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| SARS to provide clarity on tax amnesty at The Big Idea https://sabusinesshub.co.za/webforum/viewtopic.php?f=14&t=293 |
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| Author: | BenB [ Thu Feb 08, 2007 8:12 pm ] |
| Post subject: | SARS to provide clarity on tax amnesty at The Big Idea |
Following the news that draft regulations for small business tax amnesty has recently been announced SABusinessHub's new training and events arm, The Big Idea has announced that the current February series of events will now also include a representative from SARS to provide clarity on the amnesty and how small business can benefit. For details on The Big Idea, go to http://www.thebigidea.co.za Announcement on Tax Amnesty draft regulations follow below courtesy of BuaNews. ------------------------------------------------------------ Oupa Segalwe reports: The public is invited to comment on draft regulations prescribing circumstances under which the South African Revenue Services (SARS) may waive additional taxes, penalties and interests for qualifying small businesses. The draft regulations were published for comment on Wednesday. SARS said the move, which forms part of the Small Business Tax Amnesty process, was only applicable to small businesses that it had already assessed, since full amnesty was not applicable to such taxes. Spokesperson Adrian Lackay told BuaNews on Thursday that this process did not apply to the "category 1" types of small business in the tax amnesty, namely, businesses that had not paid tax since they were established. "This applies to the other categories of small businesses that are registered and have been assessed by SARS. You find that some of these businesses have paid income tax and not other taxes like VAT or employee tax and therefore owe us," Mr Lackay said. Small businesses, he said, that did not apply for amnesty ran the risk of having a 200 percent penalty - this sees them paying an extra 200 percent of what they owe, imposed upon them. However, if they applied before the May 31 deadline, Mr Lackay said, SARS could end up requiring them to pay only the basic tax and waive the rest. "It must be emphasized that the waiver applies only to additional tax, penalties and interest and excludes the underlying tax portion of the tax debt owed to SARS," he said. He added that the amount of additional tax, penalty and interest to be covered by the waiver was the amount that related to the qualifying period covered by the amnesty legislation and was still outstanding as at close of business on 31 July 2006. The maximum amount of additional tax, penalties and interest that may be waived is R1 million and it covers the situation of the vast majority of small businesses. In return, the applicant must settle any outstanding balance within six months or a longer period as SARS may allow, failing which the waived amount would be reinstated. Applications for a waiver must contain a statement of all assets and liabilities as at 31 March 2006 and all outstanding returns of the applicant as at 31 December 2006. SARS will not consider applications in the following instances: * Where the Sheriff of the High Court has attached assets of the applicant in the execution of a writ of execution obtained on behalf of SARS, * Formal sequestration or liquidation proceedings have commenced against the applicant * A notice has been issued by SARS to the applicant to indicate that an audit or investigation is to be conducted by SARS of the affairs of the applicant. The amnesty process was designed to encourage businesses with an annual turnover of R10 million to be tax-compliant in order to normalise tax affairs of businesses. The draft regulations, which opened for public comments on Wednesday are available in the Government Gazzette and will remain open for comments until 9 February 2007. Comments can be forwarded to Ms Adele Collins at acollins@sars.gov.za or faxed to (012) 422 4035. Alternatively they can be posted to SARS Legal and Policy Division, Private Bag X923, Pretoria 0001. -------------------------------------------------------------------------------- Copyright © 2007 BuaNews. |
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