Sars what is a vdp agreement

In order to properly interpret the provisions, the court held it necessary to first set out the context of the VDP. The court further held that the interpretation argued for by the taxpayer — that an application is always voluntary if no notice of audit or investigation has been issued — was too narrow. To stay up to date on the latest legal developments that may potentially impact your business, subscribe to our alerts, seminar and webinar invitations by completing this form.

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Some considerations for SA residents. In addition to the administrative non-compliance penalties, the Tax Administration Act No. Further, if this shortfall exists, it must exist because the taxpayer:.

The penalty is calculated by means of a table, found in section of the TAA, and set out here below. The penalty amount is effectively calculated based on the type of behaviour or the degree of culpability involved. Should a taxpayer fall into more than one category e.

A quick look at each of the behaviours:. Reasonable care not taken in completing return — This term is not defined in the TAA, therefore the ordinary meaning applies, i. Gross negligence - Similar to the test for reasonable care, this in an objective test also based on what a reasonable person would foresee as conduct creating a high risk of tax shortfall, and involves recklessness.

Intentional tax evasion — This is the most severe penalty for understatement, and could exist where a taxpayer makes a false statement in a return or even where a return is not filed. Practically, it may be difficult to distinguish from an act of gross negligence. Cross-border Consultation R 1, Customs Registration. Customs Registration R 4, Dividend Withholding Tax Return Submission. Emigration: Tax Residency Consultation.

Emigration: Tax Residency Consultation R 3,