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NEWSLETTER

ociates Nca ass


Volume 1, Issue 1 21 January 2013

Tax administration actwhat you need to know


tax Acts. The Act creates a single, modern framework for the common administrative provisions of the tax Acts. The purpose of the act is to ensure the effective and efficient collection of tax. SARS is responsible for the administration of this act under the control or direction of the commissioner. The act also provides a platform for future modernisation, by creating one single registration for all tax types. One of the changes to take note of is the new penalty structure. The penalty system is divided into 3 areas namely; Administrative noncompliance penalties, Understatement penalties and Criminal Offences. Administrative non-compliance penalties will then also be divided into two areas namely; fixed amount noncompliance penalties calculated according to a table and percentage based nonpayment penalties calculated according to the rates set out in the tax acts. Understatement penalties will be calculated according to a table and your situation, for example a repeat case will be penalised at a higher rate than a standard first time case. SARS will also regulate the tax practitioners more strictly than before. All tax practitioners must be registered at a controlling body, such as IRBA, SA Legal Practice council and other bodies with at least a 1000 members. SARS may refuse to register a person as a tax practitioner if they committed the following in the last 5 years: Was removed from related profession or professional body or was convicted of theft, fraud, uttering a forged document, dishonesty, perjury or corruption with a sentence of two years imprisonment without an option of a fine. The proposed amendments to the Tax Administration Act as stated in the Tax Administration Amendment Bill includes the amendment to enable SARS to withdraw a tax clearance certificate from the date the taxpayer becomes tax noncompliant during the validity of the tax clearance certificate. Written by: Lozinda Gerber

This Act helps SARS efficiently collect tax.

he Tax Administration Act, 2011 (Act No. 28 of 2011) commenced on 1 October 2012.The Tax Administration Act, 2011 aims to simplify and consolidate, into one Act, a more logical and systematic way of dealing with the tax administration law. It eliminates duplication, removes redundant requirements and aligns different requirements that currently exist in different

Acknowledgements
Congratulations to Fuzzy Lawrence Mosito he completed his Honours in BCom Accounting from the University of Johannesburg in November 2012. Nadia Cronje received her Independent Review Certification from SAIPA in November 2012. This will enable us to finalise and sign off certain financial statements for private companies. We would like to congratulate the following people on their achievements: Maryke Visagie she received her BCompt Accounting Degree from UNISA. Jacob Molosi completed his articles at NCA in April 2012 and has qualified with SAIPA as a Professional Accountant in November 2012. Kalucia Pillay joined us in January 2013, she is our Junior Public Relation Officer. She has previously worked at the University of Johannesburg. Should you have any enquiries, complaints or comments. Please contact Kalucia. You can email her at pr@ncaccounting.co.za or call us on 011 462 4036.

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