There's a special list of documents or company records prescribed by the Companies Act. These documents must be kept in written form or in a manner that allows you to convert that information into a written form for a period of five years.
Failure to do this could result in SARS winning disputes over your company when you fail to prove expenses incurred or income received because of inadequate record keeping. 'SARS'll hold you responsible for any mistakes or transgressions and your company will have to foot an expensive bill or worse jail time for the business owner,' warns the Practical Tax Loose Leaf Service.
Here's how to avoid becoming one of the statistics.
Ensure your company always keeps these two financial records on file
Remember to always keep these records. If you don't stick to these, your company will be found guilty of tax evasion and will either face a fine or go to jail for two years. You'll also suffer additional financial losses as SARS might invoke other Act provisions like additional tax and penalties.