Changes in the Tax Laws South Africa. President Cyril Ramaphosa has promulgated the following Acts on 20 January 2021:
- Tax Administration Laws Amendment Act, 2020
- Taxation Laws Amendment Act, 2020
- Rates and Monetary Amounts and Amendment of Revenue Laws Act, 2020
There are ten critical changes in the promulgated laws with severe consequences for non-compliance by tax-payers as reported elsewhere. Herewith the most important of those ten changes:
“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 as 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 important change that applies to all taxpayers is the one that criminalises negligent non-compliance. This and other administrative changes mean that taxpayers will be held to a higher standard, which serves as a cue for everyone to take ownership of their tax affairs.”https://accountingweekly.com/10-key-changes-to-tax-rules-and-some-of-them-are-troubling/
Contact Onestop Accounting today if you need any assistance in tax compliance matters and avoid potential criminal liability in these matters.