Sign up with Googleokay I just came across this tax problem that could possibly be quite explosive for the people that's involved
company A is a registered VAT entity
company B is an agent of company A in all its financial affairs
company B pays VAT on behalf of company A to SARS
company A liquidates, the "shell" of the company is taken over by company C
company C is not VAT registered, company B now acting as agent of company C
company B continues to pay VAT on behalf of company C (with company A details)
company C continues to charge its "customers" (word used rather loosely) VAT
that is sort of the simplest way I can put things, not all the facts are know at this stage, some more digging will need to be done.
but based on the above can company C now claim back the VAT paid to SARS and thereby refund its customers as well? given this goes all the way back to 2002, its a huge mess as the figures go into the high 7 digit figures
company A is a registered VAT entity
company B is an agent of company A in all its financial affairs
company B pays VAT on behalf of company A to SARS
company A liquidates, the "shell" of the company is taken over by company C
company C is not VAT registered, company B now acting as agent of company C
company B continues to pay VAT on behalf of company C (with company A details)
company C continues to charge its "customers" (word used rather loosely) VAT
that is sort of the simplest way I can put things, not all the facts are know at this stage, some more digging will need to be done.
but based on the above can company C now claim back the VAT paid to SARS and thereby refund its customers as well? given this goes all the way back to 2002, its a huge mess as the figures go into the high 7 digit figures
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