212. Reportable arrangement and mandatory disclosure penalty

(1)     A person referred to in-

(a)     paragraph (a) or (b) of the definition of ‘participant’ in section 34, who fails to disclose the information in respect of a ‘reportable arrangement’, as required by section 37; or

(b)     the definition of intermediary in the regulations, issued in respect of paragraph (a) of the definition of ‘international tax standard’, who fails to disclose the information required to be disclosed under the regulations,

is liable to a ‘penalty’, for each month that the failure continues (up to 12 months), in the amount of-

(i)      R50 000, in the case of a ‘participant’ or intermediary, as the case may be, other than the ‘promoter’; or

(ii)      R100 000, in the case of the ‘promoter’.

(2)     The amount of ‘penalty’ determined under subsection (1) is doubled if the amount of anticipated ‘tax benefit’, as defined in section 34, for the ‘participant’ by reason of the arrangement (within the meaning of section 35) exceeds R5 000 000, and is tripled if the benefit exceeds R10 000 000.

(3)     A person referred to in paragraph (c) of the definition of ‘participant’ in section 34, who fails to disclose the information in respect of a ‘reportable arrangement’ as required by section 37 is liable to a ‘penalty’ in the amount of R50 000.

[Section 212 amended by section 62(a) and (b) of Act 23 of 2015 and substituted by section 41 of Act 33 of 2019]