Article by listed accounting Midrand Accountant - Mohau Lebese
Well, submitting a Zero Tax Return might be an easy way out when you are desperate for a Tax Clearance Certificate…but, I always advise my potential clients that, if your accountant advises that they will submit a Zero Tax Return on your behalf, run as fast as you can.
Here is the reason why.
For the accountant it’s fast and easy money, but SARS will ultimately hold you, the taxpayer, responsible for any wrongdoing. Submitting a nil return basically means you made no money, let alone incurred expenses or bank charges (when you have a bank account) …really? Is this possible?
Worse, SARS is now labeling this kind of behaviour as intentional tax evasion and can charge a 150% penalty over and above your tax bill. To rub salt into the wound, SARS now works with banks and obtains the required information from them. This means that sometimes they can just impose their own assessment and later penalties.
With these penalties in place, one might as well forget about obtaining a Tax Clearance Certificate without disputes and objections, which might take a long time to resolve. SARS can go as back five years and run audits.
And what I’ve noticed, SARS is looking to collect more money in order to reach their collection targets. So, what an easy way it is, to impose extra penalties.
Let us help you with your tax planning & compliance before it is too late.
Call my office or me directly (011) 420-0900 or 081 458 1060 for assistance. Mohau Lebese ACMA, CGMA, BAP(SA)