Income Tax Returns Submitted Sets Compliance Record
 "But in this world nothing can be said to be certain, except death and taxes" Benjamin Franklin in a letter, dated 13 November 1789, to Jean Baptiste Le Roy.
The season for submitting income tax returns commenced on 1 July 2011. South African Revenue Services (SARS) indicated that at the end of July 2011, early-bird income taxpayers had submitted a record 872 928 returns to SARS during the first month of the tax season. This is an increase of 44% from the 606 544 returns submitted during the first corresponding month of the last tax year. SARS branch offices have assisted 33.2% of taxpayers with returns while 65,1%submitted their returns via eFiling. Only a paltry 1,7% of all returns were submitted by either post or at SARS drop boxes.
Taxpayers who use eFiling or visit branch offices of SARS to submit their returns have until 25 November 2011.
Pitfalls for Provisional Taxpayers
In recent years SARS effected significant changes regarding the regulations applicable to provisional taxpayers who have often not kept abreast of these changes and accordingly do not understand their tax obligations resulting in over-paying or, worse, under-paying tax and having to fork out significant amounts to SARS in the form of resultant penalties, additional tax and interest for non-compliance.
New administrative penalty rules were introduced two years ago. These provide where those who are regarded as provisional taxpayers fail to register as provisional taxpayer or fail to submit their provisional tax returns on time enables SARS to apply a fixed penalty which can range from R250 to R16 000 month for a maximum of 35 or 47 months.
The following persons are required to register with SARS as provisional within 30 days of becoming a provisional taxpayer:
- Any person (other than a company) who derives income which does not constitute remuneration or an allowance or advance as contemplated by the Income Tax Act;
- Any company; and
- Any person who is notified by SARS that he/she is a provisional taxpayer.
Readers requiring more information are referred to an article written by Anthea Scholtz titled "Payment pitfalls for provisional taxpayers", published in "PERSONAL FINANCE", 3rd Quarter 2011 edition, volume 48 or alternatively to consult a qualified tax consultant.
Public Hearings On The Tax Administration Bill Scheduled
The Standing Committee of the National Assembly of Parliament will engage in public hearings on 16 -- 18 August 2011 on the Tax Administration Bill.
The purpose of this legislation was outlined in a previous article (click here to link).
Pieter Rautenbach
|
