SARS (South African Revenue Service) and CIPC (Companies and Intellectual Property Commission) are two different government entities in South Africa, each responsible for different regulatory functions:

• SARS deals with taxes, ensuring individuals and businesses pay their dues.
• CIPC handles business registration and intellectual property, ensuring legal compliance for companies and trademarks.

Yes, SARS can deregister a company, but only for tax purposes. However, this does not mean the company is legally deregistered — only CIPC can fully deregister a company.
If a company is deregistered by CIPC, SARS will eventually deregister its tax records, and if there are outstanding taxes, SARS may refuse deregistration until debts are settled.

The South African Revenue Service (SARS) may audit you for several reasons, including:

• Discrepancies in Tax Returns – If your declared income, expenses, or deductions don't match SARS's records or look unusual compared to your industry or salary bracket.
• Random Selection – SARS conducts random audits as part of their compliance checks.
• Unusual or High-Risk Transactions – Large transactions, offshore accounts, or sudden changes in income may trigger an audit.
• Non-Compliance or Late Filing – If you consistently file late, fail to submit documents, or have unpaid taxes.
• Third-Party Reports – SARS cross-checks information from banks, employers, and suppliers. If there are mismatches, you could be audited.
• Claiming Excessive Deductions – If your deductions seem too high for your income level or industry.
• Self-Employed or Cash-Based Business – Businesses that primarily deal in cash are at higher risk of being audited.
• VAT Refunds & PAYE Issues – Large or frequent VAT refund claims or PAYE discrepancies may raise red flags.

If you are being audited, it's best to cooperate, provide accurate records, and seek professional tax advice if needed.

Yes, you can submit monthly VAT returns, but it depends on your VAT category as assigned by SARS.

VAT Submission Categories in South Africa:

• Category A – Submit VAT returns every two months (odd months, e.g., Jan, Mar, May).
• Category B – Submit VAT returns every two months (even months, e.g., Feb, Apr, Jun).
• Category C – Monthly VAT returns (for businesses with turnover above R30 million per year).
• Category D – Six-monthly VAT returns (for farmers with turnover under R1.5 million).

If your annual turnover is more than R30 million, SARS will require monthly VAT returns (Category C).

If you are below R30 million, but prefer to submit monthly VAT returns (e.g., for better cash flow management), you can request SARS to change your VAT category.

If you don’t deregister with CIPC, SARS can still claim taxes from your company, even if it is not actively trading. Here’s what happens:

• SARS Still Expects Tax Returns – Even if your company is not operating, you are legally required to submit tax returns (even if they are nil returns). If you don’t submit tax returns, SARS can impose penalties and interest.
• CIPC Non-Compliance Can Lead to Deregistration – If you don’t file annual returns with CIPC for more than two years, your company will become "deregistration in process" and eventually be fully deregistered. Once CIPC deregisters your company, SARS will also start the process of tax deregistration—but this does not happen automatically.
• SARS Can Still Claim Outstanding Taxes – If your company has outstanding tax debts, SARS can still claim them, even after CIPC deregistration. SARS may pursue directors personally if they find evidence of tax evasion or unpaid VAT/PAYE liabilities.