You’re an entrepreneur. A wildly innovative individual. An ideas person. A make-things-happen person. A real go-getter. Passionate about your business and pursuing your dreams. And brilliant at keeping your accounting records up to date. Chances are that last one doesn’t ring true, does it? Don’t feel alone, financial record-keeping is the bane of existence for most small business owners and managers.
When you’re in the throes of building your empire from the ground up, you’re often so busy working ‘in the business’ that there’s little time to work ‘on the business’. As a result, accounting records are often the last thing on your mind. So long as there’s money coming in and your bank manager doesn’t have you on speed dial for the wrong reasons, you’re happy to keep going, right?
But here’s the thing. Accurate records of Revenue and Expenses – even in the most basic form – are vitally important and shouldn’t be one of those tasks relegated to the ‘when I have time’ folder. They contain - or should contain - the information to help you to make informed financial decisions and provide you with insight into areas of potential problems.
I am an independent contractor and do consulting work for a number of companies at any given time. When the one company submitted the 2016 IRP5 they erroneously categorized my source code as 3601, instead of 3616 for independent contractors, hence I cannot claim costs. I have asked them to amend the IRP5 but they say they cannot because they have finished their tax recon and signed off on 2016 and can no longer make changes. Is this true? What alternatives do I have?
I had a property that I rented out to tenants for the last 4 years. In the 2015/16 tax year, I made a loss on this, due to the expenses exceeding the rental income I received. I reflected this loss in my tax return. SARS then audited my tax return, and they ring-fenced the loss. However, at the end of the 2015/16 tax year, I sold the property, and have obviously not been receiving rent or incurring expenses relating to the property since then. What now happens to the ring-fenced amount? Am I entitled to ask SARS to re-assess given the circumstances? Or do I just accept it as a loss?...
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I am full time employee and I have already submitted this current year's tax return. I am a freelancer in my spare time as I started doing online work and earning dollars. What is the tax implications and how do I go about it? Could I claim back on the use of my computer etc.?
Over the last few weeks, our helpdesk has received an alarming number of queries from taxpayers asking what they can do as their refunds are being held back by SARS due to a special stopper being placed on their account. It’s a complex situation and the only advice we've been able to provide has been for the individual to make contact with SARS directly to try resolve the matter.
The South African Institute of Tax Professionals (SAIT) issued a statement on Tuesday 20 September 2016 advising that they’re looking into the issue after numerous complaints had been raised. The complaints are coming from not only individual taxpayers, but from tax practitioners and their controlling bodies too.
Initial investigations reveal that the primary reason for Special Stoppers being applied is because the personal details of the taxpayer haven’t been verified on the SARS system. Most often these are physical address or bank account details.
I bought a property and am renting it out. I know I have to submit the rental income. Am I also able to submit the expenses (i.e. Transfer / legal cost to obtain the property) levies paid, rates and taxes and electricity for this property?
I did my SARS eFilling tax return through TaxTim and I completed the Travel Expenses Section, 4015, as R72902. I am being audited and I am not quite sure anymore what that amount includes, they only thing I can think of to get to such a high figure would be my car payments per month? Please advise what deductions are allowed under this code and what proof I need to send SARS to support this?
I need to make an international bank transfer into an overseas account one similar to PayPal. The bank is however asking me for my tax number before proceeding, I understand one can take up to R1 million per annum offshore and therefore by asking for the tax number it falls under a purchase/discretionary allowance and not a gift because I am transferring to my own account similar to PayPal. My question is will I be taxed on the purchase if I give my tax number? There is also an option to pay visa credit card but I prefer the international bank transfer as its cheaper in fee's? Thoughts?