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Penalties to be levied on late taxpayers

Penalties to be levied on late taxpayers

Taxpayers are about to face fines for missing the November 23 tax return deadline this year. Early this month, SARS issued a statement reminding taxpayers to file their income tax returns on time or face penalties. Some taxpayers decided to heed the call; others didn’t.
“Penalties will be levied on taxpayers who fail to submit their income tax returns by this deadline. Taxpayers must note that according to changes in legislation, SARS will levy penalties from 1 December 2021 where one or more returns are outstanding,” the statement announced.

The old rule:
Before the change in the legislation, SARS could only levy penalties where two or more returns were outstanding. This older rule will remain in place for one more year for 2020 and earlier returns. SARS Commissioner Edward Kieswetter said filing a tax return is a legal obligation for those taxpayers who must file and contributes towards a culture of voluntary compliance.
“But beyond the legal requirement to file a return, taxpayers who do the right thing are enabling the government to meet the basic service needs of the poor and vulnerable by providing social grants and health care, amongst others.” The Commissioner added, “SARS has put in place several upgraded digital channels that are available 24/7. This will help provide clarity and make it easy for taxpayers to meet the deadline of 23rd November without any difficulty. These channels include, amongst others, SARS eFiling, SARS MobiApp, and SMS service. More details are available on the SARS website”.
Provisional taxpayers have until 31 January 2022 to fulfill all their filing obligations. Need help with your self-assessment tax return?

MGT helps entrepreneurs and self-employed professionals to become compliant. If you are not receiving the service and support you deserve from your accountant, then please talk to us by emailing info@mgt-consulting.co.za. We also offer free initial compliance audit over the phone or via video meeting.