Year-End Tax Checklist

1 · Company & engagement information

• Registered company name and trading name
• CIPC registration number
• VAT number (if registered)
• Income Tax reference number
• PAYE / UIF / SDL reference numbers
• Year-end date confirmed
• Public Interest Score (PIS) calculated for the current year
• MOI on file (latest version) and BEE Affidavit (if applicable)
• Beneficial Ownership register up to date with CIPC
• Confirmation of any changes in directors / shareholders during the year

2 · Banking & cash

• All bank statements covering the full year (including closed accounts)
• Bank confirmation letters at year-end (signed)
• Petty cash count sheets and reconciliations
• Credit card statements and supporting receipts
• Foreign currency bank accounts converted at year-end spot rate
• Outstanding cheques / EFTs reconciled

3 · Debtors (accounts receivable)

• Aged debtors listing at year-end (matching trial balance)
• Identification of doubtful debts and bad-debt write-offs
• Subsequent receipts schedule (post year-end)
• Customer statements / confirmations where required
• Provision for ECL (IFRS 9) calculation supported

4 · Creditors (accounts payable)

• Aged creditors listing at year-end (matching trial balance)
• Outstanding supplier invoices / accruals not yet captured
• Subsequent payments schedule (post year-end)
• Loan accounts and shareholder loan reconciliations
• PAYE, VAT, SDL, UIF and Income Tax payable accruals

5 · Inventory

• Stock count sheets signed at year-end
• Costing methodology (FIFO / weighted average) consistent with prior year
• Slow-moving and obsolete stock write-downs identified
• Goods-in-transit and consignment stock reconciled

6 · Fixed assets

• Fixed asset register reconciled to general ledger
• Additions schedule with supporting invoices
• Disposals schedule with proceeds and recoupments calculated
• Wear-and-tear / depreciation policy applied consistently
• Section 12B / 12E / 12C accelerated allowances considered
• Impairment indicators reviewed (IAS 36 / IFRS for SMEs s.27)

7 · Payroll & employees

• EMP201 monthly submissions for the full year
• Annual EMP501 reconciliation submitted
• IRP5 / IT3(a) certificates issued and reconciled
• Leave provision calculated (where material)
• Bonus accrual calculated to year-end
• COIDA / Workmen's Compensation ROE submitted and assessment paid
• UIF declarations (UI-19) lodged for any terminations

8 · Tax compliance

• Provisional tax IRP6/01 and IRP6/02 submitted; IRP6/03 (top-up) considered
• VAT201 monthly / bi-monthly returns reconciled to ledger
• Output VAT vs input VAT balance reconciled to VAT control account
• Dividends declared and Dividends Tax (DTR01) settled within 30 days
• Capital gains and losses calculated and supported
• Section 11(e) / 12E / 12C wear-and-tear claims supported
• Foreign tax credits (s.6quat) supported with foreign tax certificates

9 · Compliance, contracts & legal

• All material contracts signed during the year (lease, finance, supply)
• Insurance policies renewed and premiums up to date
• Legal correspondence / letters of demand / litigation matters
• SARS correspondence (verification, audit, objection letters)
• POPIA compliance review / privacy policy update
• Subsequent events from year-end to sign-off date

10 · Tax-saving opportunities to ask TC Auditors about

• Small Business Corporation (s.12E) eligibility re-tested
• Solar / renewable energy assets — section 12B 100% write-off
• Home office expense claims for owners working from home
• Travel allowance — fixed-cost vs actual cost analysis
• Section 18A donations to PBOs (10% of taxable income deduction)
• Retirement annuity contributions (27.5% of greater of remuneration / taxable income)
• Medical aid tax credits and additional medical expenses
• Restraint of trade / restraint payment structuring
• Profit-extraction analysis: salary vs dividend optimisation

Notes for the engagement team