SARS is currently implementing a wide range of collection operations, so it is advisable to file an application for PDVs before SARS pulls the trigger and begins to sue non-compliant taxpayers. I represent a company with a recent tax return that must provide one of the following information: – Workers` Tax (i.e. Understated/Undisclosed PAYE, SDL; UIF); – VAT; and/or – unreported/unreported income. The lawyer`s privilege applies fully. The VDP route allows you to regularize tax cases without paying massive penalties, but this is only available before SARS knocks on your door. It is essential that the VDP procedure remains the only way to avoid continuing the non-disclosure of income or tax debt. The objective of the VDP is to encourage taxpayers to come forward on a voluntary basis to settle their tax affairs through SARS and to avoid imposing underutilization penalties and other administrative penalties. Non-disclosure of SARS can result in massive penalties!! Here, your case is complicated, including legal interpretation, regulatory escalation and/or motivation to find out if you are actually eligible for a VDP. The lawyer`s privilege applies fully. It is important to note that the VDP applies to all taxes managed by SARS, including income tax, workers` tax (including PAYE, SDL, UIF), VAT, but without customs and excise duties. If you are guilty of not fully disclosing your SARS income or taxes, you are on the SARS radar and, in some cases, you can impose massive penalties, up to 200% of the value of the delay. An application for a VDP must satisfy all the requirements of the Tax Administration Act.
The reduction figures are regrettable, but one would expect the figures to be higher based on the known number of liquidations. There are signs that even tougher times are coming, which may explain the lower numbers. One of the lesser known reasons for the decline in reported figures is that some payments made by liquidators to employees are not subject to SARS tax rules, i.e. they are not subject to a payroll deduction or deduction. As a result, these employees are not reported to SARS, which means that SARS is also not in a position to report these figures. Melani of the Roof Senior Chartered Accountant (SA) Cell: `27 82 897 8145 Email: email@example.com To access this page in different languages, click on the links below: ` Regulating tax issues; Transfer of 100% of under-reporting penalties; Sending 100% of administrative penalties for non-compliance; Transfer of foreign funds to “clean” South Africa – amnesty before prosecution. South Africa is one of the signatories implementing the Common Reporting Standards (SIR) for the exchange of tax and financial information globally to minimize global tax evasion. Since September 1, 2017, South Africa has begun exchanging data with other IRS signatories to ensure transparency and more efficient tax administration.
SARS allows taxpayers to avoid criminal prosecution and settle their tax cases through disclosure under the PDV. A successful VDP application allows an applicant to waive penalties and settle tax arrears with SARS. Historical non-compliance? Didn`t make it back? We can help you complain, but it is outside the voluntary disclosure program. Our tax return team will help you become compliant.