/ 25 May 2007

Tens of thousands make use of tax amnesty

Thousands of small business owners are flooding revenue offices with last-minute applications for tax amnesty before Thursday’s deadline, said the South African Revenue Service (Sars) on Friday.

All Sars offices will be open on Saturday from 8am to 1pm and on Monday to Thursday from 8am until 6pm and officials will help applicants fill in amnesty forms, said Sars spokesperson Adrian Lackay.

”In the past few days Sars offices have been flooded with calls and queues have formed at many of our service points to file amnesty applications,” said Lackay.

Lackay said applications were flooding in at a rate of ”about 2 000 plus” a day and by Friday afternoon Sars had received about 65 000 to 66 000 applications for amnesty since the amnesty period opened on August 1.

”They’re really coming in quite fast.”

Lackay said about 5 000 of those arrived since Finance Minister Trevor Manuel spoke in Parliament on Thursday, when he warned small businesses to make use of the opportunity before it was too late.

”Those who choose not to make use of this unique window period will have to face the consequences of losing their businesses and face up to five years in jail,” Manuel told Parliament.

Lackay said Sars would intensify its campaign next week and thousands of its officials will visit small businesses.

”In addition, an SMS will be sent to taxi operators as well as public-benefit organisations to alert them of their qualification for the amnesty and the looming deadline.

”This is the last chance for small businesses to regularise their tax affairs and avoid prosecution [up to five years imprisonment] and fines.”

Small businesses with a turnover of less than R10-million a year, who defaulted on income tax, VAT and payroll taxes, qualify for the amnesty.

The amnesty call centre can be reached on 0860 1212 20 and information is available on the Sars website. — Sapa