Welcome, Guest
Username: Password: Remember me

TOPIC: Voluntry disclosure program - What are the implications

Voluntry disclosure program - What are the implications 4 years 7 months ago #3384

  • Phil
  • Phil's Avatar
  • OFFLINE
  • MSB Junior Member
  • Posts: 1
  • Karma: 0
Hi.

I have a question on the Voluntary disclosure program offered by SARS. I have a small business that started trading in May 2011. It was relatively small for a while and I thought that it was below the taxable threshold. It has grown now to a turnover of about R60 000 - R70 000 a month, about R14 000 profit. I have registered with SARS but have not submitted a return as yet.

My business is essentially a labour broker and when I looked into it I found that labour brokers have to pay tax from cent one, at a rate of 28%. Is this correct? If this is the case I probably owe them a substantial amount of money.

I found the voluntary disclosure program and I just need to know how this works and if this would assist me in rectifying this debt? I find the tax system very confusing and I'm not sure how much trouble I'm in here?

Thanks.
The administrator has disabled public write access.

Re: Voluntry disclosure program - What are the implications 4 years 7 months ago #3386

  • Matthew Haddon
  • Matthew Haddon's Avatar
  • OFFLINE
  • Junior Boarder
  • Posts: 30
  • Thank you received: 8
  • Karma: 3
Hi Phil

Unfortunately there is no quick questions when it comes to vdp applications.

Perhaps i can give you a few pointers though. For one, the vdp will not reduce your tax liability, only any possible interst and penalties. In order to qualify to apply for the vdp you must be certain that the offence would result in a non-disclosure penalty.

In your case, as you only started trading in the beginning of the 2012 tax year, depending in your start ups costs, you might not be liable for any penalties as it is possible you were not required to make any provosional tax payments.

As for paying tax from cent one, that is depending on whether you traded as a sole proprietor or as a personal services company.

Why don't you drop me an email and i can call you and give you a little more info. Perhaps you are also not taking into account other allowable deductions like depreciation and home office that can help reduce your taxable income.

Kind regards,
Matthew
The administrator has disabled public write access.

 

Time to create page: 0.119 seconds