How do I re-submit a corrected IRP6?
09 April 2015
Posted by: Author: SAIT Technical
Author: SAIT Technical
Q: I have
recently discovered, whilst going through my calculations for provisional tax
period 201502, that the profit used at that stage was understated. It was based
on a net profit "year-to-date” from pastel that a clerk obtain for me (which was
incorrect). What is SARS view on correcting this and can SARS waive the
potential penalties for understatement?
A: Yes, You
may request for the correction of an IRP6.
See 5.4 of the document on this link:
The penalty for the underpayment of provisional tax is dealt
with in para 20 of the 4th Schedule to the ITA.
Para 20(2) states:
"Where the Commissioner is satisfied that the amount of any
estimate referred to in subparagraph (1) was seriously calculated with due
regard to the factors having a bearing thereon and was not deliberately or
negligently understated, or if the Commissioner is partly so satisfied, the
Commissioner may in his or her discretion remit the penalty or a part thereof.”
Based on this provision, you may request SARS to remit the
penalty by writing a letter and sending it either to the pcc email address for
your region, or by dropping it off at a SARS branch.
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.