SARS AND THE 1700 SOUTH AFRICAN NAMES IN THE PANAMA PAPERS: – HOW IT AFFECTS YOU.
Taxrisk News flash 2016 05 31
The first thing to know is that SARS is able to tap into information wherever and whenever it presents itself. In the case of the Panama Papers leak, where 11 million files are involved, 1700 South Africans now face the prospect of detailed investigation into their tax and financial affairs.No-one is saying these people are guilty of tax avoidance or evasion; there is little doubt, however, that an exhaustive process of enquiry will now begin in most cases.
The processes involved were also “the same as any other SARS verification and audit process”.
Another very clear fact is that once SARS has information to work with, there is a healthy and growing appetite for doing the hard yards in scrutinising the evidence.
“ In short, the data available to SARS with respect to the Panama Papers is a useful starting point to further enquiry but will require substantial follow-up work.” – Vlok Symington SARS Executive
A special project unit has been set to follow through on the leads provided by the Panama Paper leak. What we can all learn from the Panama papers episode is that many people whose tax affairs are in order will have their lives disrupted as they go through the rigours of a SARS audit. It’s a stressful and costly process that requires the input of highly skilled professionals such as tax lawyers and accountants, regardless of the enquiry outcome.
ARE YOU COVERED?
What many people don’t know is that full cover is available in the case of a SARS audit, and that it is extremely affordable.
This not only allows you the peace of mind of knowing your SARS enquiry is being handled by experts in their fields on your behalf but also that potentially tens of thousands of rands in professional fees are completely covered.