Important Reminder: SARS Income Tax Deadline For 2023

As we approach the end of the financial year, we would like to ensure that you are well-informed about the upcoming deadlines for filing your income tax returns with the South African Revenue Service (SARS).

Deadline for Individual Taxpayers (Non-Provisional): October 23, 2023

For individual taxpayers who are not on the provisional tax system, please be reminded that the deadline for submitting your income tax returns for the 2023 financial year is 23 October 2023. It is crucial to ensure that all relevant documents and information are gathered and submitted before this date to avoid any potential penalties or delays.

Deadline for Provisional Taxpayers: January 24, 2024

For those who fall under the provisional tax category, the deadline for filing your income tax returns is slightly later. You have until January 24, 2024, providing you with additional time to organise your financial records and complete the necessary paperwork accurately.

We understand that the tax season can be a demanding period, and we are here to assist you every step of the way. Our team of experts are ready to help you navigate the complexities of the tax filing process, ensuring that you meet all the requirements and deadlines set by SARS.

How We Can Assist You:

  • Professional Guidance: Our experienced team is available to provide you with expert advice and guidance on the latest tax regulations and deductions, helping you optimise your tax position.
  • Document Preparation: Let us handle the meticulous task of preparing and organising your financial documents, ensuring that all necessary information is accurate and up-to-date.
  • Timely Submission: We will work diligently to ensure that your tax returns are submitted well before the deadlines, reducing the risk of penalties and ensuring compliance with SARS requirements.

Should you have any questions or require assistance with your tax preparations, please do not hesitate to contact us. We are committed to supporting you in achieving a smooth and hassle-free tax filing experience.

We would also like to remind you about our referral incentive, which you can read about here. All recommendations that are successfully referred to PATC are eligible for a referral fee.

Contact PATC Today

So, if you are looking for a reliable, cost-effective, and flexible accounting solution, look no further than PATC’. Contact us today to learn more about how we can help you achieve your financial goals. Take advantage of our one-hour *free consultation now.

If you need assistance in your business’ finances, from accounting to tax consulting and financial management, we can help you. Contact us today and let us know how we can help you.

Now read: Why You Need to Outsource Your Bookkeeping to PATC

 

Why You Need to Outsource Your Bookkeeping to PATC

bookkeeping service

Maintaining accurate and up-to-date financial records is a crucial aspect of running a successful business.  Bookkeeping is the process of recording all financial transactions, including purchases, sales, payments, and receipts.  It is essential to have good bookkeeping services to ensure that your business finances are well-organised, accurate, and compliant with legal requirements.

PATC’s bookkeeping services can help you keep track of your expenses, income, and cash flow, which is essential for making informed decisions about your business.  By having a clear picture of your financial situation, you can make better decisions about budgeting, investing, and managing your cash flow.

In addition, our bookkeeping services can help you identify areas where you can cut costs, reduce expenses, and increase profitability.  We can also help you prepare financial reports, such as income statements and balance sheets, which are essential for securing loans, attracting investors, and complying with tax regulations.

Outsourcing your bookkeeping to PATC can also save you time and reduce the risk of errors or fraud.  We allow you to focus on running your business while leaving the financial management to experts such as ourselves who you can trust.

Outsourcing your bookkeeping services to a specialist such as PATC is crucial for the success of any business.  It can help you make informed decisions, increase profitability, and ensure compliance with legal requirements.

Contact PATC Today

So, if you are looking for a reliable, cost-effective, and flexible accounting solution, look no further than PATC’. Contact us today to learn more about how we can help you achieve your financial goals. Take advantage of our one-hour *free consultation now.

If you need assistance in your business’ finances, from accounting to tax consulting and financial management, we can help you. Contact us today and let us know how we can help you.

Now read: The Benefits of PATC’s Remote Accounting Services

 

The Benefits of PATC’s Remote Accounting Services

remote accounting servicesThe benefits of PATC’s remote accounting services continues to grow and adapt as the world gears towards a more remote working environment. In recent years remote accounting services have revolutionised the accounting industry as the world has witnessed a tremendous shift in the way businesses operate, thanks to technological advancements. The accounting industry has embraced remote accounting services, which has made it easier for companies to handle their finances, regardless of where they are located.

