How Sars is clamping down on religious institutions' tax compliance

The South African Revenue Services (Sars) has warned that it will be investigating churches that do not pay tax.

The revenue service warns that it will investigate churches that are run like businesses and pastors who use church assets for their own benefit.

Tax manager, Tertius Troost spoke to CapeTalk's Refilwe Moloto and provided insights into how this would impact for religious organisations.

There is a misconception that religious institutions are automatically exempt from paying taxes, he explains.

Religious institutions must be registered as public-benefit organisations (PBO) with the Sars tax exemption unit in order to receive a tax exemption status.

If they don't have the tax-exempt status, they are taxed like normal companies.

Tertius Troost, Tax manager - Mazars

Employees of these religious institutions are not exempt from paying tax.

They should have Pay As You Earn (PAYE) that should be withheld from their salaries at the end.

Tertius Troost, Tax manager - Mazars

These PBOs can lose their tax exempt status if they are paying excessive amounts to their employees.

Tertius Troost, Tax manager - Mazars

The Sars tax exemption unit can also take away the status if they feel it's being used to evade tax by these religious institutions.

Tertius Troost, Tax manager - Mazars

Sars is still engaging religious institutions and investigating methods that would ensure these institutions, usually exempt from tax, are tax compliant.

To hear the rest of the conversation, listen below:


This article first appeared on CapeTalk : How Sars is clamping down on religious institutions' tax compliance


Recommended

by NEWSROOM AI
Read More
[LISTEN] What kind of tax are religious institutions required to pay?

[LISTEN] What kind of tax are religious institutions required to pay?

SARS Acting Commissioner Mark Kingon says a study reveals how a number of churches are 'incorrectly declaring'.

'Majority of tax payers will get R153 more in their pocket this year'

'Majority of tax payers will get R153 more in their pocket this year'

Co-Founder at TaxTim Marc Sevitz says no tax decrease for tax payers may be the only disappointment in the budget speech.

Will the budget be convincing enough for ratings agencies? Economists explain

Will the budget be convincing enough for ratings agencies? Economists explain

Economist Xhanti Payi and Prof Osman Mollagee give their take on Minister Tito Mboweni's budget speech.

Working abroad? New rules are coming! You're probably breaking the existing ones

Working abroad? New rules are coming! You're probably breaking the existing ones

Bruce Whitfield interviews Warren Ingram, a Personal Financial Advisor and Executive Director at Galileo Capital.

Moyane accepts ConCourt ruling ending his legal bids to get SARS job back

Moyane accepts ConCourt ruling ending his legal bids to get SARS job back

Moyane had approached the apex court after the High Court ruled in December that his dismissal was both lawful and rational.

Open interview sessions to appoint Sars commissioner a first in SA history

Open interview sessions to appoint Sars commissioner a first in SA history

FM's Sikonathi Mantshantsha says the newly appointed panel headed by Trevor Manuel is a most welcome effort at transparency.

Popular articles
[WATCH] Looks like 'Mabena' found his way to Sona and Mzansi had a good chuckle

[WATCH] Looks like 'Mabena' found his way to Sona and Mzansi had a good chuckle

The name Mabena has become synonymous with out of step and clumsy soldiers, and it seems one made an appearance at Parliament.

President Ramaphosa makes 5 promises that, if kept, will radically transform SA

President Ramaphosa makes 5 promises that, if kept, will radically transform SA

A short summary of President Cyril Ramaphosa’s third State of the Nation Address, delivered in Parliament on Thursday.

[VIDEO] Mzansi moved by Khoi Nation praise singer at Sona

[VIDEO] Mzansi moved by Khoi Nation praise singer at Sona

For the first time, the Imbongi was Khoi, poet Bradley Van Sitters, who ushered President Ramaphosa into the National Assembly.

Billionaire gives away R100 billion, leaving only 0.0002% of fortune for himself

Billionaire gives away R100 billion, leaving only 0.0002% of fortune for himself

You've probably never heard of Chuck Feeney. Nevertheless, he’s one of the strangest, most impactful people who has ever lived.

'We’re the first female impersonators to walk the red carpet at Parliament'

'We’re the first female impersonators to walk the red carpet at Parliament'

"The Constitution protects us, but not society. We’re delighted to be here as guests of the DA," said The Trolley Dollies.

How long to keep tax records available for inspection in South Africa

How long to keep tax records available for inspection in South Africa

Should you keep them "forever"? Tax expert Chris Sloane on the requirement to keep tax records available for inspection by Sars.

[WATCH] A group of men load impala carcass in taxi at Kruger National Park

[WATCH] A group of men load impala carcass in taxi at Kruger National Park

Khabazela shares tweets and Facebook posts that have gone viral.

I’ve never seen anything like this! – Simon Brown on Old Mutual vs Peter Moyo

I’ve never seen anything like this! – Simon Brown on Old Mutual vs Peter Moyo

The Money Show’s Bruce Whitfield interviews Simon Brown, Financial Educator at Just One Lap.