Sars on 31 October released its seven-page, “Offences and Penalties - External Policy”, effective on 01 November.
Where it has been established that the Act has been contravened or not complied with, the Commissioner for Sars is empowered to offer Section 91 to the Act to a client as an alternative to prosecution.
The client has the option of accepting or rejecting the offer of Section 91 to the Act. Failure to comply with the request will result in a letter of demand for the underpayments.
Under no circumstances will Customs accept a deposit lodged in terms of Section 91 of the Act under protest.
Goods dealt with in contravention of the provisions of the Act are liable to forfeiture and if the goods are not available at time of a Customs intervention an amount of forfeiture may be imposed.
Where goods have been detained, seized or forfeited, the Commissioner for Sars can direct that the goods are returned to the owner where good cause is shown.
Any person whose rights have been adversely affected by administrative action has the right to be given written reasons, as contemplated in the Constitution of South Africa.
Penalties imposed in terms of the Value-Added Tax Act, 1991 and the Tax Administration Act, are not dealt with here.
