Tax practitioners will tell you why it is significant to keep precise records for SARS.
Accurate records are needed for well-organized business. The following reason makes it clear for the need of precise record keeping.
A company may receive cash or property and if you do not have records showing the source of the business’s takings, you would be unable to show why you used it as a tax deduction or that is indeed non-taxable.
Poor record keeping can prevent you or your business from claiming for deductible expenses when you file your tax return.
Documentation of all earnings and wages must be kept. All workers’ tax must be deducted from remuneration & wages. The amount deducted must be paid over to SARS every month. Should any inconsistency be queried regarding amounts deducted as well as paid to SARS this can with no trouble, be cleared with the records safely kept.
Record keeping and storage of all the company’s earnings and expenditure are required for 5-7 years as by law and will help you to give details on the items reported on the income tax return should you be investigated. Should it be checked by the Receiver of Revenue, you can easily access the old records and clarify the items reported. Satisfactory and full records are at all times supported by cancelled cheques, receipts, invoices, bank deposit slips, sales slips and other documents.
http://taxrelax.co.za/ has specialized consultants willing to assist you.