South African tax laws are complex before taking into consideration the rules and exceptions. Default or errors can become costly for all companies and more so for small start-up entities’.
Why would you need a tax consultant?
A tax consultant is an expert in finance with advanced training and knowledge of tax law. Tax consultants provide their clients with financial and tax-related advice. They prepare and complete client tax returns and assist clients in finding the right deductions, credits and adjustments based on their financial situation.
How can Shaw Financial Services help?
The complexity of tax causes undo stress on companies and individuals. We have tax consultants with advanced training and knowledge of tax law. Our tax consultants are usually retained in order tominimise company tax while, at the same time remaining compliant with the law in complicated financial situations.
Our taxation experts, offer advice that will help you navigate around all this information, by restructuring your affairs making you save your hard earned money without breaking a sweat, all the while advising you on how to spend and invest said money in order to save even more.
International Financial Reporting Standards (IFRS), is the way that financial statements are to be prepared and its policies sometimes differ from the Tax Act.
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This is what generally leads to tax liability being incorrectly calculated and the Commissioner (SARS) charging a penalty and or additional tax for calculating the businesses’ taxable income incorrectly. This is seen by SARS as anunderstatement of profit. This is where the need for a tax consultants comes in, a professional who will determine your business’ income and its nature (capital or revenue) in terms of the Act. A tax consultant will also be able to define the allowable deduction and the limit in terms of the Act so that the tax liability is computed accurately.
Tax services (click through to services page) offered by Shaw Financial Services are aimed for individuals and companies. We provide company tax services, small business tax services, tax advisory and individual tax services.
Your business can avoid unnecessary penalties and possible additional tax (for incorrectly doing the company tax computation; incorrectly completing the tax returns and filing the late returns) by hiring a tax consultant today!
Shaw FS makes the complex tax issues simpler for you!
What are Company Tax Returns?
The company tax return is a legally binding declaration to identify all income received or accrued and all income taxable in the hands of the company.
There have beenrecentchanges to the ITR14 (Corporate Income Tax) which can be read in detail here. (hyperlink to http://www.sars.gov.za/TaxTypes/CIT/Pages/default.aspx )
Shaw FS are up to date with all the current news and changes in the financial sector. The IT14 return has been replaced with a new ITR14 which has new legislative requirements. Large companies will need to complete and submit a more comprehensive return and smaller companies will be required to complete a shortened and simplified return. The company tax return identifies all income received or accrued and all income taxable in the hands of the company, this is a legally binding declaration.
The ITR14 must be completed and submitted within a 12-month period after the financial year end. It is imperative that the deadlines are adhered to, missed deadlines will result in administrative penalties on each return that is outstanding.
Submission is relevant for Small, medium and large businesses, the submission of signed off Annual Financial Statements (AFS) is compulsory.
Required Information to complete a Tax Return
• The Tax Reference number
• Particulars of the company/CC
• The year of assessment
• Particulars of the Public Officer
• Bank account details
• Financial information in the form of AFS
• Details of capital/revenue generated
When should CIT be paid?
• First payment – within six months from the beginning of the year of assessment
• Second payment – on or before the last day of the year of assessment
• Third payment – seven months after the year of assessment for taxpayers with February year-end and six months after year of assessment for all other cases.
Tax on Assessment
Payment of tax upon an assessment notice issued by SARS must be done within the period specified in such notice.
Corporate Income Tax is payable at a rate of 28%
Whether you are a small to medium sized business or a large corporate company, you will need a professional tax service, contact a tax consultant at Shaw FS who will be able to assist you with the submission of your returns through SARS Efiling. We also do manual submissions where necessary.
Income Tax Guides & Returns
The income tax returns are available annually by SARS after the end of each year of assessment to registered taxpayers and must be completed and submitted to SARS each year. Non-submission will result in penalties and interest charges by SARS.
The tax season commences on 1 July each year (for companies registered with February year ends) and the deadlines for the submission of returns are as follows:
• Individuals (ITR12) and Trust (IT12TR) returns (non-provisional tax payers): last working day of September for postal submission or the last working day of November for Efiling via your PC or laptop or done electronically by SARS.
• Individual (ITR12) and Trust (IT12TR) returns (provisional tax payers have until 31 January to submit their completed ITR12 Income Tax Returns to SARS.
• Companies /Close Corporation (IT14) Returns must be completed and submitted within 12 months after the financial year end of the Company/Close Corporation
• From the information furnished in the Income Tax Return SARS will issue an assessment showing either tax due or refundable, if applicable.
The deadlines cannot be missed or extended: if you submit your returns after the deadline you will face administrative penalties of each return that is outstanding and interest charges may be incurred in addition. SARS has implemented serious tax penalties and interest on monies outstanding and as a consequence it is essential to have your books and tax administration done correctly and timorously.
It is therefore crucial to ensure that returns are submitted prior to the closing dates for final submission. Whether you are an individual, small to medium sized business, corporate company or massive enterprise everyone needs a professional tax service, contact a tax consultant at Shaw FS to assist you with the submission of your returns through Efiling to SARS. We provide a full range of tax services from making sure you are registered, receiving and completing forms correctly to submitting your tax returns on time.
You have the option of downloading the Efiling App on your Smart phone or registering online: http://www.sarsefiling.co.za/
Anyone can file their tax returns, but the easiest, most efficient and reliable option is to hire a tax professional (available from Shaw FS) who will make sure that your returns are submitted accurately and timeously.
We have provided you with a Tax pocket guidefor 2017 as well as the latest Logbook from SARS. Click on the links and PDF documents will download automatically. Use these at home or for your business.