The South African Revenue Service (SARS) at present only applies administrative penalties in relation to the non-submission of individual tax returns, however with effect from 7 December 2018, administrative penalties for the late- / non-submission of Corporate Income Tax (CIT) returns will also be imposed.
These penalties will be imposed in terms of section 210 of the Tax Administration Act and subject to publication in the Government Gazette in terms of section 210(2) of the Act. This may impact on nearly 300,000 businesses that have thusfar failed to submit their annual CIT returns and SARS will accordingly transmit notices to affected businesses advising them of their present tax status, with a final demand to be sent after 7 December 2018, after which administrative penalties will be imposed.
SARS have provided the assurtance that its IT systems have been updated to deal with this process seamlessly and frontline staff trained to provide assistance / advice to affected business owners.
Affected Members are advised to contact their nearest SARS office without delay in order to avoid administrative penalties and to ensure strict compliance with applicable tax legislation.