Sars takes hard-line against non-compliers

The South African Revenue Service (Sars) on Wednesday announced stringent measures against non-compliant taxpayers, such as escalating penalties until you comply.

The penalties will be introduced from November 23 2009, but Sars is providing an amnesty period until November 20 this year for non-compliant taxpayers to submit any outstanding returns in order to avoid being penalised under the new penalty regime.

Taxpayers who have outstanding returns for prior years are required to submit returns for these years on the current (2009) ITR12 income tax return form and not on the original return. Taxpayers can obtain and submit an ITR12 return via Sars eFiling or by visiting a Sars branch, Sars says.

Sars defines non-compliance as failure to inform Sars of a change of address, other personal particulars, and failure to submit tax returns and other documents to it.

Repeat offenders will be targeted first and one-off offenders will follow in the next few months, warns Sars Commissioner Oupa Magashula.

Taxpayers with multiple outstanding returns after November 20 2009 will receive a penalty assessment notice in writing or electronically (for registered eFilers) of the imposition of a penalty in respect of each outstanding return, says Sars.

Head of legal and policy at Sars, Kosie Louw says the penalty amounts will be determined according to the taxpayer's taxable income (see table below) and will escalate in respect of each offence for a period of 35 months. For example, he says, if your taxable income is R0-R250 000 and you failed to submit a tax return your penalty for the first month of non-compliance will be R250; if you still don't submit in the second month it will go up another R250, and continue to do so every month until you file.

Where a taxpayer fails to pay penalties by the due date, the penalty will be collected without further notice and an agent will be appointed. Employers, or other parties in control of your funds will be asked to act on Sars's behalf in terms of Section 99 of the Income Tax Act. Such employers or third parties will be required to debit the outstanding amount from the defaulting taxpayer's salary or other funds and pay it over to Sars, it said in a media statement. Should the agent fail to pay the amount to Sars it will constitute a criminal offence. Magashula says both the agent and the taxpayer will be criminally charged and handed over to the state for criminal prosecution.

The penalty changes came into affect on January 1 but were delayed to allow sufficient time for taxpayers to rectify any non-compliance and for Sars to develop its own systems to automatically detect non-compliant taxpayers, calculate applicable penalties and issue penalty notices to such taxpayers.

Write to Monique Vanek: monique@moneywebtax.co.za

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SARS Penaties. Ja well no fine......big fines for the little people, but SARS can just fob you off if you require infomation on why it is now taking almost three months for the "lighting fast" efiling system to give you some sort of answer on how long you still have to . .more wait!!! If you inquire at the enquiry line, you are told that it could take up to three months. The efiling system states that your info has been received, but you have not been assessed yet, but the systm does give me the amount owed to me!! If you go to the SARS office, some lady behind the counter advises you that it could take up to 12 months before your assesment is finalized. I asked her to please contact the person dealing with my file, but she told me that there were to be no contact between the branch offices and the audit centre ....apparently an order from Head Office. If my file is being audited, surely it must have been assessed already, otherwise what are they auditing??? No wonder I feel a bit confused......maybe all this run around stuff because they owe me money!! Surely not.....lol . .less by Another Observer on October 14 2009, 16:17 Find this comment inappropriate? Report it

Who must comply? Surely not loyal cadre's of the ANC. by Ambrose Bierce on October 14 2009, 18:04 Find this comment inappropriate? Report it

Auditors Yes once your file has been picked for auditing you may just as well forget about it. Takes forever! Has been struggling on one individual for more than a year to get a refund, but still nothing from SARS. Everything is work-in-progress. But . .more otherwise the system is working fine. Very fast assessments and refunds (if applicable). . .less by Agree on October 14 2009, 20:01 Find this comment inappropriate? Report it

No compliance from SARS Still waiting to even receive an IRP12 for 2009, is there any cadre (c****r) still working there or are they all out buying BMW's by Pissed off on October 14 2009, 22:41 Find this comment inappropriate? Report it

Refunds still being withheld SARS has cleverly increased the number of files to be audited on all refunds due to Taxpayers so as to slow/delay paying out monies as they do not have cash. They have a cash flow problem. Economy is falling and income is down - refunds are up. . .more No moneyy to pay. Delays are on purpose. Watch Govt drop SARS interest rate soon as they own more money than incoming monies. . .less by Sars has no money on October 16 2009, 22:14 Find this comment inappropriate? Report it

Penalties The question to be asked is whether the regulations under which the penalties are to be imposed are valid. As usual SARS who wields the big stick wants taxpayers to comply with the law but they seem incapable of doing so themselves. It is a . .more pity that taxpayers can't impose penalties each time documents have to be submitted more than once or when SARS does not comply with the law e.g. not responding to objections within the time frame laid down under the rules promulgated under section 107A. It would also be useful to have remedy which does not cost an arm and a leg when they send their bullies around. . .less by xrascc on October 19 2009, 14:25 Find this comment inappropriate? Report it

Penalties and interest I think SARS is doing the right thing by charging the penalties and interest to those who are not complying, this will help SARS to meet its budget and the SA economy can improve. I think SARS should also audit those taxpayers who are claiming fictitious . .more expenses in order to get the refund. WAKE UP SARS AND CHARGE PENALTIES, ELSE YOU WILL LOSE. . .less by clevergirl on October 19 2009, 15:06 Find this comment inappropriate? Report it

Penalties Sars and government would do well to remember that it is important for institutions to be seen as fair and reasonable by the public. For as long as it is , the one will support the other. There appears to be a tendency now though to "hammer" the public . .more for non-compliance with an unfair stick. Penalise the public to the extent that the fine may be financially crippling. By no stretch of the imagination is that fair! Particularly where the tax laws are so complicated and convoluted that to comply requires an education not many have. Try complying with all the dates and calculations if you are aprovisional taxpayer. So, what sanction does the public have ? Simple, you hide away! You will see tax collections drop and a very antagonistic public . Support, bah! . .less by Paul on October 19 2009, 15:37 Find this comment inappropriate? Report it

Refunds still being withheld I am so glad that that someone else is mentioning the facts of refunds withheld due to SARS's auditing. I have been with this company now for six years, and in the past 3 months we had more audits as in all the years beforehand. Furthermore, all these . .more so-called audits were for taxpayers expecting a refund. Coincidence? . .less by Blondie on October 23 2009, 12:59 Find this comment inappropriate? Report it

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