RedViking
Nord of the South
I'll have to kill you first. Mr. Ackerman's doesn't like to share his holiday homes.
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SARS request for remission advice. Made a mistake at work.
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1st lesson - SARS never off-sets,
well technically never, unless you as company representative instructs them to do allocation that is already reflected on SOA with lots of documentation and lots of waiting to speak face to face to a consultant at a branch.
2nd lesson - SARS never off-sets between "departments". You cannot move income tax credits to PAYE or PAYE credits to VAT.
3rd lesson - SARS will never* waive penalties, they will waive interest if you ask nicely. *in my 18 years experience.
newbie mistakes happen and surely not the first for the firm you are working for.
Do not agree to pay.
class dismissed
//
well technically never, unless you as company representative instructs them to do allocation that is already reflected on SOA with lots of documentation and lots of waiting to speak face to face to a consultant at a branch.
2nd lesson - SARS never off-sets between "departments". You cannot move income tax credits to PAYE or PAYE credits to VAT.
3rd lesson - SARS will never* waive penalties, they will waive interest if you ask nicely. *in my 18 years experience.
newbie mistakes happen and surely not the first for the firm you are working for.
Do not agree to pay.
class dismissed
//
Kosmik
Honorary Master
If you havent signed anything , then don't. If nothing in the contract, refuse to sign any type of AOD and let it play out and see what happens, if they attempt to deduct from your salary, go CCMA.
Toxxyc
Executive Member
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Why? Do you think they feel guilty when they make R1 million profit and pay you a puny salary in comparison?
Toxxyc
Executive Member
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SARS has, in my personal experience, waived penalties three times on my account. Two was for the same year, late payment/submission, and another I can't even remember. They just removed it, I didn't even have to ask.
Avbob se stoep
Expert Member
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I assume you are doing your SAICA articles, as someone who has been through it, from what you are saying it sounds like your office standards are not very high. But SAICA won't just let firms fire their trainees' due to negligence, if its the first time. So you will be fine relax. Take the punch on the chin and learn from it. Also one of my biggest fears in the practice when I was a trainee, was that I accidentally mess up someone's taxes and submit the incorrect stuff. But as the saying goes: when you are a professional, you can't say that you didn't know as you should have known.
If I were you, take the 6 month penalty and move to the Western Cape. There is a great shortage in clerks around here, the Big 4 companies already signs the people at 2d year undergrad level from the big Universities like Stellies or UCT. So not much is left for the small to medium firms. Like its not even difficult to look for those types of work here, just google it.
rh1
Honorary Master
Unrelated industry, but there were times I had to take responsibility for a junior screw up. If they learn from it, cool, if not, then we need to take action.
Kosmik
Honorary Master
Jan van Riebeeckstad
Executive Member
Hi there, sorry for the lack of updates. The meeting has not happened as yet as my boss is out for a week for non-work related matters. Not really surprised. Will only be back on Monday. But we have submitted the request to SARS for remission in the meantime. So fingers crossed.
Jan van Riebeeckstad
Executive Member
Seems like it's not important to him. What gender is your boss?
RedViking
Nord of the South
What! You first assume it is him and then ask for the gender!
Reeeeeeeeeeeeeeeeee!
Craig_
Honorary Master
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I have no experience with VAT and SARS, but our company submitted a return to SARS a few hours late and got two penalties. Problem was that it was submitted late because we had issues with the internet first, and then with the e-filing site. I emailed and was told sorry, you must pay. Then I drove out to the SARS office to talk to a someone in person and was told to write a letter and submit this, will see if I can find it to get the details. They ended up waiving the fine after the letter with lots of supporting documents showing that it wasn't on purpose. So maybe go to the SARS office, they can sometimes be very helpful.
Jan van Riebeeckstad
Executive Member
What! You first assume it is him and then ask for the gender!
Reeeeeeeeeeeeeeeeee!
Everyone is male unless proven otherwise
rh1
Honorary Master
Especially on the interwebs!
Jan van Riebeeckstad
Executive Member
Hello young trainee
Do not lose sleep over this!
1. These errors happen to the best of us and there are options to resolve the matter.
2. As the two users have indicated, if this is the taxpayers first offence ( meaning late payment/non compliance etc) then you can apply for remission of the penalty.
3. This provision of the act is dealt with in section 217 and 218 of the Tax Administration Act.
4. The Act states that the commissioner may use his discretion and remission is not guaranteed, but I can tell you now if it’s the clients first offence, the penalty will be waived but the company still has to pay interest.
5. Finance managers or even bank authorisers make these errors all the time. First point of action is always taxpayers record at SARS and request for remission. For first time offenders penalties always get waived…from my experience I am talking big amounts here.
6. Be solution driven, write down summary of what happened. Put together your supporting documents and discuss the suggested approach with your boss, i.e the firm needs to write to SARS to request remission of penalty.
7.In your letter and discussion with your boss make reference to the section of the TAA, file via efilling and hope for the best.
8.You need to write the letter ASAP before SARS starts harassing the client for the “outstanding debt”. That pisses clients off!
9. Worst case scenario SARS will take the money off the clients bank account pending the request. Unfortunately they have the powers to instruct the bank to debit what is owed to them and pay it over. When this happens it gets a bit sticky to get the money back in time.
10. To prevent SARS from dipping their greedy hands on your clients bank account, you may even ask for suspension of payment until the matter is resolved. The act provides for this!
11. Lastly I question controls at your company, you needed more guidance and someone senior to sign off and give training. Consider where you building your future!
12. I am shocked that your employers first response is that you pay back the money and not use the provision of the act which are there to provide relief for honest mistakes. Someone there at your company needs to familiarise themselves with the ITA and TAA and it’s not only you as a trainee. Tax can be very technical.
Pop a PM if you have any questions.
Goodluck
Do not lose sleep over this!
1. These errors happen to the best of us and there are options to resolve the matter.
2. As the two users have indicated, if this is the taxpayers first offence ( meaning late payment/non compliance etc) then you can apply for remission of the penalty.
3. This provision of the act is dealt with in section 217 and 218 of the Tax Administration Act.
4. The Act states that the commissioner may use his discretion and remission is not guaranteed, but I can tell you now if it’s the clients first offence, the penalty will be waived but the company still has to pay interest.
5. Finance managers or even bank authorisers make these errors all the time. First point of action is always taxpayers record at SARS and request for remission. For first time offenders penalties always get waived…from my experience I am talking big amounts here.
6. Be solution driven, write down summary of what happened. Put together your supporting documents and discuss the suggested approach with your boss, i.e the firm needs to write to SARS to request remission of penalty.
7.In your letter and discussion with your boss make reference to the section of the TAA, file via efilling and hope for the best.
8.You need to write the letter ASAP before SARS starts harassing the client for the “outstanding debt”. That pisses clients off!
9. Worst case scenario SARS will take the money off the clients bank account pending the request. Unfortunately they have the powers to instruct the bank to debit what is owed to them and pay it over. When this happens it gets a bit sticky to get the money back in time.
10. To prevent SARS from dipping their greedy hands on your clients bank account, you may even ask for suspension of payment until the matter is resolved. The act provides for this!
11. Lastly I question controls at your company, you needed more guidance and someone senior to sign off and give training. Consider where you building your future!
12. I am shocked that your employers first response is that you pay back the money and not use the provision of the act which are there to provide relief for honest mistakes. Someone there at your company needs to familiarise themselves with the ITA and TAA and it’s not only you as a trainee. Tax can be very technical.
Pop a PM if you have any questions.
Goodluck
A Third Force
Expert Member
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If there is no transgression in the last 3 years SARS usually remits.