Typically, companies used to approach accounting services that are close to them, largely owed to the fact of collecting information or for important face-to-face meetings. Technological advancements in how meetings are conducted through online platforms, leveraging cloud-based software and remote accessibility, now means that companies can benefit from accounting expertise throughout the country.

Virtual accounting services involve using technology to provide accounting services remotely, without the need for face-to-face interactions. This has revolutionised the accounting industry, making it easier for businesses of all sizes to access expert accounting services regardless of their location. Now companies throughout South Africa can access PATC’s expertise through its remote accounting, bookkeeping and tax services.

Helps Save You Time

One of the primary benefits of remote accounting services is that it saves businesses a lot of time. In the business world, time is money, and with remote accounting services you don’t have to worry about the additional time that is often lost preparing for physical meetings, or travelling to these meetings. Thanks to tools such as Teams, Zoom and Google Meet, meetings are now structured with minimal disruption to your business operations, giving you more time to focus on running your day-to-day operations.

Benefit From Access To Expertise

Remote accounting services give companies access to highly skilled and experienced accountants from around the country. This means that businesses can access expert advice and guidance on complex accounting issues, even if they are not in the same geographic location as their accountant. PATC provide services to small, medium, and large companies across South Africa. In fact, we have been providing our remote accounting services even before Covid-19, which means we are well-experienced in dealing with customers across the country. Our teams can assist in helping you, regardless of the complexities of your business.

Remote Accounting Services Helps You Save Costs

Outsourcing your accounting needs can save you money on office space, equipment, and employee salaries, which means that you only pay for the services you need, without the overhead costs. Our team of experienced accountants is trained to handle a wide range of financial needs. From basic bookkeeping to complex financial analysis, we have the expertise to help you succeed.

Better Flexibility with Remote Accounting Services 

Added flexibility means that the unique needs of each business can be met with tailored solutions. Virtual accounting services are highly flexible and can be customised to meet the unique needs of each business. This means that businesses can choose the services they need, whether its bookkeeping, tax preparation, or financial reporting – all of which can be scaled based on need. So, whether you are a small bakery in Bloemfontein or a large manufacturer in Gauteng, our wide range of services means that we can help in all areas of your business. In addition, our secure data handling procedures means your business is in safe hands – no matter where you are.

Contact PATC Today

So, if you are looking for a reliable, cost-effective, and flexible accounting solution, look no further than PATC’. Contact us today to learn more about how we can help you achieve your financial goals. Take advantage of our one-hour *free consultation now.

If you need assistance in your business’ finances, from accounting to tax consulting and financial management, we can help you. Contact us today and let us know how we can help you.

Now read: Why you shouldn’t ignore financial year end

 

Why You Shouldn’t Ignore Financial Year-end

financial yearendYou’ve probably heard the term “financial year-end” used by businesses, particularly in the business world. But what does it all mean, and why is it important? In this blog, we’ll look at the concept of a company’s fiscal year end and how it affects businesses.

What exactly is the end of the financial year?

A financial year-end is the end of a company’s accounting period, which is typically a 12-month period. During this time, a company keeps track of all its financial transactions and prepares financial statements that show the company’s financial health and performance. The financial year end is the date on which these financial statements are prepared, and it marks the end of the accounting period.

For most companies in South Africa, the financial year-end falls on the last day of February or the last day of March. However, some companies may have a different financial year-end depending on their specific industry or business needs.

Why is a financial year-end important?

The end of the financial year is an essential time for companies because it allows them to review their financial performance over the past year and plan for the future. During this time, companies will often conduct an internal audit to ensure that their financial records are accurate and up-to-date. They will also review their financial statements to identify any areas for improvement or potential risks.

