South Africans are very creative when it comes to finding loopholes that enable them to pay less tax.
Is it because our taxes are so high? The answer is ‘possibly’.
South Africa’s tax structure taxes the individual which is problematic. Most of the country is unemployed and retrenchments have been on the up since the COVID-19 pandemic hit the country. In fact there are only 3 million taxpayers in South Africa. For this reason, there is an undeniable burden on individual tax payers to carry the required tax income for the country. Because of this burden, tax payers will do what they can to avoid paying additional tax.
But whatever the reason, SARS has worked hard to close those loopholes which has in turn, made our tax laws extremely complicated.
For the average business owner or individual this is a challenge.
Unless you are a tax specialist and up to date with the latest changes that SARS has put in place, as well as au fait with laws as they already are, you could end up paying more tax than you should. You could also be inadvertently guilty of not paying enough tax, or the tax that you should lawfully be paying.
Additionally, SARS recently entered South Africa into the Common Reporting Standard. This means that they now have access to all bank accounts world-wide. So SARS can easily see whether your tax return information is accurate against your financial records.
While SARS more recently introduced their automated system in an effort to assist businesses and individuals to comply with the current tax laws and pay the right amount of tax, this is not the answer. Sure this system may seem to be easy and helpful, but paradoxically, the tax calculations that SARS automates for you, are not always accurate.
So it is already clear that due to the complexity of our tax laws, as well as the fact that SARS has access to all your financial records, that you can get into a sticky spot if you don’t know what you are doing when it comes to tax submissions. Plus we have the fact that SARS own calculations are not always accurate.
Tax doesn’t have to be taxing
The answer really is to employ a professional tax consultant to manage your tax affairs for you. This way you will invariably end up paying less tax, while ensuring that you are fully compliant with all the laws that SARS has in place. Why worry about the complexity of tax when you don’t have to?
SARS automated system, though slightly flawed, may also save you time if this is a concern for you. When you lean on a tax consultant, you save time and stress too.
At MSO Accounting Group we assist individuals and businesses manage their tax in an affordable manner. We make sure that you pay as little tax as you are legally allowed to and ensure on your behalf, that your tax submissions are accurate and on time.
Get in touch with us on 082 430 6016 or email office@msoaccounting.co.za to get your uncomplicated, legal and affordable tax journey started.
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