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What are your legal obligations when it comes to financial statements in your business?

by , 05 January 2017
What are your legal obligations when it comes to financial statements in your business?If you run a registered company or a close corporation, you have a legal obligation to prepare financial statements. And you have to present your financial statements to SARS.

If you don't prepare them correctly, you may declare incorrect income and incur penalties and fines from SARS. Or you could present a false picture to any person who relies on your financial statements to make business decisions.

So read on as I tell you what your legal obligations are when it comes to your business' financial statements.

How to improve your accounting management

Three easy steps to improve your company's accounting management in 2017
The second quarter of the year is almost finished but you still have a chance to improve the way you run your company and do business. This includes your accounting management.
After all, if you can't manage your finances properly, your company won't grow.
Now's the time for you to make the changes you need to get your company to grow and succeed.
To help you do this, I'm going to show you 3 easy steps that will improve your accounting management and get you on the fast track to financial success in 2017.

Read on to find out what they are...

SARS is hungry for money. Your money.

It's teetering on the edge of around a R150 million shortfall of collected taxes... and if it fails to get this money, lights will go off, roads will crumble and water will become undrinkable.

So, SARS' only hope is to go after taxpayers with a vengeance.

But not individual taxpayers.

No. It's set its sights on corporate taxpayers, like you.

And that's why it doesn't want you to see this letter...

Question asked on the Accounting and Tax Club

Client was in a legal battle with a supplier and won. Can our client claim input VAT on the legal expenses?

Client was in a legal battle with a supplier. Our client won the case and the other party was instructed by court order to pay our client's legal fees amounting to R520 000.

Our client claimed input VAT when incurring the legal expenses originally. No VAT amount was indicated on the court documents where the amount to be paid out was stipulated.

Is input VAT applicable on this transaction? Is output VAT payable on this "reimbursement" of legal fees? And if so what section of the VAT act deals with this?

Find out what the expert answered here…

Be 100% sure of every input tax you claim

Can you really afford not to be 100% sure about every input tax claim you submit?

Most VAT vendors make one of two big mistakes when claiming their input tax.
They either:
  1. Don't know about certain input tax deductions which SARS allows, and then lose out on important cash flow savings for the business; or
  2. Claim when they shouldn't and face SARS penalties and assessments!
Don't make the same mistake.  Here's how to be 100% sure about all your input tax claims


Every South African tax law explained by our experts

The Practical Tax Handboook 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.
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