Author: admin_kmos

Section 218 (TAA) – Remittance of penalty in exceptional circumstances

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218.    Remittance of penalty in exceptional circumstances

 

(1)     SARS must, upon receipt of a ‘remittance request’, remit the ‘penalty’ or if applicable a portion thereof, if SARS is satisfied that one or more of the circumstances referred to in subsection (2) rendered the person on whom the ‘penalty’ was imposed incapable of complying with the relevant obligation under the relevant tax Act.

 

(2)     The circumstances referred to in subsection (1) are limited to-

 

(a)     a natural or human-made disaster;

 

(b)     a civil disturbance or disruption in services;

 

(c)     a serious illness or accident;

 

(d)     serious emotional or mental distress;

 

(e)     any of the following acts by SARS:

 

(i)      a capturing error;

 

(ii)     a processing delay;

 

(iii)    provision of incorrect information in an official publication or media release issued by the Commissioner;

 

(iv)    delay in providing information to any person; or

 

(v)     failure by SARS to provide sufficient time for an adequate response to a request for information by SARS;

 

(f)      serious financial hardship, such as-

 

(i)      in the case of an individual, lack of basic living requirements; or

 

(ii)     in the case of a business, an immediate danger that the continuity of business operations and the continued employment of its employees are jeopardised; or

 

(g)     any other circumstance of analogous seriousness.

Section 217 (TAA) – Remittance of penalty for nominal or first incidence of non-compliance

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217.    Remittance of penalty for nominal or first incidence of non-compliance

 

(1)     If a ‘penalty’ has been imposed in respect of-

 

(a)     a ‘first incidence’ of  non-compliance; or

 

(b)     an incidence of non-compliance described in section 210 if the duration of the non-compliance is less than five business days,

 

SARS may, in respect of a ‘penalty’ imposed under section 210 or 212, remit the ‘penalty’, or a portion thereof if appropriate, up to an amount of R2 000 if SARS is satisfied that-

 

(i)      reasonable grounds for the non-compliance exist; and

 

(ii)     the non-compliance in issue has been remedied.

 

(2)     In the case of a ‘penalty’ imposed under section 212, the R2 000 limit referred to in subsection (1) is changed to R100 000.

 

(3)     If a ‘penalty’ has been imposed under section 213, SARS may remit the ‘penalty’, or a portion thereof, if SARS is satisfied that-

 

(a)     the ‘penalty’ has been imposed in respect of a ‘first incidence’ of non-compliance, or involved an amount of less than R2000;

 

(b)     reasonable grounds for the non-compliance exist; and

 

(c)     the non-compliance in issue has been remedied.

Section 216 (TAA) – Remittance of penalty for failure to register

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216.    Remittance of penalty for failure to register

 

If a ‘penalty’ is imposed on a person for a failure to register as and when required under this Act, SARS may remit the ‘penalty’ in whole or in part if-

 

(a)     the failure to register was discovered because the person approached SARS voluntarily; and

 

(b)     the person has filed all returns required under a tax Act.

Section 215 (TAA) – Procedure to request remittance of penalty

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215.    Procedure to request remittance of penalty

 

(1)     A person who is aggrieved by a ‘penalty assessment’ notice may, on or before the date for payment in the ‘penalty assessment’, in the prescribed form and manner, request SARS to remit the ‘penalty’ in accordance with Part E.

 

(2)     The ‘remittance request’ must include-

 

(a)     a description of the circumstances which prevented the person from complying with the relevant obligation under a tax Act in respect of which the ‘penalty’ has been imposed; and

 

(b)     the supporting documents and information as may be required by SARS in the prescribed form.

 

(3)     During the period commencing on the day that SARS receives the ‘remittance request’, and ending 21 business days after notice has been given of SARS’ decision, no collection steps relating to the ‘penalty’ amount may be taken unless SARS has a reasonable belief that there is-

 

(a)     a risk of dissipation of assets by the person concerned; or

 

(b)     fraud involved in the origin of the non-compliance or the grounds for remittance.

 

(4)     SARS may extend the period referred to in subsection (1) if SARS is satisfied that-

 

(a)     the non-compliance in issue is an incidence of non-compliance referred to in section 216 or 217, and that reasonable grounds exist for the late receipt of the ‘remittance request’; or

 

(b)     a circumstance referred to in section 218(2) rendered the person incapable of submitting a timely request.

 

(5)     If a tax Act other than this Act provides for remittance grounds for a “penalty”, SARS may despite the provisions of section 216, 217 or 218 remit the “penalty” or a portion thereof under such grounds.

Section 214 (TAA) – Procedures for imposing penalty

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214.    Procedures for imposing penalty

 

(1)     A ‘penalty’ imposed under Part B or C is imposed by way of a ‘penalty assessment’, and if a ‘penalty assessment’ is made, SARS must give notice of the assessment in the format as SARS may decide to the person, including the following:

 

(a)     the non-compliance in respect of which the ‘penalty’ is assessed and its duration;

 

(b)     the amount of the ‘penalty’ imposed;

 

(c)     the date for paying the ‘penalty’;

 

(d)     the automatic increase of the ‘penalty’; and

 

(e)     a summary of procedures for requesting remittance of the ‘penalty’.

 

(2)     A ‘penalty’ is due upon assessment and must be paid-

 

(a)     on or before the date for payment stated in the notice of the ‘penalty assessment’; or

 

(b)     where the ‘penalty assessment’ is made together with an assessment of tax, on or before the deadline for payment stated in the notice of the assessment for tax.

 

(3)     SARS must give the taxpayer notice of an adjustment to the ‘penalty’ in accordance with section 211(2) or 213(2).