Noncompliance is a challenge SARS is facing. One of the primary goals of the SARS commissioner – Kieswetter is to ensure that all taxpayers are compliant and remain compliant.  

FromSARSThe South African Revenue Service (SARS) wishes to remind individual non-provisional taxpayers to file their income tax returns on or before the deadline of 23 November 2021. 

Penalties will be levied on taxpayers who fail to submit their income tax returns by this deadline. Taxpayers must note that according to changes in legislation, SARS will levy penalties from 1 December 2021 where one of more returns are outstanding. 

SARS Commissioner Edward Kieswetter said the filing of a tax return is a legal obligation for those taxpayers who are required to file and contributes towards a culture of voluntary compliance. 

Individual non-provisional taxpayers to file their income tax returns on or before the deadline of 23 November 2021, and provisional taxpayers have until 31 January 2022 to fulfil all their filing obligations. 

Per Gazette: Government Notice 1461 in Government Gazette No 45396 – 29 October 2021 

2. Incidences of non-compliance subject to fixed amount penalty 

2.1 Failure by a natural person to submit an income tax return as and when required under a tax Act, for years of assessment commencing on or after1 March 2006, where that person has, with effect from 1 December 2021— 

2.1.1 two or more outstanding income tax returns for years of assessment commencing on or after 1 March 2006 but ending on or before 29 February 2020; or  

2.1.2 one or more outstanding income tax returns for years of assessment commencing on or after 1 March 2020. 

2.2 Failure by a natural person to submit an income tax return as and when required under the Income Tax Act, for years of assessment commencing on or after1 March 2006, where that person has, with effect from 1 December 2022, one or more outstanding income tax returns.   

Accounting weekly sat with Krigan Naicker BAP (SA), Registered Tax Practitioner, Managing Director of Big Bay Business Advisory, and current member of National Tax Working Committee to help us understand the new rule and how accountants can successfully apply it to maintain compliance.  

What steps to follow after you reject the SARS auto-assessment? 

Complete the income tax return accurately and submit with the necessary supporting documents to upload to SARS for verification/audit.  

What consequences/penalties can result in no response after the deadline?  

The administrative penalty for filing a return late is a fixed amount penalty based on a taxpayer’s taxable income. It can range from R250 up to R16 000 a month for each month that the non-compliance continues. 

How can accountants avoid non-compliance penalties? 

  1. Good admin is the start to most successful outcomes.  
  1. Submit all tax returns on time.  
  1. Provide supporting documents that are valid, accurate and complete to SARS for verification/audit.  
  1. Ensure timely communication with SARS on all matters. 
  1. Keep an audit trail on all matters with SARS, dates and times of correspondence, details of SARS branch consultant, call centre or emails, summary of correspondence with outcomes, and all case numbers 

Reminder: If you’re a provisional taxpayer, you have until 31 January 2022 to submit your return.