SARS recently announced a new procedure in respect of notifications for Income Tax administrative penalties.
SARS will now only issue the Penalty Assessment Notice (AP34) in the following instances in relation to Income Tax Penalties:
On initial imposition of the penalty
If the penalty has been amended or adjusted by SARS
Where the penalty has been cancelled by SARS.
Taxpayers will now receive an initial imposition letter via registered mail or e-filing (for registered eFilers) which will also act as a final notice before debt collection steps are implemented. Monthly penalty reminder letters will be replaced by SMS.
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.