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How to avoid a R16 000 fine when you complete your next tax return

by , 11 February 2014
R16 000 a month might not sound like a lot to a big company. But to a smaller one it could be half your profit! SARS can charge you this every month for up to 18 months if you don't fix your mistake. Do the maths. That's a lot of money.

Making a small mistake like this is something most companies have done at some point, whether intentionally or not. But, SARS has a lifeline you can take advantage of if you've made a mistake on your tax return. 
Let's take a look …
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Take advantage of this SARS lifeline
If you made a mistake, you can use the Voluntary Disclosure Programme (VDP).
This is proving to be a very popular tool, with over 700 applications had already been made. This might seem like a low number, but SARS was expecting more than R200 million in taxes being collected before the end of March. 
So, why not save yourself the time and money before it's too late. Check if you qualify for VDP and then take full advantage of it. 
Read on to find out the seven requirements you must meet to qualify for VDP.
Seven requirements to qualify for VDP
  1. Your disclosure must be voluntary;
  2. It must be a new disclosure. You can't have already disclosed it to SARS;
  3. You must disclose all relevant information about your situation;
  4. Your mistake must result in the potential for an understatement penalty;
  5. Your mistake can't result in a refund from SARS once corrected;
  6. You must use the correct form, the VDP01, to make your application; and
  7. You must apply for VDP via eFiling.
Easy hey? 
Now that you know if you qualify, you can go ahead and apply for VDP. This may seem like a daunting task but it's easier than you think. For the detailed steps on how to apply for VDP log into the Tax Watch member's section on www.fspbusiness.co.za. If you aren't subscribed to Tax Watch yet, subscribe now and you'll have all the tax saving tips and tricks you need to legally beat the taxman
So, use your lifeline and stop panicking that SARS'll hunt you down for a small error you've made. 
Until next time

Natalie Cousens
P.S. If you're a subscriber to Tax Watch you'll have access to some of SA's top tax experts who can answer any of your tax questions. Subscribe now. 


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