SARS To Hit 300 000 Companies With Fines

The SA Revenue Service, as part of a move to boost its revenue collection, is looking to nail 300 000 companies with penalties for failure to submit corporate income tax returns.

On the sidelines of the Tax Indaba in Johannesburg this week, Fabian Murray, acting Sars chief officer for business and individual tax, said that, at present, Sars imposed penalties on those who didn’t file their personal income tax returns, however, it was now also going to impose fines on companies that didn’t file.

“We are at a stage now where we are relatively comfortable, based on the work we have been doing with the Companies and Intellectual Property Commission, that our register is in good nick and we can start imposing penalties,” Murray said.

“The system development has been taking place and it will go live on December 7. We have done the numbers – we understand exactly who the corporates are that we will issue with penalties.”

Acting Sars commissioner Mark Kingon said that about 500 000 new companies were registered every year, and “the vast majority yield nothing”.

He added that, currently, the debt book on penalties was R9 billion for individuals where there were two or more returns outstanding.

Source: FIN24

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