Category: Income Tax | Individual Knowyourstatus Penalty SARS Tax2024 Companies
What is an Administrative Penalty:
An administrative penalty (admin penalty) is a penalty levied under section 210 of the Tax Administration Act. There are various types of non-compliance that are subject to a fixed amount of administrative penalties. The administrative non-compliance penalty for the failure to submit a return comprises fixed amount penalties based on a taxpayer’s taxable income and can range from R250 up to R16 000 a month for each month that the non-compliance continues.
Incidences of non-compliance subject to a fixed amount penalty:
• Individual – if you have failed to submit your income tax return.
• Companies - Penalties will be imposed where the company has failed to submit an income tax return as and when required under the Income Tax Act for years of assessment ending during the 2009 and subsequent calendar years, where SARS has issued that company with a final demand referring to the public notice and requiring the submission of the outstanding income tax return, and the company failed to submit the return within 21 business days of the date of issue of the final demand.
What if you disagree with the administrative penalty:
A Request for Remission (RFR) can be submitted when a taxpayer disputes any penalty levied due to non-compliance. The taxpayer must provide reasons for the non-compliance for the request to be considered. If the Request for Remission is disallowed or only a portion was selectively allowed, you may still object to the decision made by SARS and even appeal the decision if you disagree with the outcome of the objection process.
How to submit a RFR (Request for Remission):
You can request for remission via E-filing or at the SARS branch
For more information on administrative penalties please use the link below or contact Tax A Sured Pty Ltd for a more detailed explanation. https://www.sars.gov.za/individuals/what-if-i-do-not-agree/admin-penalty/
Insights from Tax A Sured Pty Ltd - it is best to submit any outstanding returns to avoid admin penalties. SARS will only consider waiver of the penalties once you have rectified the non-compliance.
