An EMP201 was filed for April 2020, reflecting only 65% of PAYE. A correction was subsequently filed and a Request For Response submitted. SARS response was that the taxpayer must pay the liabilities before presentation to the Penalty Committee. The taxpa
Author: the Payroll Authors Group of South Africa
Important:
This answer is based on tax law year ending 28 February 2021.
Answer:
SARS has clearly indicated that any changes to the original EMP201 will result in penalties and interest.
Please refer to the FAQ on the SARS website: https://www.sars.gov.za/TaxTypes/PAYE/Pages/FAQs%20Employers---Tax-Relief.aspx
Q: What is the COVID-19 Tax Relief for PAYE?
A: The COVID-19 Tax Relief for PAYE is the payment of 65% of the total PAYE liability and deferral of 35% of the total PAYE liability. Note: The 35% deferral is only applicable on the PAYE liability declared on the original EMP201 return submitted to SARS. Any increase in the PAYE liability through a subsequent request for correction will not be taken in consideration when the 35% deferral is calculated.
Due to this, the client need to pay the additional amounts and go through the normal remission of penalty and interest process.