Five instances where SARS will hold YOU criminally liable for evading Vat

Simangele Mzizi, Fsp Business, 08 Oct. 2014

Tags: sars, vat evasion, evading vat, vat

Our tax and Vat laws allow you to apply legal measures to arrange your business affairs and activities in a manner that will decrease your Vat liability.

This is all good and well as it means there are legal ways to pay less Vat. But the problem comes when some Vat vendors get greedy and go overboard to the point that they’re evading Vat.

Since SARS doesn’t like Vat evaders, it holds these vendors criminally liable.

Don’t believe us?

Take a look at the five instances where SARS will hold YOU criminally liable for evading Vat so you can ensure you never find yourself on the wrong side of the law.

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SARS will hold you criminally liable for evading Vat in these five instances 

The taxman will hold you criminally liable for evading Vat if you:
#1: Make, cause or allow anyone to make a false statement or entry in a return or other document. Or if you sign a statement, return or other document that’s false and you don’t have reasonable grounds to believe it’s true;
#2: Give a false answer, orally or in writing, to a request for information made under the Tax Admin Act (TAA);
#3: Prepare, maintain or authorise someone else to prepare or maintain false books of account or other false records. Or if you falsify or authorise someone else to falsify books of account or other records; e.g. issue a fictitious tax invoice;
#4: Use or authorise someone else to use fraud; or
#5: Make false statements to get a refund or tax exemption.
Be warned! A senior SARS official has the authority to lay a complaint with the South African Police Service or the National Prosecuting Authority if you commit any of these offences (section 235(3), TAA). So if you want to avoid criminal liability for Vat evasion, never commit these acts.

PS: We strongly recommend you check out the Practical Vat Loose Leaf service. It gives you tips, tools and advice to comply with the Vat Act.

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