Information and tips regarding the “NEW RULE AND AUTO ASSESSMENT PROCESS FROM SARS”.

With effect from 1 December 2021, SARS has been empowered to levy a late submission of return penalty, where one or more personal Income Tax Returns are outstanding. The deadline for individual non-provisional taxpayers is 23 November 2021.

This has been done in line with SARS’s strategy to make non-compliance hard and costly for taxpayers.

According to the Tax Administration Act, penalties can be levied between R250 – R16000 per month.

Taxpayers who fall in the “Auto Assessment” population, have to accept/edit their tax return on/before 23 November 2021. If the taxpayer failed to do this, SARS will issue an original return, based on the estimate. This return is not subject to corrections, objections and appeals, which means that if expenses were not claimed, it is to the loss of the taxpayer.

 

More information can be found here:
https://www.sars.gov.za/latest-news/new-penalty-rule-and-autoassessment-process/

We therefor urge our clients to make sure that they met the deadline of 23 November 2021