Non-disclosure to SARS may attract massive penalties!!
Should you be guilty of not completely disclosing your income or tax liability to SARS, you are on SARS’ radar and they may impose massive penalties, up to 200% of the value of the default in some cases.
SARS is currently implementing an extensive collection drive, and it is, therefore, prudent to submit a VDP application before SARS pulls the trigger and begins to pursue non-compliant taxpayers.
The avenue of VDP allows the regularisation of tax affairs without the payment of massive penalties, but this only remains available before SARS knocks on your door. Crucially, the VDP process remains the only way to avoid criminal prosecution for the non-disclosure of income or tax liability.
It is important to note that the VDP is applicable to all taxes administered by SARS, including income tax, employees’ tax (encompassing PAYE, SDL, UIF), VAT, but excluding Customs and Excise.
ALL CALLS ARE PROTECTED BY LEGAL PRIVILEGE
André Daniels
Head of Tax Controversy & Dispute Resolution, LLB
Colleen Danica Kaufmann
Tax Attorney, LLB
Kivashna Veerasamy
Tax Attorney, LLB, PGC (Cyberlaw)
NEWS | COMPANIES PLACED IN LIQUIDATION COURT LEAVES SARS WEAK, BUT RETRENCHED EMPLOYEES ARE THE REAL VICTIMSThe retrenchment numbers are unfortunate, but one would perhaps expect the numbers to be higher based on the known number of liquidations. Indications are that tougher times are still to come, so this may explain the lower numbers. One less known reason for lower reported numbers is that certain payments to employees by liquidators are not subject to SARS tax directives, thus no PAYE withholding or deduction. These employees are thus unreported to SARS, which means that SARS is also not able to report these numbers.