Tax SOS

W

WeskusToe

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Hi Guys and Girls,this is my first post on MBB and I would like say that for many years now,this fourm was the place to find the answers and opinions your looking for,with any topic. Thank you all for that.

My reason for starting this thread is that I am in looking for information as a small business owner,with regard to my business tax.

It is a long story,and I will try be as to the point as i can.

Basically in 2012,after 2 years of working crappy jobs, after matriculating in 2009,I started my own service and repair business from home.I started off with about half my salary at the time,and my city golf and some tools and toolbox from checkers.

Long story short here I am 7 years later,with 2 bakkies on the road,purchased another local tradesmans bussiness,3employees,and a shop that we operate and trade from.

However here are the downsides to the lack of professionalism and knowledge from my side:

As of 2015 I registered the business and consequently got a business account,therefore no money going through my cheque acc and therefore no credit score.I have never paid any tax,business or income.

The retail shop has only been as of Dec 2018,and has maybe made 40K profit for the year/Long story short,no one to work in the shop and business closes when i go on callouts.

The other problem is that my employes are not south african,and I wouldnt be surprised if they didnt have the correct documents.

So thats my story,hopefully someone in the know can shed some info as to the best way to go forward to become a legally operating tax paying business,however the recent conversations iv had with clients that work with tax,is that Im basically needing to fork out a load of money that I simply dont have,Im not saying I dont have any money to sort this out,however anything over 15k is impossible for me right now.Do I scrap it all and register a new company and keep it clean from there or pay up?Im sad that all my hard work and effort has come to this,but being in the service/repair industry and having to dealwith all aspects of the business,aswel a never being taught or told what to register for and pay for,Im more of a technical type of guy.

Anyways, all and any help is appreciated,if you want to roast me go ahead,iv got thick skin :)
 
It's going to cost more than what you have budgeted for.

Your tax returns to SARS would start at the date you went out on your own as a sole trader. Basically all your income less allowable expenses needs to be declared on your personal tax return. This does not necessarily mean that you will have a tax liability for every year outstanding. It would depend on your taxable income during each year.

The same will be applicable for the business from the time it was registered and stated trading.

If you have employees you need to register the company for employee taxes such as uif, sdl and PAYE. You need to them deduct the relevant tax from your employees and pay it over to SARS. Sars also does not care if your employees are legally allowed to work or not. Labour law is separate from tax law. You will also have penalties for all the unpaid employees tax.

Closing the business and starting a new business does not make any of the sars tax submission go away. You will not be able to close the company without submitting all outstanding tax returns.
 
Go to SARS and tell them your story. You have to start somewhere. Ten years from now you will not regret coming right with them.
 
Yes. Payment of your tax liability can be delayed and penalties can be waived but not interest.

Start work a VDP application by a tax practitioner. A VDP stands for Voluntary Disclosure Program where sars encourages taxpayers to come clean and avoid penalties for non complaints. You will need to submit one for yourself in your personal capacity and one for the company.
 
Thanks for the input,I am going to get this sorted one way or another
 
May I ask if there is any update? Did you get it sorted and how?
 
AchmatK said:
Yes. Payment of your tax liability can be delayed and penalties can be waived but not interest.

Start work a VDP application by a tax practitioner. A VDP stands for Voluntary Disclosure Program where sars encourages taxpayers to come clean and avoid penalties for non complaints. You will need to submit one for yourself in your personal capacity and one for the company.
Click to expand...
This is the best advise.
 
To those who are scared, it is better to be upfront than have SARS come after you. Remember, small business do qualify for additional deductions.

I personally would go to SARS, if you dealing with small amounts. If you are a bigger operation, get to a proper accountant.
 
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