Miss the Sars deadline and penalties could follow

THE SOUTH African Revenue Service (Sars) has reminded non-provisional taxpayers to submit their income tax returns by October warning that outstanding returns could attract monthly administrative penalties of up to Penalties range from to per month for each outstanding return, depending on the taxpayer's taxable income. The charges may continue for as long as the taxpayer remains non-compliant. Taxpayers should not assume that missing a filing deadline would have no immediate financial consequences, says Kealeboga Maja, a junior tax consultant at Tax Consulting SA Kealeboga Maja, a junior tax consultant at Tax Consulting SA, urged taxpayers to meet the deadline and address any outstanding filing obligations before penalties accrue. “Submit your tax return by October to avoid penalties,” Maja said. Taxpayers who fall behind Failure to file a return could have consequences even where a taxpayer has no tax liability. Sars may still require a return to be submitted, regardless of whether any tax is ultimately payable. “Where tax debt remains unpaid, Sars has various enforcement measures available under the Tax Administration Act. “These include issuing a final demand which affords taxpayers business days to either settle the outstanding amount or respond to Sars,” said Maja. If the debt remains unpaid, Sars may pursue further recovery action, including appointing banks or employers to collect amounts from funds held on behalf of, or payable to, the taxpayer. Further legal measures may include civil judgments and the attachment of assets, subject to applicable legal requirements. What should taxpayers do Maja said taxpayers should not assume that missing a filing deadline would have no immediate financial consequences, particularly where non-compliance continues. Non-provisional taxpayers should check their Sars eFiling profiles to confirm their filing obligations and ensure that returns are submitted by October They should also verify that all relevant income has been declared and that supporting documents are available. Taxpayers with income from multiple sources or more complex financial circumstances should take particular care to ensure their returns are complete and accurate. “Taxpayers who are uncertain about their tax obligations or require assistance with the preparation and submission of tax returns, as well as addressing any compliance concerns that may arise, are encouraged to seek professional guidance ahead of the filing deadline,” said Maja. NON-PROVISIONAL taxpayers who were not auto-assessed must submit their income tax returns by October Sars administrative penalties range from to for each month a return remains outstanding. File