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So 14 July has Come and Gone and You did Not File Your Tax Return... What Now

01 February 2006   (0 Comments)
Posted by: TaxFind™
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So 14 July has Come and Gone and You did Not File Your Tax Return... What Now

Option 1: Skip the country and go and live in Siberia

Not such a great idea. For starters, if you want to leave the country legally, you will have to have a valid tax clearance certificate and how can you have that without having submitted your tax return?

Option 2: Ignore the fact and hope that the problem goes away. Also not a brilliant idea. According to the SARS web site, the following can happen to you:

If a person who is required to render a return fails to do so within the required period, that person is liable on conviction to a fine or to imprisonment for a period not exceeding two years.The Commissioner may also estimate that person's taxable income and a penalty equal to two times the amount of tax chargeable thereon may be imposed.A taxpayer who knowingly and wilfully makes any false statement in a return or evades or attempts to evade taxation, or a person who assists a taxpayer to do so, is liable on conviction to a fine or to imprisonment for a period of up to five years. In addition, the Commissioner may also impose a penalty equal to two times the amount of tax which was evaded.

No person is exempted from any penalty merely by reason of the fact that the person may not have been called upon personally to furnish a return.Now, if that does not have you quaking in your boots, nothing will!

Option 3: Plead ignorance and say you didn’t know that your tax return had to be filed.

Well, this year there was more promotion about the tax filing D-day than ever before. Do you really say that you did not see the billboards or the advertisements and that you did not see the friendly SARS staff in shopping centres? If you had gone to the SARS web site (www.sars.gov.za), you would have seen the following:

Returns in respect of the 2006 year of assessment must be furnished within the following periods—

(a) in the case of any company, within 8months from the date on which its financial year ends; or

(b) in the case of all other persons (which include natural persons, trusts and other juristic persons, such as institutions, boards or bodies)—

(i) on or before 14 July 2006; or

(ii) where accounts are accepted by the Commissioner in terms of section 66(13A)of the Act in respect of the whole or portion of a taxpayer's income, which are drawn to a date after 28 February 2006, but on or before 30 September 2006, within 8 months from the date to which such accounts are drawn.

Option 4: Leave your job. You don’t earn an income any more so you don’t have to pay tax

Dummy…the tax return was for last year. Now look what you’ve done! You have left your job and will die of hunger AND will not be able to pay the penalties.

Option 5: Go and see a tax specialist who can help you to get out of this fix.

According to a recent discussion on tax issues on Summit TV, Gavin Goertz of Korten, Hiepner, Faber & Goertz, firm of tax attorneys had the following to say on the benefits of seeking expert advice: Over and above the fact that professional assistance adds to peace of mind, once a tax expert has checked your tax return, it can serve as proof that the intention was there to make proper disclosure, should any problems arise."Like mothers, taxes are often misunderstood, but seldom forgotten.'' - Lord Bramwell, 19th century English jurist

Source: By TaxTALK



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