December 6, 2023 | by SASSA Admin
An administrative penalty, also known as an admin penalty, is a penalty imposed under section 210 of the Tax Administration Act (TAA) in South Africa. The TAA specifies the types of non-compliance that can result in fixed amount administrative penalties. For individuals, the penalty applies if they fail to submit an income tax return for the years of assessment from 2007 onwards when there are outstanding returns. For companies, the penalty is imposed when they fail to submit an income tax return as required under the Income Tax Act for specific calendar years. The penalty for non-compliance with tax return submissions is based on the taxpayer’s taxable income and can range from R250 to R16,000 per month. The penalty is recurring and can continue for up to 35 months. It is advisable to submit the outstanding return to stop further admin penalties. The Penalty Statement of Account (APSA) is no longer sent with the penalty assessment notice, but taxpayers can request one. If a taxpayer disputes a penalty levied due to non-compliance, they can submit a Request for Remission (RFR), and if that is disallowed, they can still object and appeal the decision. Payments for admin penalties can be made using various payment channels.
In South Africa, there are specific types of non-compliance that can result in fixed amount administrative penalties imposed by the South African Revenue Service (SARS). These penalties apply to both individuals and companies who fail to meet certain tax obligations.
For individuals, the fixed amount penalty applies if they fail to submit an income tax return for the years of assessment from 2007 onwards and have outstanding returns. The penalty is recurring and can continue for up to 35 months. The amount of the penalty is determined based on the individual’s taxable income and ranges from R250 to R16,000 per month.
For companies, the fixed amount penalty is imposed when they fail to submit an income tax return as required under the Income Tax Act for specific calendar years after receiving a final demand from SARS. Similar to individuals, the penalty is recurring and can continue for up to 35 months. The amount of the penalty is also based on the company’s taxable income and ranges from R250 to R16,000 per month.
It is important for taxpayers to be aware of these types of non-compliance and the associated fixed amount penalties. By understanding the obligations and consequences, individuals and companies can take the necessary steps to ensure compliance and avoid incurring penalties.
| Type of Non-Compliance | Penalty Duration | Penalty Amount |
|---|---|---|
| Individuals – Failure to submit income tax returns for outstanding years of assessment | Recurring for up to 35 months | R250 to R16,000 per month based on taxable income |
| Companies – Failure to submit income tax returns after receiving a final demand from SARS | Recurring for up to 35 months | R250 to R16,000 per month based on taxable income |
If you believe that an administrative penalty imposed by SARS is unjustified or incorrect, you have the right to dispute it. The first step in this process is to submit a Request for Remission (RFR). The RFR should clearly outline the circumstances that prevented your compliance, including the relevant periods and amounts. It is essential to provide as much detail as possible to support your case. Once you have submitted the RFR, SARS will consider your request and either approve or disallow it.
If your RFR is disallowed or partially allowed, and you disagree with the outcome, you can proceed to initiate the objection process. The objection must be submitted within the allowed timeframe, which is typically 30 days from the date of the decision. During this process, you will need to provide additional evidence or arguments to support your objection. SARS will review the objection and make a decision based on the information presented.
If you are still not satisfied with the outcome of the objection, you have the right to appeal the decision. The appeal must be lodged within 30 days of receiving the objection decision. The appeal will be reviewed by an independent appeals board, which will consider all relevant evidence and arguments presented. The board will then make a final decision regarding the admin penalty dispute.
| Step | Description |
|---|---|
| Step 1: Request for Remission | Submit an RFR outlining the circumstances preventing compliance, including relevant periods and amounts. |
| Step 2: Objection Process | If the RFR is disallowed or partially allowed, initiate the objection process within the allowed timeframe. |
| Step 3: Appeal | If dissatisfied with the objection decision, lodge an appeal within 30 days of receiving the decision. |
When it comes to paying your admin penalty to SARS, there are several convenient payment channels available to you. Whether you prefer traditional banking methods or online transactions, SARS has made it easy for taxpayers to settle their penalties promptly.
One option is to make your payment at a bank. You can choose from reputable institutions such as Absa, FNB, Nedbank, Standard Bank, and Capitec. Simply visit a branch of your preferred bank and provide the correct beneficiary ID and payment reference number to ensure accurate processing.
For online convenience, SARS offers eFiling, which allows you to set up a credit push option or use alternative payment methods supported by the platform. eFiling accepts payments from various banks, including Absa, Bidvest Bank, Capitec Bank, Citibank, FNB, HSBC, Investec, Nedbank, Standard Bank, Standard Chartered, Mercantile Bank, AlBaraka, Sasfin, and HBZ. This method is popular among taxpayers who prefer the ease and security of online transactions.
The SARS MobiApp is another convenient way to make your admin penalty payment. Simply download the app on your mobile device and follow the prompts to complete the payment. Additionally, you can pay through electronic funds transfer (EFT) via internet banking facilities or visit a SARS Customs branch. For foreign taxpayers who don’t have other payment options available, electronic payments can be made using the SWIFT 103 message and the Beneficiary ID/Account Number.
