As the end of the financial year approaches for companies with a February 2025 year-end, business owners and directors are under considerable pressure to ensure their financial records are accurate and compliant. A common pitfall for many business owners is running personal expenses through the company and incorrectly claiming deductions. This practice not only raises red flags with SARS but can also lead to serious legal and financial trouble, including criminal proceedings, potential liquidation and insolvency enquiries.
With SARS scrutinising businesses more closely, it’s important for business owners to understand what qualifies as a valid tax deduction under Sections 11 and 23 of the Income Tax Act. According to PJ Veldhuizen,…
