The Facts

Whilst, in our experience, tax moral is indeed low, SARS is entitled to , and indeed does, levy penalties and pursue criminal prosecution against taxpayers who do not pay tax on time, does not submit tax returns or do not pay the correct amount of tax. The Tax Administration Act, however, allow taxpayers to avoid penalties and criminal prosecution through the Voluntary Disclosure Program (VDP).

The Relief

The VDP provides qualifying taxpayers with relief from certain percentage based penalties, understatement penalties and criminal prosecution which, but for a VDP application, will otherwise be imposed by SARS.

The Saving

This process can save taxpayers millions of rands in penalties, not to mention keeping taxpayers out of jail.

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The requirements for valid applications are,
amongst others, that

the VDP disclosure must be voluntary;

UNDISCLOSED DEFAULT

the disclosure must involve a previously undisclosed default;

FULL AND COMPLETE

the disclosure must be full and complete in all material respects;

NO REFUND

not result in a refund; and

PROCEDURE

use correct forms and follow correct procedures.

For an application to be full and complete in all material respects it is vitally important to understand the tax law surrounding the non-disclosure in question. Mistakes or incorrect tax positions in an application will result in the taxpayer ultimately not getting relief from penalties and interest.

This process is preemptive in nature. If you already have a penalty imposed, VDP is not available but there are other remedies available(see tax penalties)

We have successfully obtained VDP relief for hundreds of taxpayers and saved hundredsof thousands of rands in penalties. We are very comfortable with the process, the pros, cons and tax law surrounding
same.

Our Services

We Provide Highly
Reliable & Effective Tax Solutions

For the right solution to your tax concerns, you need tax professionals with the skill, integrity and experience to deliver.