The answer to this query
is based on legislation as at 2014/03/27.
Q: 1. Is it
correct that SARS levies penalties for underestimation of provisional tax at
20% of the tax calculated on the lower of 90% of actual or the basic amount
BEFORE the deduction of the rebate?
2. In determining the tax payable on the
basic amount for provisional tax is one allowed to apply preferential tax
rates, for which the taxpayer qualifies such as for example 5 year
equalisation for a farmer, or Small Business Corporation tax rates in the
case of a company or CC, without being penalised for underestimation?
A: The penalty is charged on the difference between the
net normal tax which becomes payable on assessment, and the net normal tax as
per the estimation.
Section 240A of the Tax Administration Act, 2011 (as amended) requires that all tax practitioners register with a recognized controlling body before 1 July 2013. It is a criminal offense to not register with both a recognized controlling body and SARS.