PROPERTY TAXES
South Africa ' s Revenue Service ( SARS ) is determined to harvest every last cent this tax season . The government department has upgraded its IT systems and is using artificial intelligence to start identifying those who aren ' t paying up .
In the Medium Term Budget Speech presented by Minister Enoch Godongwana in October last year he commented that SARS is required to bring in R1 682 billion in this tax year – as opposed to the previous estimate of R1 598 billion . Ninety percent of the government ' s revenue relies on this income .
To ensure that your tax season is hassle free , here are some tips :
1 . Importance of source documents
Source documents are the original records of a transaction which generates a paper trail . These documents are essential to the bookkeeping process as it provides evidence that a financial transaction has occurred . During a tax audit by SARS , source documents are used to back up the accounting transaction trail . A source document includes some basic facts about the transaction , such as the amount , the purpose of the transaction and the transaction date .
Trust source documents
• Bank statements
• Bond statements
• Levy statement
• Utility bills
• Rental statements
• List of improvements , repairs and maintenance
• Sale agreement or notification of shares
New Properties : Transfer documentation and statements from the Transferring Attorney / s Asset register . Photocopies of source documents are acceptable , as long as it contains all the information in a format identical to the original . It is essential that source documents are filed as SARS requires that they are kept for five years .
Providing source documents to your bookkeeper or accountant assists them in preparation of financial statements and accurately analysing the financial activity .
40 MARCH / APRIL 2023 SA Real Estate Investor Magazine