Wednesday, October 14, 2009

Legitimacy of your State threatened? Double penalties

So many South Africans are tax evaders the South Africans IRS, SARS, will implement new penalties which can double every month.

A SARS official says the legitimacy of the State is threatened? Who is threatening whom?


The penalties will recur each month for as long as the income tax return remains outstanding. The regulation allows for penalties to be applied each month or part thereof for up to 35 months allowing penalties to be automatically doubled monthly. This means a person earning about R300 000 a year and fails to submit a tax return for 35 months can end up paying a penalty of close to R500 000.


A SARS report reveals that a staggering 5.3 million returns due to the institution were outstanding in the financial year period 2007/2008 and legal action had to be taken against 81 000 taxpayers. According to Magashula, the number currently stands at just over three million.

"If we continue to tolerate this non-compliance that is when we will see our tax system falling flat and the legitimacy of the state undermined. "We are very serious about making sure that we improve the level of compliance in our country," he said.