We are keen that you consider reporting any suspicious activity which may have relevance to tax to us here at SARS. We want to be sure that everyone is paying their fair share of tax here in South Africa
What would we consider a suspicious activity?
How SARS can be defrauded, misinformed, misled, deceived, contrived, with the intention to evade tax or obtain an undue refund are too numerous to mention, and it is not possible to offer even the briefest of discussions on every possible such action that may be directed against SARS. Many of these types of conduct are no more but variations of the theme. The examples offered is an attempt to better understand the application of our legislation and criminal law in dealing with instances of tax evasion and obtaining of an undue refund:
- The claiming of false deductions. Typical examples of this will be to claim as business expenses salaries paid out to non-existent employees, or to claim for VAT input tax where the goods and services were in fact not acquired
- The claiming of non-deductible expenses as deductible expenses. A commonly used example is the declaration of private expenses as business expenses
- Double deductions for the same expenses or inputs.
- A person or business legible for any type of tax but not paying any form of tax.
- An individual or business employs people and deducts PAYE from employees but not issuing IRP5 certificates.
- Imported goods being sold on the open market at a price lower than “landed cost” i.e. less than what it would cost to purchase the goods, transport them and pay VAT and duty on importation.
- A person or business legible and registered for any type of tax but not submitting returns required by SARS.
- A person living beyond his apparent financial means – displaying unusually high life-style patterns for a person with similar forms of known income.
- An importer (including the clearing agent) not declaring, false-declaring or under-declaring goods upon importation.
- An importer or exporter (including the clearing agent) found to have imported or exported goods determined to be illegal (drugs, fire-arms, explosives, CITE described items, counterfeit goods).
- A person or business has mixed fuel of any kind.
- A person found to carry an unusually large amount of currency in any form while travelling into or out of South Africa.
- An individual or business is trading in goods that are suspected of being of counterfeit origin.
- Derives income from criminal activity.
- A person or business who makes any false statement or entry in a return or other document required by SARS
- A person or business liable to be registered for a tax under a tax Act but is not.
- Customs warehouse irregularities.
- An individual or business failing to withhold and pay to SARS an amount of tax as and when required under a tax Act.
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