Dear Reader,

Have you or your business:
-    Given SARS inaccurate information; or
-    Given SARS incomplete information; or
-    Failed to submit information; or
-    Been involved in dodgy tax structures?

And has this resulted in: an incorrect assessment or an under-payment of tax on your part, or an incorrect refund from SARS made before 17 February 2010?

If you answered Yes to the above, then I strongly suggest you grab the opportunity to come clean, using the Voluntary Disclosure Programme (VDP) that SARS has implemented.

The VDP will run from 1 November 2010 to 31 October 2011.

SARS’ relief applies to anyone and everyone

This voluntary disclosure programme applies to all taxes administered by SARS and to any type of legal entity, whether it’s you as an individual, a partnership, close corporation, company or trust. It doesn’t matter how big the entity is or how great (or small) its turnover.

Get SARS’ opinion without exposing yourself

You have no reason to hesitate about coming clean! Before actually applying for relief, you can approach SARS for its opinion on your transgressions, without exposing your identity. You do this by asking SARS for a non-binding ruling. And once you get the response from SARS, you’ll have a good idea of how much tax relief you’ll get under the VDP.

Remember, SARS is obliged to issue you with its opinion, during the VDP. So you really have nothing to lose!

What will you get out of it?

The question remains: What’s in it for me?

There are four benefits to disclosure:

1. You won’t have any worries when SARS comes knocking on your door in future. You’ll have no skeletons left in your closet, threatening to jump out at an inopportune moment....
2. SARS can’t prosecute you criminally.
3. There will be absolutely no penalty or additional tax — EXCEPT for the standard administrative penalties for late submission or late payment.
4. There will be no interest payable. 

The catch

To qualify for relief under the VDP, you must not have any audits or investigations pending.
However, if you do find yourself in this unfortunate position, it’s not all lost. You can still approach SARS for an opportunity to come clean. And the Commissioner has the power to grant you this opportunity. In this case, you’ll qualify for the same relief I outlined above. Except that you’ll pay 50% of any interest owing to SARS.

Of course, if you need guidance on things like rulings and dealing with SARS, then you can't do without the Practical Tax Loose Leaf. It's filled with checklists to make managing taxes simpler.

To disclose, or not to disclose?

If you find yourself on the wrong side of the tracks, in your personal capacity or representing a close corporation, company or trust then I urge you to come clean. SARS will catch up with you if you don’t.

 
Prof Marius Maritz
Editor in Chief, Practical Tax Loose Leaf

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