Home Accounting and Auditing Questions raised over legality of attempts by Sars to criminalise mistakes

Questions raised over legality of attempts by Sars to criminalise mistakes

711
0

Hugely controversial is the proposed removal of the requirement on SARS to prove intent from certain criminal offences with regard to disclosures made in respect of income tax, VAT and Tax Administration ACT declarations. This means should you make a mistake in your tax declarations, SARS can deem this as criminal intent.

As Moneyweb reported, honest mistakes may now become criminal. Many have questioned whether this is even Constitutional? Intent must be present in law for a crime to be committed. Many commentators have expressed outrage over this move by Sars.

It’s probably a good idea to make your voice heard on this matter (contact details for your comments are provided below or you can add your comments here.

Here are some of the other key amendments to the tax changes just announced.

Key tax proposals contained in the 2020 draft Rates Bill include the following:

• Changes in rates and monetary thresholds to the personal income tax tables – primary rebates applying to all taxpayers increase to R14,958 (previously R14,220)

• Adjustment of transfer duty rates to support the property market – no transfer duty is payable on transfers up to R1 million (previously R900,000)

• Increases of the excise duties on alcohol and tobacco – excise on alcohol (4.5-16.5% strength) goes up to R4.39 per litre.

Key tax proposals contained in the 2020 draft TLAB (Tax Administration Laws Amendment Bill) include the following:

• Proposed introduction of export taxes on scrap metals (at R500 a ton to the EU, free to the SADC region, R1,000 a ton elsewhere)

 • Tax measures required as a result of the modernisation of the foreign exchange control system

• Aligning the carbon fuel levy adjustment with the Carbon Tax Act (a formula based on 0.1c per litre, but varies according to normal tax payable and total litres produced)

• Allowing a carbon tax “pass through” for the regulated liquid fuels sector

• Addressing an anomaly in the tax exemption of employer provided bursaries

• Clarifying rollover relief for unbundling transactions

• Consequential amendments as a result of 2019 changes to section 72 of the VAT Act

Key tax proposals contained in the 2020 draft TALAB (Tax Administration Laws Amendment Bill) include the following:

• Amendments enabling the proposed introduction of an export tax on scrap metals

• Removal of the requirement to prove intent with regard to certain offences listed in the Fourth Schedule to the Income Tax Act, the Value-Added Tax Act and the Tax Administration Act

• Refusal to authorise a refund where returns are outstanding under the Skills Development Levies Act and the Unemployment Insurance Contributions Act

• Withholding of a refund pending a criminal investigation

• Estimated assessments where relevant material requested by SARS has not been supplied

Rates of normal tax

Read:

National Treasury Media Statement

Explanatory Memorandum: Draft TLAB

Explanatory Memorandum: Draft TALAB