Page 1 of 2 12 LastLast
Results 1 to 10 of 17

Thread: Penalties, Interest & Tax -- from May 2008 now only brought to light by SARS

  1. #1
    Junior Member
    Join Date
    Apr 2011
    Location
    Pretoria
    Posts
    14
    Thanks
    7
    Thanked 1 Time in 1 Post

    Question Penalties, Interest & Tax -- from May 2008 now only brought to light by SARS

    Hello everyone

    Recently, we were contacted by a friendly fellow from SARS.

    Informing us that monies were due to SARS for a return submitted in May 2008.

    Basically a payment for PAYE was made on a Saterday, all those years back, and now SARS have come to the "party" so to speak.



    What notification period is SARS required to give in terms of late payment of PAYE? (if any)

    Do we have any leg to stand on to appeal the charges, or should we cough up and pay?

    Many thanks for any input.

  2. #2
    Site Caretaker Dave A's Avatar
    Join Date
    May 2006
    Location
    Durban, South Africa
    Posts
    20,981
    Thanks
    3,056
    Thanked 2,463 Times in 2,068 Posts
    Blog Entries
    12
    If it's prescription you're hoping for, the prescription period is 15 years on taxes by the looks of things.

    If it is the only blemish, you could file an appeal for leniency on the basis that you were unaware that a Saturday was not regarded as a normal business day by SARS. I don't know what your chances are with SARS in its current mood, but if you don't ask, you don't get.
    The trouble with opportunity is it normally comes dressed up as work.

  3. Thanks given for this post:

    nichoalscfm (05-Mar-12)

  4. #3
    Email problem BusNavig8's Avatar
    Join Date
    Feb 2012
    Location
    Nelspruit
    Posts
    138
    Thanks
    9
    Thanked 25 Times in 22 Posts
    Blog Entries
    2
    A few issues:

    Was the "Saturday" an out of timeframe day?
    Were you issued with Statements of Account since this date - Sars still have to comply to certain other Acts in this regard to bring to your attention that this amount was due and payable.

    Were your addresses always correct with SARS?

    Have you pulled a Statement Of Account on the PAYE dashboard and does it actually reflect there?

    Are there any unallocated payments ?

    Interest is of no consequence as the monies were paid (assuming they were paid within a reasonable time after due date of payment)

    Remission of the Penalty and interest should be applied for in this instance even though it is within the prescription period, but keep in mind that a remission is not an excuse for not paying the due amount and it is a lengthy procedure so I would complete an ADR for it (Alternate Dispute Resolution). Dont tel a SARS official complete it, the motivation needs to be right. I will assist you if you would like. (I have varying degrees of movitations!)

  5. Thanks given for this post:

    nichoalscfm (05-Mar-12)

  6. #4
    Site Caretaker Dave A's Avatar
    Join Date
    May 2006
    Location
    Durban, South Africa
    Posts
    20,981
    Thanks
    3,056
    Thanked 2,463 Times in 2,068 Posts
    Blog Entries
    12
    7th June 2008 was a Saturday.

    I got caught like this once myself years ago, except it was for VAT

    And as for notices from SARS about it, I only discovered it a couple of years later when I happened to apply for a tax clearance. Given the fairly urgent need for the certificate, I just coughed up

    The job was worth it though
    The trouble with opportunity is it normally comes dressed up as work.

  7. #5
    Email problem BusNavig8's Avatar
    Join Date
    Feb 2012
    Location
    Nelspruit
    Posts
    138
    Thanks
    9
    Thanked 25 Times in 22 Posts
    Blog Entries
    2
    Well if the 7th was the Saturday and it was due on the 6th, then the interest due would be for 1 day only in any event and the 10% penalty will stay 10% and not accrue any interest. So it really depands on the amount that was due. Requiring a clearance certificate is a different matter altogether due to the urgency due to the need to have one. VAT is also treated much more strictly than the other taxes.

  8. #6
    Junior Member
    Join Date
    Apr 2011
    Location
    Pretoria
    Posts
    14
    Thanks
    7
    Thanked 1 Time in 1 Post
    Thanks for your response.

