Sample article.
The first Corporate Tax returns are where most avoidable penalties happen. These are the five issues we see most often, and the simple fixes.
1. Registering late
Many businesses assume that expecting to pay 0% means they do not need to register. In most cases they still do. Check your registration deadline first.
2. Mixing personal and business expenses
Undocumented or personal expenses are not deductible. Keep receipts and a clear expense policy.
3. Ignoring related-party transactions
Transactions with owners, family members and group companies must be at arm’s length and properly documented.
Quick check: if you cannot produce a supporting document for a transaction within a day, it is a risk at audit.
4. Incomplete records
Records must be kept for seven years. Incomplete books are the root cause of most adjustments.
5. Filing from the wrong numbers
Returns should come from closed, reconciled accounts, not draft figures. Close the books before you file.