REASONS WHY SARS WILL CALL FOR AN AUDIT

REASONS WHY SARS WILL CALL FOR AN AUDIT

Has it ever crossed your mind why SARS would select a company or taxpayer for an audit?

With our interactions with SARS, we have identified the following reasons:

  1. RANDOM CHECKS CONDUCTED BY SARS

CONGRATULATIONS! You are the lucky company or taxpayer to be selected by SARS for a random review. If you have an honest and trustworthy accountant, you have nothing to be afraid of.

  • YOUR BUSINESS SECTOR IS IDENTIFIED AS HIGH RISK BY SARS

When other businesses in your business sector may have been found guilty of an offence. Now, SARS will want to conduct a check for the entire sector.

  • VERIFICATION BY SARS

SARS does not trust the information that was submitted by the taxpayer. If the taxpayer is using an accounting software, the taxpayer should check that the information was updated correctly. Accounting software needs to be updated when legislation changes.

  • RISK ENGINE SARS USES

SARS uses software to identify abnormalities by using an algorithm.

  • YOU HAVE BEEN REPORTED

When a person reports the taxpayer to SARS.

These are some of the reasons why a taxpayer could be selected for an audit.