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Submit your 2013 individual tax return or face these two harsh penalties

by , 12 July 2013
If there's one thing SARS doesn't tolerate, it's non-compliance. A Cape Town couple learnt that lesson the hard way this week when they received a hefty jail term for stealing over R6million from SARS...

According to the TimesLive, Bronwyn Goldman and her husband, Neil, were caught with their hands in the cookie jar in 2010.

Bronwyn was an audit team leader and had access to the value-added-tax electronic system. She made false Vat claims to SARS for her husband's panel-beating and spraypainting business from 2005 to 2010.

Now not only do they face a prison term, but the SARS employee was fired from her job and lost her home when SARS sold the property she had bought and recovered over R1.8-million.

That's just the tip of the iceberg when it comes to SARS penalties.

Here are two penalties the Practical Tax Loose Leaf Service says you'll face for failing to submit your return come the end of November.

SARS will impose these two penalties if don't submit your individual tax returns

#1: Criminal penalties

If you don't comply with all the tax laws all the time, SARS will prosecute you for your non-compliance.

You could face five years in jail and have a criminal record tied to your name.

#2: Percentage based penalties

Under the TAA, failure to pay your taxes on time means you'll face penalties of up to 200%.

This means SARS will issue a penalty assessment and must give you notice of the assessment. This must include the following:

  • The non-compliance for which SARS is penalising you;
  • The amount of the penalty;
  • The date for paying the penalty;
  • The automatic increase of the penalty; and
  • A summary of the procedures for requesting remittance of the penalty.

The penalty will be due on assessment and you must pay it on or before the date for payment stated in the penalty assessment. If your payment of the penalty is late, you'll be charged interest on the unpaid penalty!

To ensure you're not liable for penalties, or worse, a jail term, it's crucial you submit your tax return on 22 November 2013.

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