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The South African Revenue Service (SARS) is demanding that individual non-provisional taxpayers file their income tax returns on or before the deadline of 23 November 2021.
Those who fail to submit their income tax returns by the deadline will face penalties. SARS explains that taxpayers should be aware that, due to legislative changes, SARS will begin levying fines on unfiled returns on December 1, 2021.
“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,” the revenue service explains.
According to SARS Commissioner Edward Kieswetter, filing a tax return is a legal requirement for those taxpayers who must file and contributes to a culture of voluntary compliance.
“But beyond the legal requirement to file a return, taxpayers who do the right thing are enabling government to meet the basic service needs of the poor and vulnerable by providing social grants and health care, amongst others,” he said.
The Commissioner added, “SARS has put in place a number of upgraded digital channels that are available 24/7. This will help provide clarity and make it easy for taxpayers to meet the deadline of 23 November without any difficulty. These channels include amongst others, SARS eFiling, SARS MobiApp, and SMS service. More information is available on the SARS website.”
Provisional taxpayers have until 31 January 2022 to fulfil all their filing obligations. According to SARS, the new penalty rule for non-compliant taxpayers is consistent with the agency’s strategic goal of making noncompliance difficult and costly.
With this in mind, the revenue service emphasises the importance of SARS improving its ability to impose administrative penalties more responsively.
Is it just us, or does this sound like a shakedown? What are your thoughts on this? Share your views in the comment section below.
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