Hi, I also suggest you register and get it sorted out
Incurring penalties will not be stopped just because you did not register and submit the return
If there are previous returns outstanding then you just need to get it sorted out, and sticking your head in the sand is not going to make the problem go away
You never know, once the outstanding returns are completed, then SARS might just owe you money , which you will never get if you don't complete your returns
However not completing the returns will not stop them from tracking you down if for some reason they stumble across your IRP5 which your company submitted to them as a requirement.
This is why I advise everyone that currently pays SARS more than R0.00 per month in TAX ,regardless what amount they earn, to complete their SARS returns or get assistance to get them completed
There is absolutely zero downside to completing your returns, If you owe them money then they will find you anyway and add interest and penalties to your account no matter if you didn't complete your return
However as I stated above, if they owe you money, then they won't inform you of this if you don't complete your return.

Do you rely think they state these thresholds whether R350k or R500k to collect less tax?
I don't think so.

The more plausible reason would be that 90%+ of these people, does not owe them any additional taxes and they don't want to allocate resources to the processing of these returns if they are not going to get additional revenue from them
OR they have seen that they have to process more refunds to the people below this bracket then what they get in as additional revenue.

Remember the threshold does not state that if you earn below this amount that you are not allowed to file your return
It merely suggests that you are not required to.