Durban - Small business owners are advised to ensure that if their business tax returns are not up to date that now is the time to get those affairs in order.
Come December, the South African Revenue Service (SARS) will start imposing administrative penalties on companies that receive final demands to submit returns.
Unlike personal taxpayers, companies were not fined in the past for late income tax returns nor for failure to file submissions. However, SARS is now reportedly looking to hit some 300,000 registered companies with fines for failing to submit their income returns.
The exact penalties will depend on your assessed profits or losses and will range between R250 to R16 000 per month while non-compliance continues. That could rapidly add up to a hefty amount for a small business that fails to comply – especially if added to penalties for late payment of taxes.
Here are tips to ensure that you find yourself on the right side of the SARS laws: