28 November 2018

To All Accumulo Clients

RE: SARS INTENSIFIES CAMPAIGN TO REINFORCE TAX COMPLIANCE

Please see below an extract from a SARS notice on penalties to be imposed on Companies and Trusts.

“PRETORIA, Tuesday, 20 November 2018 - The South African Revenue Service (SARS) is once again embarking on a nationwide awareness campaign to remind taxpayers of their obligation to submit outstanding tax returns.

The campaign, is targeted primarily at businesses, to encourage compliance regarding Corporate Income Tax (CIT), Value-Added Tax (VAT) and Pay-As-You-Earn (PAYE). Information on taxpayer obligations, the submission of tax returns, and consequences related to non-submission will also be shared during the campaign. SARS will also issue final-demand letters to affected taxpayers.

Taxpayers who do not submit their returns will be charged an administrative penalty, which can range from R250 to R16 000 per month, depending on the taxable income of the taxpayer. It is a criminal offence to not submit a return, and continuous non-compliance will lead to criminal prosecution.

Please note that it is compulsory for registered companies to submit their income tax returns. If a company is dormant, it is still required to submit any outstanding returns prior to 2018, to prevent a penalty being imposed.”

So what does this mean for you as the tax payer:

If you have a tax return that is outstanding from 2017 and backwards you could be liable for the penalties as stated above depending on your taxable income. This could be as much as R16,000 per month.
The penalty amount will be charged monthly per return from the 7th of December 2018

What do you need to do in order to avoid the penalty:

Get in touch with us at Accumulo ASAP in order to assist with the submission. If we do not keep your monthly accounting records then you will need to compile this information and send it to us ASAP in order to get financial statements prepared so that the tax return can be submitted.

If you are unsure of what you need to do please contact us and one of our staff will be happy to assist you.

Yours faithfully

Chartered Accountants (SA)

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