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MEETING TAX DEADLINES REMAINS RESPONSIBILITY OF BUSINESS OWNERS

MEETING TAX DEADLINES REMAINS RESPONSIBILITY OF BUSINESS OWNERS

Recording and adhering to dates for meetings is fundamental to running a business. So is satisfying financial and tax deadlines, but too few business owners diarise these dates, according to the South African Institute for Professional Accountants (SAIPA).

“The tendency is to delegate the responsibility for meeting submission dates to accounting and tax professionals, but we believe that the entrepreneur should own his or her business in its entirety,” says SAIPA’s Technical and Standards Executive Faith Ngwenya. “In this way, if deadlines are missed by a tax professional for any reason, the situation can be rectified promptly to limit the fallout.”

“Even rudimentary knowledge enables business owners to capitalise on potential tax exemptions that may pass if they only engage with their professional accountant at times when their accounts need to be updated and submitted to SARS,” says Ngwenya. “This knowledge also allows them to identify mistakes made by the accountant, which could incur penalties for which they as business owners will be held responsible.”

Key dates to note

For micro-businesses, which are those bringing in R1 million or under that are taxed on turnover, interim tax payments must be made by 31 August and 29 February each year. 

Businesses with an annual turnover not exceeding R14 million qualify as small business corporations (SBCs) and pay less tax on profits than the standard 28% that applies to larger organisations. Tax returns must be submitted within 12 months of the company’s financial year end.

The South African Revenue Service (SARS) has published a list of key dates on www.sars.gov.za that business owners can easily use to check whether submissions to SARS made by their professional accountant is up to date.