SARS to impose penalties for outstanding company tax returns
By stephen in Tax
SARS have announced the implementation of administrative penalties for companies with outstanding tax returns. In terms of the Tax Administration Act of 2011, they are entitled to impose penalties for non compliance. This indicates a change in direction for SARS. Previously only individual penalties have been applied as many taxpayers know. This announcement comes at a time when public sentiment in the revenue collection authority is at an all time low. This being said, it will not stop SARS from imposing this second round of penalties as the fiscus seeks to plug holes in its budget.
The implementation of these penalties have now been facilitated by 3rd party data sharing between the CIPC, SARS and banks.
Penalties will range from R250 – R16 000 per month per outstanding tax year. The exact amount depends on the assessed loss or taxable income. The penalties will re-occur monthly until non-compliance is remedied.
The new penalty run will commence 1 December 2018.
All companies with outstanding tax returns. Closed Corporations and Companies. Take note this includes dormant companies. If you have registered a company before and not received confirmation that it was successfully de-registered when you closed it, there could be a requirement to file. Please contact us if you need any assistance. We specialise in correcting non-compliance.