Overview:

Provisional taxpayers are often penalised by SARS, not because the provisional tax was paid late, but as a result of the underpayment of provisional tax due to an underestimation. In this webinar, we will revisit the law relevant to provisional taxpayers and the payment of provisional tax. The webinar will specifically deal with how the estimate of taxable income must be made and the relevance of the ‘basic amount’ in this respect. The presenter will then specifically explain when SARS can, or must, levy the estimation penalty, and the remedies that are available to the provisional taxpayer to have the penalty remitted. The final issue will relate to interest where the additional payment was not made by the provisional taxpayer.

Course Content:

In this webinar the following questions will be answered:

Provisional tax:

1. Who are provisional taxpayers and who are excluded?
2. Must a person register to be a provisional taxpayer?
3. What are the obligations of a provisional taxpayer?
4. When, and by whom must provisional tax payments be made?
5. How is the amount to be paid by way of provisional tax calculated?
6. How is the estimate determined?
7. What are the consequences if the provisional taxpayer fails to submit an estimate?
8. How accurate must the estimate be?
9. What is the basic amount and can the basic amount can used as an estimate?
10. What is the 14-day rule; and when is the basic amount increased?

Penalties:

1. When can, or must SARS, levy the understatement penalties?
2. What remedies are available to the provisional taxpayer?
3. When is the late payment penalty imposed and what can be done to have it remitted?

Interest:

1. When must a provisional taxpayer pay interest?
2. Is there any relief from paying interest, or an instance where the provisional taxpayer doesn’t have to pay it?