[Question] In need of some advice for year end...

[ALICHAM1234]

Morning , I was wondering if you maybe could give me some advice on an issue.

We decided last year to stop trading in the one company and do the trading in a different company , however most of the accounts are in the name of the other company and for vat purposes we had to claim the expenses still in the previously used company. Since it is almost year end and we need to prepare financial statements (we only do a compilatione engagement) I need to transfer the expenses to the correct company via loan account, however if we submit the statements like that SARS will issue an IT14SD because expenses claimed would be far less than those declared in the VAT201 than in the statement .

What I was thinking was submitting the difference between the companies on the IT14SD which would be the same amount together with a VAT recon and the annual statements. Would SARS be able to understand this or should I rather sell the expenses to the other company with a transaction , or what do you propose?? As the income was already declared in the new company and some expenses which are not on retail accounts.

Regards**

[Dave A]

I've moved this into the Tax forum as it seems to be more a tax issue than accounting.

[AmithS]

Not 100% sure what the correct way would be tax\sars wise, however it might be worth while opening an official query with sars stating all the details, company details and values so they can give you an official answer which you can attach to the submissions...

[Dave A]

... or should I rather sell the expenses to the other company with a transaction

Where we incur expenses in company A on behalf of company B in the group, we have company A invoice company B to recoup the expense.

[ALICHAM1234]

Where we incur expenses in company A on behalf of company B in the group, we have company A invoice company B to recoup the expense.

I know this as it forms part of inter company transactions its just I dont want to pay the vat or receive it back in the other company its so much admin work that nobody has time for I wanted maybe a simpler way..