Avoiding Tax

HeaTM

HeaTM

Member
Joined
Aug 8, 2011
Messages
16
Reaction score
17
I have a question

A buddy of mine runs his own business, but with a twist.

He prefers to deal strictly in cash which he stores in safes (risky I know)

I asked him why he's doing this and he told me that whenever you deposit the money into a bank account SARS becomes aware of it.

So what he does is on a weekly basis he goes and deposits the money into his bond account, pays his vehicles and buy everything in cash.

Is this legal?
 
And if he's paying vat at certain stores, Sars will wise up to him soon!
 
His bond & car are in his name, if he is paying cash how is he going to explain those lumpsum deposits into those accounts?
SARS does not only trace your everyday bank account, it also traces assets in your name & beneficiaries names
 
I tried to tell him this. Out of curiosity, does SARS actually make an effort to get tax from these kind of okes? What's to stop me from telling them my rich uncle is paying my bond :D
 
As far as I know, only lumpsums cash purchases/deposits above R25k are reported to SARS... so as long as he continues to play this dicey game, he wont get caught. And as long as he in ot selected for audit, he wont get caught *sigh*
 
Last edited:
HeaTM said:
I have a question

A buddy of mine runs his own business, but with a twist.

He prefers to deal strictly in cash which he stores in safes (risky I know)

I asked him why he's doing this and he told me that whenever you deposit the money into a bank account SARS becomes aware of it.

So what he does is on a weekly basis he goes and deposits the money into his bond account, pays his vehicles and buy everything in cash.

Is this legal?
Click to expand...

1 word:

JAIL !

He might get away with it forever. But if they do catch him he will be very very very very very sorry ;)
 
I've got a friend who was exactly like that...regretfully SARS caught up with him. Can't remember how much he had to cough up
 
D3x! said:
not you, OP
Click to expand...
Nope its not me. I'm a full time Systems Analyst with a family and I have no time for side-binniz.

Out of interest, the guy's got his own transport business and gets paid in cheques or cash - which is probably another reason why he doesn't run to the bank after every trip
 
HeaTM said:
Nope its not me. I'm a full time Systems Analyst with a family and I have no time for side-binniz.

Out of interest, the guy's got his own transport business and gets paid in cheques or cash - which is probably another reason why he doesn't run to the bank after every trip
Click to expand...

that is still no excuse for him, regardless he should have to cash the cheques any way.
 
HeaTM said:
I tried to tell him this. Out of curiosity, does SARS actually make an effort to get tax from these kind of okes? What's to stop me from telling them my rich uncle is paying my bond :D
Click to expand...

im sure they would check that an amount of so much would be deducted from his uncles account

i know some people that when auditing show smaller and different figures for tax purposes

btw this is not me telling him to do this
 
SARS are extremely good at financial investigations and they do it thoroughly, the amount of resources they have available to use is just scary and I'm not only talking monetary resources!
If he is caught which will happen some or other time, the amount of money that he will have to pay back to SARS plus the interest that is calculated on a daily basis and not monthly will be allot worse than the benefit he is getting of evading to pay his tax now. Not even to mention possible jail time and a criminal record.
 
You must log in or register to reply here.
Back
Top
Sign up to the MyBroadband newsletter
X