SARS has, as one of its strategic objectives, the issue of taxpayer non-compliance hard and costly. Consequently, they have enhanced their ability to impose administrative penalties in a more responsive manner.
Accordingly, amended legislation which became effective on 1 December 2021, now allows SARS to levy penalties where one or more returns are outstanding. Before the change to the legislation, SARS could only levy a late submission of return penalty where two or more returns were outstanding. As a transitional measure for the first year, the “one tax return or more” rule will only apply to the 2021 tax return. The older rule will remain in place for one more year for 2020 and earlier returns.
SAFFAs are notorious for getting on a plane and just leaving without giving SARS a second thought. For those that have never "closed off the books" with SARS there are heavy penalties lined up.
According to SARS, "the administrative non-compliance penalty for the failure to submit a return comprises fixed amount penalties based on a taxpayer's taxable income and can range from R250 up to R16 000 a month for each month that the non-compliance continues."
So, to all those SAFFAs out there that just got up and left PLEASE let us help before SARS start applying those very heavy penalties. R250 might sound like pocket change but if a taxpayer has, for example, 5 returns outstanding that's R1 250 per month and R15 000 for 12 months. IT'S JUST NOT WORTH IT so contact us TODAY to sort it out