With these various payment channels at your disposal, you can easily pay your admin penalty to SARS and ensure compliance with tax regulations. Choose the method that best suits your preferences and complete your payment promptly to avoid any further penalties or complications.
When it comes to non-compliance penalties, there are certain conditions and cases where these penalties can be remitted or reduced. It’s important to understand these remittance conditions to potentially minimize the financial impact of the penalty. Here are the key points to consider:
If the non-compliance duration is less than five business days, and there are reasonable grounds for non-compliance, penalties can be remitted. However, it’s crucial to ensure that the non-compliance has been remedied, meaning the required actions have been taken to rectify the situation. For fixed amount penalties, up to R2,000 can be remitted, while penalties related to reportable arrangements can have up to R100,000 remitted.
In the case of percentage-based penalties, remittance can be considered for the first incidence of non-compliance if the penalty amount is less than R2,000 and reasonable grounds for non-compliance exist. Similar to fixed amount penalties, the non-compliance must be rectified by paying the outstanding amount.
There are also exceptional circumstances where penalties can be remitted. These include situations such as natural disasters, civil disturbance, serious illness or accident, serious emotional or mental distress, errors or delays by SARS, and serious financial hardship. These exceptional circumstances need to be proven and documented in order to be considered for penalty remittance.
| Remittance Conditions | Fixed Amount Penalties | Percentage-Based Penalties |
|---|---|---|
| Nominal or First Incidence of Non-Compliance | Up to R2,000 | Less than R2,000 |
| Penalties Related to Reportable Arrangements | Up to R100,000 | N/A |
It’s important to note that each case is evaluated individually, and the decision to remit or reduce penalties lies with SARS. If you believe you meet the remittance conditions or exceptional circumstances, it’s advisable to provide clear and solid evidence to support your case. This will increase the likelihood of a favorable outcome and potential penalty reduction.
By understanding the remittance conditions and cases for penalty reduction, you can take the necessary steps to potentially alleviate the financial burden of non-compliance penalties. It’s always recommended to stay in compliance with tax regulations to avoid penalties altogether, but in case of non-compliance, being aware of the remittance options can help you navigate the process more effectively.
When it comes to paying your SARS admin penalty, there are several convenient payment methods available to you. You can make payments at a bank, including Absa, FNB, Nedbank, Standard Bank, and Capitec. Simply ensure you have the correct beneficiary ID and payment reference number for a smooth transaction.
Another option is to use eFiling, a secure online platform that offers credit push payments. This platform accepts payments from a variety of banks, including Absa, Bidvest Bank, Capitec Bank, Citibank, FNB, HSBC, Investec, Nedbank, Standard Bank, Standard Chartered, Mercantile Bank, AlBaraka, Sasfin, and HBZ.
If you prefer electronic funds transfer (EFT), you can easily make payments through your internet banking facilities. Just use the pre-loaded beneficiary IDs provided by your bank for a hassle-free transaction. In addition, you have the option to visit a SARS Customs branch to make your payment.
For foreign taxpayers who don’t have other payment options available, you can make electronic payments using the standard SWIFT 103 message and the Beneficiary ID/Account Number. It’s important to note that this method should only be used when alternative payment methods are not accessible.
You can make payments at a bank, such as Absa, FNB, Nedbank, Standard Bank, and Capitec. Payments can also be made through eFiling, the SARS MobiApp, electronic funds transfer (EFT) via internet banking facilities, or at a SARS Customs branch. Foreign taxpayers can make electronic payments using the SWIFT 103 message and the Beneficiary ID/Account Number.
The penalty for non-compliance with tax return submissions is based on the taxpayer’s taxable income and can range from R250 to R16,000 per month. The penalty is recurring and can continue for up to 35 months.
For individuals, the penalty applies if they fail to submit an income tax return for the years of assessment from 2007 onwards when there are outstanding returns. For companies, the penalty is imposed when they fail to submit an income tax return as required under the Income Tax Act for specific calendar years.
If you dispute a penalty levied due to non-compliance, you can submit a Request for Remission (RFR). If the RFR is disallowed, you can still object and appeal the decision. The objection process can only be used once the RFR has been submitted and considered.
You can make payments at a bank, including Absa, FNB, Nedbank, Standard Bank, and Capitec. Payments can also be made through eFiling, the SARS MobiApp, electronic funds transfer (EFT) via internet banking facilities, or at a SARS Customs branch.
Penalties can be remitted under specific conditions, such as nominal or first incidence of non-compliance with reasonable grounds and remedy of the non-compliance. Remittance can also be considered for the first incidence of non-compliance if the penalty amount is less than R2,000 and reasonable grounds for non-compliance exist. There are also exceptional circumstances where penalties can be remitted, such as natural disasters, civil disturbance, serious illness or accident, serious emotional or mental distress, errors or delays by SARS, and serious financial hardship.
You can pay at a bank, including Absa, FNB, Nedbank, Standard Bank, and Capitec, using the correct beneficiary ID and payment reference number. Payments can also be made through eFiling, the SARS MobiApp, electronic funds transfer (EFT) via internet banking facilities, or at a SARS Customs branch. Foreign taxpayers can make electronic payments using the SWIFT 103 message and the Beneficiary ID/Account Number.
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