South African tax education
How to Conduct a Tax Risk Assessment for Your Business
A practical tax-risk review framework for South African businesses preparing for filing, growth, funding, or SARS queries.
Last updated: 20 May 2026
- A tax risk assessment compares registrations, returns, payments, records, and business changes.
- The best time to find tax risk is before SARS verification, not after an assessment.
- Document owners, deadlines, evidence gaps, and corrective actions.
Risk areas to score
Income tax computations and assessed losses.
VAT registration, invoices, VAT201 returns, and input claims.
PAYE, UIF, SDL, EMP201, EMP501, and IRP5 records.
Owner loans, dividends, salaries, reimbursements, and benefits.
Cross-border payments, transfer pricing, customs, and treaties.
Simple scoring method
| Score | Meaning | Action |
|---|---|---|
| Low | Records complete and reconciled | Monitor quarterly |
| Medium | Some gaps or manual calculations | Fix before next filing |
| High | Missing proof, late filings, disputes, or material uncertainty | Escalate and get advice |
Outputs to keep
Risk register.
Document-gap list.
SARS statement-of-account review.
Action owner and deadline list.
Evidence pack for high-risk items.
Records to keep
- SARS notices, assessments, eFiling confirmations, and statements of account.
- Invoices, contracts, bank statements, payroll records, VAT reports, or calculations that support the position.
- A short note showing the tax year, rule checked, source used, and reason for the treatment.
FAQ
How often should I perform a tax risk assessment?
At least annually, and whenever the business hires staff, registers for VAT, expands internationally, restructures, or receives SARS queries.
Who should own tax risk?
Management should own it, even where an accountant or practitioner prepares returns.
Can I rely on this guide for a final tax decision?
No. This guide is educational. Verify current SARS guidance and get professional advice where the amount is material or the facts are complex.
Official checks
Use these official or primary-source pages to verify the latest position before filing, registering, paying, or changing a tax treatment.
Source and disclaimer
This site provides general educational information for South African taxpayers. It is not tax, legal, accounting, or financial advice. Tax rules and SARS processes can change, so verify current requirements with SARS or a qualified professional before acting.