Chances are, you are guilty on at least one these:
- Not registering as a taxpayer
- Not informing SARS of your change of address
- Not appointing a public officer for your CC or company
- Not submitting a tax return on time
- Not supplying information requested on time
- Not submitting monthly PAYE declarations (if you are an employer)
- Not providing SARS details of an employee
- Not providing an employee with an IRP5
- Providing an employee with an IRP5 before you have submitted your IRP501
Any of the above will result in SARS levying a penalty of between R250 and R768 000.
On the 1 January 2009, SARS implemented new administrative penalties which are significantly more severe than those previously imposed. It has become ever more vital that you understand the potential cost of non-compliance.
The new administrative penalties are broken into two categories - fixed amount penalties and percentage penalties. The fixed amount penalties range from R250 to R768 000 depending on the length of time of non-compliance and your income. The percentage penalties amount to 10%.
Where a taxpayer has committed an offence as referred to above, the Commissioner may impose a penalty in accordance with the following table:
Item | Assessed loss or taxable income for preceding year | Penalty |
(i) | Assessed loss | R250 |
(ii) | R0 — R250 000 | R250 |
(iii) | R250 001 — R500 000 | R500 |
(iv) | R500 001 — R1 000 000 | R1 000 |
(v) | R1 000 001 — R5 000 000 | R2 000 |
(vi) | R5 000 001 — R10 000 000 | R4 000 |
(vii) | R10 000 001 — R50 000 000 | R8 000 |
(viii) | Above R50 000 000 | R16 000 |
The above amounts are imposed per month up to maximum of 35-47 month depending on the circumstances.
The minister has not yet issued the required gazette to impose the percentage based penalties, however the various acts do contains provisions allows for percentage based penalties...
Extracts from the June 2009 issue of Integritax. An article entitled "The administrative Penalties" by Edward Nathan Sonnenbergs
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