You can now be fined or jailed for small tax mistakes. Here's a list of the errors to avoid

dualmeister

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Inadvertent tax errors – including not alerting SARS of a change in your personal details or failing to keep records from previous tax years - could potentially land you with a fine, or even jail time.

This is the result of an amendment to tax legislation that has scrapped the concept of “intention” from certain tax offences – this means prosecutors don’t have to prove that you wilfully broke the law, and the court can find you guilty of an offence even if you were negligent, or made an unintentional mistake.

In the past, you could only be fined or imprisoned if you committed a transgression “wilfully and without just cause”.

This changed with the new law, which now lists a range of offences where intent doesn’t have to be proven.

Werksmans director Doelie Lessing says the new law split the existing list of non-compliance offences into two categories: one with offences which require wilfulness, where the heavier burden of proof falls on SARS, and the other, offences where “negligence” will be enough to trigger potential criminal liability.

Source
 

dualmeister

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Here’s a list of all the offences which could land you with a “criminal liability” - even if you did not commit them with intent

  • Failure to register for tax or to notify SARS of a change in registered particulars.
  • Failure to appoint a representative taxpayer or to notify SARS of a change in representative taxpayer.
  • Failure to register as a tax practitioner if required to do so.
  • Failure to submit a return or document to SARS or the failure to issue a document to a person as required under a tax Act.
  • Failure to retain records as required.
  • Failure to comply with a SARS directive.
  • Failure to furnish information or documents requested, excluding information requested for revenue estimations.
  • Failure to give evidence when required.
  • Failure to disclose to SARS material facts required.
  • Failure to comply with tax payments including third party payments.
  • Failure to comply with withholding tax obligations when required.
  • Failure to issue any employees’ tax certificates or to notify SARS of having ceased to be a registered employer.
  • Failure by an employer to deliver to any employee or former employee any employees’ tax certificate or notify SARS of having ceased to be a registered employer
  • Failure to submit provisional tax estimates.
  • Failure to comply with the payment of VAT on imported services and otherwise.
  • Failure to submit VAT returns and special records.
  • Failure to include VAT in the advertised or quoted price or failure to separately indicate the VAT exclusive price and the VAT inclusive price.
  • Failure to keep sufficient records as required.
 

SoldierMan

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Aug 3, 2019
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Jeez.. if the rest of government can work 0.01% like SARS.. we all would be livining in Wakanda...

SARS has been on the decline for some time now. No where near what they used to be. Horror stories of people not receiving refunds for years and not months.

And they have the gall to tell implement harsher penalties when they can't even do their job properly.
 

rvZA

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Jan 3, 2021
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The dark side of destroying the legal liqueur and nicotine markets with lockdowns.... the VAT taps run dry.

Precisely. But that alone did not cause this, neither did Covid. Covid only sped up the process to bankruptcy. Their real problems started in 1994. ANC policies. AA and BEE, EWC, NHI, RET, corruption and more. This was inevitable at some point in time.
 

Neuk_

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Jan 23, 2018
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I can't wait to see similar statistics like the 400k people arrested for state of emergency regulation infringements. This is another great step in bringing about real justice for the people of South Africa.
 
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