On 14 October 2009, SARS issued a media release indicating that it would be enforcing the new penalty regime with effect from 23 November 2009. In summary, non-compliant taxpayers will attract a monthly penalty based on their income of at least R250 per month for EACH outstanding return. The details of these penalties can be found here.
In the interest of fairness SARS will first impose the new penalties against repeat offenders - those taxpayers who have failed to submit returns for multiple years.
SARS believes that it is only fair on the majority of compliant taxpayers, who meet their tax obligations and willingly contribute their fair share to our country's development, but that tougher action against non-compliant taxpayers is needed.
The new penalty system provides for recurring monthly penalties for each month that an income tax return remains outstanding.
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