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SARS' recent implementation of Admin Penalties
South Africa has long been a country of tax-payers since 1994, and the South African Revenue Service (SARS) has been the governmental body responsible for ensuring all South African citizens are paying their taxes faithfully and on-time.
Recently, SARS has been in the news for the introduction of administration penalties – including, but not limited to, interest, late payers’ penalties, and other administrative penalties – to those who fail to pay their taxes on time.
The National Treasury of South Africa has stated that SARS will take a “zero tolerance” stance on these issues, and that penalties imposed by SARS on late payers and other elements of non-compliance will be increased significantly.
Taxpayers who fail to pay taxes by their due date face interest at the rate of 12% per annum, calculated and compounded monthly, along with other sanctions, such as a late payment fee and additional administration fees.
These administrative penalties are meant to serve as a reminder for taxpayers to ensure that they stay on top of their tax obligations, however, it is noted that the increased costs of non-compliance may serve as a deterrent for some taxpayers and may lead to some straining or breaking of their budgets.
In an effort to help taxpayers who are struggling to make their payments, the SARS has also introduced hardship provisions and a number of additional taxpayer services, such as digital tax filing and an employment tax improver tool.
Going forward, SARS will continue to work towards ensuring that all taxpayers remain compliant with their taxes and will work to create a more efficient and user-friendly tax system for all. This includes increasing the number of taxpayer assistance services and facilitating communication between taxpayers and SARS.
The increased administrative penalties from South African Revenue Services serve as a reminder of the country's commitment to taxation, and to ensure that the taxpayers remain compliant with the legally required tax payment obligations.
We at V A Services are here to help taxpayers who have recently been impacted by this and can assist in making sure you become tax compliant again. Our contact details and more information about our company can be found at www.vaservices.co.za
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