Open Source Content Management

Hi

Are you or your business potentially in trouble with SARS? Or have you not complied with any SARS requirements in the past.

Depending on certain requirements there might be relief in terms of interest and penalties due to SARS. This in the form of a voluntary disclosure program by SARS to be launched shortly.

Please contact me should you require assistance to sort out your tax problems.

Michael van Eeden

Hi Michael

I need to register with SARS, but need to figure how just how much s*#t I'm in.

I have been working as a freelancer in marketing and media. I started to make a decent income in mid to late 2008. I planned on registering my business back then (and myself for income tax), but due to some rather unforseen circumstances (family responsibilities) this got put aside - my financial burdens were just too much at the time and I therefore didn't register with SARS.

I have heard that if you earn over R5000 per month you are supposed to register, but that if you didn't register and then come forward to SARS, you need to pay your income tax that would have been due for the last year. Someone also said to me that you have to pay what would have been due for the last 3 years. Which one is correct and - can you make an arrangement with them to pay this off?

Then, I have 'donated' a lot of money over the last 2 and a half years (looking after family, paying their rent, siblings school fees etc) - can this be deducted from the taxable income over the period? Is the limit R50 000?

Will I be able to apply for this 'voluntary disclosure'?

Many thanks
Jack

Hi Jack

I have sent you a separate mail as well in terms of some of your questions below.

Just in general terms you will qualify for the voluntary disclosure. This will exempt you only penalties and interest and you will still be liable for the actual tax you should have paid.

In your case SARS can go back as far as they want in terms of your tax affairs. Longer than 3 years in other words. The 3 years only applies if you have been assessed previously. You can negotiate with SARS in paying off the amount due if you are pro-active and don't wait till they catch you.

Tax thresholds when you become liable for tax is 2010: R54 200 and 2009: R46 000.

In general terms only expenses incurred for generating an income can be deducted. So school fees etc. can not be deducted.

Let me know if I can be of assistance.

Michael

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