Make sure you're not a push-over for someone claiming to be from the Regional Services Council (RSC) or South African Revenue Services (SARS) wanting to look at your financial records.
Do you know your rights if this happens?
Certain metropolitan councils have been contracting with "collection agents" who, on a commission basis, have been knocking on the doors of businesses asking whether they are registered for RSC purposes and requesting to review records.
These agents have, in some instances, issued hand-written assessments.
In terms of the law, these agents generally have no authority to ask you whether you are registered or not, or to view your business' records. You are entitled to tell them to go away.
I must stress that most businesses should be registered for RSC purposes, and should be paying the monthly levies.
The lack of authority of these agents does not change that, nor does it mean that your business cannot be the subject of an RSC inspection, an income tax or VAT inspection for that matter.
So what are your rights?
Legislation, which came into effect on September 30 1996, allows the Commissioner for Inland Revenue or any officer under his supervision to request any person to provide relevant documents or information.
The person may be advised orally or in writing. You are obliged to provide the requested information, provided you are happy that the person requesting it is an authorised SARS officer. SARS administers the inspections for RSC purposes, too.
Alternatively, SARS offices may, provided they have an authorisation letter from the Commissioner, chief director, receiver of revenue or chief revenue inspector of SARS, call on any person at any premises at any time during business hours.
The officer must give reasonable prior notice and may not enter any dwelling, house or domestic premises (unless they are used for trade purposes) without the occupant's consent. You are, therefore, entitled, and would be advised to request to see the officer's letter of authorisation.
You are entitled to refuse entry to domestic premises, except if the officer has a warrant issued by a judge.
To search domestic premises, the officer would have had to apply to the court for a warrant entitling him, at any time and without prior notice, to enter and search any premises or person for documents.
So next time you get a knock on the door, make sure the person asking the questions has the necessary authority to do so. You have an obligation to comply with the tax laws, but an equal right to be treated correctly.