Page 1 of 2 12 LastLast
Results 1 to 10 of 11

Thread: PAYE tax

  1. #1
    New Member
    Join Date
    Feb 2012
    Location
    johannesburg
    Posts
    3
    Thanks
    0
    Thanked 0 Times in 0 Posts

    PAYE tax

    Hi all,

    I am enrolled under my company name in SARS and i used to get IRP5 every year . My employer pay PAYE tax for me.

    example:

    If my salary is 18k and my employer pays PAYE tax for 15k (15k reflect in payslip) and pays 3k separately in my account without the tax.

    who is in trouble now . My employer or me?

    Thanks in advance guys...

  2. #2
    Site Caretaker Dave A's Avatar
    Join Date
    May 2006
    Location
    Durban, South Africa
    Posts
    20,978
    Thanks
    3,055
    Thanked 2,462 Times in 2,067 Posts
    Blog Entries
    12
    One way or another, probably both of you

    Your employer is under-declaring (which will attract a penalty and interest at the very least) and you're underpaying (expect a tax bill + plus penalties + interest too perhaps).

    Is there no chance of there being valid reasons why your employer is paying that R3k, such as reimbursement of provable expenses incurred on their behalf?

    The trouble with opportunity is it normally comes dressed up as work.

  3. #3
    Diamond Member Blurock's Avatar
    Join Date
    May 2010
    Location
    Durban
    Posts
    3,437
    Thanks
    660
    Thanked 765 Times in 630 Posts
    Blog Entries
    1
    I know of a similar case where the employer was underpaying SARS.

    The outcome was that the employer had to pay the outstanding tax as well as penalties for so many years. He was also prohibited from reclaiming the tax and penalties from the employer.
    Excellence is not a skill; its an attitude...

  4. #4
    Site Caretaker Dave A's Avatar
    Join Date
    May 2006
    Location
    Durban, South Africa
    Posts
    20,978
    Thanks
    3,055
    Thanked 2,462 Times in 2,067 Posts
    Blog Entries
    12
    Quote Originally Posted by Blurock View Post
    He was also prohibited from reclaiming the tax and penalties from the employer.
    ...employee?
    The trouble with opportunity is it normally comes dressed up as work.

  5. #5
    Diamond Member Blurock's Avatar
    Join Date
    May 2010
    Location
    Durban
    Posts
    3,437
    Thanks
    660
    Thanked 765 Times in 630 Posts
    Blog Entries
    1
    Quote Originally Posted by Dave A View Post
    ...employee?
    Employee.
    Excellence is not a skill; its an attitude...

  6. #6
    New Member
    Join Date
    Feb 2012
    Location
    johannesburg
    Posts
    3
    Thanks
    0
    Thanked 0 Times in 0 Posts
    Thanks foe the reply guys...

    Employer have to pay the fine or the employee ?

  7. #7
    Email problem BusNavig8's Avatar
    Join Date
    Feb 2012
    Location
    Nelspruit
    Posts
    138
    Thanks
    9
    Thanked 25 Times in 22 Posts
    Blog Entries
    2
    Everything has to be declared on the biannual recon. If it is not then SARS will come down on the Employer like a ton of bricks. The bigger companies have actual SARS consulants allocated to them for any queries and problems and will also act as "watchdogs". Anything of a reimbursive nature, the Act is very strict on and there are provisions made for them and they need to be reflected in the payroll and accounted for on the IRP5 at year end and in most cases need to be justified. I would get paperwork to cover myself regarding this payment. the money just is not worth the risk.

    If there is an audit (Engagement Letter) the employee can face a 15 year criminal sentence as it is a criminal offence and up to 200% penalty for underdeclaring income. IOW the money that is paid into the bank account must be disclosed if it is not reflected on the IRP5. Not a good place to be in either party, the employer or the employee.

    In terms of the Act, as soon as there are 3 or more persons involved, SARS see it as a syndicate!. I deal with the Criminal prosectutions unit I know how they deal with cases. (I was actually asked to join them as a forensic auditor a few years back). This obvioulsy is only used extreme cases.

    I would not play around with SARS at the moment, they are hot on the heals of taxpayers!

  8. Thanks given for this post:

    Dave A (16-Feb-12)

  9. #8
    Email problem BusNavig8's Avatar
    Join Date
    Feb 2012
    Location
    Nelspruit
    Posts
    138
    Thanks
    9
    Thanked 25 Times in 22 Posts
    Blog Entries
    2
    Remember there's tax avoidance and there's tax evasion - one legal and one illegal!

  10. #9
    New Member
    Join Date
    Feb 2012
    Location
    johannesburg
    Posts
    3
    Thanks
    0
    Thanked 0 Times in 0 Posts
    Quote Originally Posted by Dave A View Post
    One way or another, probably both of you

    Your employer is under-declaring (which will attract a penalty and interest at the very least) and you're underpaying (expect a tax bill + plus penalties + interest too perhaps).

    Is there no chance of there being valid reasons why your employer is paying that R3k, such as reimbursement of provable expenses incurred on their behalf?

    Company mentioned that 3k as petty cash usage and sundries

  11. #10
    Site Caretaker Dave A's Avatar
    Join Date
    May 2006
    Location
    Durban, South Africa
    Posts
    20,978
    Thanks
    3,055
    Thanked 2,462 Times in 2,067 Posts
    Blog Entries
    12


    Just remember these need to be provable expenses. The company would need to have till slips etc.
    The trouble with opportunity is it normally comes dressed up as work.

Page 1 of 2 12 LastLast

Similar Threads

  1. [Question] PAYE / Income Tax
    By SSS100 in forum Tax Forum
    Replies: 12
    Last Post: 27-Oct-11, 12:45 PM
  2. [Question] Paye and uif on efiling
    By pedrob in forum Tax Forum
    Replies: 5
    Last Post: 09-Sep-11, 11:05 AM
  3. PAYE for employers
    By duncan drennan in forum Tax Forum
    Replies: 1
    Last Post: 02-Apr-09, 06:30 PM
  4. [Question] PAYE ON COMMISSION
    By vamily0804 in forum Tax Forum
    Replies: 3
    Last Post: 20-Mar-09, 08:21 AM

Did you like this article? Share it with your favourite social network.

Did you like this article? Share it with your favourite social network.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •