SARS Taxpayers’ Audits and Selection for Verification

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SARS Audit and Verification
Auditing,image: pxhere.com
SARS Audit and Verification
Auditing,image: pxhere.com

The information that you declare as a taxpayer is very important and should be correct at all times, however, at some instances one can be selected for verification, this is a process in which a face value verification of the information that has been declared by the taxpayer on a declaration or in a return is done.

It is a comparison of this information that’s been declared by a taxpayer against the financial and the accounting records, there could be extra documents supporting the declared information that the taxpayer’s tax position is accurate.

[ht_message mstyle=”success” title=”” show_icon=”true” id=”” class=”” style=”” ]iRead: SARS Dividends Tax[/ht_message]

Anyone can get selected for verification by SARS; this is just for the proper administration of tax. When one is been selected for verification, you can be assured that SARS will notify you through an official letter.

When this happens, in the letter, you can either be asked to submit certain documents and or you can be asked to fill an IT14SD document for company income tax within 21 business days. You can submit an RFC (Request for Correction) as an alternative. The documents will always differ according to the tax type.

[ht_message mstyle=”alert” title=”” show_icon=”” id=”” class=”” style=”” ]ALL DOCUMENTS NEEDED WHEN YOU BEEN SELECTED FOR VERIFICATION WILL BE LISTED ON THE LETTER SENT BY SARS.[/ht_message]

All eFilers can submit the supporting documents using the channel, you can just log on and upload you scanned supporting documents or visit the nearest SARS branch as an alternative.

Please Note:

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  • The link to upload the documents will be available only upon receipt of the letter from SARS.
  • Upload ONLY relevant Documents
  • Once you submit, you won’t be able to submit any more documents
  • Ensure the original letter sent by SARS is included (Even when you do so at the branch it consist of a unique bar-coded reference)
  • The supported extensions are .PDF, .DOC, .DOCX, .XLS, .XLSX, .JPG, .GIF and the maximum size 5MB and 20 documents may be uploaded.
  • As a taxpayer, you can visit the Voluntary Disclosure Unit to make voluntary disclosure (Read More)

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If the requested documents are not met, SARS can send an additional letter requesting further documents. The will not be any refunds during the verification process of you have any.

What will happen if I don’t respond to the request of verification?

There will be dire consequences – However, SARS will send the second letter, if you don’t respond by submitting an RFC. Should you not respond to the second letter, a SARS representative will contact you through the phone –however, if you don’t comply and submit the necessary documents, SARS will do an assessment based on the documents at hand. And there will be higher penalties if anything is found amiss. It is always best to comply with and reply to all queries.

What happens when the verification is finalized?

  • Within 15 days, SARS will notify you if your declaration or return is subject to verification if it for the current filing period.
  • Within 21 days verification will be concluded provided that all supporting documents have been received.
  • Within 90 Days, an audit will be concluded from the date that all required documents have been received.

[ht_message mstyle=”success” title=”” show_icon=”” id=”” class=”” style=”” ]SHOULD YOU NOT BE HAPPY ABOUT THE OUTCOME OF THE ASSESSMENT, YOU CAN CONTACT THE OBJECTIONS SECTOR, FOR MORE INFORMATION.[/ht_message]

SARS will ensure that a taxpayers’ tax position declared is correct and accordance with tax legislation, and if not there will be an assessment done. Understatement Penalties levied ranges from 0% to 200%, higher penalties affect repeat offenders and those that do not pay their taxes even when they know they are due.

Once the verification is being finalized, if there were no further risks and no finding was made, a notification will be sent via eFiling, mail or post. If there were no further risks but there finding made, the notification of assessment will be sent via eFiling, mail or post, if there were risks found you will be notified with a letter, and if you had a refund that’s due, it will only be paid when the audit has been completed and refund validations have been verified.

Basically, if you are selected for verification, if there were risks identified you will be selected for an audit.

What is an Audit?

An Audit is when the financial and accounting records and or supporting documents of a taxpayer are being examined to determine if the taxpayer declared the correct information and tax position to SARS. If you have not filed a return or made any declaration, an investigation will be conducted to ensure the taxpayer’s action complies with the provisions of the relevant tax legislation.

Anyone can get selected for an audit by SARS; this is just for the proper administration of tax. When one is been selected for an audit, you can be assured that SARS will notify you through an official letter. You may be selected randomly.

What now that I am being audited?

[ht_message mstyle=”info” title=”” show_icon=”” id=”” class=”” style=”” ]

When your verification process has been finalized you might be subjected to an audit as part of SARS compliance process.

This is not an official audit as you will be notified when the audit has begun and it can take up to 120 Business days.

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Selected for an Audit

Now that you received a specific and formal notification for an audit, you will be assigned an auditor; you will need to submit the supporting documents within 21 Business Days when you are required to do so.

Make contact with the person (SARS representative or official) mentioned in a letter

Please Note:

[ht_message mstyle=”success” title=”” show_icon=”” id=”” class=”” style=”” ]

  • The link to upload the documents will be available only upon receipt of the letter from SARS.
  • Upload ONLY relevant Documents
  • Once you submit, you won’t be able to submit any more documents
  • Ensure the original letter sent by SARS is included (Even when you do so at the branch it consist of a unique bar-coded reference)
  • The supported extensions are .PDF, .DOC, .DOCX, .XLS, .XLSX, .JPG, .GIF and the maximum size 5MB and 20 documents may be uploaded.
  • As a taxpayer, you can visit the Voluntary Disclosure Unit to make voluntary disclosure (Read More)

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During the audit, you will be notified, and if my tax position is found to be incorrect during an audit an assessment will be raised, and that assessment becomes final within 3 years with SARS. To further information you can get in touch with the SARS Contact Centre on 0800 00 7277

[ht_message mstyle=”danger” title=”” show_icon=”” id=”” class=”” style=”” ]SHOULD YOU NOT BE HAPPY ABOUT THE OUTCOME OF THE ASSESSMENT, YOU CAN CONTACT THE OBJECTIONS SECTOR, FOR MORE INFORMATION.[/ht_message]



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