Has SARS sent YOU a nasty penalty assessment because your provisional taxes were incorrect?
Picture it: You submitted your provisional taxes before the 28 February deadline.
And you were pretty confident that you had everything right…
But now you're staring at a nasty letter from SARS, demanding you pay penalties for the errors you made.
You'll be paying SARS an administrative penalty of up to R4 000! And this penalty amount doubles after thirty days… Plus interest
. Oh, and don't believe for one second that SARS will listen to your excuses… Pay now, argue later, it says.
Getting the thumbs-up from SARS isn't simply about handing in a return on time. It's also about getting the estimates, calculations and paperwork 100% right…
Click here for more details…
Use these checklists to see if you have the right documents for calculating provisional tax
Companies must have:
An income statement, or an extract from your accounting records which indicate profits or losses;
Invoices for both income as well as expenses; and
If applicable, a list of income items which are not taxable, as well as a list of expense items which are not deductible.
Individuals require more documents than companies. They are:
Proof of your business expenses;
Bank account statements (for the last three months at least;
Details regarding your medical aid expenses;
A list of retirement annuity contributions;
A list of donations to section 18(A) charities;
A logbook which documents private as well as business travel. Also, any expenses relating to maintenance, fuel, insurance and licensing; and
A list detailing all of your capital gains. This is because your capital gain could actually push you over the R1 million mark and into 'tier 2' (Tier 1 provisional taxpayers have a taxable income of less than R1 million, while Tier 2 provisional taxpayers have a taxable income of more than R1 million).
In the past, all individuals had to be provisional taxpayers, in which we all made provisional payments during the tax year – based on our estimated taxable income.
But things have changed now, and you can either be a provisional or a non-provisional taxpayer.
*To see who is and who isn't a provisional taxpayer, page over to Chapter P 01
in your Practical Tax Loose Leaf Service
handbook, or click here
to order your copy today.