The South African Revenue Service (Sars) on Wednesday added more than 1 000 new applications to the small-business tax-amnesty process through an extensive registration campaign across the country.
However, the service warned that while the amnesty programme has the primary focus of broadening the tax base by including businesses that have never registered for tax, or businesses that owe Sars outstanding tax, the service will continue enforcing the law in other matters.
Several thousand Sars officials were joined by members of the South African Police Service (SAPS) and officials from the Department of Home Affairs in 30 towns and cities, where 4 160 small businesses were visited.
By 3pm, 1 106 new applications for amnesty were received, while 2 218 application forms were handed out to businesses, Sars said in a statement.
The registration programme will continue until May 31, the deadline for the small-business tax-amnesty period.
”Arising from work already done on the amnesty, 39 small-business owners appeared in the Durban Magistrate’s Court for failing to submit tax returns,” Sars said.
Three properties of businesses were attached and 56 summonses were issued for outstanding tax returns. Customs officials also confiscated 950 cases of illicit cigarettes en route to Johannesburg.
In Gauteng, the Western Cape, the Free State and Mpumalanga, a number of illegal immigrants were detained by home affairs officials, while counterfeit cigarettes and other illicit products were confiscated.
Registration and enforcement should complement the policy and legislative interventions Sars has already put in place to broaden the scope of the amnesty, the service said.
Regulations prescribing the circumstances under which Sars might waive additional tax, interest and penalties for qualifying small businesses were published in the Government Gazette on Friday April 20.
These regulations took effect on publication. They allow small businesses to apply to Sars to have additional tax, interest and penalties waived. Such businesses could already be registered taxpayers and this category was initially excluded from the amnesty legislation. — Sapa