What did Gordhan say about VDP?
While delivering his budget speech in parliament, Gordhan said, 'there are still great opportunities for the tax system to work for our people,' Fin24 reports.
He then mentioned the VDP saying: 'Over the last two years the Voluntary Disclosure Programme has realised almost R5 billion from income that was not previously declared.'
If you're one of the many people who listened to the speech and weren't sure of what the minister meant by that, we explain everything you need to know below.
Answers to questions around VDP
What's the purpose of the VDP?
SARS says the purpose of the VDP is to enhance voluntary compliance in the interest of good management of the tax systems and the best use of SARS's resources.
'The VDP aims to encourage taxpayers to come forward on a voluntary basis to regularise their tax affairs with SARS and avoid the imposition of understatement penalties and other administrative penalties.'
Is everyone eligible for VDP?
According to SARS, any individual or company who wants to voluntary disclose their tax affairs to SARS may apply for VDP provided they qualify.
In this article, we explained that you can apply for a VDP through e-filing if you don't have a pending audit or an investigation into your company's affairs or if you're not under audit or investigation.
A senior SARS official must inform you of whether you qualify for voluntary disclosure relief or not.
How do you apply for VDP?
You must fill in the form called the Voluntary Disclosure Application Form (VDP01). You'll get it on SARS' eFiling system.
Essentially, VDP helps you to correct your wrongs if you've not been compliant with your tax affairs. So use it if you want to stay on SARS' good books.
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