The deadline for non-provisional taxpayers to file their tax return is just around the corner. Taxpayers have until 4thDecember to submit their return and avoid unwanted penalties and interest. SARS recently announced that it will be clamping down on taxpayers who miss the deadline to submit their tax return. Besides stating that they will impose monthly penalties for late tax returns, they have even gone so far as stating that it is a criminal offence to not file a tax return when it is due.
This message comes in the wake of the sobering mid-term budget review during which our Finance Minister announced that South Africa is facing yet another large tax revenue shortfall. Experts forecast that at the end of March 2020, SARS will miss a tax collection of up to R60 billion, the largest collection shortfall to date. Mr Tito Mboweni also announced that SARS will receive an additional R1bn for the next two years to increase efforts to target corruption and strengthen revenue collection.
The late filing penalty amount that SARS will levy depends on a taxpayer’s taxable income and can range from R250 up to a whopping R16 000 a month for each month that the non-compliance continues. For example, assume a taxpayer files 6 months late, the minimum filing penalty they will receive is a hefty R1, 500! (Note: there will also be interest charged at 10% per annum on tax debt due).
Remember too, these penalties don't ony apply to 2019 (i.e. the current year’s submission) but also to unfiled tax returns from prior years. So, you’ll need to ensure that all your old tax returns have been filed.
Given these circumstances it’s important that you stay up to date with your taxes and file all your old returns. The longer you wait the higher the price you pay. If you find yourself on the wrong side of the law and need to file old tax returns, TaxTim is here to help.