Have you submitted your tax return yet?

I did. To be honest, I kind of love tax season. It’s usually money in the bank following submission, and a weight off my mind.

Unfortunately, a lot of South Africans don’t seem to be getting with the program when it comes to tax compliance, which is why SARS is cracking down.

SARS commissioner Edward Kieswetter recently used the SA Institute of Tax Professionals’ tax indaba as a platform to let everyone know that non-compliance would be met with the full force of the National Prosecuting Authority (NPA), reports IOL.

SARS has concluded an accord with the NPA in terms of which it seeks to prosecute at least 1177 non-compliant taxpayers.

SARS is fighting a war on two fronts. The commissioner is facing an internal battle to clean up the devastation left by the previous tenures, while trying to make good on a massive budget deficit and hoping to eradicate a widespread slippage in taxpayer morality.

At the height of its potency, when SARS was one of the most revered revenue authorities in the world, it operated on three legs, a model developed in the early years of SARS’ existence by then commissioner Pravin Gordhan. One of those indispensable legs was enforcement which, seemingly, Kieswetter is intent on reviving.

That’s bad news for anyone who has been flying under the radar, skimming a bit off the top, or has simply failed to file their tax returns.

Those who believe that criminal prosecution is reserved for taxpayers involved with high-end tax evasion or the elicit tobacco trade should revisit their convictions.

The Tax Administration Act (TAA) criminalises an array of acts of non-compliance, ranging from seemingly “petty” transgressions, such as the failure to file a return and retain documents, to more serious evasion.

Taxpayers must also be cognisant that where they are to any degree implicit in the non-compliance of another taxpayer, they may also face criminal prosecution. This includes failure to withhold PAYE or instances where a person is involved in a company’s non-compliance.

The good news is that SARS is encouraging taxpayers to confess their transgressions in exchange for leniency.

The [Voluntary Disclosure Programme] gives amnesty from criminal prosecution, in addition to substantial relief from penalties.

Taxpayers would do well to heed the commissioner’s warning shot; do not be the one in the orange uniform who galvanises compliance in others.

The key is “first mover advantage”, as you are legally prohibited from claiming VDP once a tax audit has started.

If you want to ensure you avoid all SARS-related headaches altogether, you could just hand all of the tax-related things on your to-do list over to an expert.

Galbraith | Rushby offers professional tax compliance and advisory services to individuals and businesses.

Seth’s been letting them run the numbers for years now, and it’s one less thing to worry about whilst living the holiday.

Let them take care of everything, while you run your business, or do your job, with the peace of mind that comes with knowing you’re a good, upstanding citizen.

[source:iol]