How Technology can reduce your Tax Liability and Risk with SARS

Thanks to technology we can increase efficiency and streamline numerous administrative intensive tasks that would have taken hours to complete manually. Something as simple as writing and forwarding a letter, which usually took 3 days including the writing and delivering via post, currently only take a few minutes via email or SMS. Embracing technology is something that majority of South Africans are still trying to do, especially when it comes to utilizing it when doing the business’ finances and tax.

Technology can be used intelligently to reduce tax liabilities and possible tax risks during SARS audits. For example, many of the international accounting systems have integrated mobile applications that allow you to take a photo of your slips/invoices, insert the reason for the expense and the VAT amount charged. The slip/invoice is then stored on a secured cloud and accessible at any time. This allows you to keep all VAT slips/invoices safe from damage and fading, as SARS disregards such damaged or faded slips but accepts electronic copies during Audits. It also allows you to claim the maximum input VAT possible, as you will have improved management of your expenses, thus reducing your tax liability.

Another example is the secured cloud Audit File storage. One of the biggest tax risks that we notice in businesses are the insufficiently preparation for a SARS Audit, and this leads to SARS raising unnecessary tax assessments. With all our clients we open and manage an annual cloud storage file, preempting what a SARS Auditor would require and ensuring that all the required reports and supporting documents are stored accordingly. The cloud file can then simply be shared with the SARS Auditor on request, thus eliminating the usual 3 weeks of compiling, scanning or delivering boxes of files to the SARS office and the risk of missing a document or two.

Increase effectiveness by obtaining the accounting and tax professionals that has the innovation and technical ability to use secure technology to your business’ advantage.

#SARS #Technology #TaxSaving #TaxRisk

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