SARS - Lifestyle audit

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MielieSpoor

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So a family member received a letter from the tax practitioner yesterday, informing that SARS requested a full asset and liability declaration.

First off, does this fall into the category of lifestyle audit by SARS or not?

Secondly, said person has got a property that the practitioner advised not to declare on previous income tax filings.

Would this be a problem now?

There has been no deliberate attempts to evade paying any tax, but it's really odd that SARS would be requesting this for someone that doesn't really have any assets - yet people like Malema is walking round and getting off from all his issues.

The person in question works outside of SA for the last 6 years already, so apart from the property, there aren't any real assets. They do however want the values of other assets such as art and jewelry - but that has been locked up in storage for some time now and it won't be possible to get value certifications on the stuff in time because the individual will only be back in RSA for a few weeks during April. Also, the property is worth more than the jewelry and artwork by some margin...
 
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First off, who the hell is this tax practitioner? They sound like they can be idiots.

If you work outside of SA for at least 6 consecutive months, you can de-register from paying tax here as you will be paying tax in the country you work in (even if it's a tax-free haven like Dubai)

Have they been paying tax on income earned overseas while they don't live or work in SA????????
 
There has been no deliberate attempts to evade paying any tax, but it's really odd that SARS would be requesting this for someone that doesn't really have any assets - yet people like Malema is walking round and getting off from all his issues.
Click to expand...

Weak and emotional argument right there, forget about it and think of ways of convincing SARS about the undeclared property, I wonder what informed the advice?
 
halfmoonforever said:
First off, who the hell is this tax practitioner? They sound like they can be idiots.

If you work outside of SA for at least 6 consecutive months, you can de-register from paying tax here as you will be paying tax in the country you work in (even if it's a tax-free haven like Dubai)

Have they been paying tax on income earned overseas while they don't live or work in SA????????
Click to expand...

Tax is split between counties when incomes are earned in multiple countries
 
thechamp said:
Weak and emotional argument right there, forget about it and think of ways of convincing SARS about the undeclared property, I wonder what informed the advice?
Click to expand...

And Malema didn't 'get off'. He is still paying back a massive tax bill
 
The Sandton mansion and the Limpopo farm auctioned off to recoup SARS money? seems some people memories are bad...
 
halfmoonforever said:
First off, who the hell is this tax practitioner? They sound like they can be idiots.

If you work outside of SA for at least 6 consecutive months, you can de-register from paying tax here as you will be paying tax in the country you work in (even if it's a tax-free haven like Dubai)

Have they been paying tax on income earned overseas while they don't live or work in SA????????
Click to expand...
Can't deregister because there is a taxable, very small, but taxable income still being derived from annuities etc. in RSA.
 
AFAIK

Directors of companies, professionals who outsource their skills, people who derive any business income other than a salary and farm owners have to complete the list of assets and liabilities.

Its been this way for a while, so depending on how the person explained his income, or how he or she registered with SARS - so the page will come up automatically or the requirement if not doing e-filing.

The property is income that would well warrant this requirement.
Its no biggie, one page easy to answer with estimates expected.
 
TEXTILE GUY said:
AFAIK

Directors of companies, professionals who outsource their skills, people who derive any business income other than a salary and farm owners have to complete the list of assets and liabilities.

Its been this way for a while, so depending on how the person explained his income, or how he or she registered with SARS - so the page will come up automatically or the requirement if not doing e-filing.

The property is income that would well warrant this requirement.
Its no biggie, one page easy to answer with estimates expected.
Click to expand...
Ah ok thanks.
 
They occasionally pick people at random. Just provide whatever they requested...
 
Statement of Assets and Liabilities is routine. If clean, no worries. Advise your relative to be honest as always - make damn sure s/he never signs anything that contains a lie, for they will bamba hard.

It's quite possible that SARS have identified the undisclosed fixed asset. I recommend s/he come clean with a big "oops" and pay what's due (if anything).

Life is too short and too precious to live under the sword of an angry tax authority.

And never blame the tax adviser/consultant. If it turns into recriminations, a lot worse could follow.
 
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