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I have been in practice for more than 15 years and year after year, I see business owners pay more tax than they should. Why is this?
Good question. Glad you asked.
Here are two reasons.
There are more, but two will do for now.
A lack of tax planning during the year. Either the business owner does not make the time to meet with their accountant before the end of the year or the accountant is reactive and work under such tremendous pressure just to meet deadlines that they have very little time to see the owner during the year. It is this reactive behavior that causes the overpayment of taxes.
A lack of knowledge. Few business owners have the time to keep up to date with the never ending changes in tax laws. Even some tax practitioners don’t have the necessary skills. The sad truth is all tax practitioners are not properly monitored. Not all practitioners belong to a professional body and some have very little practical or academic qualifications. Many business owners incorrectly believe all tax practitioner are the same and choose the cheapest one. In many cases they end up paying much more taxes than they should ….. and most don’t even know it.
But before we continue further a timely WARNING. SARS and government departments are hurting for cash. The budget is running at a deficit and SARS are under more pressure than ever to aggressively collect every cent of taxes due to them. As a business you are a prime target for these aggressive collecting activities. SARS are using software that highlights risk areas for auditors to investigate.
The question is.
Does your tax return contain red flags that attract SARS auditors like a magnet? If you have ever experienced an income tax audit you will know that it is not the most pleasant experience. And if your returns are full of errors the unpleasant experience can turn into a nightmare rather quickly. SARS auditors will dig deeper, go back several years and raise severe penalties if errors are found. That is when you will discover how expensive your cheap tax consultant really is.
What if you have a tax accountant who is properly qualified,
knows their tax laws, are systemized and have your bestinterest at heart?
Chances are good proper planning takes place early in the year to ensure your affairs are structured in a tax efficient manner. Your tax affairs are up to date and when you apply for a tax clearance certificate it is a matter of collecting it after a few days instead of scrambling around to get your tax affairs in order. You do not lose any business because you do not have a tax clearance certificate. Your returns are handed in on time. every time and you do not pay late submission penalties. All tax deductible expenses are claimed and you pay the least amount of taxes you legally have to. Red flags and other auditor attraction magnets are avoided. so the chances of a SARS auditor on your doorstep are minimized. There are no fun and games going on — as a result your chances of ending up in jail due to tax fraud are just about zero.
Are we the right tax accountants for you?
Our focus is on the small business — the ones with thirty employees or less. The chapters pertaining to the small business are the ones in the tax manual we study most and know best. We spend a lot of time attending seminars. reading tax updates and studying the latest tax laws to ensure small business owner’s benefit every time we do a return. Lifelong study is one of our core values—we owe it to our clients. It is also a requirement for us to remain a member of our professional tax and accounting bodies. In the rare event of us handing in your return late due to a fault on our side we take care of the late submission penalties— no quibbles.
Who should not contact us
We do not focus on businesses having branches in other countries. complex groups. individuals looking for estate planning. wills etc. You will be better served by other accountants and tax advisers specializing in these fields. Then if you like to provide your accountant with incomplete and disorganized information at the last minute. despite several reminders. rather look for somebody else. Tax cheats and business owners who like to pressurize their tax accountant to do illegal things are also not welcome.
How we work
All returns are checked by properly qualified personnel.
Years of experience have taught us where to look first to identify errors. All assessments are checked in great detail and compared to our initial calculation to ensure SARS has not made any errors. We make use of software that shows us exactly when returns are due to ensure we meet al deadlines.
The timely submission of your return is guaranteed — if it is not we take care of the penalties. The only requirement is that you provide us with all the information we require on time. We have checklists in place to ensure you do not forget to give us any expense that may be lead to a reduction in your taxes.
P.S. We are dedicated to legally minimize your taxes.