Administrative Penalties for Corporate Income Tax To Be Imposed
SA Revenue Services allow 12 months for a return to be filed - i.e. the tax return for year ended February 2017 must be filed by 28th February 2018.
With effect from December 2018 SARS intend raising penalties on all outstanding returns at this date. It is imperative to note that the penalties being imposed range from R250 to R16 000 and are charged on MONTHLY basis and not a once off penalty as in late payments.
Please note that it is compulsory for registered companies to submit their income tax returns. Even if the company is dormant, it is still required to submit any outstanding returns prior to 2018 to prevent a penalty being imposed.
We therefore urge you to either
- Advise us that your company / close corporation is dormant and the date of dormancy to enable us to submit Nil returns on your behalf and advise SARS to annotate the system with a dormancy code.
You may very well be a shareholder / director in dormant companies of which you are not aware. Please rack your brains / check your records. No point in paying unnecessary penalties.
- Submit all relevant documents to our offices to enable us to prepare your financial statements and submit the relevant income tax returns.
Yours faithfully
J D HILL & COMPANY
Provided by J D Hill & Company
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