Sales Tax Instructions

Sales Tax Instructions, 2009
The visit will be on the basis of selection by computer and the frequency will depend on
the results of a previous visit.
For example, if we find your records are excellent, and your returns are all correct, then
we may not call as often as we might to a business where we found significant errors.
Will I be told the result of the audit?
Whatever the nature of the audit visit, whether a scheduled visit or a surprise visit, the
Auditor will inform you what the results of the audit are.
What happens if errors are found?
If the Auditors find any errors in your accounts or records, they will explain how you can
correct them, in order to avoid you repeating those mistakes in future. If you have
overpaid tax, you will be told how you can get a refund on the amount overpaid.
On the other hand, if you have underpaid sales tax or claimed a refund to which you were
not entitled, they will explain that an assessment will be made to recover any amounts
due.
Can I appeal against the auditors‘ decision?
Yes. When the auditors tell you the results of their audit, they will give you a copy of
leaflet ST121, which deals with penalties and Appeals. This outlines what action you
should take if you feel that the conclusions reached, the decisions made or the actions
taken are wrong or unfair.
What happens if I have a complaint?
The Sales Tax Auditors are trained to be courteous and polite. They have been trained to
do their work honestly, and without causing any offense to you or your staff.
However, if you consider that any Auditor has caused any offence, or exceeded his
powers, or done anything unprofessional, you should write to the Collector in charge of
your local Collectorate or visit if desired.
In addition, if you have good reason to believe that the visit is not an authorized visit, you
should ask to see their identification, make a note of their names and report the matter
immediately to the Collector.
Your rights of Appeal against Sales Tax assessments & penalties.
What is a penalty?
There are two types of penalties. Fixed penalties where you fail to comply with the law
concerning sales tax and tax related penalties, imposed where errors are discovered. Such
a penalty is referred to as Additional Tax.