After notification of an audit or investigation - A person in this position may not qualify for the VDP, unless a senior SARS official directs otherwise. The application need only contain sufficient information for the ruling to be issued. Therefore, should the confidential application not be successful, that person need not bother applying for relief, and vice versa.
Underlying default - A default must exist which led to the taxpayer not being assessed for, or not paying, the correct amount of tax or receiving an incorrect refund.
Should a person qualify for relief, an agreement will be concluded between the qualifying person and the senior SARS official, detailing amongst others the amount of tax and understatement penalty payable. Upon conclusion of this agreement, an assessment will be issued.
Understandably, no right of objection or appeal lies against this assessment. Lastly, if a material factor was not disclosed, relief may be withdrawn and criminal prosecution pursued.
A VDP Voluntary Disclosure Programme is a process by which SARS extends an opportunity to taxpayers to regularise their tax affairs by disclosing any defaults on their income taxes for prior periods of assessment. A successful applicant usually receives a waiver from penalties imposed, and must only settle the outstanding income tax liability and accrued interest on overdue payment.
VDP is not a new concept within the South African tax system. A VDP period was announced from November to October which attracted more than 18, applications, of which all penalties except penalties relating to late submission or late payment were waived. Criminal prosecution was also not pursued. As part of the Tax Administration Act no. Q: What are the requirements for a representative person to apply on behalf of the taxpayer?
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Share on twitter Twitter. Share on linkedin LinkedIn. Share on email Email. Share on print Print. Guide for the Voluntary Disclosure Programme. Guide for the Special Voluntary Disclosure Programme. If the eFiling system recognised the application, then the application is on the VDP register and will be processed The applicant will be contacted when the application is allocated to a VDP evaluator for processing.
Additional or outstanding supporting documentation can then be submitted A VDP application can at any time be cancelled by sending an email to [email protected] Corrected or amended tax returns that related to a VDP application can be submitted to SARS through normal channels at any time before the VDP application is processed. Page Content. Some of the key concerns discussed by Webber Wentzel and other participants in the survey were: significant and persistent delays with processing of VDP applications.
The current, average turnaround time is working days; the need for further clarity from SARS in the form of an interpretation note and a comprehensive update on the existing guide to the VDP process; the VDP Unit's inflexibility on questions of interpretation; a heavy-handed approach to processing VDP applications e.
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