Taxpayers who fail to meet their tax obligations will feel it where it hurts — in their bank accounts, thanks to the system of penalties that SARS phased in late last year. Let’s look at the penalties

I know you’re wondering where I’m going with this public service announcement. So here it is: The deadline for both provisional tax and for the first bi-annual employer submission is 31 August 2010.

I’m not sure I agree with the advice some auditors and tax experts are dishing out to help their clients to get around the travel allowance rules.

Shockingly, a recent announcement by a SARS spokesperson revealed that employers MUST tax the “free” T-shirt as a fringe benefit. As if that wasn’t enough, SARS is also going to crack down on employers who provide their employees with shirts, but at a cost lower than the actual retail price.

It’s no wonder that taxpayers who make the occasional (and sometimes quite innocent) mistake, feel the need to sweep it under the carpet for fear of the repercussions. Tax penalties are financially crippling, and could destroy your business... but the penalties for not being honest are just as bad.

Hundreds of businesses are audited by SARS each year, and too many suffer tax penalties because they don’t have this kind of insight, from day one. But you don’t have to be one of the statistics!