I have several clients for which I had to request for reversal of penalty for late payment of provisional taxes as well as underestimation penalties on assessment.Some of these I’ve requested before the relevant tax year has been passed,others I've reque
Important:
This answer is based on tax law year ending 28 February 2017.
Answer:
The RFR is submit through the efiling system. The SARS External Guide: How to submit a dispute via Efiling explains the ‘how to’ in paragraph 4.
In terms of paragraph 20(1), of the Fourth Schedule to the Income Tax Act, the penalty is deemed to be a percentage based penalty imposed under Chapter 15 of the Tax Administration Act. Section 215, of the Tax Administration Act (in Chapter 15), then deals with the procedure to request remittance of penalty. Section 215(5) allows for the instance where a tax Act other than this Act provides for remittance grounds for a ‘penalty’, SARS may despite the provisions of section 216, 217 or 218 remit the ‘penalty’ or a portion thereof under such grounds. One will therefore use the grounds contained in paragraph 20 of the Fourth Schedule.
This penalty is in most, if not all, cases levied and no penalty assessment is issued, because it is reflected on the IT34 (income tax assessment). One could therefore, in our view, also object to the penalty.
Remittance requests in respect of the late payment penalty, which is levied under section 213 of the Tax Administration Act, is required and the request must deal with the grounds set out in section 217(3).