To avoid paying thousands of rands in penalties, South African taxpayers are urged to file their tax returns before the deadline. Photo: African News Agency (ANA) Archives
It’s D-day for South African taxpayers as the South African tax season ends Monday.
South Africa’s tax authority the South African Revenue Service (Sars) has reminded SA taxpayers that October 21 is the lst day to file a tax return.
Sars is urging taxpayers to file the their income tax return today via Sars eFiling or the Sars MobiApp to avoid penalties and interest for outstanding returns.
Robyn Gilbert, Individual Tax Team Manager, Tax Consulting SA said that SA’s tax authority will penalise non-compliant taxpayers who don’t file their tax returns before the deadline.
“Sars imposes a monthly penalty for failure to file, which varies based on your taxable income. This means that the longer you wait to file, the more you may owe. The penalties start at R250 and go up to R16,000,” Gilbert said.
While the tax authority will typically go the civil route and rather impose penalties and interest, in terms of section 234(d) of the TAA, non-submission of tax returns is considered a criminal offence which is subject to a fine or up to 2 years imprisonment.
“While, in our opinion, the risk of Sars pursuing this avenue is not particularly high, this legal avenue is available to the revenue authority,” Gilbert said.
According to Gilbert, if the penalties are not paid then Sars could instruct a third party, such as an employer, financial institution or person who manages a taxpayers income or assets, to pay the outstanding amounts directly to them.
Gilbert said: “If that third party fails to comply, they could also be held personally liable for the debt and potentially face legal the same legal repercussions as the taxpayer i.e. penalties imposed on them or up to two years imprisonment.”
“Make sure to submit your tax returns by October 21. Sars does not provide extensions, so timely submission is crucial to avoid penalties.”
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