Q: What penalty amounts are prescribed in the schedule of penalties?
A: The amounts in column 3 of the table below are the fixed amount penalties that may be imposed, and the amount will depend on the category of the taxpayer as determined by his or her taxable income for the preceding year of assessment. If the taxpayer is in an assessed loss position or his or her taxable income for the preceding year is not known SARS may impose a penalty of R250 or estimate the taxpayer’s taxable income based on available information.
Q: Exactly how will these penalty amounts be levied on a non-compliant taxpayer?
A: Once the penalty amount has been determined according to the penalty table, the taxpayer will be notified in the form of a Penalty Assessment Notice that will be sent to the taxpayer. The ITP34 serves as the final letter of demand. The taxpayer then has 30 days to pay the penalty. If after 30 days, the penalty is not paid, the penalty amount will automatically increase by the same amount for each 30 day period that the returns are not submitted. The due date for payment will be indicated in the Penalty Assessment Notice and failure to pay by such date will result in the levying of interest on the penalty amount and SARS will be entitled to take collection steps without further notice.
