SARS requires companies and close corporations to keep accurate accounting records and documentation to support all transactions (revenue declared and expenses claimed). Business’s IT 14 returns are only submitted within 12 months after the financial period end. This means they need to keep accounting records and supporting documentation on hand if SARS has any queries. Companies could be liable for an administrative fine of anything up to R16 000 if proper accounting records are not kept.
Section 240A of the Tax Administration Act, 2011 (as amended) requires that all tax practitioners register with a recognized controlling body before 1 July 2013. It is a criminal offense to not register with both a recognized controlling body and SARS.