The answer to this query is based on legislation
Q: I have
been doing a small Close Corp payroll for 5 years. The main member has a full
time job and earns a salary on this co as a part time job. I have been
deducting a 25% paye for the last 5 years. I do not know how much the person
earns at his full time job and I let him know that I will deduct 25% since I
don't know how much he earns full time. He has now informed me that SARS is
claiming that he owes them R32,000. (for the 2012 and 2013 years of
assessment now finalized). He says I might have deducted too little tax from
him on his part time job. Would I be held responsible for this? Would SARS
penalize me for this situation. The member has informed me that we need to
meet and go to SARS. What would you advise me to do.
terms of the 4th
Schedule to the Income Tax Act will the employer (the CC) be held responsible
for the outstanding employees taxes in as far as the taxes were not
calculated in terms of par 11C of the Fourth Schedule to the Income Tax Act,
or alternatively the employee (the member). If then the final taxes were
correctly calculated on assessment, then the taxes are due and payable.
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.