Warning! Failure to meet the upcoming provisional tax deadline could result in these three penalties
The deadline for provisional tax is on the 28th of February 2017.
As a provisional taxpayer, time is not on your side.
And what's worse, if you fail to meet your deadline you'll face these three penalties...
One reason why you can't miss the 28 February 2017 deadline
You'll be paying a tax penalty of up to R4 000 to SARS on 28 February…
If you haven't submitted your provisional tax return by 28 February 2017, then SARS will add a R4 000 penalty to your tax bill…
Errors mean double penalties – one for the error, and one for not following the rules!
Don't know where to start?
Or how to calculate the tax?
Click here to get your hands on a tell-all guide today! It'll walk you through every step in the provisional tax process, so you'll never put a foot wrong again!
SARS doesn't tolerate non-compliant behaviour! That's why, if you don't pay your provisional tax in time it could hit you with these three penalties:
Let's discuss each of these in detail.
Late submission penalties
Late payment penalties
Penalties based on under-statement of liability
Three penalties SARS imposes when it comes to provisional tax
How to make yourself invisible to SARS
The key to reducing how much tax you pay is staying off SARS' radar.
SARS has conducted R1.8 million audits. They've added 100s of new tax collectors and auditors to their payroll and each one has his own collection targets to meet.
This means two things:
But there are 139 perfectly legal ways for you to make yourself invisible to SARS. Here's how…
If you're not compliant, your chances of an audit this year have just doubled, and
You will pay more in penalties.
#1: Late submission penalties
If you submit your provisional tax return late, SARS will charge you with a penalty ranging from R250 to
R16 000 for each month your submission is late.
#2: Late payment penalties
If you pay your provisional tax after the due date, you could get a 20% penalty.
If, for instance, your company submits its provisional tax return later than the 28th of this month and only pays on the next deadline, you'll have a late payment penalty due.
#3: Penalties based on under-statement of liability
If you're a tier one taxpayer, SARS will levy a 0% to a 200% penalty for under-estimation.
If you're a tier two taxpayer, you must prove to SARS that the under-estimation is a genuine error.
'If SARS doesn't buy it, then you'll also face a penalty of between 0% and 200%;' warns the Practical Tax Handbook.
With the tough economy that we're facing, it's best you comply with all your provisional tax requirements especially now that you know the penalties you could face.
We'll keep you update you when the next deadline for provisional tax is due. For now make sure you meet the one on the 28th of February 2017.
There's an easy way to get your Provisional Tax calculation done 100% correctly by 28 February. Click here to find out how.
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