Voluntary Disclosure Relief by SARS

The Voluntary Disclosure Programme (VDP) was strategically implemented to allow individual, company or trust taxpayers to regularise and remain compliant in their tax affairs. SARS encourages taxpayers to voluntarily disclose their neglect under the VDP to avoid penalties and criminal prosecution and to settle outstanding taxes with SARS.

This legal instrument is objectively aligned to promote voluntary compliance whilst lowering the cost of compliance. It is also permanently available to qualifying parties seeking help and advice from SARS. Individuals or businesses that refuse to comply with their tax obligations could face penalties ranging from R250 to R16,000 per month for each non-compliant month.

As per sars.gov.za, a defaulting taxpayer will be granted relief under the VDP programme if the application meets the following requirements:

  • The disclosure must be voluntary;
  • The disclosure is complete in all material respects;
  • The disclosure involves a default which has not occurred within five years of the revelation of a similar default;
  • The disclosure involves a behaviour referred to in the understatement penalty table in Section 223 of the Tax Administration Act;
  • The disclosure would not result in a refund due by SARS; and
  • The disclosure is made in the prescribed form and manner.

Voluntary Disclosure Programme application allotments to SARS can take months, with the current waiting time estimated at 201 interest accumulative days. PRN offers expert tax services and is committed to providing current information on all tax matters and legislation. Contact us today for an advisory service tailored to best suit your needs.

Source: https://www.sars.gov.za/legal-counsel/voluntary-disclosure-programme-vdp/