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Three TAA rules your record keeping must comply with

by , 29 April 2014
Your company records must match up to what the Tax Administration Act (TAA) wants. If you fail, the taxman could slap you with penalties of up to 200%. That's a risk your company can't afford to take. Here are three rules you must always abide by.

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

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The TAA requires you to stick to these three rules when keeping company records

#1: You must keep your company records in their original form or in a manner authorised by SARS or by a senior SARS official, says the Practical Vat Loose Leaf Service.

This is so SARS can satisfy itself that you've kept to the law.

#2: The TAA requires you to keep company records for five years.

This includes things like: Ledgers, cash books, journals and tax invoices. If you want a full list of the 16 financial records you must keep, click here.

#3: Make sure your company records are available and open for SARS inspections.

SARS can come to your premises unannounced to ask questions about your records. So make sure you have everything available.

Also keep the following points in mind when it comes to keeping company records…

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Errors in Vat invoices could cost you thousands!

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

Click here to find out how to make sure your Vat invoices are 100% legal.
 

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Record-keeping is the most important aspect of your Vat management strategy

Your records are the proof you need to substantiate your claims and returns to SARS.

The taxman can conduct a Vat audit on you within five years of assessing your Vat returns to query your audit trails and accounting methods. If your records don't comply, you'll face penalties of up to 200%.

We've just scratched the surface regarding record keeping. If you want to find out more about this topic, the Practical Vat Loose Leaf Service has more on what you need to do to comply and avoid penalties.



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