Beat SARS at their own game
In recent months SARS have issued numerous and increasing random requests for Supplementary Declarations (IT14SD) for entities as part of their “verification processes” to enhance tax compliance.
The IT14SD entails checking the submitted tax return for any errors and the submission of 3 “mini reconciliations” to SARS for the tax year in question:
- PAYE Reconciliation – Monthly EMP201, Annual EMP501 to Annual Financial Statements (AFS)
- VAT Reconciliation – VAT201 returns (both input and output submissions) to AFS
- Customs Reconciliation – SAD Customs declarations (Imports and Exports) to AFS
These reconciliations need to correspond to the applicable tax year in question and reconciling items must be fully explained with valid reasons and must be submitted within a strict timeframe to SARS.
SARS may investigate any unexplained variances in any of these areas and their warnings of criminal prosecution for non-compliance must not be ignored
While these reconciliations can be performed when we prepare the Annual Financial Statements for the entity, it would be too late to take corrective action to resolve any issues
To ensure your IT14SD submission is ‘simple sailing’, we highly recommend that all current issues on your payroll, VAT and Customs Duty accounts are resolved with the final return for your tax year
Please contact Danie Haumann, Fatima Bapukee or Juanita Roman to help you to beat SARS at their own game before it is too late.
All material subject to our Legal Disclaimers.