Avoid a SARS Audit | Top Tips
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With tax season around the corner, it is the perfect time to ensure your returns are in order — and to avoid any unnecessary attention from SARS. While audits are part of the tax system, they are rarely pleasant, especially when they come unexpectedly. There are several practical ways to lower your audit risk and stay on SARS’ good side.
COMMON SARS AUDIT TRIGGERS
SARS uses automated systems to flag irregularities. These are some of the most common red flags:
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Unusually large deductions: Especially for travel, medical expenses, or home office claims.
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Inconsistent income: If your income drops significantly without explanation, SARS may want to know why.
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Non-submission or late submission: Filing late or missing returns increases scrutiny.
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Lifestyle vs. declared income mismatch: Driving a luxury car on a low declared income can raise questions.
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Provisional tax errors: Incorrect estimates or underpayments often prompt reviews.
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Bank Accounts deposits inconsistent with declared income: where deposits in your bank account exceed income declared, an audit will likely be triggered.
TIPS TO STAY AUDIT SAFE
Here are some tips to keep your tax submissions (and a possible audit) clean and stress-free:
Keep Proper Records
Store all supporting documents safely — invoices, medical statements, logbooks, and receipts. Digital records are fine, as long as they are accessible/reliable.
Be Honest and Conservative
Claim only what you are legally entitled to. If a deduction feels like a stretch, it probably is. If you are uncertain, make contact with us.
Use a Registered Tax Practitioner
DIY is fine for simple returns, but once your finances get more complex, professional help reduces the chance of errors and oversights.
Double-Check Before You Submit
One typo can make your return look suspicious. Review everything before hitting "submit." Something as simple as marking the return as married 'Out of Community of Property' when you are in fact married 'In Community of Property' can increase chances of audits and incorrect tax outcomes.
Don’t Ignore Communication from SARS
Always respond to requests from SARS promptly and politely — even if you think they’re in error.
WE ARE HERE TO ASSIST
At FinServe, we take compliance seriously. Our clients benefit from expert tax guidance, meticulous return preparation, and peace of mind knowing that we handle SARS submissions with precision. We will also alert you if something on your return might raise a red flag — before SARS does.
Warm regards,
The FinServe Team
Professional. Proactive. Personal.