Big tax tips for your small business

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Candice Reynders, director of the Commercial Department at Phatsoane Henny Attorneys in Bloemfontein. PHOTO: SUPPLIED

Tax can be daunting for anyone, so it is helpful (if not a relief) to have someone who can assist and advise you on the rights and responsibilities of a taxpayer – not only for returns and declarations but also for compliance.

This is according to Candice Reynders, director of the Commercial Department at Phatsoane Henny Attorneys. Reynders advised local small business owners to remain honest and transparent when filing their taxes.

She emphasised the importance of familiarising yourself with the tax and regulatory landscape and to understand how these laws apply to your business.

“While it is perfectly acceptable to rely on the expertise of knowledgeable professionals and practitioners, you will be doing your business a disservice by not operating it with the necessary care and diligence. No one understands your business more than you do – so why not extend this knowledge to tax and regulatory aspects as well,” she said.

Reynders added that because the South African Revenue Services (SARS) has made it easier for taxpayers to access their services through their online support services, some of the pressures of congested telephone lines and long queues have been alleviated.

“Taxpayers are urged to make use of these platforms when connecting with SARS,” added Reynders.

It is important to note that “failure to comply with tax liability or declaring untrue accounts may lead to SARS charging interest on overdue liabilities and in certain instances levying penalties for non-compliance or understatements of tax liabilities,” warned Reynders.

Her advice: “Start with the end in mind and know the options you have on reaching your goal in the most tax-efficient way possible. Structuring your business right from the start may alleviate headaches in future. In addition, research the landscape of your business – scout the area, familiarise yourself with the territory, open your eyes to the new world around you, and just remember to keep records of everything!”

Gypseenia Lion

gypseenia@mahareng.co.za