Know the Law on Avoiding Tax: You Are Now Presumed GUILTY

Dealing with SARS and acing your SARS Audit

SARS has been dealt a better hand in dealing with you if you try to avoid tax. SARS knows where it stands. The question is: do you?

Do you plan on obtaining an “innocent” tax benefit? If your main or only reason for entering into any arrangement is to receive a tax benefit, SARS will brand you guilty of avoiding tax...and guess who has to prove their innocence… YOU!

Here's another situation where SARS has the upper hand.

If there is a dispute or legal proceeding and SARS thinks you have tried to avoid tax, the onus shifts to you. That's right – you will have to prove that obtaining a tax benefit was not your only or main reason for entering into the arrangement. Your affairs will be closely scrutinised. Your promise that you never intended to avoid paying tax won't be enough!

For example, you want to introduce a company car scheme by means of a salary sacrifice arrangement. You will have to prove, if called upon to do so, that the salary sacrifice arrangement was not entered into for the sole or main purpose of obtaining a tax benefit for your employees.


Remember: When you enter into ANY arrangement where there is a tax benefit, you must record (minutes of meetings, email and other communications) your motivations and purposes. You may be called upon by SARS to justify your actions!

If your main or only reason for entering into an arrangement is to obtain a tax benefit… don't do it!!!

Follow the link and order your copy of the Practical Tax Loose Leaf Service and find more reasons why staying legal is best.

Protect your rights when SARS comes knocking on your door!

Don’t let SARS bully you – you have rights! Get off the back foot and exercise these three rights when SARS audits you:

1. SARS must give you at least 21 days’ notice. If you need more time, request an extension.
2. You’re entitled to request reasons for any adjustments SARS may make, so insist on getting the answers you may need!
3. SARS has no right to invade your privacy in the name of an audit. Personal records and your home may not be searched by SARS without a warrant.

Try our complete Tax Advisory Service risk-free for 14-days. As part of this service you’ll receive the Practical Tax Handbook, three Bonus Reports, Regular updates, the Weekly Tax Bulletin, Online access to past Tax Updates and a Tax Helpdesk.

What you’ll discover in the Practical Tax Loose Leaf :

• 22 checklists to use in assessing your tax audit risk
• 13 items SARS will check during an audit
• 4 expenses SARS will target
• 11 questions SARS will ask you
• What to do when an assessment is issued
• Documents you must retain for your audit
• The risk areas on your balance sheet
• How to minimise your payroll risk
• The general checks in a Vat audit
• Real-life case studies
• What questions to ask when disputing an assessment