SARS auditors employ methods that most people wouldn’t have even considered
STEVEN JONES
HOW DOES the South African Revenue Service (SARS) catch those who do not contribute their fair share to state coffers? Here are some tests that SARS auditors perform to see if you are being somewhat economical with the truth.
Comparing VAT returns to your income tax return
When you submit your IT14 company tax return, you are required to make certain disclosures—including your company’s turnover.
But according to Mark Twain, if you tell the truth, you don’t have to remember anything. If you are cooking the books, at least try to remember to make sure that your turnover per your VAT return tallies up with the turnover disclosed in your financial statements. Because many tax dodgers are dumb as well, SARS catches many a tax reprobate by doing this simple cross-check…
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