The preparation of financial statements is one of the most important tasks at the end of the financial year. These statements include the income statement, balance sheet, and cash flow statement, which provide a snapshot of the company’s financial health. The income statement shows the company’s revenue, expenses, and profits or losses, while the balance sheet shows the company’s assets, liabilities, and equity. The cash flow statement shows how the company’s cash position changed over the year.

The financial statements are essential for a company’s stakeholders, including investors, creditors, and regulators. These stakeholders rely on the financial statements to assess the company’s financial health and make informed decisions. For example, investors may use the financial statements to decide whether to buy or sell shares in the company, while creditors may use the statements to determine whether to lend money to the company.

The end of the financial year is an important time for companies because it marks the end of the accounting period and allows them to review their financial performance over the past year and plan for the future. The preparation of financial statements is a crucial part of the financial year-end process, as these statements provide a snapshot of the company’s financial health and are relied upon by stakeholders. By understanding the concept of a financial year end, businesses can ensure they are well-prepared for this crucial time in their financial calendar.

If your company is nearing the end of its fiscal year and you need help preparing financial statements or conducting an internal audit, you should seek the assistance of professional accounting services. A qualified accountant can assist you in the process, ensuring that your financial statements are accurate and in accordance with South African regulations.

Don’t leave your financial year-end preparations to chance. Contact us today to ensure that your business is well-prepared for this critical time. A professional accounting service can help you streamline your financial reporting, optimise your tax position, and identify areas for improvement.

Keep in mind that a well-prepared financial year-end report can provide valuable insights into your company’s financial health and help you make informed future decisions. So don’t wait until the last minute—contact us now to ensure that your financial year-end is a success.

Contact PATC Today

If you need assistance in your business’ finances, from accounting to tax consulting and financial management, PATC can help you. Contact us today and let us know how we can help you.

Now read: Gavin Bacon Reappointed to Tax Court

 

Gavin Bacon Reappointed as Tax Court Member

Gavin Bacon, member of tax court

Gavin Bacon, PATC Owner

Tax Court Member Reappointment

Professional Accountants and Tax Consultants (PATC) is proud to announce the reappointment of Gavin Bacon as an accountant member of the Tax Court of South Africa. This prestigious appointment was recently made on the 4th of January 2023. Gavin is no stranger to the Tax Court having been a previous Commercial Member of the Tax Court of South Africa from 2017 to 2022.

What does it mean to be a member of the tax court?

The Tax Board is established by the Minister of Finance under section 108 of the Tax Administration Act. It is not a court as referred to in section 166 of the Constitution, but an administrative tribunal created under the Tax Administration Act. The Tax Board hears tax appeals involving tax in dispute that does not exceed the amount determined by the Minister.

When taxpayers are aggrieved by an assessment or not satisfied with a decision taken by SARS if the decision is subject to objection and appeal, they have a right to dispute the assessment or decision. Once a dispute with SARS gets to a certain point, it becomes clear that the matter will require judicial intervention. Where alternative dispute resolution (ADR) is not successful or is otherwise not suitable, the next stage is for the taxpayer to take the matter on appeal to either the tax board, or the Tax Court.

What does a tax court do?

The tax board has jurisdiction over tax disputes that do not exceed R1 million, unless otherwise agreed to between SARS and the taxpayer (for example, where the matter is complex). An appeal before the Tax Court is heard by a panel which generally includes a judge or acting judge of the High Court (as the president of the Tax Court), an accountant member and a commercial representative member.

To be considered as a member of the Tax Court one must:

  • possess appropriate experience;
  • perform their functions independently, impartially and without fear, favour or prejudice by virtue of their qualifications, expertise and experience in the fields of their industry; and
  • be a South African citizen who permanently reside in the Republic.

It is clear that Gavin’s exceptional background as a highly-respected and revered accountant, and his more than 34 years’ of experience lends him most suited to this role. PATC is proud of this significant achievement that speaks so highly of the level of professionalism and experience that all PATC clients enjoy.

