Why incomepass Forex?July 7, 2016
This Time is Different!July 8, 2016
The IT14SD is the Supplementary Declaration SARS very often requests once you have submitted your company Income Tax Return (IT14). It is to be taken very seriously as it is one of the mechanisms SARS uses it to identify errors/omissions in submission of various taxes.
It requires a taxpayer to submit additional information reconciling and substantiating the figures submitted on their Income tax, VAT, employee’s tax and customs returns.
The form calls on taxpayers to reconcile and substantiate the differences between the following:
- Output VAT on sales declared on the VAT returns and Sales declared in the Annual Financial Statements;
- Input VAT claimed on the VAT returns and Cost of Sales in the Annual Financial Statements;
- Monthly payroll submissions and salaries as disclosed in the Annual Financial Statements;
- Accounting profits and losses and tax profits and losses;
- Exported sales value per Custom submissions and export sales per tax return;
- Importation values per Customs submissions and imported costs per tax return.
Completion of this form can prove to be time consuming as it requires the reconciliations to be accurate and complete. This form also has to be submitted within 21 days of receiving the notification. Should the exercise reveal an error in submissions it is likely to result in penalties as it is after the period closed.
We therefore recommend these reconciliations be updated monthly with your month end procedures. This will identify any problems during the year, which can then be immediately rectified. At the very least, this needs to be prepared for the year-end audit or review as it is a schedule that is checked as part of our procedures. It is best to know of the existence of potential problems before SARS picks them up.
Should you need assistance with setting up this control please contact us.
This article is a general information sheet and should not be used or relied upon as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your financial adviser for specific and detailed advice. Errors and omissions excepted (E&OE)