HomeHome SearchSearch MenuMenu Our productsOur products

Warning! Failure to meet the upcoming provisional tax deadline could result in these three penalties

by , 05 December 2016
Warning! Failure to meet the upcoming provisional tax deadline could result in these three penaltiesThe deadline for provisional tax is on the 28th of February 2017.

That's right.

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...

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!

One reason why you can't miss the 28 February 2017 deadline

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:
  •     Late submission penalties
  •     Late payment penalties
  •     Penalties based on under-statement of liability
Let's discuss each of these in detail.

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:
  1. If you're not compliant, your chances of an audit this year have just doubled, and
  2. You will pay more in penalties.
But there are 139 perfectly legal ways for you to make yourself invisible to SARS. Here's how…


Three penalties SARS imposes when it comes to provisional tax
 
#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.



Related articles




Related articles



Related Products



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 >>>