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Thread: Tax return and audit of financial statements

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    Tax return and audit of financial statements

    I'm the sole director of a small (Pty) Ltd company.

    Can't wait for the new Companies Act to come into force so I don't have to pay for an audit every year!

    I've only just finished preparing my financial statements for the 2009 tax year but I'm a bit short of cash and can't afford the audit right now.

    I do have a +/- R6000 credit with SARS but need to get my tax return submitted and assessed to get hold of the money.

    Can I complete and submit my tax return, wait for the expected refund and then have the audit done?

    What actually happens to the audit report that the auditor prepares? Must it get submitted (along with the financial statements) to CIPRO or something like that?

    I can't really ask my auditor for advice as I'm "between" auditors at the moment. The current auditing company are expensive/incompetent and I'm looking for a new one but I don't think anyone would want to take on my business knowing that their invoice can only be paid from expected refund money

    Thanks,
    Kevin

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    Site Caretaker Dave A's Avatar
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    Reading between the lines I take it the company is still trading. How long would it take to raise the cash to pay the audit out of trading?

    You see, here's the problem that I see - there's a shortage of auditors. You might get lucky and get one to audit your company on short notice, but for the most part auditors are pretty busy folk.
    The trouble with opportunity is it normally comes dressed up as work.

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    This is the email of a new, young auditor in Pretoria, that will wait for payment, info@raacountants.co.za. His name is R.Alli, CA(SA), Higher Diploma in Tax.
    Sean Goss We all are scared, but only few are brave.
    www.sgafc.co.za

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    Silver Member geraldenek's Avatar
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    The return which you can submit is this for the 2009 financial year? - if so, yes you can submit it and if sars have no queries with the return sars will pay the refund within the same week.

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    The question I have here, that is still relevant, is wouldn't you be lying on the tax return if you said that the report was qualified/unqualified? And how could you be sure of the figures submitted?

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    Quote Originally Posted by sgafc View Post
    This is the email of a new, young auditor in Pretoria, that will wait for payment, info@raacountants.co.za. His name is R.Alli, CA(SA), Higher Diploma in Tax.
    The domain raacountants.co.za. does not exist? Also be aware that in the context posted by knewman, the person would need to be registered with the IRBA; being a chartered accountant is not sufficient.

    Knewman, the new Act is in place already. However the old Act's requirements are still applicable to your company until you:
    1. Complete the audits for the year ends prior to the implementation of the new Act, and
    2. Amend your Memorandum and Articles and harmonise it with the new Act. It is your company's Memorandum and Articles that require it to be audited.

    And of course Dellatjie is 100% correct and in any event SARS will not refund any credit until all returns are submitted and they might well request the audited financials anyway prior to paying a refund. Having said that, there are companies that are not subject to an audit and who I am sure, answer "No" to the question on the tax return, so it is probably a non-event.

    You might also want to check on the status of your annual returns to CIPC, as they are once again de-registering entities that are non-compliant. Presently, the requirement to submit AFS with the annual return to CIPC is on hold, but will soon be a requirement and if nothing else will enable CIPC to monitor compliance with the 6 month deadline to produce AFS.
    Last edited by CLIVE-TRIANGLE; 07-Mar-13 at 12:59 AM. Reason: Additional info regarding CIPC

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    Quote Originally Posted by CLIVE-TRIANGLE View Post
    The domain raacountants.co.za. does not exist?
    Looks like the domain owner did not renew the domain name.
    (That post was made two years ago).
    The trouble with opportunity is it normally comes dressed up as work.

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    Clive,

    On the subject of some companies not being audited: I understand that from this tax season on, the IT14SD will be compulsory for all companies? Is that true?

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    Quote Originally Posted by Dave A View Post
    Looks like the domain owner did not renew the domain name.
    (That post was made two years ago).
    Wow, I did not see that Dave!
    No wonder the original poster was wishing for the implementation of the new Act.
    Dig hole. Get in. Cover hole.

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    Quote Originally Posted by dellatjie View Post
    Clive,

    On the subject of some companies not being audited: I understand that from this tax season on, the IT14SD will be compulsory for all companies? Is that true?
    I don't know, but I will know very soon. I fervently hope not.

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