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Worried about my tax issues...need some help..

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Mr_S
Super Contributor
A bit off the topic, but i started my business at 17 very informally, now at 22 its doing quite well, 8 employees etc, but i know nothing about tax and hence i havent been paying anything but VAT. Now im trying to register as a tax payer to take advantage of some tenders that are promising. I am worried that the tax man will look at my accounts and trace back that i havent been paying anything n either fine or sentence me to time in the slammer! Id really love to contribute my portion of tax, but i dont want to be fined for trying to do so as it wasnt intentional. How do i go about registering? because i have now registered a PTY and im thinking of opening an account with a bank using that PTY, and transfer all the funds into that account and pay tax accordingly. Advise please. p.s. I am taking the time to try learn about tax.
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15 REPLIES 15
Rams
Super Contributor
Tax amnesty- October 2011. Go to SARS website for details."During the amnesty period, SMEs may disclose past tax transgressions. While they will have to pay back the full capital amount of income tax, PAYE or VAT due, SARS will likely waiver penalties and interest due"
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Mr_S
Super Contributor
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Preston
Super Contributor
Be smart, register another company , tender for the BEE transcation , then take a percentage (25%) for new company , transfer the balance to your existing company, retain 50% of the tender for your existing company and then transfer 25% to the people who actually will do the work.
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Not applicable
If memory serves me correctly I had to be registered for tax as well as VAT. The same applies to already having a bank account to register as PTY.
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Brommie
Frequent Contributor
I like Preston's way of thinking!
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Mr_S
Super Contributor
well dumba*s SARS cant think to educate us young entrepreneurs on how this stuff works so that we sort it out from the start..everyone just assumes we know what rebates n things r...how to file tax returns etc...then they go n fine us for nonsense...someone estimated i might have to pay as much as 25k to SARS, for just last year alone! this was just a guestimate made on the figures i gave him
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Not applicable
Reading between the lines, I take it that you have not been declaring your personal income for tax purposes as well! If you have, then you would have known that you had to declare your business income!
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HungryPunter
Regular Contributor
I was in a bit of a tax bind a while back. I was forced to pay the full amount due according to their calculations, prior to being able to claim back the amount due to their incorrect calculations. The one thing not to mess with is tax. The law regarding paying back etc is very strict and it is best to get it right the first time. Best of luck, I use a tax consultant to sort out my affairs since the problem. I have not had any such problems since, happy to pay his fees etc.
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Mr_S
Super Contributor
No i havent been declaring income tax..as a student, the only income i derive is from the business...now apparently i have to look at back at 1 years bank statements and compile some financials for the year in order for me to submit to SARS..thats the plan for now.
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Not applicable
HungryPunter has the best advice! Get yourself a professional as you could be liable for 5 years tax or your parent for those years you were a minor and earning an income!
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Mr_S
Super Contributor
I am having a look at everything before i submit it to SARS, and i was considering getting a tax consultant in to advise before i expose myself to SARS...can anyone recommend a good tax consultant? I recon a good tax consultant will at least be able to let me save a little more in terms of tax etc...another issue is the fact that my business account was only officially opened about a year and a half ago, so technically, no other income cn be traced. My savings account had minimal income there and i used to collect cash mostly, dont know if this can work to my advantage...i wish i can sort this out without being left in the muck!!
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prancing_horse
Super Contributor
My advice get any tax consultant.. presto, and say as little as possible on this forum as rumour has it that "right said Fred" is a SARS agent
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Rams
Super Contributor
Mr S. you have paid VAT or collected VAT, so you cant hide any income.... The amnesty works on principle of full disclosure.... just pay what you should have paid minus interest and penalty. Also word of advice.... never discuss such tax issues on a forum like this...legally OST has to report you to SARS....and all the forumites has to report you to SARS because you did not pay and we paid and its our money pot thats less your contribution....eh eh eh... friday joke
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partridge
Super Contributor
people who offer tax/financial advice on this forum should be aware of the implications in terms of the laws affecting same - as well as possible delictual liablity for any advice given- get your affairs with SARS in order and take advantage of the tax amnesty. It takes about one minutes reflection. And a final word - regardless of the moral view you have on this - never enter into unsustainable, unequal contests.
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Mr_S
Super Contributor
True, but the diffrence is that i am trying to pay, im not deliberately trying to avoid it...if i was, thn wouldnt be trying to put things together...oh well, im off to the consultant, then to sars monday morning! hand myself over lol
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