Avoiding Tax

[MisterBigglesworth]

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*

Yep, its for all deposits > R25 000 they monitor. Anything less than that isnt gonna trigger alarm bells. But if he is paying into his car and bond etc...Im pretty sure it will get flagged as someone who doesn't do "any" banking so to speak...all of a sudden deposits large amounts. That will trigger some alarms...Im sure...

 

[The_Unbeliever]

He should be reported for tax evasion.

I'm not impressed.

 

[HeaTM]

I'm sure there are thousands of people like this, I find it unfair as well.

@Johnone, nope. All I know is its got something to do with transportation of logs to some sort of sawmill or something like that. I wasn't really all that interested in asking him what he does (only know him for a couple of weeks, I was more interested in how he's trying to dodge the system!

 

[Johnone]

I'm sure there are thousands of people like this, I find it unfair as well.

@Johnone, nope. All I know is its got something to do with transportation of wood to some sort of sawmill or something like that. I wasn't really all that interested in asking him what he does (only know him for a couple of weeks, I was more interested in how he's trying to dodge the system!

Well, there are many an irrate South African thinking it's unfair that certain government employees are squandering enormous amounts of tax-payers' money. So, let him have his time in the sun while it last, and let us be goody-two-shoes tax payers, while it last.

 

[ice_cubes]

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.

double tax PLUS 200% interest

 

[ice_cubes]

Is he a taxi driver? Does taxi drivers/owners pay tax anyways?

They dont declare every cent, but claim every expense PLUS more

 

[atomcrusher]

He is evading tax ... that's illegal. Tax avoidance is legal. There's a fine line that many cross in an effort to preserve their hard-earned $$$ from the eyes of the tax-man. He better
hope he does not get caught.

 

[etwylite]

Simple really, any business owner has to supply statement of assets/liabilities with IT12...sars sees loans and mortgages being paid down, without concomitant income declared...RED FLAG. And yes banks supply your loan accounts tax certificate to sars so no hiding payments.

He should just have a trust account and ask for donations instead of payments...heard that works

 

[mass09]

Show me his books! He's going to get caught sooner or later, which is fair.

 

[ice_cubes]

Simple really, any business owner has to supply statement of assets/liabilities with IT12...sars sees loans and mortgages being paid down, without concomitant income declared...RED FLAG. And yes banks supply your loan accounts tax certificate to sars so no hiding payments.

He should just have a trust account and ask for donations instead of payments...heard that works

Yep, works as long as the donations dont exceed 100k per annum. The excess should be treated as loan accounts.

 

[TranQ]

Yep, works as long as the donations dont exceed 100k per annum. The excess should be treated as loan accounts.

It's funny how probably only 10-15% of our population know what really constitutes a donation.
When you give money to you son or a present to someone, it's actually a donation and as such should be disclosed to SARS.
Not a lot of people do this and SARS is not harsh on this as it's really hard (probably close to impossible) to track.

As have been said according to the FICA, banks or any person that gives financial advice and suspects that something is wrong must report it at the centre.
Banks have systems in place to pick up on these things and cash deposits are one of the more common ones, especially if the depositor is the same person than the account holder. If the bank doesn't do this they could be charged under the FICA or POCA.

 

[ice_cubes]

It's funny how probably only 10-15% of our population know what really constitutes a donation.
When you give money to you son or a present to someone, it's actually a donation and as such should be disclosed to SARS.
Not a lot of people do this and SARS is not harsh on this as it's really hard (probably close to impossible) to track.

As have been said according to the FICA, banks or any person that gives financial advice and suspects that something is wrong must report it at the centre.
Banks have systems in place to pick up on these things and cash deposits are one of the more common ones, especially if the depositor is the same person than the account holder. If the bank doesn't do this they could be charged under the FICA or POCA.

Giving money to your minor son is exempt from tax (sec 7.3)

I doubt some ppl would be stupid enough to put their names as a refernce when depositing money in their bank accounts... but then again, this is South Africa & anything is possible!

 

[ponder]

Show me his books!

Some people don't have books or keep two sets of books.

 

[Cruelty]

I hope he gets bust. He's benefiting from the tax I'm paying but he's not prepared to make his contribution?! Sounds like a real d0os.

 

[Johnone]

I hope he gets bust. He's benefiting from the tax I'm paying but he's not prepared to make his contribution?! Sounds like a real d0os.

The one man's terrorist is the other's freedom fighter

 

[flarkit]

I hope he gets bust. He's benefiting from the tax I'm paying but he's not prepared to make his contribution?! Sounds like a real d0os.

I agree, public services (in whatever state they may be) are funded by our tax money. Schooling, emergency services and public roads, etc, are required for the country to survive, whilst these tax dodgers are reaping the benefits without making a contribution?? Chuck his greedy butt in jail!