What is 'improper' tax which we get in South Africa?
The term "improper" tax is not commonly used to refer to a specific type of tax in South Africa. However, there are certain tax-related issues that can be considered improper or illegal. Here are two examples:
1. Tax evasion: This refers to the illegal act of deliberately avoiding paying taxes by misrepresenting or concealing income, assets, or transactions. Tax evasion is a criminal offense in South Africa and can result in penalties, fines, and even imprisonment.
2. Tax avoidance: Unlike tax evasion, tax avoidance involves legally minimizing tax liability by taking advantage of loopholes in the tax laws. While tax avoidance itself is not illegal, certain aggressive tax avoidance schemes may be deemed improper and challenged by the South African Revenue Service (SARS).
To ensure compliance with tax regulations and avoid improper tax practices, it is essential to seek professional advice from a qualified tax practitioner or consult official tax resources provided by SARS. These sources can provide accurate information on tax obligations, deductions, and legal tax planning strategies.