Category: Chapter 15 – Administrative non-compliance penalties (TAA)

Section 213 (TAA) – Imposition of percentage based penalty

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213.    Imposition of percentage based penalty

(1)     If SARS is satisfied that an amount of tax was not paid as and when required under a tax Act, SARS must, in addition to any other “penalty” or interest for which a person may be liable, impose a “penalty” equal to the percentage of the amount of unpaid tax as prescribed in the tax Act.

[Subsection (1) substituted by section 63 of Act 23 of 2015 effective on 1 October 2012]

(2)     In the event of a change to the amount of tax in respect of which a ‘penalty’ was imposed under subsection (1), the ‘penalty’ must be adjusted accordingly with effect from the date of the imposition of the ‘penalty’.

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).

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 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.