Frequently asked questions Balance Sheet
1. What is a balance sheet?
A balance sheet is a schedule of assets and liabilities in your own name at year end (28 Feb of that year , e.g 2019 balance sheet is 28 Feb 2019). Important to note is that all assets should be stated at COST and not at current or market value. Liabilities should be stated at outstanding amount as on 28 Feb.
2. Why do I need to submit a balance sheet?
On your tax return one of the questions are if you a director of a company/member of a close corporation. If you select yes SARS requires a balance sheet to be submitted and the tax return cannot be filed if balance sheet info is not submitted.
3. Why does SARS ask for this info?
It is a way for SARS to determine your Net Asset Value (NAV) ,which is assets minus liabilities and perform a recon between income declared against possible increases in assets, reductions in debt etc. Therefore please make sure all figures are submitted as accurately as possible.
4. Does all directors/members submit a balance sheet to SARS?
It is a requirement from SARS that these info is submitted, but some people are trying to bypass this by selecting no on the question if you are a director/member while they are, or simply submitting zero values on all assets and liabilities. This is an offence and constitutes lying on your tax return, which you don't really want to do...
5. What if i don't have exact figures?
In instances where you don't have excact figures please use best estimates/rounded figures