Tag Archives: Tax Compliance

Tax Dispute Cases Successfully Resolved!

Tax Feb

 

 

Many tax payers think that SARS, assessments and action cannot be challenged! Whilst most tax assessments are correct, it is a fact that SARS can, and do make mistakes. SARS will also overlook, wrong, inflated tax returns, and not audit, if the amount assessed is to their benefit.
Here follows some matters and disputes that were settled, to the advantage of the taxpayer client. For privacy, names of taxpayers are withheld.
Tax payer A- S11(a) Income Tax Act, allowable deductions
A taxpayer was assessed for R400 000.00. Deductions were not processed, we objected, corrected the return, and the tax debt was reduced to zero. In fact, the final result was a refund due to taxpayer of R20 000!
Tax payer B- S11(a) & S11(e)
The taxpayer received a final demand of R300 000.00 and a threat of legal action.We identified the following; Section 11(a)
(a)”Expenditure and losses actually incurred in production of income, provided such expenses are not of a capital nature.”
b) Municipal charges to the value of Rx, overlooked/included somewhere in the calculation. Either way it is not debatable. The municipal expenses were incurred, to derive income for the “rent collection, property investment company.
c) Project and contractual expenses.Information was furnished in this regard, but excluded, or only a portion allowed. It was not of a ‘capital nature”,
d). Wear and tear(Section 11e) read together with Practice Note 19. Completely overlooked, and “depreciation’’ used to calculate wear and tear, in complete violation of the Practice Note 19 Prescription. Our wear and tear calculation was Rx.
Taxpayer C-Judgement, unfairly obtained
A tax return was wrongly completed, resulting in a final tax, of R150 000.00. SARS obtained a judgement against the taxpayer.On perusal of the tax return, we noticed that the assessment was not relevant and the taxpayer was not liable. We duly objected and the amount was reversed! Judgement against taxpayer, rescinded!!
Tax payer D-(a) Income Tax Act, allowable deduction
A Taxpayer was assessed for R1000 000.00. All deductions overlooked, we motivated our case for deductions to be claimed, all of them were allowed, and the corrected, resulted in a nil assessment!
Tax payer E
Same scenario as above, but the amount was R500 000.00
Tax payer F-S179  of The Tax Administration Act Challenged
A bank was appointed as an agent in terms of section 179 of the Tax Administration Act.
R308 000, was debited, from taxpayers account. After Sars could not prove this debt, we advised our client to withhold taxes until SARS could explain this anomaly. Additional tax debt, shot up to R430 000.00 Total Liability, R738 000.00. After numerous letters and threats of High court action, SARS was forced to investigate its actions. The R308 000 was offset against the R430 000 debt. SARS had to concede the R308 000 debt never existed!
Taxpayer G-Capital Gains Tax
After a court settlement for a members share, the taxpayer was audited and slapped with a R3million tax bill. Our investigations revealed that ,whilst SARS correctly assessed the “capital gain” of the share gain, and understated income, SARS “double taxed the capital gain, and did not use the applicable under tstatement penalty prescriptions. Intense number crunching and negotiations resulted in SARS reversing the double taxation, and reducing the understatement penalty. Final reduction, R2000 000!

These are only a few examples. Space donot allow me to elaborate on all our cases.

If you find yourself in a similar predicament, don’t hesitate to contact us. We can take on any tax matter with the seriousness it deserves.
sgafc@mweb.co.za

Tax Compliance and Complex Tax Cases

Inc Tax

Tax Compliance and Complex Tax Cases

Tax Morality?

A “guilt trip” stick that government is whipping taxpayers with. Bullshit, we at The SGAFC Group say. Most people are law abiding, and gladly comply with their taxes.

Much research has gone into the necessity of taxes, and whether taxation of society can be justified. I tend to agree with such assertions, and believe that various  societies will revolt against these taxes.

The current status quo ,regardless , of your or my opinion, is that taxes should be paid! In the US, some proof has been availed that taxes are not legal. In South Africa , however, lawmakers covered their asses with laws in the Supreme Law,-The Constitution, The Income Tax Act and The Tax Administration Act. So there is just no getting away from taxation. New shitty laws , like e-toll and other levies can be challenged, and mass boycotts are encouraged. But I will NOT encourage individual negligence with Taxation Laws, for anyone, since SARS and the NPA , are on a conviction spree, and cannot wait to make examples out of errant taxpayers! A MUST READ , CLICK HERE!

Tax Law

Tax Law in South Africa is complex. In fact the number crunching involved in unraveling SARS Tax assessments and computations can be daunting. Not impossible. This unfortunately makes compliance expensive. Whilst certain electronic mechanisms like SARS Easy File, and SARS Efiling is in place , “for your convenience”, lay taxpayers will not be able to decipher new “entries” on tax forms like “journal payments, and “recon assessments”, which I suspect is a ruse , to befuddle taxpayers, and inflating taxes..

The situation has become so severe, that tax consultants and accountants, refuse to challenge tax cases, and just advise their clients to pay up.  I am shocked to learn that advisors at the big four audit firms, with all the expertise and resources are turning away legitimate  tax cases.

Our Passion

Out of a passion for helping beleaguered taxpayers, our firms Tax Division(SGAFC Group), is dedicated to assist taxpayers. We have a trained eye for serious flaws, in SARS tax computations, as well as violation of taxpayers rights. We can proudly state that we have and are in the process of resolving(winning), difficult Tax Cases that well meaning, established tax firms were unable to resolve. We make extensive use of Objections, Appeals, Tax Ombudsman, Tax Board, Tax Courts  and general courts. I re-iterate. Solving your tax matter, is not “hard work” or “stressful”. We enjoy it!(money is secondary, our love for the work comes first!!)

Stay with current tax advisors

You need not abandon your current advisors, we only interested in assisting with a specific matter. Areas covered;

  • Vat reconciliations
  • Vat Audits
  • Vat Assessments
  • PAYE
  • PAYE Audits
  • Income Tax Assesments
  • IT34(Assessments) queries
  • Legal defence for tax cases

 

For consultation we offer the following

  • A fully equipped office, with Board Room Facilities, Video conferencing, Wi-Fi and IT/ telecommunication equipment.
  • Meeting or representing you  at SARS offices  in the major centers, or  at court.

Expertise: