What are SARS' obligations once the VDP process is complete?
29 January 2014
Posted by: Author: FSP Business
Author: FSP Business
Let's say you've discovered you qualify for a Voluntary Disclosure Programme
(VDP). So you decide to get your tax affairs in order. You apply to SARS for
VDP and submit all the relevant forms. The VDP process is now complete. What
now? What is SARS' obligation?
know what happens once the VDP process is complete?
SARS has the following
obligations once the VDP process is complete:
The Practical Vat Loose Leaf
Service explains that after you've applied for VDP, and the VDP processes have
been concluded, SARS must:
- Not pursue criminal
prosecution arising from the 'default' or a related common law offence;
- Grant certain relief
for any understatement penalty;
- Grant 100% relief
for an administrative non-compliance penalty. This excludes a penalty
imposed for the late submission of a return or late payment of tax.
addition, you and SARS must enter into a written agreement. It must include
- The facts of the
'default' on which the voluntary disclosure relief is based.
- The amount you have
to pay. This amount must separately reflect the understatement penalty
- The arrangements and
dates for payment.
undertakings by the parties (you and SARS).
that you must get an assessment to confirm the agreement.
'SARS must issue an assessment or determination to
give effect to the agreement entered into between it and the vendor. This
assessment isn't subject to objection and appeal.' says the Practical Vat Loose Leaf Service.
the VDP process is over, SARS must fulfill ALL the above mentioned obligations.
But be warned: SARS can withdraw the voluntary disclosure relief if it believes
you've failed to disclose information relevant to your application for
voluntary disclosure relief.
This article first appeared on fspbusiness.co.za.