A taxpayer must submit backdated personal tax returns from 2008 to 2014 as well as for the year 2000. His company states that they have no IRP5 backups for him. They changed payroll companies and cannot help him with any paysheets or IRP5 certificates. Th
Author: The Payroll Authors Group of South Africa
Important:
This answer is based on tax law year ending 28 February 2021.
Answer:
In terms of the Government Gazette Notice, No. 31763, administrative penalties in terms of section 210 of the Tax Administrative Act (TAA), became effective on 31 December 2008. However, before the implementation of the TAA, section 75 of the Income Tax Act, were applicable. According to the information page on the SARS website on Administrative Penalty, the following is stated: An Administrative Penalty (Admin Penalty) is a penalty levied under Section 210 of the Tax Administration Act (TAA). The Act prescribes the various types of non-compliance which are subject to fixed administrative penalties. Currently the penalty is imposed only for non-submissions of tax returns in respect of individuals and companies: • For individuals the penalty will be imposed where the taxpayer has failed to submit a return as and when required under the Income Tax Act for years of assessment commencing on or after 1 March 2006 where that person has two or more outstanding income tax returns for such years of assessment; and In cases of dispute against the Admin penalty, the taxpayer may lodge a dispute: A Request for Remission (RFR) can be submitted when a taxpayer disputes any administrative penalty levied due to non-compliance. The taxpayer must provide reasons for the non-compliance for the request to be considered. If the Request for Remission is disallowed or only a portion was selectively allowed, you may still object to the decision made by SARS and even appeal the decision if you disagree with the outcome of the objection process. Please refer to the Objections and Appeals page for more information on how to submit a dispute in respect of an Admin Penalty.
Please note that you cannot use the objections process before the RFR is submitted and considered. In terms of section 29 of the TAA, the employer must keep records for a period of 5 years after the date on which the return relating to these records were submitted to SARS. Due to the fact that the periods relates to years longer than the prescribed 5 years, the taxpayer may either: • Request SARS to issue an official duplicate tax certificate from the records the employer has submitted to SARS; or • Submit his payslips to SARS.