SARS request for remission advice. Made a mistake at work.

RedViking said:
Not vat, but provisional tax, the accounting firm that did mine skipped a year, and they just said they can't do anything about it and they can't take responsibility, I need to pay the penalties.
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if you don't mind me asking, did you stay with that firm afterwards? I know the taxpayer is ultimately responsible for making sure their tax affairs are up-to-date but after something like that happens, one wouldn't want to give their business to such a firm.
 
infrared said:
nope, I didn't ignore any instructions or rules. As it was December and as mentioned before the manager responsible left end of November so nobody was really checking the work as everyone was extremely busy with their own things.
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That's good then, you aren't liable for breaking any company rules.

You're understandably agitated but in my opinion (!) the company was negligent in leaving a trainee unsupervised.
 
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1. As other indicated, there is professional indemnity insurance
2. Trainee/intern etc. Someone must review your work.
3. Dont sign any acknowledment of debt.
4. You might get fired, and/or disclipined. That is okay, it was not malicious, and the client must be kept happy. Not sure of your industry rules. Follow up with SAICA, regarding what would be fair in terms of your rights.
5. Boss did not handled it well, he/she seems to simply wash their hands off the matter.
6. You might have to move articles, after this mess is cleaned up.
 
infrared said:
if you don't mind me asking, did you stay with that firm afterwards? I know the taxpayer is ultimately responsible for making sure their tax affairs are up-to-date but after something like that happens, one wouldn't want to give their business to such a firm.
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I didn't stay woith them because I couldn't trust them anymore and knew they won't take responsibility when they mess up. But I am also glad about it, since then I check everything for both personal and business even though accounting firms are doing the finances. I do all the calculations to my (limited) knowledge and crosscheck with their work. I log into efiling and check everything that needs to be done monthly and check all communication. I scan through all the book keeping and reports.
 
Do this:

1. Invite your boss to the client office.
2. Offer him a seat to show dominance.
3. Print regulations
4. Highlight everything not done
5. The good stuff is towards the end
6. Don't be lazy, read from page one.
7. Ask him to sign acknowledgment of insufficient training
 

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infrared said:
The firm sent out a memo last year stating if an employee makes a mistake, they will be liable for the damages resulting from that. Several people have told me that such memos are illegal and you cannot be forced to pay anything. But I really do feel bad about making such a mistake. And I will feel guilty if the employer has to pay. But on the other hand when he makes a fat profit at the end of the year, he doesn't give me share of it. So I'm very conflicted right now.
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But your company shouldn't be paying the fine... they should be insured for this event.
 
Not sure why folks are saying he's not due to pay something.

Problem is , someone is going to pay as SARS won't care. The client is not going to pay as he will hold the company liable, while he is liable to SARS, its thier mistake and has every right to ask for those funds or a reduction. Now whether he (op) personally is liable for the same amount depends very much on company policy, you need to read your contract.

1. If they have liability insurance, you may be asked to pay the excess ( thats quite often the norm ).
2. Likely to face a disciplinary but if you are training, it will be more against your manager than you.
3. This is the real world and actions have consequences BUT you owned up to your mistake and reported it, that goes a very long way in mitigation for a trainee, we were all there once. Depends on how the company handles it.

Personally I think your manager/mentor is in more sh** than you.
 
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infrared said:
The firm sent out a memo last year stating if an employee makes a mistake, they will be liable for the damages resulting from that. Several people have told me that such memos are illegal and you cannot be forced to pay anything. But I really do feel bad about making such a mistake. And I will feel guilty if the employer has to pay. But on the other hand when he makes a fat profit at the end of the year, he doesn't give me share of it. So I'm very conflicted right now.
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I get you. I did my articles as well, but the rate that they pay you versus what they charge their clients means that they will recover this easily. Personally, I think the audit industry is exploitative. You work long hours for a sucky pay. Never feel sorry for them.
 
infrared said:
The firm sent out a memo last year stating if an employee makes a mistake, they will be liable for the damages resulting from that. Several people have told me that such memos are illegal and you cannot be forced to pay anything. But I really do feel bad about making such a mistake. And I will feel guilty if the employer has to pay. But on the other hand when he makes a fat profit at the end of the year, he doesn't give me share of it. So I'm very conflicted right now.
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Memos mean squat. Refer to contract or it needs to be a signed addendum.
 
