New additional tax levied by Sars
It would appear from recent experiences that Sars is currently becoming increasingly aggressive with regard to non-compliance identified. In this regard, Sars has levied not only penalties and interest, but substantial additional tax as well. The additional tax was levied based on issues identified in external and internal reports but, in Sars's view, not acted upon by the vendor. Therefore when a vendor is aware that it may be non-compliant with regard to the VAT Act, it needs to take the necessary steps and corrective actions to either become compliant or inform Sars about any difficulties being experienced in becoming compliant.
Section 60 of the VAT Act empowers the Commissioner to raise additional tax up to 200% of the unpaid tax. The circumstances under which the additional tax is raised are where the Commissioner believes that the vendor acted with INTENT to evade payment or to cause an undue refund.
If a company doesn't act quickly enough on the report items in the audit reports, this may be sufficient cause to make Sars think they have intent to not make payment of VAT.
*Geraldine Connell is from Deloitte
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Comments
This is not a NEW tax - merely a penalty. Please can the editors ensure that the information presented by their esteemed colleagues makes sense to those people who ACTUALLY SPEAK ENGLISH. This type of sensationalist headline belongs in Die Son (maybe . .more
by Kim on June 14 2010, 07:46
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What about the increasingly common situation where it is SARS that is preventing a vendor from being compliant?
This is due to red tape, tardy responses and delays at or by SARS.
by Theseus on June 14 2010, 09:37
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