Draft revised public notice relating to incidences of non-compliance by individuals to file returns
SARS published a draft revised public notice in terms of section 210(2), relating to incidences of non-compliance, by individuals to file returns, that are subject to a fixed amount penalty in accordance with section 210(1). The draft notice, as well as an explanatory memorandum, have been published on 28 July 2021 for public comment, which is due by 11 August 2021.
SARS has implemented a number of measures to make it easier for natural persons to comply with their obligation to submit income tax returns, including the widespread rollout of auto assessment for the 2020 Filing Season. The late or non-submission of returns by some taxpayers is unfair to other taxpayers who have fulfilled their obligations.
In line with SARS’ strategic objective to detect and appropriately penalise non-compliance , a switch to a one or more years outstanding rule is proposed for years of assessment commencing on or after 1 March 2020. Put differently, an administrative penalty will be imposed if the 2020/2021 income tax return is not submitted as required, even if no other income tax return is outstanding.
As a transitional measure, it is proposed by SARS that the two or more years rule be retained for years of assessment commencing on or after 1 March 2006 but ending on or before 29 February 2020. This transitional measure will fall away with effect from 1 December 2022, from which date the one or more years outstanding rule will apply with regards to all natural persons who have continued to fail to submit income tax returns for years of assessment commencing on or after 1 March 2006.
The draft notice issued by SARS, providing for the above is available here, whilst the explanatory note issued in respect of the notice is available here.
06/08/2021
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