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Do you know why you need to keep your financial records after a SARS assessment?

by , 01 September 2014
Just because SARS has finished auditing you, doesn't mean you can just throw your financial records in the paper shredder.

You still need to hang onto them or it could land you in serious trouble later on.

Here's why...


Here's why you can't just shred your financial records once SARS finishes its audit

If you lodge an objection or appeal against an assessment, you must keep all relevant records until the assessment's finalised, or until after the courts give a final decision on the matter.
SARS can take years to resolve your dispute. Then it takes even longer for a hearing to reach the Special Court. You must still keep your records even if the five year retention period has passed. 
But that's not the only reason you need to keep your records. Keep reading to find out the other reason...
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Legally pay less tax

Here's another reason you need to keep your financial records

SARS could still ask more questions in future. Because of this, you should keep your records even after SARS performs an audit, pays you your refunds or places a penalty on your business. 
If SARS decides it wants to check one of your records or even re-audit and assess your business, you need to be able to send it the documents it wants.
Just remember, SARS has a three year prescription period, so if you have any doubt whatsoever, keep your records for longer than the five years!
And remember, keep your records in a safe place. It'll help ensure SARS can't come after you without a just cause because you'll have the records to prove it wrong.

PS. Find out how to take the hassle out of tax, audit-proof your business and make the Receiver your friend!

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