including those that are dormant and not tradingHobbs warned that directors and entrepreneurs that continue to ignore the tax compliance of a dormant company would result in an unwelcome surprise from the South African Revenue Service .
According to Hobbs, last year, the taxman issued a notice stating that from 1 December 2022, administrative penalties will be charged for late submissions of income tax returns which are outstanding from 2007 to 2020. “The penalties accrue monthly and are based on the estimated taxable income available to SARS, ranging from R250 to R16,000 per month and remain due to SARS for payment even after the submission of the tax returns,” said Hobbs.
These penalties can vary heavily; the CEO said that in one case, a new client of theirs received a notification from the revenue service that a penalty for a dormant company that they neglected had reached over R175,000.
Just love it when SARS issues WARNINGS- you have warned😝We the taxpayers wish to warn SARS to ensure our monies are not embezzled.