Why is an indirect tax review needed?
Accounting errors occur that lead to savings being overlooked. In our experience, factors that contribute to this include: Regular VAT law amendments, inaccurate data capturing, big volume of transactions, changes in accounting systems and increased workloads, amongst other things. We do an in-depth review that insures that all
savings are recovered.
Will a lot of our staff’s time be required for the review?
No! We download your financial transactions for 5 years and analyse the data offsite. Only a very small portion of time is spent on your premises when we retrieve and copy tax invoices as part of the claim. It is therefore negligible compared to an external audit, for example, where your staff gets “bossed” around.
Is the process confidential?
Yes. You can rest assured that no client information will be communicated with any third parties without the client’s express approval. We also sign a confidentiality agreement with the client.
Would incorrect indirect tax treatment be exposed?
We suggest a two-phased approach where a review is carried out to facilitate the recovery of your indirect tax savings from SARS (indirect tax savings review), following which we perform an indirect tax exposure review at a negotiable rate per hour.
How long does such a review take?
The duration is highly dependent on the circumstances of the client and the nature and volume of the transactions, but in general most reviews could be completed within a 6-week time span.
How do we know the savings are correct?
Tax Recoveries will provide you with a detailed report that includes a summary of all the claims. We will provide you with the extracts of the financial transactions where the indirect tax was missed, with documentary evidence (i.e. the relevant supporting tax invoices) should it be required by SARS. This information will also help you to manage your accounting processes effectively in the future.