Understanding and adhering to the regulations set forth by the South African Revenue Service (SARS) is paramount for both individuals and companies to ensure tax compliance. Administrative penalties, as outlined under section 210 of the Tax Administration Act (TAA), can serve as a hefty price for non-compliance. These penalties are not just a nuisance but can significantly impact your financial health if not addressed promptly and correctly.
Why you might be facing an administrative penalty
SARS imposes administrative penalties for various forms of non-compliance, including outstanding returns and the failure to disclose required information. These penalties are designed to encourage taxpayers to fulfil their obligations promptly. For individuals, this could mean submitting overdue personal income tax returns. For companies, it involves ensuring all corporate income tax returns are filed as required by the Income Tax Act.
The penalties for failing to submit a return start at R250 and can escalate up to R16,000 per month, depending on the taxpayer’s taxable income. This penalty recurs monthly for up to a maximum of 35 months or until compliance is achieved. It’s crucial to address any issues of non-compliance as soon as they arise.
How Secundes can help
At Secundes, we understand that tax compliance and administrative penalties can be overwhelming. Whether you’re disputing a penalty or need assistance in becoming compliant, our team of experts is here to guide you through the process.
Request for Remission (RFR): If you disagree with an administrative penalty, our first step is to submit an RFR on your behalf. This process involves providing a detailed explanation for the non-compliance and requesting that SARS reconsider the penalty. It’s a critical step in the dispute resolution process, and our expertise ensures that your submission is comprehensive and compelling.
Objections and appeals: Should the RFR be disallowed or only partially allowed, Secundes is prepared to take further action by objecting to SARS’s decision. Our team will meticulously prepare your objection, ensuring that all relevant facts and laws are presented clearly and persuasively. If necessary, we can also navigate the appeals process, representing your interests every step of the way.
Payment arrangements: If you’re facing financial difficulties and cannot pay the penalty in full, Secundes can assist in negotiating a deferred payment arrangement with SARS. Our goal is to find a solution that minimises financial strain while ensuring compliance.
Why choose Secundes?
We work towards your financial well-being and ensure your tax affairs are in order. Our proactive approach to tax compliance and penalty resolution can save you from unnecessary financial burdens and the stress of dealing with SARS directly.
Don’t let administrative penalties derail your financial health. Contact Secundes for assistance today: ontvangs@secundes.co.za .
While every reasonable effort is taken to ensure the accuracy and soundness of the contents of this publication, neither the writers of the articles nor the publisher will bear any responsibility for the consequences of any actions based on information or recommendations contained herein. Our material is for informational purposes.