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Will the taxman let you off the hook?
Tax Bulletin | 12 May, 2010 | Hot Topics:
In this bulletin:
• What have you swept under the rug?
• You’ve got 12 months to come clean!
• What if you’ve already been audited?
Dear reader,
We’ve all made mistakes. When I was about eight years old, I “accidentally” killed my mother’s prized paper-bark tree, by stripping it entirely of its bark one afternoon...
Ok, so that’s not exactly something the taxman would come after me for. But angry mums are almost scarier than the taxman.
Almost.
What have you swept under the rug?
It’s no wonder that taxpayers who make the occasional (and sometimes quite innocent) mistake, feel the need to sweep it under the carpet for fear of the repercussions. Tax penalties are financially crippling, and could destroy your business... but the penalties for not being honest are just as bad.
Luckily, later this year, you’ll have the opportunity to come clean. I’ve recently received a few queries from taxpayers who wanted to know more about it, so here’s what you need to know.
You’ve got 12 months to come clean!
SARS is running a voluntary disclosure programme from 1 November 2010 to 31 October 2011. You’ve got a whole 12 months to come clean!
So if you haven’t been audited yet, but you have defaults and worrisome tax affairs stacked neatly in the skeleton closet, this will be the ideal time to step forward and come clean. You’ll still have to pay the taxes you owe, but SARS will waive the penalties and interest they normally slap taxpayers with. Likewise, they won’t be throwing you in jail.
What if you’ve already been audited?
If you were audited, and found guilty of a tax transgression, but then neglected to pay up on a penalty or taxes owing, then you can also take this opportunity to clear your name. But, you’ll have to pay 50% of the interest on the taxes or penalties you owe.
Remember, it’s crucial to be in good standing with SARS, especially since it has the power to conduct audits that could destroy your business, or land you in jail.
We’ll keep you posted on the voluntary disclosure programme, but in the meanwhile, get your taxes tidied up to avoid penalties.
Until next week,
Fulvia Becatti
Managing Editor: Practical Tax Handbook & Practical Vat Handbook
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Editors note
Fulvia Stoltz
Tax Bulletin Editor
The Tax Bulletin is packed full of tax tips, commentary on changes to the tax landscape and is also an interactive tax forum which aims to help you efficiently manage your taxes and avoid all the traps. It is also a handy reminder of the deadlines which taxpayers have to meet.