Contact PATC Today

If you need assistance in your business’ finances, from accounting to tax consulting and financial management, PATC can help you. Contact us today and let us know how we can help you.

Now read: Working from home and tax implications

 

Working From Home and Tax Implications

While working remotely has become a norm for many companies it does come with certain complications such as a scattered workforce and its various tax implications. While many offices are equipped to help employees work efficiently, working from home for long periods of time can become challenging, the need for equipment and supplies therefore becomes substantial.

If you are an employee who works from home, here are some important points to take notes of.

  1. Reimbursements

  • These amounts have the benefit of not being taxable, as they do not constitute remuneration.
  • The employee must bear the office expense first and keep all invoices and receipts to be able to claim the amount from the employer, and the expense must be incurred because of your rendering services to your employer.
  1. Advances from employers

  • The amount received from your employer to be used for your home office expenses.
  • Has the same benefits as reimbursements.
  • The expense must also be related to the rendering of your services to your employer.
  • All invoices and receipts must be kept.
  • If the advance is excessive and not fully utilised by the employee, the employer will claim the excess from the employer.
  • If the advance is deficient, the employee will claim a reimbursement from the employer.
  1. No reimbursements

  • Section 23(b) of the Income Tax Act states that a tax deduction for home office expenses may be allowed if the following requirements are met:
    • The space used as a home office is regularly and exclusively used for the purposes of the taxpayer’s employment. And the space is specifically equipment and set up solely for the purpose of working.
    • If your salary is only remuneration, your duties must be mainly performed in this part of your home. More than 50% of your duties must be performed in your home office.

Examples for home office expenses include:

  • Rent paid for your home.
  • Interest on a bond for your home.
  • Cost of repairs to your home
  • Expenses in connection to your home

In addition to these expenses, other typical home office expenditure may include:

  • Phones
  • Internet
  • Stationery
  • Rates and taxes
  • Cleaning
  • Office equipment
  • Wear-and-tear

The tax deduction for home office expenses is calculated on a pro-rated basis which is based on the square meters of the area of home office versus total square meters of your home. Only expenses relating to the premises must be apportioned based on floor area (such as for example rent, interest on bond, rates and taxes, cleaning, etc.) Expenses that do not relate to the premises (such as wear and tear on equipment and furniture) do not need to be apportioned based on floor area.

This article was written by: Renisha Arjoon, Professional Accountant (SA)

Contact PATC Today

If you need assistance in your business’ finances, from accounting to tax consulting and financial management, PATC can help you. Contact us today and let us know how we can help you.

Now read: Termination of an employee contract

 

PATC Welcomes Two New Appointments

Dear Clients, Staff and all Interested Parties

As you know, we pride ourselves on only appointing employees of the highest calibre to ensure that you receive the best possible attention and service. This is why I am proud to announce the appointment of two new employees that have joined our PATC team.

Please join me in welcoming:

Nick Arumugam, who recently completed his articles and will soon be writing his board exams. You can reach Nick on nick@patc.co.za

and

Natasha Kruger, who is a qualified professional accountant. Natasha’s details are natasha@patc.co.za

Both Nick and Natasha join our team in alignment with Christopher Naidoo’s appointment (Promoted to Head of Department). We are confident that these appointments will help us reach new frontiers following Rose Ngubane’s recent departure. We wish Rose well with her future endeavours.

For reference, we are sharing the department structures with you as outlined below: 

  • Cindy with Darusha and Rejoice and Joann
  • Renisha with help from Gavin and Juniors
  • Victor with help from Gavin and Juniors
  • Mandy with Victor and Gavin’s help
  • Luell with his Associates and contacts
  • (New) Christopher Naidoo with Nick and Natasha (with effect from 3.5.2022) and assisted by Seluleko and Jubilee-Amber (taken over from Rose’s department)
  • Gavin, Head of the Company and overseeing PATC and its affiliate Partnerships

Please join me in welcoming Nick and Natasha to our team. If you need any assistance, have referrals, or need help with anything, please continue to use your normal communication channels.

