tax returns Archives

So, SARS finally did it. On November 29 2018, they sent out a notice that they would start implementing administrative penalties against all companies (including dormant ones) which had outstanding tax returns. In March 2019, they sent emails and SMSs to those companies (we received over 400 on behalf of clients) advising that all outstanding returns had to be submitted by 29 March to avoid penalties, so it seems like March 30 is the BIG DAY! The penalties are likely to be at the lower end of the R250 to R16 000 range that they announced, but these penalties will…

If your company was registered before 28 February 2018, then an Annual Tax Return for the year or part year ended February 2018 is due at the end of February 2019 (assuming a February financial year end). Failure to submit it, even if the company did no trade, makes it liable for administrative penalties of R250 to R16 000 for each month that it is in arrears. If the company did trade, then an Income statement and a Balance Sheet must be submitted with the return. That means somebody has to do the bookkeeping and there are only 4 weeks…

The idea of Tax Clearances was a master stroke by SARS. If you have traded, you can’t get one unless you’ve done your bookkeeping and your tax returns. Many creditors will not pay unless the supplier produces a tax clearance certificate. Whether or not that is just a ruse to delay payment, the effect is that we often get people coming to us for an urgent tax clearance so that they can get a payment from a debtor. That’s when they learn that we’ll first have to do their bookkeeping (usually for three or four years), then their Provisional Tax…

Despite the negative perceptions of auditors following the KPMG blow out, the Institute of Chartered Accountants (SAICA) is the professional body that I respect most (I am governed by three – auditing, SAICA and engineering). They recently published an article by Bowman Gilfillan on the growing trend towards resistance to paying taxes – follow the link, go to Current Issue and click on Article 2642. If you feel the way I do, you’ll enjoy reading it, so I decided to share it with you. They mentioned “Civil disobedience”. We’ve seen that working against e-tolls, so we know that South Africans can pull…

Many people form a company and start a business without knowing what this really entails. So, here are the basics in FAQ format – What is a company? It is a legal entity (person, if you like) which is separate from those who own it and those who run it. Who owns a company? People, other companies, trusts or other legal entities buy shares in a company and the more shares they own the bigger their “shareholding” in the company. Who runs it? It is the Directors who run the company, not the shareholders. How does one get to be…

tax returns

SARS hits all companies with administrative penalties

Your company has two tax returns due at the end of February

Tax clearances force companies to comply

Resistance to paying tax

Company basics