Two Things in Life are Certain – One of Them is Taxes
Nyctophobia, more commonly known as fear of the dark. Claustrophobia, more commonly known as fear of small spaces. Arachnophobia, more commonly known as the fear of spiders.
These phobias are some of the most common phobias of today’s age and yet there is a shared phobia among all people of the world that generate an income, and that is, Taxophobia!
Income tax is the main source of government revenue to be utilised in roads and bridges, diplomatic events, redistribution from the rich to the poor, jails, police officers and firefighters, the military and government employee salaries to name a few. Yet there is a common gripe among taxpayers as there are poor infrastructures in place, excess expenditure by governmental officials for deemed personal assets and events, and no noticeable changes in the lives of the poor in the country.
Be that as it may it is an annual evil that we must all take part in to avoid those dreaded penalties and interest on overdue accounts, so what can you, the taxpayer, do to assist your accountants out there doing the numerous amounts of taxes.
Importantly to note is the deadlines in place.
Provisional tax is payable every 6 months in relation to year ends, the most common being February year ends and individuals deemed as at the end of February and therefore your provisional tax will be due in August and February of that tax year of assessment.
To fast track the process, I would suggest that at the beginning of the month of August and February, management accounts, up to the latest date processed for the tax assessment year, should be sent through to the accountants allowing them to work on estimating taxable income and provisional tax due immediately.
Income tax returns are due for Companies one year after the year end of the company and for Trusts and Individual Provisional Taxpayers the January following the end of the previous tax assessment year.
To fast track this process, I would suggest that as and when tax information is received from employers, medical aid, investment portfolios, etc. that this information is sent to your accountants so all information is on hand allowing a faster approach to completion of taxes.
With small processes in place the whole tax filing process can be streamlined and would eradicate significant stress and panic as the deadline approaches and with more compliance there will be more control over cash flows ahead of the payment date and less to fear from the Taxman himself.
AUTHOR: BENJAMIN FLOWERS
Marwick & Company Inc.