SARS filing season: Understanding payment options and Administrative Penalties

The recent social unrest, as well as the third wave of the Covid-19 pandemic, impacted SARS operations and as the country went to Lockdown Level 4, SARS branches once again had to be closed for physical walk-ins.

However, while the branches re-opened on August 16, taxpayers should note that eFiling and the SARS MobiApp channels offer safer, easier, and more convenient filing from wherever you are. If you do need to go to a branch, you first need to make a booking for an appointment. Click here to make an appointment at your nearest SARS branch.

Individual Filing Season opened on 1 July and is now in full swing. This guide will take a look at: 

1. Your payment options;
2. What you can do if you realise that you have made a mistake when completing your personal income tax return;
3. The various options available if you do not agree with an assessment raised by SARS; and
4. What to do if you get an Administrative Penalty.

If I submit my return and owe SARS, how do I pay?

Currently, there are a number of options available to you if you want to make a payment to SARS:

• via eFiling. eFiling credit push is a secure payment instruction functionality between SARS eFiling and the bank which puts the client in control when making a payment. An eFiling payment can be initiated by any eFiler, but this payment must be approved by the bank account holder. The bank account holder must log on to his/her bank product and authorise this request. Most major banks support eFiling payments.
• via SARS MobiApp. An eFiling payment can also be made via the SARS MobiApp from your Statement of Account or your Notice of Assessment (ITA34).
• Electronic Funds Transfer (EFT). Payment may be made via the internet banking facilities by simply using the standard drop-down listing of pre-loaded beneficiary IDs provided by the bank. All SARS beneficiary IDs are prefixed with the naming convention “SARS- ”. All internet payments must be correctly referenced to ensure that SARS is able to identify your payment and correctly allocate it to your account. You will not be able to make a payment if your reference is incorrect. Most major banks support this method of payment
• At a bank. You can make cash or EFT payments at branches of the following banks: Absa, FNB, Nedbank, Standard Bank, and Capitec. Please quote the correct SARS beneficiary ID and payment reference number (PRN).  

What happens if I realise that I made a mistake on my tax return?

Should you realise that you made an error when completing your return, the Request for Correction (RFC) process allows you to correct a previously submitted return/declaration, provided that no verification or audit was conducted on the same tax period. The RFC can be used by eFilers to request, complete, and submit the correction. Note that only one RFC is allowed and if it has already been sent, you will not be allowed another. 

 What if I don’t agree with SARS?

Where the taxpayer is aggrieved by an assessment or decision taken by SARS and where the grounds provided in the assessment do not sufficiently enable the taxpayer to understand the basis of the assessment and to formulate an objection, the taxpayer is entitled to request reasons, making use of the Request for Reasons functionality on eFiling.

If a taxpayer does not agree with the outcome of an audit/verification, they can dispute the outcome. The taxpayer may object, using the correct form, and if they don’t agree with the outcome of an objection, they can appeal.  As a taxpayer, you have the right to lodge an appeal where your objection has been partially allowed or disallowed. The appeal must be lodged within 30 business days from the date the objection was disallowed or partially allowed.   

More information on these processes, the channels available and the specific forms to be used in each case is available on the SARS website.

Administrative Penalties

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 on taxpayers who do not submit their tax returns as and when required.

An administrative non-compliance penalty is made up of fixed amount penalties as well as percentage-based penalties. A non-compliance penalty levied depends on the type of non-compliance.  Administrative penalties recur each month that the taxpayer is non-compliant, up to a maximum of 35 months. Each recurring penalty will have a unique transaction number.

It is advisable to submit the outstanding return, whether you agree or disagree with the admin penalty, to stop further admin penalties from being levied.

What if I don’t agree with the Admin Penalty levied?

The taxpayer can lodge a Request for Remission (RFR) to SARS in writing on the specified form via eFiling or at a SARS branch and must include:

• A description of the circumstances which prevented the person from complying with the relevant obligation; and
• Supporting documentation and information as required by SARS.

What will happen if I don’t pay my Admin Penalty debt?

If the Admin Penalty is not paid, SARS will appoint an agent (such as your employer or the bank) to collect the money on its behalf.

Additional News

Branch visits

If you need to visit a SARS branch, please keep in mind the following:

1. You first need to make an appointment (via SARS website, sms 47277 or Contact Centre number 0800 00 7277)
2. You need to bring various supporting documents with you (ask the SARS agent making the appointment for details) and,
3. If you have a smart device (eg. a smartphone or iPad), please bring this along as an agent may be able to help you in the queue using your own smart device.

Additional points of service

This region will be making use of mobile tax units, pop-up branches and self-service kiosks. The dates and locations of these are still being finalised – keep an eye on the SARS website for updates.

Covid-19 safety measures

Strict social distancing measures apply, and all members of the public are required to wear masks at all times when queuing, entering a SARS building, or engaging with any SARS official.

Scams

Filing Season seems to be a time when SARS-related scams increase. If you are not sure if something supposedly from SARS is a scam, please check the SARS website where they list examples of all the latest scams. Just click on the yellow icon on the SARS homepage where it says “Scam Alert!” Just remember, there are never hyperlinks in SARS SMSes, so any SMS or email purporting to come from SARS with a clickable hyperlink will be a fraudulent SMS or email and therefore not from SARS.

Relief for businesses affected by unrest

Many businesses in Gauteng and KwaZulu-Natal were affected by the recent unrest. SARS has developed a leaflet and will soon be publishing a list of Frequently Asked Questions (FAQs) for impacted businesses on our Small Businesses webpage. Click here for more. 

Send us an SMS and we will book an appointment for you

Send an SMS to SARS (47277) with the word “Booking” and your Passport No /ID No/ Asylum permit No (e.g. Booking 8308245295088 or Booking A02961427). #YourTaxMatters pic.twitter.com/scBLkWfBZn

— SA Revenue Service (@sarstax) August 20, 2021