SARS is baring its teeth

SARS and the Hawks are clamping down; there have been numerous cases recently of individuals being arrested for tax fraud. The majority of these pertain to under-declaring income and are usually the outcome of SARS audits. Should foul play be found, the matter is then lodged with the Hawks for further investigation, which will then followed by summonses or arrest.

Facing Scrutiny: Hawks and SARS are watching you

As SARS intensifies efforts to scrutinize non-compliance, intentional or not, taxpayers need to be aware of the potential repercussions, especially with a new Hawks/SARS prosecution strategy in play. The days of mild penalties and interest as consequences for non-compliance may be evolving, and taxpayers should take extra care.

Voluntary Disclosure Programe (VDP) - Your Savior

For those with undisclosed tax issues, the Voluntary Disclosure Program (VDP) provides an opportunity to voluntarily come forward and disclose tax defaults to SARS. This includes the disclosure of underdeclared income or any tax liabilities. Crucially, a correctly obtained and SARS-accepted VDP shields individuals from criminal prosecution.

While the VDP remains a lifeline, applicants must meet legislative requirements, such as being a registered taxpayer with SARS and being up-to-date with tax filing obligations. Seeking assistance from a seasoned tax professional ensures a smoother process and increases the likelihood of a positive outcome. The VDP process involves several steps, and legal professional privilege offers protection during sensitive engagements with SARS.

Seek the assistance of a tax professional

Engaging a tax professional provides the advantage of facilitating successful negotiation and navigation of the SARS engagement process. The complexity of the VDP process requires a nuanced approach. A tax professional provides protection that is crucial, especially when dealing with SARS, ensuring a level playing field.

Non-compliance is no longer a a relatively minor issue.

Taxpayers should understand the importance of correctly declaring income and maintaining proper documentation. If you have underdeclared or provided false information, it is just a matter of time before SARS on you. The VDP process serves as an effective mechanism to fix prior errors and avoid the risk of arrest. However, time is of the essence, as the VDP is not accepted by SARS once investigations have begun.