What should I check before approving an ITR14 prepared by someone else?

Make approval specific to a document and a year

An accountant sends a message asking whether the company return may be submitted. A useful approval requires more than recognising the final amount payable. Ask which company, financial period and version the request concerns, then obtain the documents needed to understand the calculation. A short review is more effective when the preparer knows the questions you want answered.

Separate preparation, approval and submission. A draft can be ready for your review without having been filed. Your approval should refer to an identifiable return and supporting calculation. If a material figure changes afterwards, ask to see that change before submission. Include the attachments in the same approval record. A correct return paired with outdated supporting statements can create another inconsistency, so confirm that the final documents use the same figures and reporting period. This avoids a situation where the company believes it approved one set of figures while a later version was used.

The SARS ITR14 guide explains the return's information and declaration process. The review below is a practical approach for directors and company representatives. It does not replace the preparer's technical work, but it helps test whether the return describes the company you actually operated.

Confirm the identity, period and basic company facts

Start with simple details that can affect the whole return. Compare the legal entity and income-tax reference with the company's records. Confirm the financial year-end, assessment year and period covered by the accounts. If the company changed its name or year-end, make sure the preparer knows when the change occurred and has supporting evidence.

• Does the return belong to this company rather than another business owned by the same directors?
• Do the dates match the financial statements and actual reporting period?
• Are the business activity and relevant company classifications supported?
• Have changes in representatives, ownership or registered details been raised?
• Do dormant or ceased-trading answers fit the activity throughout the period?

Do not approve a classification only because it was used last year. New contracts, ownership changes or a period of inactivity may require a fresh answer. Where a question is technical, ask the preparer to explain the criteria and document why the company meets them. Your contribution is to confirm the underlying facts and disclose changes the preparer may not otherwise know about.

Reconcile the main figures to the final accounts

Ask for the accounts used to complete the return, not merely the latest management report in your inbox. Compare major revenue, expense, asset and liability totals. If they differ, establish whether the reason is a final adjustment, a reporting classification or an error. Keep a list of differences until each has an explanation.

Investigate large changes from the previous year without assuming every change is wrong. A new contract or equipment purchase may explain the movement. The useful outcome is a factual explanation that agrees with the documents. If a balance remains unexplained, identify what must be resolved before treating the return as ready.

Understand the tax calculation and payment picture

Request the calculation connecting accounting profit or loss to taxable income. Ask the preparer to identify significant adjustments and the evidence behind them. Particular transactions may require a different tax treatment from their accounting treatment. Do not accept an unexplained adjustment simply because it appears in a professional-looking spreadsheet.

Review earlier losses, allowances, provisional payments and any other relevant amounts with the preparer. Confirm the period and taxpayer to which each belongs. A payment made from a director's bank account should not be assumed to have reached the correct company tax account without checking the reference and allocation evidence.

Keep the expected assessment separate from the cash available to settle it. A company can have a tax liability while waiting for customer payments. Ask for the expected amount, the basis of the calculation and the steps for checking the actual assessment after submission. Our explanation of bank balances, profit and taxable income can help frame that conversation without confusing the three measures.

Review unusual events and supporting disclosures

The return needs more than a correct total. Tell the preparer about transactions that may not be clear from the ledger: an asset disposal, a new foreign customer, dealings with related parties, a change in ownership, a debt settlement or a significant change in activity. Describe what happened and supply the relevant agreement. The preparer can then determine which questions and schedules apply.

Ask which supporting documents accompany this company's return and confirm that the versions are final. Where annual financial statements are required, check the relevant sign-off and contents rather than attaching an incomplete draft. If a schedule contains information drawn from a register, compare it with the source register at the appropriate date.

A useful question is: what did you have to assume because we did not provide a record? Request a written answer even if it is simply that no material assumptions remain. If information is missing, distinguish a supported estimate from an unresolved fact. Approving the return should follow the resolution of material questions, rather than being used as a way to close the accountant's query list.

Send focused queries that can be answered

Number your review questions and link each to a figure or section. Instead of saying the tax looks too high, identify the particular adjustment or missing payment you cannot reconcile. Attach the evidence once and ask the preparer to explain whether the return needs changing.

1. State the return year and document version under review.
2. Identify the figure, answer or attachment in question.
3. Describe the fact or document that appears inconsistent.
4. Ask for the proposed correction or an explanation of the existing treatment.
5. Check the updated return and record which queries are resolved.

For example, you may have approved an equipment sale that is absent from the asset schedule. Send the sale agreement, invoice and payment record, then ask how the disposal has been reflected. That provides a clear path to an answer. A general request to reduce the tax gives the preparer no factual issue to investigate and can distract from the actual omission.

Complete the review with evidence of what happened

Once the final version is approved, request confirmation of submission and retain a copy of the filed return. Review the assessment when it arrives and compare it with the expected calculation. If SARS requests information, assign the response to a named person and record the deadline shown in that request.

Check the company account and payment position separately. A return acknowledgement, an assessment and a bank payment confirmation prove different steps. Preserve all relevant records with the final financial statements and calculations. Note who will monitor follow-up messages and how that responsibility transfers if the accountant or public officer changes before the matter is closed. If the preparer changes, the next person should be able to follow the year without reconstructing it from scattered messages.

ITR14 preparation support should leave the company with an explainable return and a clear record of remaining actions. Your approval is most useful when it confirms the facts, records resolved questions and identifies the version authorised for submission. Keep that review record alongside the filed copy so later enquiries can be answered consistently.