Failure to register your details with revenue service Sars or not notifying it of changes to your details could result in up to two years' imprisonment, says Tax Consulting SA.
Roxanna Naidoo, an attorney, and Lisa Mihalik, the tax and legal administrator, both of Tax Consulting SA, said a new set of law amendments, signed by President Cyril Ramaphosa and promulgated on January 20, has granted Sars the legal firepower it needs to impose criminal sanctions on taxpayers who neglect their tax affairs.
“Before the promulgation of the Tax Administration Laws Amendment Act, 2020 (Amendment Act) a mistake made by a taxpayer was only a crime when it was committed “wilfully and without just cause”. In other words, the law required an element of intent; where negligence or ignorance caused your administrative non-compliance, you would have gotten off with a slap on the wrist.
“Henceforth, your intention does not matter — where you “negligently” fail to comply or make certain mistakes on your taxes you commit an imprisonable criminal offence,” the company said in a statement.
11 mistakes on your tax return that could land you in jail for two years
Reporter
Image: Picture: GALLO IMAGES
Failure to register your details with revenue service Sars or not notifying it of changes to your details could result in up to two years' imprisonment, says Tax Consulting SA.
Roxanna Naidoo, an attorney, and Lisa Mihalik, the tax and legal administrator, both of Tax Consulting SA, said a new set of law amendments, signed by President Cyril Ramaphosa and promulgated on January 20, has granted Sars the legal firepower it needs to impose criminal sanctions on taxpayers who neglect their tax affairs.
“Before the promulgation of the Tax Administration Laws Amendment Act, 2020 (Amendment Act) a mistake made by a taxpayer was only a crime when it was committed “wilfully and without just cause”. In other words, the law required an element of intent; where negligence or ignorance caused your administrative non-compliance, you would have gotten off with a slap on the wrist.
“Henceforth, your intention does not matter — where you “negligently” fail to comply or make certain mistakes on your taxes you commit an imprisonable criminal offence,” the company said in a statement.
WATCH: VAT refunds — battle won, war continues
Specialist firm Tax Consulting SA said the Amendment Act just demonstrates that the new Sars commissioner and its Treasury team have adopted a no-nonsense approach to non-compliance.
“Given how easily and how often these mistakes can happen, and how hard they will be to correct, taxpayers should exercise extreme accuracy and vigilance when filing their taxes. It may serve you well to appoint a qualified tax consultant or experienced tax attorney to ensure you do not end up on the wrong side of these new rules,” Tax Consulting SA said.
The firm said a defence commonly used by taxpayers — ignorance — will no longer fly as Sars will from now on hold individuals to a higher standard of care.
“Strategically speaking, this is a bold, brilliant move from the Sars-Treasury team, as the simple inclusion of the word “negligence”, now allows for the offence criteria to be broadened to such a degree that even the slightest mistake made in one’s compliance could result in criminal prosecution,” said Tax Consulting SA.
The firm has highlighted 11 mistakes listed in the Amendment Act that can result in up to two years in prison.
Treasury considers a tax hike to pay for biggest vaccination drive in South Africa’s history
Eleven mistakes not to make to avoid two years in prison, according to Tax Consulting SA:
Would you like to comment on this article?
Register (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Trending Now
Latest Videos