NATIONAL NEWS - Jessica Southgate, a registered tax technician from Taxellent, spoke to the media about further penalties soon to be implemented by SARS, Kathorus Mail reports.
“SARS currently imposes administrative penalties only in respect of the non-submission of individual income tax returns but this will soon apply to businesses as well,” said Southgate.
Mark Kingon, the acting commissioner of SARS, said that as from 7 December 2018, administrative penalties for late Corporate Income Tax returns will be imposed.
These penalties will be raised in terms of section 210 of the Tax Administration Act.
According to Southgate, the penalties will be based on a sliding scale and will be imposed as a result of failure to comply with the following (among others):
- To appoint a public officer as well as a place for service or delivery of notices and documents.
- To notify SARS of a change of address or the fact of having ceased to be an employer
- To submit, furnish or produce a return
- To submit a monthly declaration of employees tax
- To provide details of an employee
- To deliver an employee’s tax certificate to one or more employee or former employee
- To submit an estimate of taxable income biannually.
“SARS has advised that where the duration of the non-compliance is for less than seven days or where the non-compliance involves a monetary value of less than R2 000, the penalty may be remitted if reasonable circumstances for the non-compliance exist and the non-compliance in issue has been remedied.
“If you missed the closing date to file your taxes, you will receive monthly administrative penalties, but you must still submit your outstanding taxes and thereafter, object against these penalties if you can provide proof of exceptional circumstances of your non-compliance to SARS,” said Southgate.
According to the SARS website, administrative non-compliance penalties will be imposed on companies that fail to submit an income tax return as required under the Income Tax Act, 1962, for years of assessment ending during the 2009 and subsequent calendar years, where SARS has issued that company with a final demand, and where the company fails to submit the outstanding return within 21 business days of the final demand.
Penalties will range from R250 to R16 000, depending on the company’s assessed loss or taxable income, for each outstanding return, and will increase by the same amount for every month that the non-compliance continues after the first penalty has been imposed.
