Tax Admin Act Flashcards
What happens when you don’t withhold the employees tax that you are supposed to?
Chapter 15 of the TAA
- you will be charged a 10% penalty on the amount that was supposed to be paid
What can a taxpayer do if they dont like a penalty that was given to them for not withholding employees tax
Section 215 of the TAA
- they can request a remission of the penalty
- it must be done on or before the payment date as prescribed on the penatly assessment
- you can request to remit the penalty if the circumstances were beyond your control
- if they charged you higher than the amount stipulated in the legislation, you can ask that it be lowered to that amount in the legislation (or percentage)
Section 218 of the TAA
- they can request a remission of the penalty on the grounds that they are in or had exceptional circumstances
Para 5(2) of the 4th Sch
- they can also be absolved from paying the employees tax by making application to withhold the amount from future amounts paid to the employee
Section 103 of the TAA
- if SARS declines the remission of the penalty, they can request the reasons as to why
- this request must be made within 30 days of the written response where SARS declines the remission
Section 220 of the TAA
- they can then lodge an objection to their decision to decline the remission of the penalty
- this must also be done within 30 days of SARS’s written response of declining the remission
