The Social Sector has gone under the radar when it comes to tax issues.
There seems to be a misconception that NGO’s don’t need to submit tax returns to SARS because they don’t pay tax. This is not true. In fact, there was some recent media coverage about SARS beginning to look into tax compliance of religious bodies and it’s just a matter of time before the sector comes under further scrutiny.
An example of more stringent control measures by SARS is the possible requirement for an external accountant / auditor to issue S18A Audit Certificates. Causes who have not registered with SARS may have got away with it in the past, but these gaps are being swiftly closed.
Problems you may have if you are not registered with SARS:
• You may lose out on funders because you don’t have Tax Clearance
• You may lose your PBO Status
• Staff may need to claim UIF and will be unable to do so
• Your credibility comes into question
• You may be losing out on specific tax benefits
Understanding the tax compliance status functionality on eFiling:
Download the guide from SARS here.
Are you unsure of the risks your Cause faces?
We’ve asked Turning Point Consultants to help. They have put together a FREE, non-obligation NPO Needs Analysis – a quick questionnaire which can provide a snapshot of risks faced by Causes. You can complete this document, return it to them and they will assess & provide feedback on a no obligation, no cost basis.
Making sure you’re on top of compliance issues and are in good standing with SARS is critical. If you have any questions on this matter – let us know!