Beware of SARS’ Wrath – Eradication of Non-Compliance at All Levels

The latest name added to SARS’ non-compliance hitlist is that of controversial businessman Bongani Mpeluza, who is currently facing the daunting prospect of a court judgment that could force the sale of his assets if he fails to settle a staggering R27 million tax debt. This situation serves as a chilling reminder of the severe consequences that can arise from unresolved tax obligations, regardless of one’s station in life.

Mpeluza joins the long list of prominent businesspersons and local celebrities, such as Jimmy Auby, Kagiso Rabada, and MaMkhize, who must now “pay the piper” for years of tax non-compliance, ranging from non-submission of tax returns to non-payment of tax debts due to SARS, or face the repercussions.

How a Tax Debt Arises

A tax debt usually arises out of negligence, however there are instances whereby it is a case of intentional non-payment, or further compliance infringements.

It is important to know primarily, where a tax debt can originate from. The usual culprits here are:

• Administrative penalties on late or non-submission of tax returns;
• Estimated assessments resulting from a failure to submit tax returns;
• The submission of tax returns, without any payment thereon; and
• Partial payment of a tax liability, or unpaid interest and penalties.

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