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Administrative Penalties For Tax Payers

23 Oct 2009

An administrative penalty, which aims to ensure tax payers comply with the Income Tax Act and the effective administration of the system, has been implemented by SARS. It will be effective from 21 November 2009.

This regulation was issued in 2008 under section 75B of the Income Tax Act. (See www.sars.gov.za)

When the Commissioner is satisfied that the factual basis for any non-compliance as listed below exists, s/he must assess and impose penalties (in accordance with the table below) in respect of non-compliance for:

  • failure to register as a tax payer;
  • failure to inform the Commissioner of a change of address or other details;
  • failure to submit a return or other related documentation or information;
  • failure to furnish, produce or make available information, documents as and when required;
  • failure to reply or answer a question put to a person and when required by the Act;
  • failure to attend and give evidence as and when required;
  • failure to register as an employer;
  • failure by an employer to notify SARS of a change of address or the fact of having ceased to be an employer;
  • failure by an employer to provide details of an employee or deliver to an employee or former employee any employee’s tax certificate as and when required;
  • failure by a provisional tax payer to submit an estimate of taxable income;
  • any other non-compliance with an obligation imposed under the Act, other than those penalised under section 80S, paragraph 5(5) of the Fourth Schedule or paragraph 17(4) of the Seventh Schedule to the Act.

The penalty taxable:

Assessed loss or taxable income for preceding year

Penalty

Assessed loss

R250

R0 – R250 00

R250

R250 001 – R500 000

R500

R500 001 – R1 000 000

R1 000

R1 000 001 – R5 000 000

R2 000

R5 000 001 – R10 000 000

R4 000

R10 000 001 – R50 000 000

R8 000

Above R50 000 000

R16 000

For further information regarding these penalties, contact Mariaan Krugel at TLA Somerset West, tel. 021 852 0382.

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