COMING CLEAN WITH THE TAX MAN – WHAT ARE MY OPTIONS?
Very few business owners we’ve ever met consider the SARS a friend. In fact, given the option, the majority would happily overpay their taxes if it meant that they never heard from the Tax man 😊
So, if you’re one of the unlucky few who’s tax affairs are not in order, what options are open to you? If it’s a simple case of non-submissions of Income Tax, PAYE, VAT, forms etc. for a dormant business, then hurry down to the SARS and submit the required NIL returns and be done with it. If you don’t want to wait in the very long queues, then pay a professional to do this for you.
Failure to submit will unfortunately still lead to a summons as this is the only way the SARS is able to compel you to adhere to the law. If, however your non-submissions or inaccurate submissions are as a result of monies owed to the fiscus (SARS), then the route to redemption is a little more complicated. Traditionally those fearing prosecution, would submit amended returns showing their full exposure to the SARS and then fall on their mercy or the mercy of the courts to avoid very stiff penalties and or prosecution. Fortunately, in recent years the SARS has proven itself a friend to business by initially introducing a Voluntary Disclosure Programme and now more recently a Special Voluntary Disclosure Programme.
So, what’s the difference, I hear you asking?
|South African taxpayers with tax defaults in respect of any tax types administered under the Tax Administration Act, disclosures may include defaults on foreign taxable income.||South African taxpayers with offshore assets and income.|
|Ongoing||1 October 2016 – 31 August 2017|
|Application||VDP01 via eFilling||SVDP section of the VDP01 from via eFilling for tax defaults and the SVDP01 from exchange control defaults|
Our experience has shown that just like snowflakes, each taxpayers circumstance is unique, therefore do not attempt your application as a DIY project, rather consult a professional.
At SME.TAX we do more than just assist clients with their provisional taxes.
We are your “one stop SME shop”, assisting with everything from Accounting, Business Management, BEE, Consulting, Company Registration to Payroll and Mentoring.
For more information, please visit our website www.sme.tax or give us a call on 087 238 4357