SARS workers have recently announced that they will be planning a major strike action with the proposed 0% salary increase on the table, even though their revenue exceeded over R16 billion rand in the 2020/2021 year.
Tanya Tosen
Tax and Remuneration Specialist
With pressures mounting for SARS to collect more and more each year, payrolls need to ensure they remain squeaky clean to ensure they are not drawn unsuspectingly into the tax net with massive ramifications.
The below are 3 key tips to ensure your payroll is kept in tip top shape:
1. Ensure your payroll wage elements are correctly taxed and IRP5 codes are accurate
2. Prior year/s tax exposures
3. Stand-alone tax package structuring tool
SARS is always more likely to target a company with the possibility of filling up their coffers rapidly as opposed to chasing after average earning taxpayers which requires so much additional effort, administration and resources on their part.
Where companies fall short on their monthly PAYE submissions, HR and Payroll executives should clearly understand that SARS’ tax collection strategy includes collecting additional revenue through levying penalties ranging from 10% right up to 150% for intentional tax evasion. This has grave cash flow and cost implications to employers which should be avoided at all costs.
Compliance Of The Prudent Property Practitioner