When a business crisis hits, a frozen bank account, a SARS alert or a rejected CIPC filing, many entrepreneurs are left unsure of where to turn.
Compliance and tax experts say these moments are becoming increasingly common, particularly among SMEs. Bank account freezes, in particular, are often linked to FICA compliance issues, outdated company records or flagged transactions.
Compliance Consultant at SA Risk & Compliance Services, Nokuthula Maseko, explained that in most cases, these stem from missing or outdated documentation.
“We see many businesses caught off guard because their CIPC records, proof of address or director information hasn’t been updated. In most cases, the account can be restored once the correct documents are submitted,” said Maseko.
SARS-related alerts are another major source of anxiety for business owners. However, tax practitioners said that a flagged return does not necessarily indicate wrongdoing.
Registered tax practitioner at Mkhize Tax Advisory, Thabo Mkhize, said SARS often requests additional verification or supporting documents. He said the risk comes when taxpayers delay or submit incorrect information.
“Even compliant businesses can face penalties if deadlines are missed,” he said.
SARS has encouraged taxpayers to use its eFiling system or official contact channels. Practitioners accredited by the South African Institute of Taxation (SAIT) or SAIPA are commonly recommended to handle these matters. CIPC filing rejections, while frustrating, are usually administrative rather than punitive.
Lerato van Wyk, Secretary at BizAdmin SA, said a lot of rejections are caused by small errors such as name discrepancies, incorrect dates or outdated director details.
“These are issues professionals are trained to pick up quickly,” she said.
CIPC has also advised businesses to review rejection notices carefully and make use of its online self-service tools.
Jashwin Baijoo, Associate Director and Head of Strategic Engagement & Compliance at Tax Consulting SA, discussed the ways in which SARS enforces compliance and its impact on business accounts.
“SARS can instruct a bank to empty its accounts and pay a tax debt due without the account holder’s authorisation,” said Baijoo.
The impact of the wider use of automated systems and data analytics on business compliance was also highlighted by Baijoo.
“Aiding SARS’ compliance crusade are the data-driven insights derived from AI use, including processing of taxpayer bank statements without any prior warning or consent,” said Baijoo.
Emily@vutivibusiness.co.za
