WHAT a 2024 tax reprieve looks like for struggling taxpayers
With tax return season in full swing, the clock is ticking for anyone in need of a 2024 tax reprieve before the deadline is up. Tax season for non-provisional (individual) taxpayers started back on 15 July and runs until Monday 21 October 2024. The South African Revenue Service (SARS) says everything has gone swimmingly so far. With most refunds being paid in less than 72 hours after submission. The government entity also boasts it’s paid upwards of R10 billion in refunds in mere days, thanks to the SARS auto-assessment system.
Nevertheless, not every taxpayer has the good fortune to enjoy a smooth, uneventful filing process each year. In fact, those who have defaulted on debt previously or have not submitted old returns out of fear of prosecution, don’t even know what sort of help is available to them. Thankfully, a 2024 tax reprieve is available for historically non-compliant taxpayers through the SARS Voluntary Disclosure Program (VDP).
2024 TAX REPRIEVE
Started back in 2011 to assist struggling taxpayers, what the VDP allows is non-compliant taxpayers to come clean for past indiscretions. In turn, SARS will waive any penalties that may have arisen from past defaults. And, according to Tax Consulting South Africa, many taxpayers and tax practitioners are still unaware of how the VDP even works.
It’s best to think of it as an open-door policy. Non-compliant taxpayers must come forward and voluntarily disclose any defaults in tax payments. This includes all disclosure of under-declared income or under-reported tax liabilities. So, how do you qualify and what do you need to do to be successful with your 2024 tax reprieve bid?
FULL DISCLOSURE ONLY
A 2024 tax reprieve looks like so for embattled taxpayers:
- You must be a registered taxpayer on the SARS eFiling website to begin any engagements on a VDP agreement.
- Download the official SARS VDP guide HERE.
- Read up on the full transfer of PAYE for VDP purposes HERE.
- Your disclosure must be voluntary, full and complete in all material respects. If it turns out you only tried to disclose some of your past indiscretions, SARS will take a dim view of your 2024 tax reprieve.
- A disclosure cannot be made within five years of a similar/previous default.
- Your disclosure must be made in the prescribed form and manner as laid out by the SARS VDP.
- Email SARS at vdp@sars.gov.za or call 0800 864 613 to secure your 2024 tax reprieve.
However, the experts at Tax Consulting South Africa do recommend using a legal and/or tax practitioner when undertaking a VDP. Do all of the above correctly and SARS may waive any penalties from the default and grant you full immunity from criminal prosecution.
Let us know by clicking on the comment tab below or by emailing info@thesouthafrican.com. You can also send a WhatsApp to 060 011 0211. Don’t forget to follow @TheSAnews on X and The South African on Facebook for the latest social media updates.
Please note that this article is for informational purposes only and should not be construed as financial, tax or legal advice. For further details consult SARS the website or get in touch with a tax specialist.