The South African Revenue Service (“SARS”) issued a media release on 16 April 2018 where they advised that they have started, together with the National Prosecuting Authority (“NPA”), to prosecute non-compliant taxpayers who have failed to submit their returns.

Taxpayers who are found guilty will have a criminal record.

This is not an empty threat from SARS. The first conviction has already taken place in early April 2018. In the media release, the names of the convicted company and the representative were disclosed. There are currently 8 outstanding return cases, involving hundreds of outstanding returns, on court rolls in different parts of South Africa.

This is not only applicable to income tax returns, but includes all tax return types including VAT and PAYE. If any tax returns are outstanding, SARS together with the NPA could prosecute you in terms of Chapter 17 of the Tax Administration Act No. 28 of 2011 (“TAA”).

We want to urge all taxpayers with outstanding returns to contact your tax advisors and attend to all outstanding tax returns, even if it is a nil return.

Engela Crocker

Associate | Tax, Johannesburg

If you have any queries regarding this, please feel free to contact Engela Crocker directly.

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