Page 452 - Juta's Indirect Tax

IN 61 VaLue-added tax act: InterPretatIOn nOtes IN 61
5. Request for remission of interest
Any application for remission of interest should be in writing and accompanied by the following supporting information and documentation:
• The name, address and VAT registration number of the person.
• The tax periods and payment dates involved.
• Full details of circumstances beyond the control of a person that prevented the person from complying.
• Supporting documentation such as the trace number assigned to the transaction as proof that the person timeously
initiated the EFT payment.
• A complete history of events, including what measures were taken and when they were taken to resolve the non-
payment.
• The name, address and telephone number where the person may be reached if further information or explanation is
needed.
6. Factors to be considered by the Commissioner when deciding the extent of the remission of interest
Once the Commissioner is satis ed that the circumstances are beyond the person’s control, the Commissioner will consider the following factors in deciding the extent of the remission of interest:
• Does the person have a satisfactory history of compliance (for example, have VAT returns been led and payments
made on time)? Full remission may be considered for a person with a consistently good payment record. On the other
hand, partial remission may be considered, where there is repeated failure by the person to make payment.
• Has the person paid the VAT in question as soon as practically possible? In considering the extent of any remission of interest, it is also necessary to consider what steps were taken, if any, to ensure that the circumstances causing late
payment do not recur in the future.
• What facts and circumstances prevented the person from paying the VAT amount on the due date?
• How did the facts and circumstances prevent the person from complying?
• Has the circumstance occurred before? Were measures put in place to ensure that this situation does not recur in future?
• Any other information or documentation that the Commissioner may consider relevant in assessing the application.
7. Decision on application
The Commissioner will respond in writing to the person’s application for remission of interest. Should the Commissioner decide not to remit the interest, either in whole or in part, a written notice will inform the person of the reasons for the decision and the person’s right to object.
8. Objections
A person, who is dissatis ed with the Commissioner’s decision, may lodge an objection. The objection must be lodged within 30 days of the date of the decision, unless the Commissioner permits it to be lodged at a later date. The Commissioner will issue a written notice of the decision in respect of the person’s objection. In the event that the person’s objection is disallowed or only partly allowed, reasons for the decision will be included in the notice. The Commissioner will refund the amount of interest paid which is properly refundable, subject to the provisions of section 44(3), if the person’s objection is successful.
9. Appeals
Any person, who is dissatis ed with the nal decision of the Commissioner in respect of the objection, may appeal against that decision.
Further information on the objection and appeal procedure is available in the Guide on Tax Dispute Resolution which can be found on the SARS website www.sars.gov.za
Legal and Policy Division
SOUTH AFRICAN REVENUE SERVICE Annexure – The Law
Section 39 — penalty and interest for failure to pay when due
(1) (a) If any person who is liable for the payment of tax and is required to make such payment in the manner prescribed in section 28 (1), fails to pay any amount of such tax within the period for the payment of such tax speci ed in the said provision, he shall, in addition to such amount of tax, pay—
(i) a penalty equal to 10 per cent of the said amount of tax; and
(ii) where payment of the said amount of tax is made on or after the rst day of the month following the month
during which the period allowed for payment of the tax ended, interest on the said amount of tax, calculated at the prescribed rate (but subject to the provisions of section 45A) for each month or part of a month in the period reckoned from the said rst day.
(b) Where any amount of tax has in relation to any tax period of any vendor been refunded to the vendor in terms of the provisions of section 44 (1) , read with section 16 (5) , or has in relation to that period been set off against unpaid tax in terms of the provisions of section 44 (6) , and such amount was in whole or in part not properly refundable to the vendor under section 16(5) , so much of such amount as was not properly so refundable shall for the purposes of paragraph (a) (i) be deemed to be an amount of tax required to be paid by the vendor within the said period and for the purposes of paragraph (a) (ii) , an amount of tax required to be paid by the vendor during the period in which the refund was made.
444 Juta’s IndIrect tax 2016