Understating your income can cost you, taxpayers warned
Taxpayers who are busted for understating their income on tax returns can face penalties and indirect charges for any tax audit conducted by the SA Revenue Service (Sars).
Tax practitioner Jean du Toit explains that Sars can charge penalties in cases where taxpayers do not declare their full income.
Sars can argue that the cost of a tax audit costs additional resources and can penalise individuals on that basis, du Toit shares.
Penalties have always been part of the equation.Jean du Toit, Tax practitioner - Tax Consulting SA
Where Sars finds that you understated your income, it can certainly impose a penalty.Jean du Toit, Tax practitioner - Tax Consulting SA
The don't charge you for the auditor's hours, they argue that Sars was prejudiced by the fact that it had to spend additional resources to find that the taxpayer understated the income.Jean du Toit, tax practitioner - Tax Consulting SA
Listen to the full discussion on The John Maytham Show:
This article first appeared on CapeTalk : Understating your income can cost you, taxpayers warned