Get compliant with the taxman
Not everyone is aware that the SA Revenue Service (Sars) is focusing on seven specific areas until the 2016/17 financial year, which is when its five-year compliance programme ends.
Sars will continue with its regular risk-based compliance work using a verification system, which includes audits and investigations, allowing it to detect noncompliance in all areas.
. Incorrect declaration of revenue profits as capital in nature.
High-net-worth individuals – those with an average income of R1.7 million a year – will do well to ensure they are 100% Sars compliant because closer scrutiny can be expected.
High-net-worth individuals are often linked to associated trusts and companies, some of which might be used as vehicles to channel and hide income and assets.
You can be sure Sars will be taking a closer look at these individuals.
Some initiatives Sars has implemented to achieve the compliance programme goals include:
I encourage all individual taxpayers to take extra care during the upcoming filing season to ensure the completion and submissions of all personal income tax returns are done accurately and timeously.
Signing your income tax return is a declaration that all the information you have submitted is true and correct.