Penalties Posts in Tax Q&A

What documents do I need as a 1st time IRP5 submitter?



What documents do I need as a 1st time IRP5 submitter?

What does the final conclusion of reduced assessment mean to me as a taxpayer?



I received a reduced assessment and the conclusion was that a certain amount was refundable to me but it never paid out SARS paid me amount from previous assessment what does the reduced assessment mean?

Rent Income



If your rent income and salary income amounts to less than the required amount for taxpayers to submit income tax does that mean I do not need to pay provisional tax or does any additional income count as 'taxable'?

What is the tax season deadline for filing with SARS?



By when must personal tax be completed?

VAT Returns not submitted by 25th, I need to submit manually because efiling not activated by SARS?



I've recently registered as a VAT Vendor. I now have to submit VAT returns so I registered for SARS eFiling last week and faxed through the form as well as my ID to SARS to file online. According to the website this should be activated within 24 - 48 hours. Its now 4 working days. When I called SARS they said I should submit my return manually. The problem is its passed the deadline for 25th. How do I avoid interest and penalties.

Donations tax w.r.t children



Can a parent contribute money towards the purchase price of a child's new home without being liable for donations tax if the amount is more than R100,000?

Outstanding tax returns deceased 87 year old.



My 87 year old father passed away in Feb 2014. The executor of the estate told me that they can't finalize estate because he hasn't submitted tax returns since 2010. All documents I have is his bank statements. He was a retired farmer and did not receive a pension. What should I do?

Do I pay tax on interest in RSA when living and working abroad?



I am a South African but I have been living and working in Thailand for almost 4 years, and thus pay no tax in SA. I only visit SA for about 20 days a year.

I recently married an Australian and we want to open a fixed-deposit account in SA to make use of favourable interest rates.

If we both continue to live and work in Thailand, do we need to pay tax on the interest earned on that account? It will be about R100 000 per year.

Are investment funds still taxed at marginal rates for early retirees?



If I retire before the age of 65, using only investment income from interest earned on funds saved in the bank, would I still pay tax at the existing marginal rates? Or, would I qualify for a lower tax rate?

Tax payment?



What causes one to receive correspondence from SARS?

Retired 6yrs ago at 58, receive rental income of R90,000pa. Do I submit return? Am I in arrears?



I am now 61 years old and retired Feb 2008. Up until then all taxes were up to date. Since then I moved and receive R90,000 pa rental income from my fixed property. I wish to establish if I am liable for any taxes on this rental income and if I must re register as a provisional tax payer in the light that I have never received any notices from SARS since retirement.

Are there any normal tax and/or capital gains tax implications on a refundable rental deposit?



Are there any normal tax and/or capital gains tax implications on a refundable rental deposit?

Do we pay higher tax rates?



Do my wife and I pay more taxes when married?

Tax implication on initially tax exempt foreign earnings?



Hi Tim, reading through your blog I am quite confident that my foreign earnings will be tax exempt...thank you! I start a working contract as a salaried worker in Saudi Arabia this September. I am thinking of transferring the bulk of the money into my South African cheque account on a monthly basis and maybe from there into a market linked account.

My question relates to tax implication at this point. Do I pay SA tax on just the interest earned thereafter? Does the capital get taxed in subsequent tax years? ...

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How to treat foreign income



I am a SA citizen and live outside SA with my family(since 1998). I have bank accounts and property investments in SA, and I still fill tax return every year. My salary income is all foreign though. I visit SA almost every year for a period of 4-6 weeks for vacation); sometimes another 2 weeks over Christmas. I also own foreign property.Questions:1. Should I declare my foreign income?2. Should I declare my foreign property in any way, purchase, rental income, sale?

Holiday Homes - what can I claim and what will be the tax implications when I sell my property?



I have a holiday home... what expenses can I claim? Can I for instance claim depreciation and finance charges? What is the TAX implications if I sell my holiday home, say after 10 years? If I took money from an existing bond and other financial investments, can I claim the finance cost and lost interest?

Won't I be penalised if I did not submit last year cos I did not have a medical aid?



I receive my IRP5 every year, I never submitted them to receiver because all along I did not have a medical aid or a retirement annuity. Last year in September I then joined the Government medical aid and it was also stated in some articles that if you don't have one of the mentioned and earning below 250 000 per annum there was no reason to submit. This year I will do my submission since I have a medical aid.

My question is won't I be penalized for not submitting last year due to th...

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I have to borrow money from a friend to make ends meet, how do I get back on track with my tax?



I used to be permanently employed, paid the normal PAYE every month, and all that. I dutifully submitted my tax return every year and got my refunds from SARS very promptly. I then left the company and did a brief stint at another firm whose business was totally unrelated. I then decided to go on my own and start working as an independent. Things didn't go as well as I'd hoped and I didn't earn enough to support myself and my children, let alone, pay any tax. A friend has been helping me to make...

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"Temporary expat" liable for South African tax?



I left South Africa in Feb 2013. I started a limited company in the UK in April 2013. Myself and my wife are shareholders of the limited company, we're paid a salary and declare dividends.We're now moving to Germany, I have 2 homes in South Africa... one of which is currently under offer. The other is occupied by a caretaker.I understand that I need to submit a "nil tax return" this year and for any other years that I'm out of the country, but am I liable for any taxatio...

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Can I pay tax in advance (est) without complicated forms.Then do forms annually and pay difference



I always need to pay money to tax at the end of the year. I know it is about R 12,000. Or R1000 pm. Why can I not pay in say R1000 pm Estimate without filling in complicated forms, then fill in complicated forms once a year. I.e. pay in what I think monthly. i.e. accumulate tax credits via payments ahead of the final annual analysis.. i.e. just pay initially when I can afford, and pay in the difference after completing complicated forms at financial year end.

Does devaluation of the rand cause a tax liability?



If my overseas holdings increase in value solely due to devaluation of the rand, is such an increase taxable?

Do I need t pay the non-compliance penalty fee with SARS?



I registered with SARS in 2010 and have been filing ever since. I recently received a non compliance penalty fee for 2008 and 2009. It's only R500 (R250 for each year) Do I have to pay this if I wasn't even registered in those years and did not receive IRP5's from my employer then either?
I managed to get the IRP5's and I filed them last week but still am being told I need to pay the penalty fee.
If I am going to dispute it, will I be charged interest or more penalties whilst it is busy being disputed?...

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Can I declare extra income at the end of the year, or must I register for provisional tax now?



If I did some freelance work in 2013 / 2014 tax year, will I pay a penalty if I only declare my extra income when I do my regular return?

What are the legal consequences for sole proprietor not registered as taxpayer?



Legal consequence for sole proprietor not registered as taxpayer

Tax Return late submit fine?



What is the maximum percentage of additional tax that you may be required to pay if you submit your tax return late?
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