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Six changes to corporate income tax returns you must know about or face 200% penalties

by , 03 February 2015
At the end of 2014, SARS made several changes to its corporate income tax return. And when you submit your company's return this year, you'll need to be up to speed with these changes.

If you don't know what they are, you might make a disastrous mistake. A mistake that could land you a 200% fine for non-compliance.

Don't let that happen to you!

Here are the six changes you need to comply with when you submit your return...

Make sure you comply with these six corporate income tax return changes to comply with the law

1. Interests in Real Estate Investment Trusts (REITs)
If your company has any interest in REITs you have to disclose it. You must also disclose any dividends you got from a REIT. Be clear about the exact amount if you got a dividend.

2. Foreign tax credits
If your company has any foreign tax credits that falls under section 6 of the Income Tax Act you must disclose it. You must also submit a declaration that shows you complied with the requirements of the Income Tax Act.

3. Energy efficient savings deduction
SARS expanded the ITR14 to include a section to disclosure any energy efficient savings deduction you want to claim (section 12L of the Income Tax Act).
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4. Capital losses
If you made any capital losses by giving an asset to a person connected to your company (paragraph 39 of the Schedule Eight to the Income Tax Act) you must disclose it in your ITR14. This applies to losses you disregarded because they fall under this criteria.

5. Interest deductions
If you want to claim any interest deductions you need to disclose any limitations you might have. This applies particularly if the interest comes from transactions for company reorganisation or

6. Affected transactions
If you have any dealings with foreign clients, answer 'yes' to the question about affected transactions in your ITR14. This will open a section about transfer pricing disclosure in your corporate income tax return that you must complete.
But what if you requested your return last year and haven't submitted it yet? Will these changes still apply?
Yes! If you requested your return last year, you still have to comply with these changes
If you requested your ITR14 before 6 December 2014 but haven't filed it yet, it will automatically update with these changes.
You have to make sure you complete them correctly or SARS will fine you up to 200% for having an incorrect tax return.
Before you submit your return, take the time to read over these sections and make sure you completed them correctly.
If you're not sure about the changes and need more information, visit the AccountingandTaxClub.co.za where our experts can help you.
For more information on how to complete your corporate income tax return, check out How to Complete Your IT14SD Form. It walks you through the whole process so you can submit your company's return correctly. 

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