HomeHome SearchSearch MenuMenu Our productsOur products

Do you know the consequences of an anonymous VDP application?

by , 27 June 2014
According to SARS, the purpose of the Voluntary Disclosure Programme (VDP) is to enhance voluntary compliance in the interest of good management of the tax systems and the best use of SARS' resources.

Basically, with a VDP you're encouraged to come forward on a voluntary basis to get your tax affairs in order. Doing this means you could avoid understatement penalties and other administrative penalties.

You can apply for a VDP voluntarily, but there's also an option to apply anonymously.

If you opt for an anonymous application, beware of the following implications.

*********** Top rated product ***************

Every South African tax law explained by our experts

The Practical Tax Loose Leaf Service offers you:

  • All the definitions and legal regulations, useful advice, exceptions to the rules that help you slip through the legislative jungle of taxes.
  • Case studies and practical examples that show you what elements you should consider for your taxes to be perfect.
  • Red flags you need to watch out for and the penalties you'll face if you don't respect them.
  • Sample templates at your disposal, ready to be filled in, customised and printed.

Click here for more details.

*****************************************

Before we get to the implications of an anonymous VDP application, take a look at the requirements you must meet to qualify for voluntary disclosure

The disclosure must:

  • Be voluntary.
  • Involve a 'default' which hasn't previously been disclosed by you or your representative.
  • Be full and complete in all material respects.
  • Involve the potential imposition of an understatement penalty for the 'default'.
  • Not result in a refund due by SARS.
  • Be made in the prescribed form and manner.

You can apply also apply for a VDP anonymously as we've mentioned. In this case, the implications are as follows…

The implications of applying for a VDP anonymously

Experts behind the Practical Tax Loose Leaf Service say a senior SARS official is allowed to issue a non-binding private opinion as to a person's eligibility for relief, if the person provides sufficient information to SARS. Such information doesn't need to include the identity of the party to the 'default.'

ENSafrica, Africa's largest law firm, says the implications of an anonymous application are that you remain at risk of SARS independently identifying any defaults and instituting an investigation in the meantime.

The law firm adds: 'The implication of an anonymous application is, therefore, that the risks of investigation and resulting financial consequences remain until such time as a detailed and named application has been submitted.'

It's that simple. Before you apply for a VDP anonymously, consider the implications we've outlined.

*********** Reader's choice ***************

Avoid 200% tax penalty

Find out how to avoid penalties of up to 200% today.

*********************************************



Related articles




Related articles



Related Products



Comments
0 comments


Recommended for You 

  Quick Tax Solutions for Busy Taxpayers – 35 tax answers at a glance



Here are all the most interesting, thought-provoking and common tax questions
asked by our subscribers over the last tax year – everything from A to Z!

To download Quick Tax Solutions for Busy Taxpayers – 35 tax answers at a glance click here now >>>
  Employees always sick? How to stop it today



Make sure you develop a leave policy to regulate sick leave in your company.

BONUS! You'll find an example of the leave policy and procedure in this report.

To download Employees always sick? How to stop it today click here now >>>
  Absenteeism: Little known ways to reduce absenteeism



This FREE e-report will tell you how you can reduce absenteeism in your workplace while avoiding the CCMA and without infringing your employees' labour rights.

To download Absenteeism: Little known ways to reduce absenteeism click here now >>>
  7 Health & safety strategies to save you thousands



Don't let a health and safety incident cost you one more cent. Implement these seven
strategies in your company today.

To download 7 Health & safety strategies to save you thousands click here now >>>