If your records are no longer needed for tax purposes, don`t throw them away until you`ve checked to see if you need to keep them longer for other purposes. For example, your insurance company or creditors may ask you to keep them longer than the IRS. Proper deletion of documents can be essential to protect your personal information online and offline. Under the Income Tax Act No. 58 of 1962 (Section 73A&B), taxpayers must retain documents in their original form or in electronic form, as required by the Commissioner. Retention periods for some documents are as follows: Keep a digital or printed copy of the previous year`s monthly bank and credit card statements. It`s a good idea to store your digital copies online if you decide to go paperless. You should also stick to payment stubs so you can use them to verify the accuracy of your Form W-2 when tax season arrives. With regard to the Private Companies Act No. 69 of 1984, the retention periods for certain documents are as follows: Recent amendments to the Act now cover all data created using a computer, including data in the electronic form in which it was originally created or in which it is stored for backup purposes. As a business owner, it is important that you keep records that will help you prepare complete and accurate tax returns. It is up to you to choose an accounting or accounting system adapted to your company and compliant with the regulations.
These records may need to be accessed more frequently than others during the five years they must be retained, especially if an audit is conducted. Some of our offices also offer secure on-site storage, ideal for archived tax and other business documents. The words tax, helmsman, beneficiary and SARS are known to terrify the hearts of many entrepreneurs. This is not only because it means you have to part with your money, but also because the tax process can be intimidating. A good place to start keeping your taxes in order is to keep accurate records. You can choose your own system of record that suits the purpose and nature of your business, but your records should still determine your income and expenses. You must keep permanent business books and any other information to support these records, such as invoices, cheque stubs, accounts paid and bank statements. The Income Tax Act and the Value Added Tax Act specify certain documents that you must keep.
These records include: The representative must be a responsible officer of the Company/Close Corporation (e.g., director, manager, executive member, secretary, etc.), and this position must be permanently held by the Company/Close Corporation. Accurate and up-to-date accounting isn`t just about making your life easier when you file your tax return. It can also protect your company`s cash flow and allow it to handle a tight ship. Not only is non-payment of your taxes illegal, but it can also lead to the closure of your business. Tax records that must be kept for 15 years include: Records that businesses must keep for at least five years include: These business records must be kept indefinitely: How long you need to keep a document depends on the action, expense, or event recorded by the document. As a general rule, you must have your records to support income, deduction or credit on your tax return until the limitation period on that tax return expires. Get PATC to help you with your registration, contact us today. If you received property as part of a tax-free exchange, your base in that property is the same as the basis of the property you gave up, plus the money you paid. You must keep records of the old property as well as the new property until the statute of limitations expires for the year in which you own the new property. Set the amounts to be paid as wages or salaries – Under normal circumstances, amounts paid to employees for services rendered are taxable in the hands of employees. In these cases, employees` taxes must be deducted from the wages or salaries of the person paying those salaries or wages. Report reported items – If your tax return is verified by SARS, you may be asked to report certain points, which is easy if you have kept complete records and receipts.
Use strong passwords to protect your account information. Make sure your username and password combination is different from the ones you use for personal emails, online retailers, and social media accounts. It`s also a good idea to protect your computer with antivirus software. Bank of America customers can download IBM® Trusteer Report™ for additional protection against online fraud. Record keeping for income tax or capital gains tax purposes It makes sense to keep these important documents in a safe place, such as a locked office cabinet or office safe. Your tax returns are important documents that you should keep as part of your financial history. You should keep a permanent electronic or printed copy of each year`s tax return and any payments you make to the government. Also, it`s a good idea to keep records of important financial events such as legal deposits or inheritances. You can easily access your paperless statements and documents and keep them securely online. Bank of America customers can easily manage paperless statements and documents through mobile and online banking. In accordance with the Companies Act No.
71 of 2008 and the Companies Regulations 2011, companies must keep documentation in writing or in any other form or manner that allows the information to be converted into written form within a reasonable period of time. The retention periods for some documents are as follows: As your financial life becomes more complicated, it is difficult to know how long you keep the documents and when it is safe to dispose of them. Some things you have to hold on to all your life and others only for a few months. You probably already know that important documents such as tax returns, bank statements, and payslips require special attention, but for how long and in what format? And what is the best way to protect all this personal data? We`ve put together seven tips in two categories: how long to keep documents before shredding them, and how to properly store sensitive information. If you do it wrong, you might expect massive penalties! . up to 200%. According to the LAW, taxpayers (businesses and individuals) are required to keep certain tax records for 5 years, but SARS requires us as consultants to keep records for 7 years. If you do not know what documents and records SARS requires of you, you will face sanctions. A single item for which you have no evidence will cast doubt on SARS as to the validity of your other deductions or disclosures of income received.
This could result in additional contributions and additional taxes of up to 200%. Small businesses and temporary taxpayers are just coming out of another tax season. This means that another set of tax documents for small businesses needs to be stored. In general, it makes sense to store these documents outdoors as soon as they are more than five years old. This saves space and avoids losses in the event of a fire or burglary. If you are self-employed, you may need your electricity, cable and cell phone bills for tax purposes. If not, you can dispose of it once you`ve verified that your payment has been processed. You can also dispose of bank withdrawals and payment slips after checking them with your monthly statement. You expose yourself to the risk of fraud or identity theft if you simply throw away a large pile of private documents such as financial reports. Invest in a cap shredder that removes all traces of your personal data, or look for free shredding events in your community. Paperless statements and documents can help reduce the risk of identity theft from lost or stolen mail. NB: If you conduct personal and business banking from the same account, it is best to open a separate account for your business to allow for proper filing and tax return.
Accurate and up-to-date records are essential to keep track of money coming in and out of your business. At the time of taxation, they are also important for: identify the type of receipt – to show if you have received something that is tax or capital in nature Avoid omitting deductible expenses – by recording your expenses as soon as they occur, you won`t forget to include them on your tax return You are required to keep your books and records, Since SARS can require investigation at any time, something is wrong or suspicious.