SARS Administrative Penalties

According to the Tax Administration Act, SARS is authorized to impose administrative fines for unfiled tax returns. Prior to recently, the taxpayer had to have two or more past-due returns between 2007 and 2020 in order for SARS to impose penalties. Since then, the legislation has changed, and as of December 1, 2021, SARS may impose administrative fines even if there is only one unpaid tax return for the assessment year of 2021.

For every month or portion thereof that the tax return is overdue, there will be a monthly penalty assessed (up to a maximum of 35 months, or 47 months if the taxpayer's residence is unknown). This can soon mount up and come as a great shock!

If a taxpayer is non-compliant in a particular area of their tax affairs, such as income tax for your Company or Personal (CIT or PIT), value-added tax (VAT), or Pay as You Earn (PAYE), SARS may impose monthly administrative penalties as shown below;

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