Finance

The Importance of Staying Tax Compliant

What does it mean to be tax compliant and why is it important

by Diandra Moonsamy

Compliance in this context refers to the filing of all outstanding returns and remittance of required tax for the current period to the Receiver of Revenue (SARS). Being compliant ensures that taxpayers will avoid the possibility of penalties and interest being charged on defaults as well as falling foul of the offence provisions which could see taxpayers subject to a fine or even imprisonment.

A tax clearance certificate provides written confirmation from SARS that a taxpayer’s tax affairs are in order at the date of issue of the certificate. The tax clearance certificates are required for several reasons: the leasing of property, emigration and government tenders.

Tax clearance certificates are “live” certificates which means that compliance can be tricky to navigate if your taxes are not always up to date.

One of the best benefits of working with an accounting team is that your taxes will always be up to date. These tax practitioners know how to make sure that your taxes are calculated correctly and that you benefit in terms of the allowed deductions for your company. Taxes are very important when it comes to managing your finances because you need to know what services or expenses tax deductible are and what is not. They also assist taxpayers to not default on submission due dates, ensuring tax compliance.

 

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