Durban - At least ten KwaZulu-Natal businessmen have been convicted and sentenced for failing to submit their tax returns, since April 2018. Meanwhile, fines ranging from R2000 to R20 000, as well as admission of guilt fines have been handed down by the courts.
In April, SARS said they were embarking on a venture with the National Prosecuting Authority, to enforce compliance by prosecuting those taxpayers who failed to submit their tax or VAT returns.
SARS said despite continuous communications with the defaulters, no returns were filed.
“The taxpayers who have been convicted now have a criminal record, as it is a criminal offence not to submit a tax return within the prescribed time for any of the tax types a taxpayer is registered for in terms of the Tax Administration Act No. 28 of 2011 (TAA), specifically Section 234 (d),” SARS said in a statement.
They added that since April, the NPA has issued 35 summonses to taxpayers and VAT vendors to face criminal charges relating to their failure to submit returns. To date, ten cases have been finalised and 20 cases have been remanded after the first appearance of the relevant taxpayers in court. Some taxpayers have opted to make representations to the NPA.
“An additional 24 cases have been handed over to the police for further investigation, while 25 cases are currently still under investigation by SARS criminal investigations for handover to the relevant authorities for further investigation and possible prosecution. The courts have issued three warrants of arrest to taxpayers who failed to appear in court after being summoned to face criminal charges for non-submission of tax returns,” the statement read.