RedViking said:
I didn't stay woith them because I couldn't trust them anymore and knew they won't take responsibility when they mess up. But I am also glad about it, since then I check everything for both personal and business even though accounting firms are doing the finances. I do all the calculations to my (limited) knowledge and crosscheck with their work. I log into efiling and check everything that needs to be done monthly and check all communication. I scan through all the book keeping and reports.
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We do the same in my company. We cross check and double-check every single return (VAT, PAYE, provisional, income) that our accounting company submits on our behalf. Just as well, because every now and then we discover errors that they've made and didn't pick up themselves. I don't blame them because it's easy to make mistakes, it's just that the consequences now with SARS are so punitive that there really is no room for error anymore. SARS doesn't care if it was an innocent mistake or blatant criminality, they will penalise exactly the same. So always pays to have more than one set of eyes on anything you submit to SARS.
 
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infrared said:
The firm sent out a memo last year stating if an employee makes a mistake, they will be liable for the damages resulting from that. Several people have told me that such memos are illegal and you cannot be forced to pay anything. But I really do feel bad about making such a mistake. And I will feel guilty if the employer has to pay. But on the other hand when he makes a fat profit at the end of the year, he doesn't give me share of it. So I'm very conflicted right now.
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I don't feel this is fair, to a degree. That is like blaming my draughtsmen if the drawings are not correct. The don't get paid enough to take up that responsibility. It is my responsibility to make sure everything is correct as owner and architect. Of course if an employee repeatedly make the same mistakes there will be a disciplinary hearing and worse case scenario get fired. But I can NEVER blame them for a house that fell on the Client's head. I will also NEVER tell a Client an employee is to blame. I take 100% responsibility for everything. You are trainee for goodness sake!

You need to find a new job. Your company is toxic and if they make you pay, hello CCMA!
 
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RedViking said:
I don't feel this is fair, to a degree. That is like blaming my draughtsmen if the drawings are not correct. The don't get paid enough to take up that responsibility. It is my responsibility to make sure everything is correct as owner and architect. Of course if an employee repeatedly make the same mistakes there will be a disciplinary hearing and worse case scenario get fired. But I can NEVER blame them for a house that fell on the Client's head. I will also NEVER tell a Client an employee is to blame. I take 100% responsibility for everything. You are trainee for goodness sake!

You need to find a new job. Your company is toxic and if they make you pay, hello CCMA
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I wish my employer also had a similar mindset. But yeah I'm just awaiting the dreaded meeting which I don't know when it will be as he is almost never in the office. Not to mention I have a contract review coming up next week where I wanted to discuss my salary. (not to divulge more information but right now I'm earning dangerously close to minimum wage in Johannesburg with a BCom Accounting,postgrad dip in tax from Wits University and I have 1 module left for my bridging course into CTA, all earned through either my cost or other bursaries) So yeah it's a perfect storm.
 
infrared said:
I wish my employer also had a similar mindset. But yeah I'm just awaiting the dreaded meeting which I don't know when it will be as he is almost never in the office. Not to mention I have a contract review coming up next week where I wanted to discuss my salary. (not to divulge more information but right now I'm earning dangerously close to minimum wage in Johannesburg with a BCom Accounting,postgrad dip in tax from Wits University and I have 1 module left for my bridging course into CTA, all earned through either my cost or other bursaries) So yeah it's a perfect storm.
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Hang in there! It is impossible not to make any mistakes, specially while you are learning. But when a team works together these things gets resolved. I have worked on extremely expensive buildings and cary a massive responsibility, and not a single of these big projects are without their challenges. I believe in finding solutions and not ponder on issues. Once you have a degree you should also look at getting personal liability insurance.


Try not to have sleepless nights or cave into fear and demands and bullying. Stand your ground and you are learning. Learn from this and continue to grow.
 
RedViking said:
Hang in there! It is impossible not to make any mistakes. But when a team works together these things gets resolved. I have worked on extremely expensive buildings and cary a massive responsibility, and not a single of these big projects are without their challenges. I believe in finding solutions and not ponder on issues. Once you have a degree you should also look at getting personal liability insurance.
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Which buildings are these? Asking for a friend who suddenly feels like camping is the way of the future.
 
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