HomeHome SearchSearch MenuMenu Our productsOur products

Do this one thing to 'audit-proof' your relocation costs

by , 16 July 2014
Relocating an employee can cost you a fortune especially if it's to another province or country. For example, you may have to deal with:

• Moving expenses (transporting your employee and his household);
• Hiring professional movers;
• Costs of boxes and packing material;
• Fees to break the lease if your employee's renting; and
• Temporary storage costs until your employee finds a permanent home.

In addition to these costs, you also have to worry about the tax consequences because if you make one wrong move SARS will audit you and slap you with penalties.

But it's not all doom and gloom.

You can 'audit proof' your relocation costs if you do this one thing...

*********** Advertisement ************

Every South African tax law explained by our experts

The Practical Tax Loose Leaf Service offers you:

  • All the definitions and legal regulations, useful advice, exceptions to the rules that help you slip through the legislative jungle of taxes.
  • Case studies and practical examples that show you what elements you should consider for your taxes to be perfect.
  • Red flags you need to watch out for and the penalties you'll face if you don't respect them.
  • Sample templates at your disposal, ready to be filled in, customised and printed.

Click here for more details

**************************************

'Audit-proof' your relocation costs with this tool

The best way to 'audit-proof' your relocation costs is to have a policy that deals with relocation payments.

This is vital if SARS decides to do an audit on either your payroll or your company income tax.

Remember, tax law says if you think an amount qualifies for deduction from taxable income or is exempt from income tax and you claim it as a deduction, you have to prove it to SARS.

Your policy will come in handy when it comes to this.

It'll help you prove your relocations costs are above board. In addition, it'll help you claim relocation expenses correctly.

If you want a sample policy, check out the Practical Tax Loose Leaf Service.

In addition to your policy, keep all supporting documentation for five years after the end of the tax year that you transferred an employee.

This will help you prove your expenses in case SARS audits you.

There you have it: The only way to 'audit-proof' your relocation costs is to have a policy that deals with relocation payments.



Related articles




Related articles



Related Products



Comments
0 comments


Recommended for You 

  Quick Tax Solutions for Busy Taxpayers – 35 tax answers at a glance



Here are all the most interesting, thought-provoking and common tax questions
asked by our subscribers over the last tax year – everything from A to Z!

To download Quick Tax Solutions for Busy Taxpayers – 35 tax answers at a glance click here now >>>
  Employees always sick? How to stop it today



Make sure you develop a leave policy to regulate sick leave in your company.

BONUS! You'll find an example of the leave policy and procedure in this report.

To download Employees always sick? How to stop it today click here now >>>
  Absenteeism: Little known ways to reduce absenteeism



This FREE e-report will tell you how you can reduce absenteeism in your workplace while avoiding the CCMA and without infringing your employees' labour rights.

To download Absenteeism: Little known ways to reduce absenteeism click here now >>>
  7 Health & safety strategies to save you thousands



Don't let a health and safety incident cost you one more cent. Implement these seven
strategies in your company today.

To download 7 Health & safety strategies to save you thousands click here now >>>