3.1  Self-Assessment Tax (SAT) and Company Tax 3.2  Tax on Non-Cash Benefits  3.3  Stock Take Variances It was observed that BR did not submit any Self-Assessment Tax  (SAT) for the year under review which is a violation of the Income  Tax Act. This could result in penalties charged on the organization for non-compliance. In response management stated that they had sought and had  been given a grace period of 21 months. Furthermore the  forecast of BR performance showed that they would be making  losses in the tax year ending June 2018 and therefore no taxable  income was foreseen. Management had since submitted the tax  returns for the financial year ended 31 March 2018 and had also  submitted the Self-Assessment Tax for the 2 nd quarter. Management would ensure that going forward they submit as  per BURS requirements.  The Botswana Railways did not charge tax on non-cash benefits  (housing, car, furniture and fittings) for two of its employees, as  required by the Income Tax Act that for non-cash benefits to be  included in the remuneration of employees. In response, management noted the finding and indicated that  they were in the process of determining the values of the houses  as the tax charge was calculated based on them. They further  stated that they had received monthly benefit source documents for the car from Avis in June 2018 after the year end  as such they did not have source documents to determine the  tax chargeable on the car benefit. They further stated that the  furniture was only bought in the financial year 2018.  It was noted that the stock count for the financial year 2017/18  resulted in a net variance of P3 122 072.11 which was made up  of negative and positive balances. While differences between  the stock levels in the system and on the floor are likely to be  found during stock counts, investigations should be carried out to  help identify the cause of stock variance and measures put in  place to reduce the variances to acceptable levels. The table  below represents system data which is not an accurate reflection  of what was actually on the shelves. 161 