25 July 2007
Pretoria: The South African Revenue Service (SARS) must caution taxpayers
not to be misled by irresponsible tax advice when they complete and submit
their income tax returns.
SARS has taken note of public calls during the last 24 hours from certain
lobby groups who are advising people incorrectly on how to complete their tax
returns in a manner of protest. These calls were evidently made in the name of
fighting crime but ironically, can potentially influence the actions of honest
non suspecting taxpayers into committing a crime themselves.
Withholding tax is a crime. SARS must put it on record that the Income Tax
Act does not allow for individuals to claim expenses for private household
security from their taxable income for the last financial year. Any advice to
the contrary has no legal basis.
SARS will reject such claims from individual taxpayers. Taxpayers must
exercise caution when acting on advice from third parties about their tax
affairs. There are numerous examples locally and internationally of how big
corporate, listed companies went under because of bad tax advice. Individuals
can suffer the same fate! Calls to the public not to pay tax or to make
unlawful claims to the fiscus serve narrow political agendas and go against the
progress which was made over the last decade to raise the levels of tax
compliance in this country.
SARS must warn: we will not stand by idly to see taxpayers being misled by
charlatans during this important time of the year when tax returns are issued,
completed and submitted to SARS. SARS values its relationship with the honest
taxpaying public and will continue to assist those who wish to comply with the
law, with the correct completion of their returns during this year's Filing
Season. The deadline for submission of income tax returns is 31 October
2007
Issued by: South African Revenue Service
25 July 2007
