Deadline looms in Sars’ Voluntary Disclosure Programme

Time is running out for businesses who plan to take advantage of SA Revenue Service’s Voluntary Disclosure Programme (VDP) – with October 31 the final deadline. The Minister of Finance, Pravin Gordhan, announced in his Budget Speech in February last year that legislation would be prepared to introduce a VDP that would be effective from November 2010 to October 2011. ”Combined with the growing availability and accuracy of third party data from financial institutions, employers and other sources, there are very few places for the non-compliant to hide,” he said. “The Voluntary Disclosure Programme allows for the waiving of penalties of up to 200% for those who make a full, honest and voluntary disclosure of prior evasion.” The aim of the VDP is to encourage applicants to disclose their defaults and to give them the opportunity to regularise their tax affairs (Tax VDP) and/or any contraventions under the Exchange Control Regulations (Excon VDP).