SARS auditors can arrive unannounced! But they can only inspect the following 3 things
Did you know that if SARS sees you as a major risk it can get a court order from the judge of a High Court? This will allow it to arrive UNANNOUNCED at your doorstep!
And with the introduction of the new Tax Administration Act, there have been changes in how SARS conducts audits. So, it's important for you to know all there is to... when it comes to SARS audits. Else, you could see yourself with a 200% penalty.
But a SARS official can only carry out this inspection to determine very specific details. Tax laws strictly regulate their inspections. This means your rights are protected too. So you need to know what these 'specific details' are.
Here are the 3 things SARS can look into:
Your identity as the person who occupies the premises;
If you, as the person who occupies the premises, are registered for tax; and
To see if you're keeping the prescribed records for tax. SARS can't use this provision to audit your records! It can only check if you're keeping them.
It's worth noting that SARS CAN'T enter your house without your consent. But if you use part of your property to use business, then it can.
So, there were 3 things that an unannounced SARS inspection can determine. Take note of them and protect your rights!
To learn more, subscribe to the Practical Tax Loose Leaf Service.
Every South African tax law explained by our experts
The Practical Tax Loose Leaf Service offers you:
· All the definitions and legal regulations, useful advice, exceptions to the rules that help you slip through the legislative jungle of taxes.
· Case studies and practical examples that show you what elements you should consider for your taxes to be perfect.
· Red flags you need to watch out for and the penalties you'll face if you don't respect them.
· Sample templates at your disposal, ready to be filled in, customised and printed.
Click here for more details