Frequently Asked Questions
Common questions our clients often ask us
But I have a good accountant who looks after all my tax affairs – why do I need insurance?
Even if you employ the best accountant in the world, and you believe like most people that your tax affairs are in order, SARS can still select you for audit. The cost of defending an audit like this can run into thousands of Rands in professional fees – money which most people and businesses haven’t budgeted for and can’t afford.
Should SARS find absolutely nothing wrong with your tax affairs, which is most often the case, you will still be liable to pay the bill from your tax advisors for their services rendered. GreatSoft Tax Assist risk insurance, on the other hand, will appoint and pay for a team of top tax professionals to represent you during a SARS tax audit and dispute. Your trusted accountant will probably also be part of that team.
I own many companies and want to insure my fellow shareholders and myself. How do I do this?
Each taxpayer must purchase his or her own policy because only the taxpayer named in the policy will receive cover under that policy. So, if you have three businesses and two shareholders, you may consider purchasing five separate GreatSoft Tax Assist
Who will you appoint to defend me if I get selected for an audit?
Depending on the nature and severity of the SARS tax audit, we’ll establish a panel of experts in your defence. This will probably include your current accountant, but could also include external tax specialists from our panel such as tax attorneys, tax accountants, tax advisors and other tax specialists. We’ll bring together whoever we think would be in your best interests, so we can find an effective resolution in the most efficient way.
What if my accountant or I made an honest error? Will I still be covered?
Yes – errors are human. As long as there is no fraud or wilful tax evasion involved, we will continue with cover as normal.
Some taxpayers are dishonest, and wilfully commit tax evasion. What about those people?
Cover will not operate in the event of fraud and tax evasion. It’s absolutely important that taxpayers continue to pay their taxes as required, and we encourage our clients to comply.
I have business interests offshore. Are they covered?
We only cover local taxes payable to SARS. Taxes payable outside of South Africa or on revenue generated outside of South Africa, or anything relating to exchange control, and customs and excise, are not covered under this policy.