‘first incidence’ means an incidence of non-compliance by a person if no ‘penalty assessment’ under this Chapter was issued during the preceding 36 months, whether involving an incidence of non-compliance of the same or a different kind, and for purposes of this definition a ‘penalty assessment’ that was fully remitted under section 218 must be disregarded;
Category: Chapter 15 – Administrative non-compliance penalties (TAA)
Section 217 (TAA) – Remittance of penalty for nominal or first incidence of non-compliance
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.
“Penalty assessment” definition of section 208 of TAA
‘penalty assessment’ means an assessment in respect of-
(a) a ‘penalty’ only; or
(b) tax and a ‘penalty’ which are assessed at the same time;
Section 218 (TAA) – Remittance of penalty in exceptional circumstances
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.
“Preceding year” definition of section 208 of TAA
‘preceding year’ means the year of assessment immediately prior to the year of assessment during which a ‘penalty’ is assessed;
Section 219 (TAA) – Penalty incorrectly assessed
219. Penalty incorrectly assessed
If SARS is satisfied that a ‘penalty’ was not assessed in accordance with this Chapter, SARS may, within three years of the ‘penalty assessment’, issue an altered assessment accordingly.
“Remittance request” definition of section 208 of TAA
‘remittance request’ means a request for remittance of a ‘penalty’ submitted in accordance with section 215.
Section 220 (TAA) – Objection and appeal against decision not to remit penalty
220. Objection and appeal against decision not to remit penalty
A decision by SARS not to remit a ‘penalty’ in whole or in part is subject to objection and appeal under Chapter 9.
Section 209 (TAA) – Purpose of Chapter
209. Purpose of Chapter
The purpose of this Chapter is to ensure-
(a) the widest possible compliance with the provisions of a tax Act and the effective administration of tax Acts; and
(b) that an ‘administrative non-compliance penalty’ is imposed impartially, consistently, and proportionately to the seriousness and duration of the non-compliance.
Part B – Fixed amount penalties (TAA)
Part B
Fixed amount penalties