As financial year-end looms, pressuring business owners to ensure their financial records are up-to-date and compliant, PJ Veldhuizen of Gillan & Veldhuizen Inc warns them to avoid this seemingly harmless hazard.
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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…
