Warning! It’s an offense to do these two things when SARS conducts an audit on your company

Simangele Mzizi, Fsp Business, 19 Dec. 2014

Tags: sars audit, audit, audit rights, sars

SARS has the power to audit your business.

It can randomly select you for an audit or if it feels it needs more information or if it thinks you’re withholding something.

When SARS comes knocking to audit your company, there are two things you must never do. If you do, you’ll be guilty of an offense.

Read on to find out what these two things are so you don’t find yourself on the wrong side of the law.

******** Advertisement ********
Know the Law on Avoiding Tax: You Are Now Presumed GUILTY

Dealing with SARS and acing your SARS Audit

SARS has been dealt a better hand in dealing with you if you try to avoid tax. SARS knows where it stands. The question is: do you?

Do you plan on obtaining an “innocent” tax benefit? If your main or only reason for entering into any arrangement is to receive a tax benefit, SARS will brand you guilty of avoiding tax...and guess who has to prove their innocence… YOU!

Here's another situation where SARS has the upper hand.


It’s illegal to do these two things when SARS comes to audit your company

According to the Practical Tax Loose Leaf Service, when SARS comes to audit your company you can’t
1. Obstruct it from carrying out the audit; and
2. Refuse to give it access or help.
You can only refuse to give access or assistance if the SARS official doesn’t show you his ID card.
If SARS asks you to make photo copies, you must comply. Just bear in mind that you have a right to ask for a refund of the costs.
SARS conducts audits to check for non-compliant behaviour. And it always aims to be consistent in its audit processes. This means, no matter who’s auditing you, you get the same treatment from the taxman. So don’t get in its way, help it to carry out the audit.

Knowing what not to do during a SARS audit will help make sure you don’t find yourself on the wrong side of the law.
PS: While SARS has the right to audit you if it feels it needs more information or if you’re withholding something, it doesn’t mean it can knock your door down. You still have rights and you must enforce them. To find out what your rights are during an audit, check out the Practical Tax Loose Leaf Service.

Related articles:




RSS Facebook Share the experience
Accounting and Tax Club.co.za

  • Accounting
  • Allowances and deductions
  • Audit/Assessment
  • Capital gains tax
  • Dividends
  • Donations Tax
  • Exports and imports
  • Fringe benefits
  • Input tax
  • Provisional tax
  • Sars
  • Tax basics
  • Tax invoices
  • Tax returns
  • Vat basics
  • Vat registrations
  • Vat return
Premium Services
  • Company Registration
  • Objections
  • PAYE
  • Trusts
  • Turnover Tax
  • UIF
  • Wear and Tear
how to get my tax number online[read more]
Published on 16 Feb. 2018 1 answer
Need some help on correcting payslips taken over from outsourced payroll person. As soon as the company pays ANYTHING...[read more]
Published on 06 Feb. 2018 1 answer
Dear Sir, Please advise the CGT calculation in the following scenario: Close corporation with one member purchased...[read more]
Published on 18 Jan. 2018 1 answer
Video Archive Video club

Your library of Free eReports
View full library
SARS Tax Tables 2016/2017 Download

Simply click download for your FREE SARS Tax Tables 2016/2017 to ensure you calculate your tax correctly.