Tax payers are often faced with assessments issued by SARS that they do not agree with. This article looks at the steps to follow once an income tax return has been filed with SARS and the options available to you if you are not in agreement with the assessment.

Many times the question arise if a director of a company or a member of a close corporation is liable to submit provisional tax forms (IRP6’s) and pay provisional tax, only by virtue of the fact that he or she is a director or member. According to SARS the following applies.

Companies and close corporations are required to retain business records for a certain period, depending on legislation applicable and the nature of the records.

If your records do not adhere to the requirements of SARS you could face massive penalties, due to SARS doubting the validity of all your other deductions!

In practise various questions and misconceptions regarding the use of the payment basis for accounting for VAT vs the invoice basis, exists. There are also common misconceptions regarding the use of pro-forma invoices vs tax invoices.