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19 activities SARS counts as suspicious activities. Make sure SARS doesn't charge you as a co-conspirator of one of them

by , 25 November 2014
Every taxpayer has to abide by the tax laws. But you also have a responsibility to report anyone that doesn't comply by SARS' rules.

If SARS finds out about these activities later and can prove you knew about it and did nothing, it can charge you as a co-conspirator and charge you with a criminal offence.

That's a risk you can't afford to take.

But what does SARS consider as 'suspicious activities' so you can report it?

Read on and find out...

 
*********** New release  ************
 
Know the Law on Avoiding Tax: You Are Now Presumed GUILTY
 
Dealing with SARS and acing your SARS Audit
 
SARS has been dealt a better hand in dealing with you if you try to avoid tax. SARS knows where it stands. The question is: do you?
 
Do you plan on obtaining an 'innocent' tax benefit? If your main or only reason for entering into any arrangement is to receive a tax benefit, SARS will brand you guilty of avoiding tax...and guess who has to prove their innocence… YOU!
 
 
**********************************
 

SARS considers these 19 activities as suspicious 

 
According to SARS, suspicious activities include: 
 
1. A person or business that's eligible for any type of tax but doesn't pay any of it.
2. A person or business that employs people and deducts PAYE from the employees but doesn't issue IRP5 certificates to the employees.
3. A company that sells imported goods on the open market at a price lower than 'landed cost' i.e. less than what it would cost to purchase the goods, transport them and pay Vat and duty on importation.
4. A person or business eligible for any type of tax, registered for the tax, but doesn't submit the tax returns SARS requires from it.
5. A person who's living beyond his obvious financial means – displaying unusually high life-style patterns for a person with similar forms of income.
6. An importer (including the clearing agent) that hasn't declared, mis-declared or under-declared goods upon importation on more than one occasion.
7. An importer or exporter (including the clearing agent) that enters a Voucher of Correction on more than one occasion.
8. An importer or exporter (including the clearing agent) that imported or exported illicit goods (drugs, fire-arms, explosives, CITE described items, counterfeit goods).
9. A person or business that might illegally have mixed fuel of any kind (e.g. petrol, diesel, paraffin).
10. A person that carries an unusual large amount of money, in any form, while travelling into or out of South Africa.
11. A person or business trading in goods that may be counterfeit of original brands.
12. A person or business that imports or exports frequently using the common 7070-customs code on Bills of Entry.
13. Anyone that derives income from criminal activity. 
14. A person or business that submits Vat refund-claims that are fraudulent and don't reflect the truth.
15. A person or business that's liable to register for Vat but hasn't.
16. Customs warehouse irregularities.                                                              
17. People of businesses involved in different forms of structure financing.
18. A person or business that owes SARS money because of an assessment or schedule but hasn't paid SARS.
19. A person that doesn't submit the truth in their return or submission to SARS.
 
So how do you report this suspicious behaviour?
 

Here's what you must do to report anyone guilty of this suspicious behaviour

 
If you know of a taxpayer or business who isn't complying with tax laws, tell SARS as soon as possible by:
Filling in the suspicious-activity report form on eFiling; or
Phoning the fraud and corruption hotline on 080 000 2870.
 
Now that you know what counts as suspicious activities, report any to SARS so it doesn't treat you as an accomplice. 
 


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