Thank you for continuing to support PATC.

Onwards and upwards!
Gavin Bacon

 Contact PATC Today

If you need assistance in your business’ finances, from accounting to tax consulting and financial management, PATC can help you. Contact us today and let us know how we can help you.

Termination of an Employee Contract

termination employee contract

Notice of termination of an employee contract must be given in writing.

If an employee who receives notice of termination is not able to understand it, the notice must be explained orally by employer/representative to the employee in an official language the employee reasonably understands.

Notice of termination of a contract of employment given by an employer must not be given during any period of leave to which the employee is entitled to, and not run concurrently with any period of leave to which the employee is entitled to except sick leave.

Payment made to employee for notice period

Instead of giving an employee notice in terms of section 37, an employer may pay the employee the remuneration the employee would have received, calculated in accordance with section 35, if the employee had worked during the notice period.

Payments due on termination of employee

On termination of employment, an employer must pay an employee:

  1. for any paid leave that the employee is entitled to in terms of section 10 (3) or 16 (3) that the employee has not taken,
  2. remuneration calculated in accordance with section 21 (1) for any period of annual leave due in terms of section 20 (2) that the employee has not taken; and
  3. if the employee has been in employment longer than four months, in respect of the employee’s annual leave entitlement during an incomplete annual leave cycle as defined in section 20 (1)-
    1. one day’s remuneration in respect of every 17 days on which the employee worked or was entitled to be paid; or
    2. remuneration calculated on any basis that is at least as favourable to the employee as that calculated in terms of subparagraph (i).

Severance payments

  1. An employer must pay an employee who is dismissed for reasons based on the employer’s operational requirements or whose contract of employment terminates or is terminated in terms of section 38 of the Insolvency Act, 1936 (Act 24 of 1936), severance pay equal to at least one week’s remuneration for each completed year of continuous service with that employer, calculated in accordance with section 35.
  2. An employee who unreasonably refuses to accept the employer’s offer of alternative employment with that employer or any other employer, is not entitled to severance pay in terms of subsection (2).
  3. The payment of severance pay in compliance with this section does not affect an employee’s right to any other amount payable according to law.
  4. The employee who refers the dispute to the council or the CCMA must satisfy it that a copy of the referral has been served on all the other parties to the dispute.
  5. The council or the CCMA must attempt to resolve the dispute through conciliation.
  6. If the dispute remains unresolved, the employee may refer it to arbitration.

Certificate of service

On termination of employment an employee is entitled to a certificate of service stating the employee’s personal particulars, address, job title, commencement and dismal/termination date and reason of termination if requested.

This article was written by: Christopher Naidoo, PATC Trainee Accountant

Contact PATC Today

If you need assistance in your business’ finances, from accounting to tax consulting and financial management, PATC can help you. Contact us today and let us know how we can help you.

Now read: What is an appeal to SARS

 

What is an appeal to SARS?

sars appeal

What is an appeal to SARS? If you do not agree with SARS after you did an objection, you have the right to appeal to the decision.

The appeal needs to be lodged with SARS within 30 business days after SARS delivered the notice of disallowance or partial allowance of the objection.

  • This period may be extended by 21 business days if a senior SARS official is satisfied that reasonable grounds exist for the delay, or
  • This period may be extended up to 45 business days if a senior SARS official is satisfied that exceptional grounds exist for the delay.

You can submit an appeal by submitting a notice of appeal (DISP02) which can be submitted on E- filing or at the nearest branch.

When the appeal is submitted late, after the prescribed due date, the taxpayer must provide grounds (reasons) for the late submission. The grounds for the late submission will be considered first and only if a senior SARS official is of the view that reasonable or exceptional grounds existed, will the late submission be condoned.

No appeal can or will be allowed to be submitted more than 3 years after the date of the decision to disallow the objection.

