SARS PENALTIES AND INTEREST: LEGAL ASSISTANCE WITH REDUCTION OR FULL WAIVER
Irrespective of the mistake made by the taxpayer, SARS will levy penalties for non-compliance and, where tax is underestimated, or payment is late, SARS will also levy interest until the total underestimated/underpaid tax is paid in full. Taxpayers can face a penalty up to 20% of the value of the tax payable and interest of approximately 10% per annum.
The more common mistakes taxpayers make include:
- Not becoming aware of provisional taxpayer status and obligation to file;
- Filing late returns or not filing at all;
- Underestimating taxable income; and
- Making late payment of provisional tax.