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SARS will nail you if it catches you committing these two offences

by , 19 August 2014
SARS doesn't mess around when it comes to its money. That's why it's so quick to apply its no nonsense attitude and punish your company.

If it catches you for breaking the rules, those punishments will come thick and fast. They'll include audits, fines and legal charges.

So watch out and avoid these two punishable tax offences...

 

Avoid these two tax offences at all costs

 
Offence #1: Tax avoidance 
 
This is when you try to pay less tax by funnelling your money into tax free transactions. SARS is always on high alert for tax avoidance. It'll look to see if you'd normally enter into a particular transaction or if you only entered into the transaction to get a tax-free benefit. 
 
If it comes to the conclusion that this isn't a normal transaction, it'll penalise you for tax avoidance. This penalty could be 200% of the amount of tax you owe or it may even press criminal charges.
 
The second offence is even worse...
 
*********** Reader's choice  ***************
 
Avoid 200% tax penalty
 
 
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Offence #2: Tax evasion
 
Tax evasion is a very serious offence and it can lead to hefty punishments. Take what happened to Julius Malema for example. SARS found him guilty of tax evasion and seized assets from his home to cover the amount he owed it.
 
Julius got off lightly when you consider that tax evasion can lead to legal charges and even jail time. In this situation, if SARS can prove you guilty, it'll come after you to try recover the money. 
 
It can first place serious fines and penalties on you. If you still don't pay the money you owe it or the fines, it'll seize assets and charge you with criminal offences. 
 
Don't commit these two offences because, even if you avoid paying tax for a while, you'll be in huge trouble later on.
 


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