SARS and the IDAC are intensifying efforts to criminalize tax non-compliance, focusing on making it more difficult and costly for offenders. This initiative extends liability beyond just individual taxpayers to include those who control non-compliant companies, holding them criminally accountable for tax violations. Recent cases, such as that of Durban businessman Thoshan Panday, highlight severe consequences; he faces 27 fraud charges related to tax legislation and has been denied bail due to flight risk concerns.
The law imposes personal liability on individuals involved in a company's financial affairs if their negligence or fraud leads to tax non-payment. This applies even without formal responsibilities and includes shareholders and directors. The Panday case underscores the serious legal and financial repercussions of tax fraud, emphasizing that even minor non-compliance can result in criminal charges.
SARS aims to deter all levels of tax non-compliance, urging taxpayers to engage with tax authorities to mitigate risks, as further infractions can lead to harsher penalties.
"Tax Compliance is Key
With Sars having to become aggressive in an effort to combat the criminal elements in our society, taxpayers need to be aware that even non-compliance on a smaller scale and due to negligence, carries with it the potential of criminal conviction.
Where you are already on the wrong side of the law, your only reprieve is to correctly and legally engage the revenue authority. Commission of any further criminal activity will not sweep prior acts under the rug, but rather exacerbate the already severe consequences.
"Contravention of tax laws not only tarnishes an individual or company's reputation but can also result in hefty financial penalties, legal repercussions, and potential incarceration."
Credit for this summary to Jashwin Baijoo's publication - is the associate director and head of strategic engagement & compliance at Tax Consulting SA.
Feel free to contact BenAccountant to assist in Tax Compliance. Kindly visit our site :www.benaccountant.co.za for more information about or Compliance Plans.
Disclaimer:
The information provided on this blog is for general informational purposes only. All content, including text, graphics, images, and information, contained on or available through this blog is not intended to be a substitute for professional advice.
We do not make any warranties about the completeness, reliability, and accuracy of this information. Any action you take upon the information on this blog is strictly at your own risk, and we will not be liable for any losses and damages in connection with the use of our blog.
From our blog, you can visit other websites by following hyperlinks to these sites. While we strive to provide only quality links to useful and ethical websites, we have no control over the content and nature of these sites. Links to other websites do not imply a recommendation for all the content found on these sites.
Please be also aware that when you leave our blog, other sites may have different privacy policies and terms that are beyond our control.