Electronic records are any records that you keep or store in an electronic format on a computer or any other electronic device. You could've originally created these records electronically or converted them from non-electronic form,' says the Practical Tax Loose Leaf Service.
While this has certainly made it easier for companies to save time and money when storing records, under the Tax Admin Act, there are three requirements you must meet to keep records electronically.
Three requirements for keeping company records electronically
#1: The information must remain complete and unaltered, except for the addition of any endorsement and any change that arises in the normal course of communication, storage and display.
#2: Ensure your records are easily accessible to SARS and in a format it can read and analyse. If you send documents to SARS, it must be able to open them without difficulty.
#3: You must make your records available to SARS for it to get any information that could be related to a taxable event or to see if you've filed or submitted your returns correctly.
Remember, you must keep and maintain all your records within South Africa. If you can't, because your company is a branch of a foreign head office, you're required to get authorisation from a senior SARS official to store them outside of South Africa.
Knowing what's required of you if you want to keep electronic records will ensure you don't contravene the Tax Admin Act.