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Can one object to a penalty for the late submission of an IRP6?

11 February 2015   (1 Comments)
Posted by: Author: SAIT Technical
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Author: SAIT Technical

Q: My client submitted her 2014 tax return in January 2015. She was charged with R 14 143, late/non submission of provisional tax return.  Her provisional tax return IRP6 for 2014/02 was submitted in April 2014, instead of 28 February 2014.

She receives royalty Income and she never knew when she will receive all the money. It was honest mistake she never paid provisional tax before, as PAYE that she has paid has always been enough.

She is aware of shortfall of provisional tax as well as 89quat interest that SARS has charged her for underestimation. However my question: is there any way I can object to them charging her R14143 penalty for late IRP6?

A: This was a penalty tax in the event of failure to submit estimate timeously and was levied in terms of para 20A (1) of the 4th Schedule to the Income Tax Act. It was repealed with effect from years of assessment commencing on or after 1 March 2015.

Para 20A(2) stated that the Commissioner may, if he is satisfied that the taxpayer’s failure to submit an estimate timeously was not due to an intent to evade or postpone the payment of provisional tax or normal tax, remit the whole or any part of the penalty. Furthermore, para 20A (3) stated that the decision of the Commissioner in this regard is subject to objection and appeal.

You would therefore have to give solid reasons proving that the late submission of the IRP6 was not due to intent to evade tax or postpone payment of provisional/normal tax.

Disclaimer: Nothing in this query and answer should be construed as constituting tax advice or a tax opinion. An expert should be consulted for advice based on the facts and circumstances of each transaction/case. Even though great care has been taken to ensure the accuracy of the answer, SAIT do not accept any responsibility for consequences of decisions taken based on this query and answer. It remains your own responsibility to consult the relevant primary resources when taking a decision.


Celeste van der Lith says...
Posted 12 July 2015
The question relates to the 2014 tax return and provisional tax periods. The answer provided would therefore not apply because para 20A(1) was repealed with effect from years of assessment commencing on or after 1 March 2015. Reconsider the answer provided as it does not respond to the question posted?


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