Reasons why company directors should pay SARS - financial year end

[DigitalSoldier]

Hi guys,

Myself and 2 others started a company on the side in 2011 and we are all registered as directors.

Today the accountants called and said that we have to schedule a meeting with them as they have to discuss with us. Because its the financial year end and we will personally have to pay SARS some money.

Can somebody explain the reasons why we will have to pay SARS money if that is possible ?

We are going to see the accountants next week and just want to be prepared.

 

[Macethy]

If you drew salaries from the business and did not pay PAYE provisionally, then you might need to fork out for that.

Also, you may need to discuss and "drawings" or dividends you received from the business and perhaps why tax was/was not paid on that.

 

[IzZzy]

Hi guys,

Myself and 2 others started a company on the side in 2011 and we are all registered as directors.

Today the accountants called and said that we have to schedule a meeting with them as they have to discuss with us. Because its the financial year end and we will personally have to pay SARS some money.

Can somebody explain the reasons why we will have to pay SARS money if that is possible ?

We are going to see the accountants next week and just want to be prepared.

Did they not mean that the company must pay SARS?

I assume the company hasn't traded? If so, I assume that it is the annual returns to CIPC they are talking about...

 

[DigitalSoldier]

Did they not mean that the company must pay SARS?

I assume the company hasn't traded? If so, I assume that it is the annual returns to CIPC they are talking about...

No. They said we personally have to pay SARS.

The company has been trading for 2 years now with 16 full time employees.

We have also been paying PAYE provisionally.

Have got a Letter of Good Standing from SARS for this and a Good Standing for Tender from SARS as well.

 

[DigitalSoldier]

If you drew salaries from the business and did not pay PAYE provisionally, then you might need to fork out for that.

Also, you may need to discuss and "drawings" or dividends you received from the business and perhaps why tax was/was not paid on that.

I don't know if this qualifies as drawings, but each of us have in the life of the business used our own personal money to buy goods required for projects. And then when the business receives payment that money is paid back to the person that bought the goods and the goods are company property then.

 

[saturnz]

perhaps wait until after the meeting because you are asking for guidance with not sufficient information at hand

 

[IzZzy]

I don't know if this qualifies as drawings, but each of us have in the life of the business used our own personal money to buy goods required for projects. And then when the business receives payment that money is paid back to the person that bought the goods and the goods are company property then.

No, sounds like repayment of loans.

Not enough information to deduce an answer.

 

[DigitalSoldier]

No, sounds like repayment of loans.

Not enough information to deduce an answer.

Sorry I couldn't give anymore answers.

That is all I was told by the receptionist of the accountant. Just thought there would be more general reasons so I can be prepared sort-of

 

[TheMightyQuinn]

I'm also a director of a Pty Ltd, for 14 years now. Only tax I pay personally is PAYE for my monthly "salary". At the end of the Tax year I normally get about 50% of my PAYE for the year , back.

ALL other taxes and fees come from Company accounts as it is Company taxes and fees. This includes CIPRO Lodging of Annual Fees, provisional taxes, company taxes etc.