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New! SARS: VDP Guide
- 12 September 2023
- Accounting
- South African Accounting Academy
This represents the 1st issue of the draft guide that was issued in 2021.
The VDP was introduced as a permanent measure to increase voluntary compliance in the interest of enhanced tax compliance, good management of the tax system, and the best use of SARS resources. Intended to encourage taxpayers to voluntarily disclose tax defaults, the VDP is administered under Part B of Chapter 16 and contains the requirements for a valid voluntary disclosure and available relief.
The VDP is applicable to all taxes administered by SARS, except for the customs and excise legislation. Taxpayers qualifying for the VDP will (on the conclusion of a valid voluntary disclosure agreement) be granted relief on applicable understatement penalties, qualifying administrative penalties, criminal prosecution in relation to a valid voluntary disclosure, and the conclusion of the voluntary disclosure agreement.
When dealing with provisions creating tax privileges, such as the VDP, a strict interpretation is applied to determine whether an applicant meets all the requirements under Part B of Chapter 16 to qualify for voluntary disclosure relief.
Click here to download the New Guide:
Relevance to Auditors, Independent Reviewers & Accountants:
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The Tax Administration Act is yet another piece of legislation that your clients must comply with, and which you must assess compliance with. If they don’t comply with the relevant laws and regulations, you have certain reporting obligations in terms of NOCLAR (Non-Compliance with Laws And Regulations) – this could include reporting to management, qualifying your audit opinion, reporting a Reportable Irregularity, etc.
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As an auditor, independent reviewers, accountants and tax practitioners may assist taxpayers who intend to voluntarily disclose tax defaults, and therefore, they must know the contents of this guide.
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Tax practitioners play a critical role in bridging the gap between taxpayers and SARS. As legislation, regulations and tax law are continuously changing and evolving, it is of utmost importance for companies and tax practitioners to keep abreast of such changes in so that companies continue to meet their tax obligations.
Relevance to Your Clients:
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Taxpayers (whether an individual, entity, company or close corporation) have a duty to comply with the Tax Administration Act, otherwise, they could be held liable.
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As legislation, regulations and tax law are continuously changing and evolving, it is of utmost importance for companies to continue to meet their tax obligations.
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Taxpayers who intend to voluntarily disclose tax defaults must know the contents of this guide.