Prevent a SARS audit in your business today as SARS gets stricter than before!
Minister of Finance Pravin Gordhan has just spoken out on SARS' success in meeting this year's tax revenue target. It's impressive, as SARS managed to collect R4 billion more than its target. SARS's done so by tightening up compliance issues and investigating when businesses claim large tax refunds through the SARS Large Business Centre - here's how to make sure your business doesn't get caught out for doing so and trigger a SARS audit!
For the 2012/13 financial year SARS collected R814.1 billion in taxes.
That's 0.5% above its revised target from the 2013 Budget Speech.
Finance Minister Pravin Gordhan says this is proof it's on the look-out for tax compliance issues and any warning signs that your business is a tax avoider.
The main reason SARS conducts tax audits: Compliance
Because in a tax audit, SARS is ultimately assessing your compliance – whether it has reason to suspect you of tax evasion or not, says InspiringWomen
As proof of this, the SARS compliance division brought in more than R85 million in outstanding debt and in making smaller emerging businesses tax compliant.
But it's not just the smaller businesses that coughed up more, says SARS
Larger businesses were also targeted by the SARS Large Business Centre, which brought in R281 billion in total revenue collection for 2012/13.
SARS did this purely by monitoring refund payments more closely.
Thinking about claiming for a larger tax refund than your business is due? Think again…
This alone resulted in additional revenue of R1.02 billion where taxpayers could not substantiate refund claims.
That's why you need to make sure you always keep your financial records and tax invoices for at least five years, says FSP Business
There you have it. SARS is stricter on compliance than ever before – make sure you're paying your business' taxes over to SARS correctly or you could just face a tax audit, says SARS
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