SARS IT14 2001 reassesment

[greggpb]

I have been approached by sars to re-audit my 2011 year, with an assement of over my profit for the year, my auditors assure me this has happened to every company in should africa ?????

am I alone or is my auditor blowing smoke

 

[curbs2012]

I have been approached by sars to re-audit my 2011 year, with an assement of over my profit for the year, my auditors assure me this has happened to every company in should africa ?????

am I alone or is my auditor blowing smoke

Let me see if I understand you correctly:

SARS have an estimated assessment for your 2011 year and the taxable income or profit on their assessment is higher than the amount you reflected in your 2011 return? Is that correct?

 

[greggpb]

Basicly, they have issued an assessment for the 2011 tax year with regards to the IT14SD declaration and they have taxed me at 30% of turover as oppose to 30% of profit. since my margins are less than 30% in effect they are charging more than 100% tax, but in the past hour it has come to light that my auditors have know about this for the last 3 months and I have just now be notified by SARS...

My auditors say that sars chainged this rulling and have applied this assesment to many companies in SA, I was just wondering if anyone else was in the same boat.

 

[chrisc]

Best ask another auditor. I just spoke to friend who works for KPMG and she said this "sounded unusual". SARS can ask for additional audits if they feel the audit was not detailed enough. 30% of turnover is similar to VAT, not tax

 

[Celine]

Basicly, they have issued an assessment for the 2011 tax year with regards to the IT14SD declaration and they have taxed me at 30% of turover as oppose to 30% of profit. since my margins are less than 30% in effect they are charging more than 100% tax, but in the past hour it has come to light that my auditors have know about this for the last 3 months and I have just now be notified by SARS...

My auditors say that sars chainged this rulling and have applied this assesment to many companies in SA, I was just wondering if anyone else was in the same boat.

this sounds like your auditors have applied for turnover tax without your knowledge. there is no such ruling that has been changed unless you have applied for the turnover tax rate as per the SARS website. there are certain criteria that needs to be met before you can become legible for turnover tax though. you don't just automatically get turnover tax on your company, otherwise the profit or loss stays.

you need to set up a meeting with your auditors and look at the assessment and your file to make sure what is going on there.

 

[waynehooper]

The IT14SD is new this year. Most accountants have been issued with them and some ignored them.

Unfortunately, SARS have dealt with it in such a way in that if no response is received by the due date or after 3 "tries" they are still not satisfied with the figures they receive from the accountant they will disallow all expenses and assess on turnover.

The same goes with VAT. I have had seen cases where SARS have been disallowed all inputs and sent the taxpayer an assessment for vat on the outputs.

If your accountant cannot help you or seems disinterested, then it is time to find a new one........

 

[Stefanmuller]

The IT14SD is new this year. Most accountants have been issued with them and some ignored them.

Unfortunately, SARS have dealt with it in such a way in that if no response is received by the due date or after 3 "tries" they are still not satisfied with the figures they receive from the accountant they will disallow all expenses and assess on turnover.

The same goes with VAT. I have had seen cases where SARS have been disallowed all inputs and sent the taxpayer an assessment for vat on the outputs.

If your accountant cannot help you or seems disinterested, then it is time to find a new one........

^This. SARS is really getting strict. The idea behind the new IT14 SD is good, but in my opinion the form is badly designed. They want to reconcile your VAT, PAYE and taxes with your financial statements. So, output VAT should equal total sales, and input should equal total purchases and expenses and PAYE should relate to total salaries. Problem is it is not always that straight forward. For instance, the form reconciles total input claimed with Cost of Sales, but what about all the other expenses? And I can have R1million in salaries per financial statements, without paying any PAYE. So in the end there is a lot of reconciling items which makes it complicated. Most of the times we get a call back. And they don't give you a lot of time to respond either. It is a new thing so we must all get used to it and how to complete it. Good thing about it is that people who claim VAT on personal expenses and stuff like that can't hide it anymore. So it's a good thing, they should just make a better form.

 

[Goliath]

Get another accountant..

 

[Celine]

did you register here just to say that? or are you from SARS?