Page 168 - Juta's Indirect Tax

s 212 TAX ADMINISTRATION ACT 28 OF 2011 s 217
(a) R50 000, in the case of a ‘participant’ other than the ‘promoter’; or
(b) R100 000, in the case of the ‘promoter’.
(2) The amount of ‘penalty’ determined under subsection (1) is doubled if the amount of anticipated ‘tax bene t’ for the ‘participant’ by reason of the arrangement (within the meaning of section 35) exceeds R5 000 000,
and is tripled if the bene t exceeds R10 000 000.
(3) A person referred to in paragraph (c) of the de nition of ‘participant’ who fails to disclose the information in respect of a ‘reportable arrangement’ as required by section 37 is liable to a ‘penalty’ in the amount of R50 000.
[Sub-s. (3) added by s. 62 (b) of Tax Administration Laws Amendment Act, 2015 – date of commencement: date of promulgation of Tax Administration Laws Amendment Act, 2015.]
Part C
Percentage based penalty (s. 213)
213 Imposition of percentage based penalty
(1) If SARS is satis ed that an amount of tax was not paid as and when required under a tax Act, SARS must, in addition to any other ‘penalty’ or interest for which a person may be liable, impose a ‘penalty’ equal to the percentage of the amount of unpaid tax as prescribed in the tax Act.
[Sub-s. (1) substituted by s. 63 (1) of Tax Administration Laws Amendment Act, 2015 – date of commencement deemed to have been 1 October 2012.]
(b) where the ‘penalty assessment’ is made together with an assessment of tax, on or before the deadline for payment stated in the notice of the assessment for tax.
(3) SARS must give the taxpayer notice of an adjustment to the ‘penalty’ in accordance with section 211 (2) or 213 (2).
215 Procedure to request remittance of penalty
(1) A person who is aggrieved by a ‘penalty assessment’ notice may, on or before the date for payment in the ‘penalty assessment’, in the prescribed form and manner, request SARS to remit the ‘penalty’ in accordance with Part E.
(2) The ‘remittance request’ must include—
(a) a description of the circumstances which prevented the person from complying with the relevant obligation under a tax Act in respect of which the
‘penalty’ has been imposed; and
(b) the supporting documents and information as may be
required by SARS in the prescribed form.
(3) During the period commencing on the day that SARS receives the ‘remittance request’, and ending 21 business days after notice has been given of SARS’ decision, no collection steps relating to the ‘penalty’ amount may be taken unless SARS has a reasonable
belief that there is—
(a) a risk of dissipation of assets by the person concerned;
or
(b) fraud involved in the origin of the non-compliance or
the grounds for remittance.
(4) SARS may extend the period referred to in
subsection (1) if SARS is satis ed that—
(a) the non-compliance in issue is an incidence of non-
compliance referred to in section 216 or 217, and that reasonable grounds exist for the late receipt of the ‘remittance request’; or
(b) a circumstance referred to in section 218 (2) rendered the person incapable of submitting a timely request.
(5) If a tax Act other than this Act provides for remittance grounds for a ‘penalty’, SARS may despite the provisions of section 216, 217 or 218 remit the ‘penalty’ or a portion thereof under such grounds.
[Sub-s. (5) added by s. 58 of Act 44 of 2014 – date of commencement deemed to have been 1 October 2012.]
Part E Remedies (ss. 216–220)
216 Remittance of penalty for failure to register
If a ‘penalty’ is imposed on a person for a failure to register as and when required under this Act, SARS may remit the ‘penalty’ in whole or in part if—
(a) the failure to register was discovered because the
person approached SARS voluntarily; and
(b) the person has led all returns required under a tax Act.
217 Remittance of penalty for nominal or rst incidence of non-compliance
(1) If a ‘penalty’ has been imposed in respect of— (a) a ‘ rst incidence’ of non-compliance; or
[Para. (a) substituted by s. 72 (a) of Act 21 of 2012 – date of commencement deemed to have been 1 October 2012.]
(b) an incidence of non-compliance described in section 210 if the duration of the non-compliance is less than ve business days,
SARS may, in respect of a ‘penalty’ imposed under section 210 or 212, remit the ‘penalty’, or a portion thereof if appropriate, up to an amount of R2 000 if SARS is satis ed that—
Prelex
Wording of sub-s. (1) in force from 1 October 2012 until its retrospective substitution by s. 63 of the Tax Administration Laws Amendment Act, 2015, which is also deemed to have come into operation on 1 October 2012
(1) If SARS is satis ed that an amount of tax was not paid as and when required under a tax Act, SARS must, in addition to any other ‘penalty’ or interest for which a person may be liable under this Chapter, impose a ‘penalty’ equal to the percentage of the amount of unpaid tax as prescribed in the tax Act.
(2) In the event of a change to the amount of tax in respect of which a ‘penalty’ was imposed under subsection (1), the ‘penalty’ must be adjusted accordingly with effect from the date of the imposition of the ‘penalty’.
Part D Procedure (s. 214)
214 Procedures for imposing penalty
(1) A ‘penalty’ imposed under Part B or C is imposed by way of a ‘penalty assessment’, and if a ‘penalty assessment’ is made, SARS must give notice of the assessment in the format as SARS may decide to the person, including the following:
(a) the non-compliance in respect of which the ‘penalty’
is assessed and its duration;
(b) the amount of the ‘penalty’ imposed;
(c) the date for paying the ‘penalty’;
(d) the automatic increase of the ‘penalty’; and
(e) a summary of procedures for requesting remittance of
the ‘penalty’.
(2) A ‘penalty’ is due upon assessment and must be
paid—
(a) on or before the date for payment stated in the notice
of the ‘penalty assessment’; or 160
(i) (ii)
reasonable grounds for the non-compliance exist; and the non-compliance in issue has been remedied.
Juta’s IndIrect tax 2016