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How to survive a SARS Tax audit!

by , 11 November 2015
Every year more than 100 000 taxpayers are audited and if you're one of the unlucky few SARS audits, then the 'fun' has just begun.

SARS will dig deep into your records to make sure you can back-up your claims on your tax return or to see if you're hiding any money.

They will check every book and financial record to make sure you're not concealing any money and can back up your claims on your tax return, with the correct paperwork.

But, this doesn't have to be a daunting task. There's an easy way for you to be prepared for your audit. Here's how...

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Reduce your SARS audit headache!

This guide reveals audit secrets like:

• What risk areas SARS' auditors are interested in
• 4 Expenses SARS target during an audit
• What SARS will consider about your transfer duty
• The 9 risky strategies used to avoid tax liability
• 11 Questions you'll be asked about your cash flow

And so much more…Click here to find out more

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Make sure you know what's required for an audit to reduce the chance of this happening to you.

What documentation will SARS request in an audit?

When SARS wants to perform an integrated audit, they will ask for the following 9 things:
  • Financial statements, trial balances and general ledgers;
  • All source documents including invoices and other supporting documentation;
  • Bank statements;
  • Cash books;
  • Schedule of debtors and creditors and age analysis;
  • Payroll documentation – IRP5 and IT3 certificates, pay slips, letters of appointment, employment agreements, companies' labour policies and procedures, letters of increase, tax directives, record of staff loans, record of company vehicles, rules of medical aid and retirement funding;
  • Assets register;
  • VAT input and output schedules and supporting invoices;
  • And anything else they deem necessary.

Read on for 7 things you need to remember when it comes to a SARS audit...

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Save your business from penalties by being an instant audit expert!

With penalties as high as 200%, you can't afford to stay in the dark about the auditing process.

You need to know your rights, your responsibilities and obligations, and you need to know them before it's too late…

Click here to become an instant audit expert.

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7 things you need to remember when it comes to a SARS audit

1. SARS will audit you if they feel they need more information or if you're withholding something;
2. This doesn't mean they can knock your door down! You still have rights and they must give you reasonable notice — generally 21 days, but 10 days in the case of a field audit or criminal investigation;
3. You can, and must, refuse to comply if SARS doesn't have the correct documentation to conduct their audit;
4. Request that SARS give you notice (or any follow-up queries) in writing before going any further;
5. The prescription period for SARS is generally 3 years and 5 years in VAT cases;
6. If your financials suddenly change drastically, you'll pop up on SARS' radar screen; and
7. Apart from the tax laws stated above you can also rely on the Constitution and the Promotion of Administrative Justice Act (PAJA) to safeguard your rights should SARS employ unreasonable and unauthorised tactics.

P.S. Click here if you want to save your business from penalties by being an instant audit expert! 


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