SARS Small Business Amnesty Levy

[blunomore]

I may be termed a jaded individual, because I do not trust SARS and I do not trust the bank and my legal background tells me to "get it in writing" :)

My story:

1. In 2010, our auditor received an account from SARS for a "small business tax amnesty levy" for approx R4 000. The description on the invoice lists it as "assessment" done in 2008.

2. The auditor said that she never applied for such a tax amnesty and I asked her to query it with SARS.

3. In correspondence from SARS, they indicated: "Hi, Sorry, the levy payable was for outstanding returns prior 2006 I do agree you shouldn't have gotten a clearance certificate but we're having difficulty with TPS most of them just ignore Amnesty and the levies payable.

I've just went through your profile and it seem as if there was a mistake from our side because you comply prior 2006 in this case I would like to ask you to write me a withdrawal letter stating that you submitted your returns prior 2006 and we will finalise this case and the levy will fall away I'm sorry about the inconvenience caused."

4. Our auditor then wrote the letter as requested, sent it off and then they started ****ing us around.

5. We got a response from them saying that nowhere on the letter where it states that we would like to withdraw the application and they therefore cannot accept this letter as a withdrawal request.

6. Our auditor complied with an amended letter. This was in September 2010.

7. They then started telling us the letter was referred to the relevant department. Each time I had to go back to them and ask what has become of the matter. I did that on a monthly basis and each time a different excuse.

8. The latest from them is that the according to SARS legislation they cannot withdraw a case that's already in finalised/approved status but they will present the case to the Evaluation Committee.

I AM SICK AND TIRED OF THEIR ****TY EXCUSES. All I want is confirmation that the matter has been withdrawn or that we are not liable for this amount or however they want to phrase it!!

My issue is that, everytime we apply for a tax clearance certificate/certificate of good standing (which we do annually because of our line of business), SARS will not issue the certificate unless all outstanding monies are paid. I am afraid we will battle to get the next certificate.

Anything else I can do? Anyone else I can approach?

Thanks

[Tomtomtom]

It's quite likely you won't be able to make this go away for anything less than R4000 in time, frustration, and auditor's fees. I'm tempted to say "just pay it", however crap an outcome that may be.

OTOH maybe you can try ADR? It could be months though...

[blunomore]

It's quite likely you won't be able to make this go away for anything less than R4000 in time, frustration, and auditor's fees. I'm tempted to say "just pay it", however crap an outcome that may be.

OTOH maybe you can try ADR? It could be months though...

Why would I pay something that SARS admitted I do not owe them??????

[Tomtomtom]

I'm suggesting it might cost more than R4000 (especially if you count your own time and the expected battle for your certificate) trying to stop a R4000 loss, however criminal it might be.

Also, unless I'm very much mistaken, paying it now to get your certificate does not prevent you from disputing it and getting it refunded later. Have you started the ADR process?

[porchrat]

Why would I pay something that SARS admitted I do not owe them??????

because you would be helping SARS to realise their vision "to become an innovative revenue and customs agency that enhances economic growth and social development, and supports our integration into the global economy in a way that benefits all South Africans." :p

[Celine]

hi blunomore

having read your case, i have a strong suspicion that both your tax consultant and the SARS official have not given you the correct information here. from what i have read it would seem to me that you have returns outstanding. the R4000 would appear to be the administrative penalty that SARS imposes when there is outstanding returns. this penalty is calculated on a monthly basis and can easily build to the R4000 that you are now sitting at.

a very easy way to deal with this is to phone the call center yourself and quote your reference number and get a status check on the tax reference number SARS is referring to.

if this is the case then your tax consultant should have picked this up if you are on their profile. an administrative penalty assessment is issued to the tax consultant or if an individual is registered on e-filing himself, he/she will get the notice.

[blunomore]

hi blunomore

having read your case, i have a strong suspicion that both your tax consultant and the SARS official have not given you the correct information here. from what i have read it would seem to me that you have returns outstanding. the R4000 would appear to be the administrative penalty that SARS imposes when there is outstanding returns. this penalty is calculated on a monthly basis and can easily build to the R4000 that you are now sitting at.

a very easy way to deal with this is to phone the call center yourself and quote your reference number and get a status check on the tax reference number SARS is referring to.

if this is the case then your tax consultant should have picked this up if you are on their profile. an administrative penalty assessment is issued to the tax consultant or if an individual is registered on e-filing himself, he/she will get the notice.

SARS language is like Greek to me, but from this letter of theirs (also quoted in my OP) it seems that there are NOT any returns outstanding:


"Hi, Sorry, the levy payable was for outstanding returns prior 2006 I do agree you shouldn't have gotten a clearance certificate but we're having difficulty with TPS most of them just ignore Amnesty and the levies payable.

I've just went through your profile and it seem as if there was a mistake from our side because you comply prior 2006 in this case I would like to ask you to write me a withdrawal letter stating that you submitted your returns prior 2006 and we will finalise this case and the levy will fall away I'm sorry about the inconvenience caused."

Am I misreading their letter?

[Celine]

there seems to be more to this than just the amnesty thing. the fact that there is the R4000 sitting there gives tells me that this is an administrative penalty for non-submission of return/s. even if it is 1 return the amount of R4000 can add up very quickly. the fact that this has to go before a committee indicates to me that is an admin penalty of some sort.

it is a very easy solution, you should just phone the call center with your reference number and ask the call center agent to do a status check. this will solve the problem.

[blunomore]

there seems to be more to this than just the amnesty thing. the fact that there is the R4000 sitting there gives tells me that this is an administrative penalty for non-submission of return/s. even if it is 1 return the amount of R4000 can add up very quickly. the fact that this has to go before a committee indicates to me that is an admin penalty of some sort.

it is a very easy solution, you should just phone the call center with your reference number and ask the call center agent to do a status check. this will solve the problem.

And if the status check says we have returns not sumbitted and we owe R4 000 ? That would be in contrast to SARS' e-mail saying there are no UNsubmitted returns.

[Celine]

read the letter from SARS, they are referring to "prior 2006". this could be 2007, 2008. it won't hurt you to do a status check.