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SEVERE NON-COMPLIANCE PENALTIES – (Taxation)
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| Be warned, some very serious and hash SARS legislation prescribing administrative penalties for non compliance were gazette recently. These will seek to inflict serious punishment on tax payers who continuosly fail to comply.
We wish to warn all our clients and esteemed readers that this is a major business risk as the consequences may be dire and of a financial nature. In the worst case, SARS action has led to companies filing for insolvency and losing their assets and subsequently going out of business. Urgently consult your professional advisors/ Accountants as regards your level of compliance.
Note that this development merely seeks to ensure maximum possible compliance with the Income Tax Act (“ITA”), however price for non compliance would be one you do now wish to experience.
Instances of non compliance that could trigger heavy penalties:
· Failure to register as a tax payer as required by the ITA;
· Failure to submit a return and/or other documents;
· Failure to furnish Sars with required information or documents;
· Failure by a provisional tax payer to provide an estimate of taxable income as required by the ITA, and;
· Failure to inform the ‘taxman’ of a change of address.
IABC does offer full monthly Income Tax, VAT and Payroll Taxes Administration.
– Mwendabai – (011 – 312 3149/ mkalaluka@iabcgroup.co.za) |
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20 Comments
nice post! am looking forward to read your potential post.
I am glad you have appreciated out content.
We will be refreshing articles at least weekly from first week of December, it’s normally a challenge from the perspective of time as we also have to manage day to day client engagements and business/ practice admin.
Perfect work!
Many thanks for the positive feedback. Hope you will visit more often.
We will be refreshing articles at least weekly from first week of December, it’s normally a challenge from the perspective of time as we also have to manage day to day client engagements and business/ practice admin.
Mwendabai
Nice post. Its realy nice. More info help me.
Glad you appreciate it. If ever you need anything, say specific information, just email me:
mkalaluka@iabcgroup.co.za
I will help whichever way I can.
Mwendabai
I had a medical condition which required me to have a lot of doctor visits and operations. The medical bill was in excess of $200K, and there was no way I can afford to pay for it, so filing bankruptcy was the only option available to me. Even if I was able to negotiate with the medical providers for a reduced amount, we are still talking about medical expenses of well over $100K. I do not have any emergency savings that can cover the medical bills and with current work’s salary, I can only pay back about $250/month. A simple calculation will tell you that it will take over 33 years to pay back the entire $100K. Given that I cannot possibly payback all the medical bills, I believed that my only choice is to file for bankruptcy. Even though I hate to stiff the doctors for the money I had incurred over the years, but for my own financial well-being, this is the best thing that I can do for myself.
Just the one factor you also have to consider is permanent impairment on your credit record, not sure about where you are but in SA you have an impaired record for a good 5 – 10 years. Meaning in that period, you cant borrow>
Personal bankruptcy is never something for everyone. And the fact you can help so many people with your blog, it just makes it easy for all of us who had to go through this ordeal. Thank you and ideally none of us ever have to go through it again. Personal bankruptcy puts such anguish and stress on a person, unless you have gone through it, you will never know how it feels. It can feel like the whole world is against you, looking for you to pay them every single dollar that you have.
I totally agree. In South Africa, legislation actually favours the debtor more than the creditor, and there are mechanisms for resolving insolvency without going to the very last resort. Unfortunately many people are not aware of the options available and if they dont seek help, they lose so much all together. The New Credit Act also brings so many positive approaches to managing debt and insolvency situations.
Mwendabai
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Thanks hey. Please visit more often, we have new material lined up from first week of December.
Mwendabai
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Thank you for the positive feedback. Hope you will be visiting often.
Mwendabai
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