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
Paramedics fear for their lives as attacks on EMS crews continue

Paramedics fear for their lives as attacks on EMS crews continue

An ambulance crew was held at gunpoint, assaulted and robbed of their belongings while on a call out in Khayelitsha.

Fikile Mbalula confirms Gupta brother's phone call

Fikile Mbalula confirms Gupta brother's phone call

EWN reporter Theto Mahlakoana unpacks Fikile Mbalula's testimony at the Zondo commission of inquiry into state capture.

This mess that is Eish-kom, is the ANC's doing, says Eusebius

This mess that is Eish-kom, is the ANC's doing, says Eusebius

Eusebius McKaiser and callers discuss Ramaphosa's comment that South Africans will overcome load shedding like they did apartheid.

'Zuma believes that nuclear deal with Russia would've solved SA energy crisis'

'Zuma believes that nuclear deal with Russia would've solved SA energy crisis'

Senior specialist reporter at Tiso Blackstar Karyn Maughan speaks about her interview with former president Jacob Zuma.

Meet Sandile Shabalala, CEO of black-owned and controlled TymeBank

Meet Sandile Shabalala, CEO of black-owned and controlled TymeBank

TymeBank has no branches and no monthly fees. Most transactions are free. Bruce Whitfield interviews its CEO.

Survey reveals SA teachers 'emotionally overwhelmed'

Survey reveals SA teachers 'emotionally overwhelmed'

A report has revealed that many teachers feel overwhelmed and often feel they must step into the role of a 'proxy parent'.

[WATCH] 'We don't accept white people' says BLF registering for May elections

[WATCH] 'We don't accept white people' says BLF registering for May elections

Black First Land First (BLF) leader Andile Mngxitama made its exclusionist policy clear when registering at the IEC on Wednesday.