• The South African Revenue Service (SARS) has issued an apology over SMSes that were went out to taxpayers, warning of potential legal action should they fail to submit their returns.
• While SARS has the authority to take legal action against taxpayers, it must first engage with them before doing so.
• The agnecy has since outlined what conditions require companies to file reurns.

Business owners in South Africa may have received an unwelcome SMS from the South African Revenue Service (SARS) this week warning them of potential legal action should they fail to submit their returns.

The SMSes were sent out as this week the deadline for non-provisional taxpayers was this 23rd October.

With many taxpayers understandably taken aback by the text messages from SARS, the agency has since issued an apology, along with putting a hold on said SMSes.

“The SMS that was sent out earlier this week, in relation to outstanding returns fell short of the high professional standard we seek to uphold. SARS therefore sincerely apologises for the manner in which this matter was handled, the frustration it may have caused honest taxpayers, and any inconvenience caused,” it shared in a statement.

The organisation reiterated that the intention of the text messages missed the mark as far as tone was concerned, but did stress that taxpayers are legally obliged to submit their returns.

“While SARS is empowered by law to remind all taxpayers that are still registered with SARS of their legal obligation to file their relevant returns by the due date, SARS does not commence legal action before engaging with taxpayers,” it added per SA News.

The entity further outlined the conditions under which a company is obliged to submit a return.

• “Derived gross income of more than R1 000;
• Held assets with a cost of more than R1 000 or had liabilities of more than R1 000, at any time;
• Derived any capital gain or capital loss of more than R1 000 from the disposal of an asset to which the Eighth Schedule of the Income Tax Act applies; and/or
• Had taxable income, taxable turnover, an assessed loss or an assessed capital loss.”

“SARS will engage with taxpayers with respect to outstanding returns at the appropriate time. We need to be clear that taxpayers who continue to ignore reminders and fail to regularise their tax matters, in accordance with the law, will eventually have to answer for their continued non-compliance. Lastly, SARS appreciates the effort of honest taxpayers who diligently comply and fulfil their obligations. We value your valuable contribution to the important work incumbent on us,” the statement concluded.

With the deadline for provisional taxpayers set for 24th January 2024, it will be interesting to see whether another flurry of threatening SMSes will be sent out too.

[Image – Photo by Andrej Lišakov on Unsplash]