Grounds for the appeal: 

When completing the dispute form the taxpayer must take care in ensuring that the grounds for the appeal are detailed and include the following:

  • Which of the grounds of objection specified in the prescribed objection form are being taken on appeal.
  • The grounds for disputing SARS’s basis of the decision to disallow the objection as set out in the notice of disallowance i.e., why does the taxpayer not agree with the decision made by SARS.
  • Any new ground on which the taxpayer is appealing, which may not be a ground that constitutes a new objection against a part or amount of the disputed assessment not objected to.

Alternative Dispute Resolution: 

By mutual agreement, SARS and the taxpayer making the appeal may attempt to resolve the dispute through Alternative Dispute Resolution (ADR) under procedures specified in the rules. This procedure creates a structure with the necessary checks and balances within which disputes may be resolved or settled. The ADR process is less formal and inexpensive than the court process and allows disputes to be resolved within a much shorter period. Furthermore, it creates a more cost-effective remedy for resolving tax disputes. The taxpayer must indicate in the appeal whether he/she wishes to make use of the alternative dispute resolution procedures, should these procedures be available.

Tax Board: 

The tax board is established under the Tax Administration Act No. 28 of 2011 (TAA) and consists of an advocate or attorney as chairperson. Such advocate or attorney is appointed to a panel of suitable advocates or attorneys by the Minister of Finance in consultation with the Judge-President of the relevant Provincial Division.

The tax board is administered by a clerk of the board, who is a SARS official at the SARS Branch Office responsible for the administration of the tax board in that area and acts as convener of the tax board.

An appeal against an assessment must in the first instance be heard by a tax board, if—

  • The tax in dispute does not exceed the amount the Minister determines by public notice – currently R500 000;
  • A senior SARS official and the taxpayer so agree, and in making such decision the official must consider whether the grounds of the dispute or legal principles related to the appeal should rather be heard by the tax court; and
  • The chairperson prior to or during the hearing, considering the grounds of the dispute or the legal principles related to the appeal, does not believe that the appeal should be heard by the tax court rather than the tax board. If the chairperson so believes, he or she may direct that, the appeal be set down for hearing de novo before the tax court.

Tax Court: 

A tax court does not have the same status as the High Court but is a tribunal created by statue that only has the powers afforded to it by law. The tax court has jurisdiction over:

  • Tax appeals lodged under section 107 of the TAA;
  • An interlocutory application related to the tax appeal;
  • An application in a procedural matter relating to a dispute under Chapter 9 of the TAA as provided for in the Dispute Rules.

The tax court consists of:

  • A judge or an acting judge of the High Court, who is the president of the tax court and is nominated by the Judge-President in the area where the tax court is constituted;
  • An accountant selected from a panel of members appointed under section 120 of the TAA;
  • A representative of the commercial community selected from the panel of members appointed under section 120 of the T AA.

What can I expect from SARS when I appeal?

 The appeal may be referred to:

  • Alternative Dispute Resolution (ADR) at either the SARS Branch Office or SARS Head Office level,
  • The tax board (administered at SARS Branch Office level), and/or
  • The tax court (administered at SARS Head Office level).

SARS endeavors to:

  • Consider if a matter is suitable for ADR within 30 business days from the date the request was received,
  • Set down the appeal before the Tax Board within 30 business days of receipt of the Notice of Appeal, where no ADR procedures are pursued.

What can I expect when the appeal is finalised?

 SARS endeavors to:

ADR:

  • Finalize the ADR proceedings within 90 business days.
  • Where an agreement is concluded, issue an assessment to give effect to the agreement within a period of 45 business days, after the date of the last signing of the agreement.

Tax Board:

  • The Chairperson to issue a decision by the tax board within 60 days after the conclusion of the hearing.
  • The clerk to deliver a copy of the decision to the parties within 10 days of receipt of the decision.
  • Issue the assessment to give effect to the decision of the tax board within 45 days after the receipt of the decision of the tax board.

This article was written by: Christopher Naidoo, PATC Trainee Accountant

Contact PATC Today

If you need assistance in your business’ finances, from accounting to tax consulting and financial management, PATC can help you. Contact us today and let us know how we can help you.

