The Tax Administration Act No. 28 of 2011 commenced on 1 October 2012 as announced by the President of South Africa on 14 September 2012.
The Tax Administration Act (previously referred to TAB or tagged TAB) aims to simplify and consolidate, into one Act, a more logical and systematic way of dealing with the tax administration law across various tax laws, tax platforms and to perhaps one day use on number for all all taxes i.e. your VAT and income tax number os aligned.
The TAA and the new 2012 draft bill (yes we already into first amendment) eliminates duplication, removes redundant requirements and aligns different requirements that currently exist in different tax acts, all of which administered by the C:SARS or more correctly referred to as the Commissioner for South African Revenue Services.
The TAAct reflects the constant endeavour to simplify law, reduce red-tape and streamline the administration process to provide a better service to taxpayers, whilst strengthening enforcement and compliance.
See the SARS webpage on this topic!
The new SARS webpage detail on the NEW VDP
“An opportunity to come clean…”
The purpose of this document is to provide guidelines in respect of the South African Revenue Service (SARS) Voluntary Disclosure Programme (VDP) for tax defaults in terms of the Tax Administration Act No. 28 of 2011 (the Act).
The purpose of the VDP is to enhance voluntary compliance in the interest of good management of the tax system and the best use of SARS’s resources:
- It aims to encourage taxpayers to come forward on a voluntary basis to regularise their tax affairs with SARS (“Tax VDP”) and avoid the imposition of understatement penalties and other administrative penalties.
- The Tax VDP is applicable to all taxes administered by SARS (excluding Customs and Excise).
Requirements for a valid voluntary disclosure programme application:
- The disclosure must be voluntary;
- It must involve a default which has not previously been disclosed by the applicant or representative of the person;
- It must be full and complete in all material respects;
- It must involve the potential imposition of an understatement penalty in respect of the default;
- It must not result in a refund due by SARS; and
- It must be made in the prescribed form and manner.