Tax Administration Act, 2011 (Act No. 28 of 2011)Chapter 15 : Administrative Non-Compliance PenaltiesPart B : Fixed amount penalties211. Fixed amount penalty table |
| (1) | For the non-compliance referred to in section 210, SARS must impose a "penalty" in accordance with the following Table: |
Table: Amount of Administrative Non-Compliance Penalty
1 |
2 |
3 |
Item |
Assessed loss or taxable income for "preceding year" |
"Penalty" |
(i) |
Assessed loss |
R250 |
(ii) |
R0 - R250 000 |
R250 |
(iii) |
R250 001 - R500 000 |
R500 |
(iv) |
R500 001 - R1 000 000 |
R1 000 |
(v) |
R1 000 001 - R5 000 000 |
R2 000 |
(vi) |
R5 000 001 - R10 000 000 |
R4 000 |
(vii) |
R10 000 001 - R50 000 000 |
R8 000 |
(viii) |
Above R50 000 000 |
R16 000 |
| (2) | The amount of the "penalty" in column 3 will increase automatically by the same amount for each month, or part thereof, that the person fails to remedy the non-compliance within one month after— |
| (a) | the date of assessment of the penalty, if SARS is in possession of the current address of the person and is able to deliver the assessment, but is limited to 35 months from the date of the assessment; or |
[Subsection(2)(a) substituted by section 71 of the Tax Administration Laws Amendment Act, 2012 (Act No. 21 of 2012)]
| (b) | the date of the non-compliance if SARS is not in possession of the current address of the person and is unable to deliver the "penalty assessment", but limited to 47 months after the date of non-compliance. |
| (3) | The following persons, except those falling under item (viii) of the Table or those that did not trade during the year of assessment, are treated as falling under item (vii) of the Table: |
| (a) | a company listed on a recognised stock exchange as referred to in paragraph 1 of the Eighth Schedule to the Income Tax Act; |
| (b) | a company whose gross receipts or accruals for the "preceding year" exceed R500 million; |
| (c) | a company that forms part of a "group of companies" as defined in section 1 of the Income Tax Act, which group includes a company described in item (a) or (b); or |
| (d) | a person or entity, exempt from income tax under the Income Tax Act but liable to tax under another tax Act, whose gross receipts or accruals exceed R30 million. |
| (4) | SARS may, except in the case of persons referred to in subsection (3)(a) to (c), if the taxable income of the relevant person for the "preceding year" is unknown or that person was not a taxpayer in that year— |
| (a) | impose a "penalty" in accordance with item (ii) of column 1 of the Table; or |
| (b) | estimate the amount of taxable income of the relevant person for the "preceding year" based on available relevant material and impose a "penalty" in accordance with the applicable item in column 1 of the Table. |
| (5) | Where, upon determining the actual taxable income or assessed loss of the person in respect of whom a "penalty" was imposed under subsection (4), it appears that the person falls within another item in column 1 of the Table, the "penalty" must be adjusted in accordance with the applicable item in that column with effect from the date of the imposition of the "penalty" issued under subsection (4). |