How Far Back Can SARS Audit?

What are SARS supporting documents?

Supporting documents are required to complete an income tax return….Documentation required to complete your returnIRP5/IT3(a) Employees Tax Certificate (if applicable)Certificates received for local interest income, foreign interest income and foreign dividend income.Documents relating to medical expenditure such as:More items…•.

Who audits SARS?

In terms of section 28 of the SARS Act, the Auditor General South Africa audits the accounts and financial records of SARS, including those relating to the collection of revenue.

Can SARS waive penalties?

A suspension of payment or waiving of penalties and/or interest on late payments can be requested through: SARS eFiling; or. A SARS Branch Office.

What happens if I don’t file my taxes for 10 years?

You will owe more than the taxes you didn’t pay on time. … there’s that failure to file and failure to pay penalty. You owe fees on the unpaid portion of your tax bill. Also, the IRS charges 3% interest on the amount you owe for every year you don’t pay.

Why would SARS reverse my refund?

Accidently paid SARS money you didn’t owe them? Any refund due to you will be held back by them. You’ll have to go into a SARS branch with your proof of payment made, an explanation of why you paid them and your ID so that SARS can unfreeze your tax account.

How long does it take for SARS to pay out 2020?

SARS has selected your tax return for audit or verification They have 21 days to send you a letter confirming completion of the audit, or a revised income tax assessment. “Your refund should be processed within 7 working days from the issuing of the completion letter,” says Nel.

How long should you keep records for SARS?

Five yearsHow long the records must be kept? ​Five years: counting from the date of submission of a return until the last day of the period. ​A person required to submit a return but has not complied. ​Five years: After the end of the five years period, indefinitely until the return is submitted.

Does SARS audit bank accounts?

SARS now has access to all one’s bank details, including all payments made or amounts received in one’s accounts. A wide variety of information is to be disclosed, including the monthly totals of all credits and debits to an account. …

How will I know if SARS owes me money?

Yes, you can see both on eFiling. The refund amount (if any) and refund payment date can be seen on the ‘Income Tax Statement of Account’ (ITSA) and the payment date for the amount owed by you to SARS, can be seen on the ‘Notice of Assessment’ (ITA34).

How long is a SARS audit?

The audit could be completed within anything from 30 business days to 12 months, or even longer, depending on the complexity of the matter, the volumes of transactions involved and the level of co-operation by the taxpayer. SARS can request additional or further relevant material throughout the audit.

What is a request for remission?

Request for remission of the penalty is a means for the taxpayer to dispute the Administrative Penalty that was levied to his / her account and to request that the penalty be waived.

Why has SARS not paid my refund?

Unpaid Balance. The last reason your refund may be delayed could be that you have an outstanding amount due to SARS. You can check on this on eFiling by requesting a Statement of Account (in historic notices). If this is the case, and you do owe SARS money, they might deduct your balance from your refund amount.

How do I get a SARS remission penalty?

A form to request remission (RFR1) can be requested via any of the following channels: eFiling; ◆ e@syfile (Applicable to PAYE) ◆ At a local SARS branch office; or ◆ SARS Contact centre on 0800 00 SARS (7277). The RFR1 form will be posted to the taxpayer.

How many years should I keep?

Keep records for 3 years from the date you filed your original return or 2 years from the date you paid the tax, whichever is later, if you file a claim for credit or refund after you file your return. Keep records for 7 years if you file a claim for a loss from worthless securities or bad debt deduction.

What happens if I owe SARS money?

I submitted my tax returns and found out that I owe SARS money. … The important thing to note is that the tax debt won’t go away on its own, even if you are unemployed, and interest will accrue on any unpaid debt. If you ignore it, SARS can have you blacklisted or seize your assets and sell them to pay the debt.