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Six objectives SARS tries to achieve with its audit programme

by , 25 August 2014
Part of preparing for a SARS audit, is understanding the process. You must know what it hopes to achieve so you can ensure the outcome is in your favour.

There are, in fact, six objectives to a SARS audit. If you don't you'll end up with unwanted penalties and hassles.

If you familiarise yourself with these objectives you can better understand the intentions behind the SARS audit. This will go a long way to protecting yourself against harsh punishments.

That's why today, we're revealing what those six objectives are...

 

SARS has six objectives when it comes to audits. Here's what they are

 
1. SARS adopts a risk-based approach when it comes to selecting the cases it audits. Some audit targets are random, but it'll also audit taxpayers that appear as tax risks.  In this way, it hopes to increase tax compliance.
 
2. SARS wants to counter tax evasion and avoidance schemes.
 
3. It wants to encourage voluntary compliance. What this means is that you'll learn not to make mistakes with your taxes because of the punishments you'll face if SARS picks up on them.
 
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4. It's proactive about doing desk audits, especially around high-risk areas such as travel allowances for desk bound secretaries. 
 
5. SARS conducts field audits in line with the identified risk, for example when your Vat claims don't add up.
 
6. SARS aims to be consistent in its audit processes so no matter which auditors audit your business, you get the same treatment from the taxman. 
 
Now that you understand why SARS conducts audits, you can begin to understand how it does this. This is very important when it comes to preparing your company's financial records for the possibility of an audit. 
 


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