Understatement Penalties


Understatement Penalties Waived

SARS normally imposes understatement penalties following an audit. These penalties can be as high as 200% of the tax not paid (although in our experience, they are normally in the 25% to 150% region). This penalty is often financially debilitating. It may even threaten to close you down.

Whilst SARS does have a discretion to remit these penalties, their discretion is very limited. This limited discretion makes it difficult to get around the penalty.

However, our unique approach to combating understatement penalties has been hugely successful (100% success rate) and has been vented in litigation proceedings (pre-trial) against SARS. Our approach is almost certain to result in a complete waiver or substantial reduction of understatement penalties in almost any case. For our approach to work, however, you need to contact us as soon as possible. Preferably, from the first time SARS proposes such a penalty (typically when SARS issues their audit letter) if not sooner.

If you have a qualifying case we will work on a no success no fee basis, meaning, if we don’t get the penalty either waived or reduced, you don’t have to pay for our services. Our team of master tax practitioners, lawyers and ex-SARS auditors, lead by Nico Theron, author of a book on how to challenge SARS’ assessments and decisions, can take your case all the way to Tax Court.

Please complete the form below or contact us directly here if you are interested in making use of our services.

Kindly note that client acceptance is at our sole discretion.

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