In this guide, we will delve into the details of SARS Late Taxpayers Penalties, providing insights into the penalty structure, procedures, and steps to address potential issues.

SARS Late Taxpayers Penalties Overview: If you incur administrative penalties, SARS will impose fines. Continuous monthly penalties are applicable if you miss the deadline, starting at R250 and continuing for the duration your returns remain unpaid. Late payments also incur a percentage-based penalty.

Understanding SARS Late Taxpayers Penalties: SARS, authorized by the Tax Administration Act, can impose administrative fines on unfiled tax returns. Monthly penalties are severe and apply for each month that the tax return is not filed, whether partially or fully.

Applicability of Penalties: Late or non-submitted personal income tax (PIT – ITR12) and corporate income tax (CIT – ITR14) annual returns are subject to fixed-penalty costs. Tax returns are not mandatory if annual income before taxes is less than R500,000. Violations in income tax, value-added tax (VAT), and Pay as You Earn (PAYE) can result in administrative fines.

Penalty Amounts: The minimum penalty is R250 per return per month, resulting in a minimum penalty of R1,000 per month for four unpaid tax returns. SARS uses specific scales based on taxable income or assessed loss to determine administrative penalties, ranging from R250 to R16,000 per month.

Next Steps: Contesting the penalty is possible if there's a valid reason for not filing. Submit returns promptly, request a penalty waiver through eFiling, and seek a pardon for late submission. In cases of extreme circumstances, like sickness, accident, or death, request remission of the penalty.

Disputing the Penalty: Taxpayers disagreeing with the penalty can submit a Request for Remission (RFR), providing an explanation for noncompliance. If choosing to proceed with objection and appeals procedures, the RFR may still be rejected. SARS may consider a settlement on a partial payment, but objection procedures follow the RFR.

SARS Collection Authority: SARS, authorized by Section 99 of the Income Tax Act, can collect money directly from your employer if notices regarding outstanding penalties are ignored. Pay may be directly deducted to settle outstanding penalties.

Stay informed and avoid penalties by understanding the intricacies of SARS Late Taxpayers Penalties. For more details contact Pursuit Finance