Oscar Pistorius is having a rough time at the moment.
Set to appear in court next week, SARS has found that Pistorius wasn't honest about all his assets that he was made to declare during his bail hearing, says TheDailyMaverick.
While Pistorius said in a court affidavit during his R1 million bail application that he owns three houses and a vacant plot with a combined value of nearly $1 million, Pistorius is said to also own another house in Johannesburg.
As a result of Pistorius' undeclared assets, SARS has fined him for unpaid taxes, adds TheIndependent.
But you don't have to be in the media limelight like Pistorius to attract SARS's attention.
Because chances are your business will face a tax audit
at some point, as SARS is doing all it can to increase taxpayers' compliance.
Here's why your business is likely to face a tax audit by SARS…
A tax audit
is usually triggered if there's a discrepancy between your asset base and declared income.
That's why SARS' main focus will be a review of the structure of your business' tax
And simply putting a zero in the wrong place on your business tax
return is enough to trigger a tax audit
by SARS, says FSP Business
If SARS then finds you've been hiding assets, you'll face huge penalties as you won't have been paying your capital gains tax
over to SARS correctly.
So best you make sure everything's in order when it comes to declaring your assets to SARS, says FSPBusiness
The easiest way to ensure your business declares all its assets correctly to SARS…
You can do so by keeping an asset register, which is a record of all the fixed assets like property, equipment, motor vehicles and machinery that your company owns, that goes into detail to describe the assets' cost price and purchase date, says the Practical Accountancy Loose Leaf.
If this seems like a mammoth task and you don't already have an asset register in place, get started today by doing a quick inventory.
Then, all you need to do is remember to update your asset register each time you buy or sell any assets in your business.
That way, you won't get 'confused' about your assets like Pistorius did, when SARS audits your business.