Vat basics: It’s a criminal offence to commit these seven acts

43984, 30 Sep. 2014

Tags: sars, criminal offences

If you think being hit with financial penalties is the worst thing that could happen when you don’t comply with Vat law, think again.
There are certain offences that result in jail time!
Don’t believe us?
Take a look at seven acts you could be held criminally liable for so you can steer clear of them.

Be warned! You can be held criminally liable for these seven contraventions
  1. Failing to comply with a directive or instruction issued by SARS under a tax Act;
  1. Failure to disclose to SARS any material facts you should’ve disclosed under the Tax Admin Act (TAA) or you don’t notify SARS of anything you’re required to under a tax Act;
  1. Obstructing or hindering a SARS official from doing his duties;
  1. Refusing to give SARS help when it comes to a field audit or a criminal investigation (section 49(1), TAA);
  1. Pretending to be a SARS official and carrying out the provisions of the TAA when you’re not a SARS employee;
  1. Dissolving a taxpayer’s assets or helping another person to dissolve assets in an effort to prevent the collection of tax, penalties and interest.
  1. Failing to comply when SARS gives you notice to transfer assets or pay an amount. This is specifically about:
  • Third party liability if you’re appointed by SARS to satisfy tax debts;
  • Liability for tax debt financial management;
  • Shareholder liability tax debts; or
  • Transferee liability for tax debts.
If you willfully commit any of these acts without just cause, the TAA says you’re “guilty of an offence”. If a court finds you guilty, you’ll face a fine or jail time of up to two years.
Don’t take chances! Be honest with your Vat affairs and stay away from these acts, it’s not worth it.

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