Tax amnesty for small businesses
29 March 2007
South Africa's tax amnesty for small business - running until 31 May - gives businesses with a turnover of less than R10-million per annum a chance to regularise their tax affairs without fear of penalties for previous non-compliance.
"Interaction with small businesses has shown that many want to be legal but are afraid that the costs of joining the mainstream economy (especially the cost of having to pay many years of back tax) outweigh the immediate benefits," the SA Revenue Service (Sars) says on its website.
The tax amnesty "takes away this cost and allows [small businesses ] to become tax compliant without punishing them for the past."
It also aims to broaden the country's tax base and increase its culture of tax compliance.
According to Sars, close to 18 000 businesses have already applied for the amnesty. Sars' Small Business Amnesty Unit has been conducting roadshows around the country to check levels of tax compliance and
help small businesses apply for the amnesty.
The amnesty caters for businesses - such as taxi operators and street vendors - with a turnover of less than R10-million per annum.
After the deadline, Sars "will assume a vigorous enforcement campaign against businesses that are not tax-compliant," spokesperson Adrian Lackay warned last week.
For more information, visit Sars' Small Business Tax Amnesty web page or contact Sars' Small Business Amnesty Unit:
- Call centre: 0860 12 12 20
- Fax: 011 602 5502
- E-mail: sbau@sars.gov.za
- Postal address: P O Box 292 Groenkloof 0027
SouthAfrica.info reporter
| 
