Sole Propiotor being Audited

[Tjoker]

Good day forumites

Today the company, a sole proprietor company, received a call from SARS. We will be Audited sometime in the coming weeks, and I need to find out what will happen with the company during this time?

Also, what will happen if found guilty on tax fraud? What physically happens to the sole proprietor himself, and his company, and most importantly, us, the employees?

 

[xrapidx]

I'm assuming you'd get whacked with a hefty fine + interest.

 

[MickZA]

Why so worried, do you know something you're not telling us?

SARS audits are not uncommon and often more to do with the way the books are kept and tax liability calculated (I don't mean that in a bad way )

 

[Acc101]

Good luck! This is more than likely a tax audit, which will focus on the information provided on their tax return. An audit has to be notified in writing by SARS and the scope of their audit explained in writing to you. See SARS website under new tax administarion Act which was implemented in October 2012. There are certain procedures SARS have to follow. 1. Must provide official written authorization from a senior SARS official to perform a field audit, if not provided tell them to take a hike! 2. They must tell you if the audit has changed from ordinary audit to criminal, so that you can claim your right to remain silent otherwise any documentation giving to them willingly can be disregarded in court.

 

[Celine]

Good luck! This is more than likely a tax audit, which will focus on the information provided on their tax return. An audit has to be notified in writing by SARS and the scope of their audit explained in writing to you. See SARS website under new tax administarion Act which was implemented in October 2012. There are certain procedures SARS have to follow. 1. Must provide official written authorization from a senior SARS official to perform a field audit, if not provided tell them to take a hike! 2. They must tell you if the audit has changed from ordinary audit to criminal, so that you can claim your right to remain silent otherwise any documentation giving to them willingly can be disregarded in court.

i have no idea where you get your information from but i suggest you go read the administration act again. what you are quoting is only for identification and nothing else. the administration act gives SARS officials full permission to conduct an audit at any given time and to visit the premises without prior knowledge of the owner of any business or that of the tax practitioner.

 

[Freaksta]

Good day forumites

Today the company, a sole proprietor company, received a call from SARS. We will be Audited sometime in the coming weeks, and I need to find out what will happen with the company during this time?

Also, what will happen if found guilty on tax fraud? What physically happens to the sole proprietor himself, and his company, and most importantly, us, the employees?

Business will continue as usual, auditors will ask for documents and proof of things, go through your accounting records. Pay any tax that is due, including fines and interest if applicable.

 

[HavocXphere]

Also, what will happen if found guilty on tax fraud?

Fine or jail for the sole prop. Assuming there is tax evasion & SARS freaks out. If there is nothing then the audit happens & life continues as normal afterwards.