train, evaluate, counsel, promote and compensate your employees
Note: 5 of 1 vote