Two years in jail for mistakes on your taxes in SA
Jail if your taxes aren’t in order?
Once every year, South African citizens make sure they comply with the tax laws of our country by filing their taxes.
The South African Revenue Service was established by legislation to collect revenue and ensure compliance with tax law.
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A set of law amendments signed by our President Cyril Ramaphosa was circulated on 20 January ensuring citizens adhere to tax law matters.
Interestingly, there are a few common mistakes one can make that would land you in jail! Yes… jail.
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According to Tax Consulting South Africa, these are the 11 mistakes you can make that can land you in hot water:
1. Failure to register your details with SARS or to notify them of any changes to your details;
2. Failure to appoint a representative taxpayer or to notify SARS of such appointment or a change in representative taxpayer;
3. You receive compensation for assisting someone with their taxes and you fail to register with SARS as a tax practitioner;
4. Failure to submit a return when required to do so;
5. Failure to retain all relevant substantiating records;
6. Failure to provide any information as and when requested by SARS to do so;
7. Failure to appear and comply when you are requested by SARS to attend a meeting or a hearing in order to give evidence;
8. You are issued with a directive or instruction by SARS and you fail to comply with it;
9. You fail to disclose any material information to SARS or you fail to provide SARS with any notification as required under any tax Act;
10. You are notified by SARS to pay an amount on another taxpayer’s behalf in settlement of a tax debt and you fail to do so; or
11. You have a withholding obligation and you fail to withhold or deduct the tax correctly and pay it over to SARS.
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