    1.) Concerning the Saturday, it was on the 7th, i guess you could say out of frame day. As SARS say that if the payment due date falls on a holiday or weekend, it should be paid the day before this. (i.e. the 6th)

    2.) No Statement of Account has been issued since this date.

    3.) The Addresses are correct with SARS.

    4.) A pulled a PAYE statement middle of last week -- and true as bob, all is reflected there.

    5.) Payment was only made, a day late. As the MD "assumed" that the 7th is classified as a business day.

    6.) No unallocated payments are on the statement of account

    Can we still complete an ADR for remission of Penalty and Interest?

  9. #7
    Site Caretaker Dave A's Avatar
    Join Date
    May 2006
    Location
    Durban, South Africa
    Posts
    20,981
    Thanks
    3,056
    Thanked 2,463 Times in 2,068 Posts
    Blog Entries
    12
    Quote Originally Posted by BusNavig8 View Post
    Well if the 7th was the Saturday and it was due on the 6th, then the interest due would be for 1 day only in any event and the 10% penalty will stay 10% and not accrue any interest.
    Not quite. SARS applies payments received to penalties and interest first, and then only to the tax owed. So there'll be 10% plus a touch more incurring interest charges for over 3 years just at the moment.

    Quote Originally Posted by nichoalscfm View Post
    Can we still complete an ADR for remission of Penalty and Interest?
    Absolutely!
    The trouble with opportunity is it normally comes dressed up as work.

  10. #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
    Quote Originally Posted by Dave A View Post
    Not quite. SARS applies payments received to penalties and interest first, and then only to the tax owed. So there'll be 10% plus a touch more incurring interest charges for over 3 years just at the moment.


    Absolutely!
    Didnt know I had to be so technical!

    I was referring in line with the thread in terms of an ADR. The basis in which the objection committee will make its ruling on whether there was a loss to the fiscus and how much was that loss. In this case it was merely a day and then compound interest from there. The fact that penalties and interest are first taken into account is a given as that is the practice at SARS, it will not be the basis of the motovation.

    Actually any objection/ADR process can only be done within 3 years from the date the assessment was issued. Therefore a motivation as to why it was outside of this timeframe will also have to be made ( Being why I asked the questions in my earlier posting)

    That is why I offered to assist. If there is one thing I know its SARS procedure and systems.

  11. #9
    Site Caretaker Dave A's Avatar
    Join Date
    May 2006
    Location
    Durban, South Africa
    Posts
    20,981
    Thanks
    3,056
    Thanked 2,463 Times in 2,068 Posts
    Blog Entries
    12
    Quote Originally Posted by BusNavig8 View Post
    Didnt know I had to be so technical!
    I have to nudge those finer technical points out of you somehow
    The trouble with opportunity is it normally comes dressed up as work.

  12. #10
    Silver Member
    Join Date
    May 2010
    Location
    durban
    Posts
    413
    Thanks
    121
    Thanked 61 Times in 52 Posts
    on a similar note where Dave implies that any taxes owed to SARS cannot be pescribed for 15 years, will this also be threw for municipal rates (sometimes referred to municipal rates & taxes)?

Page 1 of 2 12 LastLast

Similar Threads

  1. [Question] VAT201 Return amended - Interest and penalties Charged?
    By nichoalscfm in forum Accounting Forum
    Replies: 2
    Last Post: 04-Jan-12, 11:28 AM
  2. Heavy penalties ahead for late tax returns
    By Dave A in forum Tax Forum
    Replies: 3
    Last Post: 15-Oct-09, 05:01 PM
  3. How to be a light hearted parent
    By QUINN in forum General Chat Forum
    Replies: 2
    Last Post: 22-May-09, 02:08 PM
  4. interest and penalties
    By murdock in forum Tax Forum
    Replies: 2
    Last Post: 04-Jun-08, 03:07 PM
  5. Red-light Cameras Increase Crashes
    By duncan drennan in forum General Chat Forum
    Replies: 1
    Last Post: 09-Apr-08, 07:09 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
  •