Most Read Contributor in South Africa, September 2016
The Voluntary Disclosure Programme ("VDP") formally
closed on 31 October 2011.
In terms of the process, applicants had to complete a VDP01 form
either through e-Filing or by submitting the form to a South
African Revenue Service ("SARS") branch office. The form
had to be accompanied by supporting documents setting out the
background relating to the defaults, as well as the
Section 7 of the Voluntary Disclosure Programme and Taxation
Laws Second Amendment Act No. 8 of 2010 provides that after the
submission of the application, a written Voluntary Disclosure
Agreement will be entered into between the Commissioner and the
applicant. Section 9 further provides that once a Voluntary
Disclosure Agreement has been concluded, an assessment will be
issued to give effect to the agreement.
However, if you thought that once the application had been
submitted that that was the end of the process, you are mistaken.
The further process to finalise a VDP application appears
Applicants under the VDP are required to re-complete their tax
returns for the relevant years, namely, 2005 to 2009, by combining
the original information submitted in the tax return with the
information supplied in the VDP01 form. The documents have to be
completed manually – the documents provided cannot be
completed or filed electronically. This process is not referred to
in the legislation.
Taxpayers should take note that the process to complete the
documents required by SARS is time consuming and cumbersome. It
would be wise to ensure that all the tax returns filed previously
are readily available.
By adopting this process, SARS has created the need for human
intervention as the information provided will have to be manually
transcribed, which increases the potential for errors.
It would have been preferable and more efficient if SARS had
made the previous returns submitted by taxpayers available to them
to amend via e-Filing.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
Effective collaboration amongst government agencies, automation of processes and capacity building by tax authorities have always been identified by stakeholders as strategies for achieving an efficient tax system.
In response to information provided by FIRS, NSE has sent letters to publicly listed companies, who were purportedly identified by FIRS as non-compliant.
Some comments from our readers… “The articles are extremely timely and highly applicable” “I often find critical information not available elsewhere” “As in-house counsel, Mondaq’s service is of great value”
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).