SARS is warning that those who fail to submit their tax return on time, will face harsh penalties. The period of leeway which applied to 2021 has now passed.
SARS announced a change to their legislation in December 2021 whereby they would levy administrative penalties to taxpayers who missed the filing deadline for one or more tax returns. Prior to this change, taxpayers only paid penalties when two or more returns were outstanding.
As a transitional measure, they applied the new rule to 2021 only, in order to give taxpayers time to get their affairs in order. This meant that taxpayers who were late with their 2021 return, immediately received an administrative penalty, but administrative penalties for 2007 to 2020 only kicked in if two or more returns were outstanding.
With the start of the 2022 filing season around the corner, late filers must be aware that the period of grace which applied to 2021 has passed. This means that SARS will soon be levying administrative penalties for ALL outstanding returns from 2007 to 2020.
The administrative penalty for filing a return late is a fixed amount penalty based on a taxpayer’s taxable income. It can range from R250 up to a whopping R16 000 a month for each month that the non-compliance continues.
It is more than important than ever, that taxpayers submit their return on time and do not miss the deadline. Be warned, filing just a day late, WILL result in penalties.
Click here for the 2022 tax season deadlines.
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