Last year SARS' Logan Wort took me to task for suggesting that the relationship between SARS and taxpayers is an adversarial one. However, some of this month's articles seem to indicate that SARS is becoming far more aggressive in its efforts to collect amounts due.
Does SARS have the right to enact its own legislation, thereby bypassing Parliament? Looking at Section 76P of the Income Tax Act, it appears as though they do - but is this acceptable in a democratic society?
Section 12H was introduced into the Income Tax Act in 2002, and grants an additional tax allowance in respect of recognised learnership agreements entered into by employers. This allowance, which is over and above the normal deduction claimed by employers in respect of remuneration costs, is designed as an incentive for the training of employees to develop skills and create jobs. It comprises both a commencement and completion allowance.
The more I get involved in tax matters, the more I become convinced of the KISS principle - Keep It Simple, Stupid. For the more we try to complicate matters, the more likely it becomes that our convoluted mechanisms will trip us up.
The Income Tax Act 58 of 1962, as amended, imposes various penalties on a taxpayer for default, omission, error, or the late submission of tax returns. Section 75 creates various offences under the Act, for example, if a taxpayer submits a late return, fails to register as a taxpayer for the relevant year of assessment, fails to submit any return or document so required, or defaults in a material sense as is envisaged by that Section.