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Do you keep your company records electronically? Follow these two SARS inspection rules or you WILL face penalties

by , 28 April 2014
You have to follow certain rules if you keep company records electronically. If you don't, you'll incur harsh Vat penalties and interest from SARS. Is that a risk you're prepared to take? We didn't think so. Read on to ensure you know the two rules regarding SARS inspections...

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Are there any inaccuracies in your Vat invoices? You may be charged a very high penalty!

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What you need to know about company records and SARS inspections

#1: The Tax Admin Act (TAA) says companies that keep electronic records must have the electronic records available for inspection by SARS:

  • At all reasonable times; and
  • At premises physically located in South Africa, or accessible from such premises if authority has been granted.

#2: When SARS inspects your records, you must be able to show it that you've kept to the rules of using an electronic system.

For example, you must have a manual that explains your electronic record keeping system.

The Practical Vat Loose Leaf Service says this is especially important if you keep electronic records and use computer software or an electronic platform that you've altered or adapted for your purposes.

 

But there's one more thing you need to know about company records and SARS inspections

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Think Vat doesn't apply to your payroll? You're wrong!

Avoid this common error and keep SARS away from your door at audit time.

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You must have the following available so SARS can carry out the inspection without hassles:

  • Electronic signatures;
  • Log-in codes;
  • Keys; and
  • Passwords.

'One tiny error in your company records could make you liable for severe Vat penalties and interest from SARS, say the experts at FSP Business.

But you can easily avoid these penalties if you stick to the rules regarding company records and SARS inspections.

In addition, check out this article. It contains four tips you can use to keep your electronic records safe.

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Do you keep your company records electronically? Follow these two SARS inspection rules or you WILL face penalties
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