SARS’ Administrative Penalties have no teeth
I’m getting a lot of calls lately, because SARS is hitting more and more dormant companies with monthly administrative penalties for each annual tax return outstanding.
Here’s a summary of my response –
- It is the company that becomes liable to SARS for the penalty
- The directors cannot be held liable
- The shareholders cannot be held liable
- The public officer cannot be held liable
- The only time that SARS can recover the penalties is if the company starts to trade
- If your company is not trading, I suggest that you ignore all correspondence from SARS relating to the penalties
- If it is trading, I suggest that you immediately submit your tax returns and pay the penalties
- If your company has not traded but intends to trade in future, I suggest that you form a new company for the future trade.
Don’t let SARS’ bully tactics get to you.