TAXATION SERVICES

Tax Compliance

A Taxpayer is deemed to be tax compliant when they meet the requirements of the Tax Administration Act No. 28 of 2011. The compliant Taxpayer would then be issued a Tax Clearance Certificate by The South African Revenue Service (SARS) which was valid for a period of 12 months. SARS has recently changed the way they assess tax compliance and no longer uses the old Tax Clearance Certificates.

The new SARS tax compliance system creates a tax pin that can be used by 3rd parties to verify your compliance status. The biggest challenge with this system is that compliance is viewed in real-time, and said compliance can change at any moment due to outstanding returns or funds on the Taxpayers profile, thus placing a greater emphasis on maintaining tax compliance on a monthly basis.

A Taxpayers compliance status is mainly affected by outstanding returns and outstanding funds.

Outstanding Returns

Once a Taxpayer has submitted the relevant return, they must settle the outstanding debt with SARS before the deadline in order to avoid interest and penalties and maintain tax compliance. If they do not make this payment on time, their tax status will be changed to non-compliant, and penalties and interest will be added to their account. Our world-class team of accountants has the skills and expertise necessary to ensure that all returns are submitted accurately, by the required deadlines and that payments are made timeously thus maintaining your tax compliance status and avoiding interest and penalties.

What if you can’t pay the full amount on time?

If you cannot settle the outstanding amount on time, our team of tax specialists will recommend either of the following:

Enter into a compromise agreement (In terms of Tax Administration Act No. 28 of 2011) to pay a reduced amount to SARS.
Enter a deferral arrangement, where you will pay the outstanding amount over a specified period.

Non-compliance

Non-compliance could result in the following:

Criminal prosecution and incarceration.
Seizure of Assets.
Suspension of payments from government departments.

Dispute Management

Once a Taxpayer has submitted the relevant return, they must settle the outstanding debt with SARS before the deadline in order to avoid interest and penalties and maintain tax compliance. If they do not make this payment on time, their tax status will be changed to non-compliant, and penalties and interest will be added to their account. Our world-class team of accountants has the skills and expertise necessary to ensure that all returns are submitted accurately, by the required deadlines, and that payments are made timeously, thus maintaining your tax compliance status and avoiding interest and penalties.

Taxpayers are often Audited by SARS. The Audit process often leads to disputes and subsequent objections and appeals that need to be dealt with. With over 20 years of combined expertise in the Tax field, we understand the processes (both legally and practically) involved in the SARS audit and dispute processes, allowing us to navigate them effectively and strategically.

Debt management

Very few taxpayers are aware that you can enter into a compromise agreement (In terms of Section 200 of the Tax Administration Act No. 28 of 2011) with SARS to pay a reduced amount of the outstanding debt.

A compromise may be granted by SARS under the following conditions:

That it would be in the best interest of the State and the Debtor that the debt be compromised.

The purpose of the compromise is to secure the highest net return from the recovery of the tax debt.
The compromise is consistent with considerations of good management of the tax system and administrative efficiency.

The amount to be paid to SARS is based on the following:

The nature of the debt.
The affordability of the Taxpayer.
The cash flow constraints of the Taxpayer.