Page 56 - Nexia Cape Town 2018 TG Digital

PENALTIES: ADMINISTRATIVE NON-COMPLIANCE

Administrative non-compliance penalties are penalties for the failure to keep
proper records, failure to report reportable arrangements, non-compliance with a
request for information, obstruction of SARS officials and failure to comply with
tax obligations� The following non-compliance penalties could be charged:
■ Fixed amount penalties (this penalty increases monthly, calculated from one
month after the penalty assessment)
■ Percentage based penalties
■ Understatement penalties
Fixed amount penalties
Fixed rate penalties can be imposed by SARS for non–compliance with any
procedural or administrative action or duty imposed or requested, for example:
■ Not registering when required to
■ Not informing SARS where there is a change in registration details
■ Not filing returns
■ Not retaining records as required by SARS
The fixed rate penalty does not apply where the percentage base penalty or
understatement penalty applies�
Fixed rate penalties can be imposed as per the following table:
Assessed Loss or taxable income for preceding year Monthly penalty
Assessed loss R250
R0 – R250 000 R250
R250 001 – R500 000 R500
R500 001 – R1 000 000 R1 000
R1 000 001 – R5 000 000 R2 000
R5 000 001 – R10 000 000 R4 000
R10 000 001 – R50 000 000 R8 000
R50 000 000 + R16 000

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