Tax
Risks
The most common tax risks facing South African businesses, and how TechAcc in Louis Trichardt helps you manage them before SARS comes knocking.
Know Your Tax Risks Before SARS Does
Tax mistakes rarely happen on purpose. They come from misclassified expenses, missed deadlines and changing rules. Knowing where the risks are is the first step to avoiding penalties, interest and audits.
Common Tax Risks for South African Businesses
These are the risks TechAcc Accountants in Louis Trichardt most often helps businesses identify and correct: If past tax affairs need correcting, SARS offers a Voluntary Disclosure Programme.
1. Corporate Income Tax Risks
- Errors in your income tax affairs can lead to understatement penalties:
- Understating taxable income
- Claiming non-deductible expenses
- Transfer pricing and offshore income
- Incorrect capital allowances
- Misreading SARS rulings
2. Value-Added Tax (VAT) Risks
- VAT errors are among the most common triggers for SARS audits:
- Late or incorrect VAT returns
- Over- or under-claiming input VAT
- Not registering when required
- Wrong VAT rate on supplies
- Poor VAT records
3. Payroll and Employment Tax Risks
- Payroll mistakes affect both SARS and your employees:
- Incorrect PAYE deductions
- Unpaid UIF or SDL
- Undeclared fringe benefits
- Misclassified contractors
- EMP501 reconciliation errors
4. Withholding Tax Risks
- Cross-border payments carry their own obligations:
- Tax not withheld on foreign payments
- Incorrect withholding rates
- Ignoring double tax treaties
- Late withholding tax returns
5. Customs and Excise Risks
- Importers and exporters face strict SARS customs rules:
- Under-declared customs duties
- Misdeclared goods
- Excise duty non-compliance
- Incorrect customs rebates
6. Tax Risks in Administration and Compliance
- Good tax governance prevents most problems:
- Ignoring SARS audits and queries
- Poor record-keeping
- Weak tax risk policies
- Missing changes in tax law
Partner with experienced professionals who understand your business needs.
Partner with experienced professionals who understand your business needs.
What Unmanaged Tax Risks Can Cost You
Unmanaged tax risks are expensive. These are the consequences we help businesses avoid.
Penalties
Penalties and Interest
Understatement penalties and interest can far exceed the original tax.
Audits
SARS Audits
Errors increase your chance of a costly, time-consuming audit.
Cash Flow
Cash Flow Pressure
Unexpected assessments can strain your cash flow.
Reputation
Tax Compliance Status
A non-compliant tax status can cost you tenders, finance and contracts.
How TechAcc Helps You Manage Tax Risks
Corporate Income Tax Compliance and Planning
- Accurate returns to avoid understatement penalties
- Advice on tax-efficient structures and expense classification
- Transfer pricing compliance
- Reviews of capital allowances and incentives
- Tax reviews that find and fix risks before SARS does
VAT Compliance and Advisory
- Accurate VAT returns and reconciliations
- Correct VAT treatment of local and international supplies
- Invoice and documentation checks
- Support during SARS VAT audits
Payroll and Employment Tax Solutions
- Accurate PAYE, UIF and SDL calculations
- Payroll reviews covering fringe benefits and misclassified employees
- Advice on expatriate tax and tax-efficient remuneration
- Timely EMP201 and EMP501 submissions
Withholding Tax, Customs and Excise
- Identifying payments subject to withholding tax
- Applying double tax treaty relief
- Customs classification, rebates and import VAT compliance
- Support with SARS customs audits and disputes
Tax Risk Management and SARS Audit Support
- Ongoing tax risk assessments and compliance checks
- Representation during SARS audits and disputes
- Internal tax controls and policies
- Voluntary Disclosure Programme (VDP) applications for past non-compliance
The best time to deal with tax risks is before it becomes a SARS problem. We review, correct and keep your business compliant as the rules change.
Book a Review of Your Tax Risks
Not sure where your business stands? Contact TechAcc for a consultation and we will review your tax position, identify risks and help you put them right.
Tax Risk FAQs
How do you assess a company's tax risks?
We review your returns, financial statements, VAT and payroll records and your processes, compare them with SARS requirements and identify where errors or exposure exist.
What is the Voluntary Disclosure Programme?
The VDP lets taxpayers come forward to correct past non-compliance before SARS finds it, usually with relief from understatement penalties. We help prepare and submit applications.
What should I do if SARS audits my business?
Respond within the deadlines, provide only what is requested and get professional help early. TechAcc can manage the audit process and communication with SARS for you.
Can TechAcc help with penalties from SARS?
Yes. We can request remission of penalties where there are grounds, lodge objections and help set up payment arrangements.
Where can I get tax advice in Louis Trichardt?
TechAcc Accountants at 115 Krogh Street, Louis Trichardt, offers tax advice and compliance services to businesses and individuals in Makhado and across Limpopo.
Need an appointment
TechAcc is an online accounting firm which enables you to have access to accounting, tax, advisory, business and file storage services.
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