Lesson 1, Topic 1
In Progress

3.4 Taxation requirements are catered for in the accounting system of the new venture.

ryanrori January 13, 2021

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The imposition of taxation is essential in order to provide the community with certain services and to bring in a more equal distribution of wealth between individuals in a country.

The accounting and financial systems of a business must be adequate to enable the responsible taxpayer to complete the tax return accurately. The financial system must ensure that the necessary books and records required by the receiver of revenue, are available from an investigation of the tax return.

The following periods are required for the safekeeping of books and records:

  • Unlimited. Founding documentation of a company, close corporations and partnerships. Minute books.
  • Period of 15 years. Financial statements, accounting records and books, including supporting schedules.
  • Period of 6 years . Paid cheques.
  • Period of 5 years.  Tax returns and assessments, salaries and wage registers, sales and purchasing invoices, bank statements, stock inventories, VAT records, other supporting documentary evidence.