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Voluntary disclosure program re-opened permanently

SARS makes disclosure program permanent – The SA Institute of Tax Practitioners.

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.
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