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Does SARS charge a penalty on the late submission of an income tax return with a refund

Posted 14 November 2014

Hi TaxTim,

This year was my first year of employment and as such I registered for tax. Additionally, I only received a salary for two months during the tax year (January and February). I therefore fall below the tax threshold and should receive a refund of the PAYE that was paid.

I am busy trying to register on e-Filing in order to submit my tax return on time (before the deadline of 21 November 2014). SARS has however requested that I go to the SARS branch to verify my banking details in order to successfully register me on e-Filing.

The problem is that I will not be able to visit the SARS branch in time to verify my banking details (or submit my tax return manually). This will obviously then result in the late submission of my tax return.

My questions are therefore as follows:
- What is the penalty for the late submission of a tax return?
- Does SARS charge a penalty on the late submission of a tax return if you have a REFUND?
- Would SARS possibly accept a late submission if I provide a reason in writing or by calling the SARS call
center?

I would greatly appreciate some advice.

Regards

TaxTim TaxTim says:
17 November 2014 at 7:18

SARS is supposed to charge a penalty for late submission, but in practice this is not set in stone. However we know that this year they are trying to raise as much revenue as possible so it may kick in as soon as tax season closes. However you are due a refund so it would be best to submit your return anyway and take that change. It won't matter to SARS now that you cannot go into a branch to file a return, but if you are charge a penalty you can have it overturned providing the right reasons. SARS operate on a Pay now Argue later approach, but it can be reversed.

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