Now read: SARS is done asking nicely

 

SARS is Done Asking Nicely

This article first appeared on BusinessTech on 28 August 2021.

The National Prosecuting Authority (NPA) is issuing summonses to taxpayers with outstanding tax returns as part of a continued compliance drive by the South African Revenue Service (SARS).

SARS commissioner Edward Kieswetter has pledged that the tax body will make life difficult for non-compliant taxpayers, a promise he has kept, said specialist firm Tax Consulting SA.

“Those who decided to ignore his words of caution may soon be summoned to appear in court on criminal charges, even if they have left South Africa,” the firm said.

“From the summonses we have seen, it is evident that SARS and the NPA treat this form of delinquency very seriously.”

The charge sheets are prepared carefully, and every instance of non-compliance, for every tax type, counts towards a separate charge, Tax Consulting SA said.

Some taxpayers face up to 30 counts of contravening the Tax Administration Act. “The gravity is underscored by the fact that it appears that the Hawks have been involved in investigating some of these cases, who serve these summonses on the taxpayer personally.”

Enforcement by example

SARS has undertaken to make it a costly exercise for taxpayers who flout their tax obligations, Tax Consulting SA said. “A key part of this initiative is to make an example of delinquent taxpayers.

“For South African abroad, SARS and National Treasury are on record that they are aware of the pervasive non-compliance among expatriates, which was one of the main drivers for the enactment of the “expat tax”.

Tax Consulting SA said that the tax body has made it clear that this is a key area of enforcement for the institution, and it will only be foolish to assume that you are beyond the NPA’s reach.

If you are unsure of your obligations, it will be prudent to diagnose your tax affairs, the firm said. “If you are found to be non-compliant, it will be wise to rectify your position before you receive an invitation from the NPA to return to South Africa.”

What if I live abroad?

There is a sentiment among South Africans who have left our shores that their South African tax obligations are in the rear-view mirror, Tax Consulting SA said.

“Perhaps this because they believe that SARS cannot be bothered to enforce against taxpayers who no longer reside in South Africa.

“It is important to understand that the failure to file returns constitutes a criminal offence under South African law and nothing precludes the NPA from summoning a taxpayer to face criminal charges in South Africa long after they left the country.

“Criminal proceedings may still be instituted up to 20 years after the offence was committed.”

Jail time

SARS issued a press release earlier this week, pointing to a man who defrauded several taxpayers, who was sentenced to 48 years direct imprisonment after being found guilty on charges of theft, fraud and contravention of the Prevention of Organised Crime Act (POCA).

The Boksburg Magistrate’s Court heard how SARS had received a complaint from a taxpayer that his personal income tax refund was paid into an incorrect bank account. SARS said it conducted an investigation and found that the refund was paid into an FNB account in the name of Khathutshelo Mashau.

It was also found that several refunds for other taxpayers were paid into the same account. The affected taxpayers denied knowing the FNB account that received the refunds. They also stated that they did not request that their personal information and bank accounts be changed to Khathutshelo Mashau.

Mashau also had another bank account with Capitec, into which four fraudulent personal income tax refunds were paid. No recoveries were made as all monies were withdrawn when the investigation started.

SARS commissioner Edward Kieswetter warned taxpayers to use only registered tax practitioners to assist them with their tax affairs.

“Persons who have no tax qualifications and who promise taxpayers huge refunds are likely to be engaged in fraudulent activities which will harm the taxpayer. Taxpayers must report such persons immediately so that other taxpayers can be protected from these criminals.

“SARS makes it clear to taxpayers and provides certainty on which channels to use to transact with SARS, and these are the only channels to use. If these channels are not sufficient to deal with a taxpayer’s needs, they should use the services of a recognised tax practitioner,” commissioner Kieswetter said.

The link to the original article can be found here.

Contact PATC Today

If you need assistance in your business’ finances, from accounting to tax consulting and financial management, PATC can help you. Contact us today and let us know how we can help you.

Now read: Personal Taxation on Cryptocurrency