I was again invited by the Capricorn FM for an Interview to discuss few compliance issues
1. I received an SMS from SARS that I am required to submit the business tax returns for a dormant company, what do I do?
Please note that if the business is registered, it is liable to submit the annual returns every financial year end. Sars will not know the activities happening in business unless the business is under an audit. Therefore as the business owner you are responsible to communicate the status of the business with the institution. In case where the business was economically inactive, you will submit the nil returns.
2. What to do after registering a company?
After the business have been registered, you will receive the company registration documents – CK. From the documents you need to identity the details reflecting on the docs. But most importantly the company registration date and the company ‘s financial year end. Every anniversary of the business you must file the CIPC Annual Returns. Every financial year end you are required to submit the financial reports of the business to account for the business taxes.
3. What are my expectations as a small business owner?
Beside operating the business, you need to be aware of all the legislative laws governing the companies of the country – SA. You don’t want to find yourself and the business at the wrong side of the law, as the defaults might cause the business not to be recognized, renders the entity non-compliant or accumulate penalties. Many businesses and institutions may not want to work or be affiliated with a company that do not follow the law. This will affect the growth of the business as many opportunities might be lost as a results.
4. What is the threshold for a business to declare their taxes?
As long as a business is registered, please declare the business income. It will be up to the information filled / exported into Efiling that will determine whether the business is paying any taxes or not. The tax brackets as well as the threshold to be applied.
5. How often do we file the business tax returns?
A business is a Provisional Tax payer thus the returns are filed twice a year. We file the Income tax and the Provisional tax. Short answer is we declare our taxes, every 6 months.
6. For an operating business, what is required to submit the annual tax returns?
In cases where the business is operating, as it should – we prepare the financial statements so we can be able to submit the tax returns. The most important reports for filing purposes is the Income Statement and the Balance Sheet.
7. What happens if I do not comply with the country’s legislative tax laws?
As indicated on the text messages that were sent out by the receiver of revenue, it is a criminal offence not to submit the tax returns. The institution responsible for the tax collections can choose to exercise their rights to persuade every tax payer to pay their taxes, to impose penalties on the entity, and any other options available at their disposal.
8. I have not been filing my tax returns, how do I remedy this?
By all means if you have any outstanding returns make sure that you file your returns so that you can be up to date. Where there are penalties to pay, please process the payments so that your entity status can be compliant.
9. I have not been using the business and the tax returns are not up to date. Can I opt for business deregistration?
Prior you deregister the company, you need to make sure that all the returns are up to date. In this case – both the tax returns and the CIPC AR. There is no short cut about it
If you need a consultation with us with regards to your business, any type of business – please reach out to us on email PA@matsobanemetja.co.za
Compiled by Ms. Dikeledi Seoloane on behalf of Matsobanemetja Business Consulting (Pty) Ltd
For more information: enquiries@matsobanemetja.co.za
“Paying tax is not a punishment. It’s a responsibility.”
— Chris Matthews
Matsobanemetja Business Consulting Pty Ltd 