TAX TIPS
Let's start at the beginning
The following will not be seen as a tax tip by some, but please make a mental note of the following few paragraphs as it can save you a lot of money in the future.
In most audits from SARS it is not the complicated tax laws that create problems for taxpayers. It is the most basic principle of proper record keeping.
If you incur an expense or buy an asset for business purposes, please ensure that the invoice is in the name of the business and not in the name of the close corporation's member, the shareholder of the company's name or even in another entity's name. Invoices in the name of a member of a close corporation or shareholder of the company, immediately creates the impression that the expense is of a private nature and non tax deductible.
Taxpayers registered for Vat need to make very sure that they obtain the correct documents from their suppliers. Make sure that the supplier's name and vat number appear on the invoice and that the document contains the words Tax Invoice,- not invoice or anything else- Tax Invoice. Your name and Vat number must also appear on the invoice. Obtain original documents from suppliers and do not accept faxed copies. Develop a habit whereby you only pay suppliers when they have provided you with valid tax invoices.
Be careful of till slips, as the ink easily fades and make the invoice unreadable.. Rather make a copy of the till slip and attach the original to the copy.
In summary view records and invoices in the same light as hard cash. You will hopefully not find out too late that incorrect paperwork can and will cost you a lot in unnecessary taxes when you receive a visit from SARS auditors .You can avoid all of these unnecessary taxes - all it takes is a small amount of discipline. You can do it!