According to Tax Consulting SA, the move forms part of SARS’s broader strategy to combat tax evasion and ensure that all corporate entities and their directors meet their tax obligations.“However, the persistence of intentional non-compliance among some company directors has necessitated more drastic measures be implemented,” said Tax Consulting SA.
The Tax Administration Act means that directors who fail to ensure the timely submission of their companies’ returns will face major penalties, such as fines and, in some instances, imprisonment. “They argue that stringent enforcement against non-compliant directors will deter others from similar misconduct and ultimately enhance the integrity of the tax regime.”
SARS’s issuance of criminal summonses is part of a broader initiative to strengthen tax compliance in South Africa.