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Never bin these three documents or SARS will slap you with a penalty

by , 01 September 2014
SARS wants to look through all of your financial records if it audits you. If it finds out that you don't have an important document, it'll suspect you're hiding something.

That's why you need to ensure you keep all of your records in a safe place and don't throw them away. If you do, you may face penalties because SARS could suspect you did something wrong and you can't prove that you didn't.

You must be especially careful to never throw these three documents away...


These are the three documents you must never throw away

1.       Statement of Financial Position (Balance sheets),
2.       Profit and loss accounts (income statement); and
3.       Other accounts to support the information included in the return.
Note: if someone helped you put all of these books together, SARS needs you to keep documents that show that person's details too.
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Avoid costly tax issues

These are the documents SARS will want if someone helped you put these three records together

You and the person who prepared the accounts on your behalf must sign all of these accounts. SARS might need a certificate or statement from you stating who helped you do your taxes for these accounts.
SARS wants to confirm how much detail this person went into when he examined your books of account. It also wants to see the documents he used to write up the books.
You must ask for the certificate or statement from the person who prepared your documents. This statement will be one of the following:
-          An audit report;
-          Independent reviewer report; or
-          Compilation report.
You must keep this certificate and other supporting documents with your records so you can also show SARS this information if it wants to examine any of these three financial documents.

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