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Penalties for non-compliant taxpayers

Have you missed tax return deadlines due to late filing, non-payment, or simple oversight? SARS is intensifying collections with harsh penalties for non-compliance. Don’t risk fines, interest, or legal action. Let our tax experts help you file correctly, restore compliance, and reduce your exposure.

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SARS imposes administrative non–compliance penalties ranging from R250 to R16,000 per month, based on your income, if tax returns are not submitted on time as per the Tax Administration Act.

Failure to comply can block refunds, incur hefty fines, and even lead to criminal charges. Repeat offenders risk prosecution and up to 2 years of imprisonment.

ASSESSED LOSS OR TAXABLE INCOME FOR THE PRECEDING YEAR	MONTHLY PENALTY
Assessed loss	R250
R0 – R250 000	R250
R250 001 – R500 000	R500
R500 001 – R1 000 000	R1 000
R1 000 001 – R5 000 000	R2 000
R5 000 001 – R10 000 000	R4 000
R10 000 001 – R50 000 000	R8 000
Above R50 000 000	R16 000

To avoid penalties and interest, taxpayers must file their tax returns on time. However, accumulated administrative penalties can sometimes be waived by SARS if the taxpayer submits a well-prepared request for remission of penalties. Timely action and professional assistance improve your chances of relief.

FREQUENTLY ASKED QUESTIONS

WHAT IS AN ADMINISTRATIVE PENALTY?
An Administrative penalty is a penalty imposed by SARS in respect of any incidence of non-compliance as defined in section 210 of the Tax Administration Act.

WHAT MUST I DO WHEN I RECEIVE A PENALTY ASSESSMENT NOTICE FROM SARS?
A non-compliant taxpayer who receives a Penalty Assessment Notice (AP34) must do two things:

1. Remedy the non-compliance, e.g submit the outstanding tax return for which you were penalised;

2. Pay the administrative penalty amount by the due date.

WHAT IS A REQUEST FOR REMISSION (RFR)?
A Request for Remission allows taxpayers to dispute an administrative penalty and ask SARS to waive it.

WHAT CAN I DO IF I DISAGREE WITH THE ADMINISTRATIVE PENALTY?
You must submit a Request for Remission (RFR1 form) to SARS explaining the exceptional circumstances causing your non-compliance. The outstanding return(s) must be submitted before or by the penalty due date, except in cases of SARS error, death, or if you are not liable. SARS considers waivers only if circumstances beyond your control caused the non-compliance.

MEET THE TEAM

Jashwin Baijoo

Associate Director
Head of Strategic Engagement & Compliance
Admitted Attorney, LLB, LLM (Tax)
Master Tax Practitioner (SAIT)
Professional Tax Specialist (SA)
SAIPA Tax Committee Member

Our multidisciplinary team of qualified tax attorneys and chartered accountants can assist you in submitting outstanding tax returns and securing remission of administrative penalties imposed for previous non-compliance. All information shared with our tax attorneys is protected by legal professional privilege for your confidentiality and peace of mind.

IN THE MEDIA

WHEN SARS UNLAWFULLY HELP THEMSELVES TO YOUR BANK BALANCE

Everybody knows SARS is under collection pressure and they have grown rather fond of appointing 3^rd parties, such as banks, to recover outstanding tax debts directly, which leaves taxpayers stunned. This is a quick and effective debt recovery measure, but the question is what about the legality of such appointment?

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Our specialist tax debt relief team is comprised of both tax attorneys and chartered accountants, to ensure the legally correct and most beneficial compliance solution is created for each and every client. We ensure legal professional privilege in all SARS debt relief negotiations, focusing on more complex and high value tax debt engagements with SARS. To ensure the benefit of our services outweigh the professional costs, we do not engage on matters where the tax debt owed to SARS is under R150 000,00.