Changes in the Tax Laws of South Africa 2021

On 20th January 2021, President Cyril Ramaphosa promulgated the following Acts that brought about changes in the tax laws of South Africa.

There are ten significant modifications in the enacted legislation that carry severe repercussions for taxpayers who fail to comply, as mentioned in other sources. Here are the key amendments out of the aforementioned ten:

Previously, a taxpayer would only be guilty of a criminal offence for non-compliance under the Tax Administration Act if they “willfully” failed to comply with their tax obligations. With the new amendments, non-compliance will constitute a criminal offence where it is a result of the taxpayer’s negligence. In other words, “intent” is no longer required; where you are non-compliant as a result of ignorance of your obligations, you may be found guilty of a criminal offence. These offences are subject to a fine or imprisonment of up to two years.

Taxpayers need to speak to their advisors to understand these changes, and special heed must be paid to the administrative changes that are now law. The most critical change that applies to all taxpayers is the one that criminalises negligent non-compliance. This and other administrative changes mean taxpayers will be held to a higher standard, which serves as a cue for everyone to take ownership of their tax affairs.”

If you require aid with tax compliance matters and want to prevent potential criminal liability, please get in touch with Onestop Accounting.