South African Revenue Service on small business tax amnesty

South African Revenue Service (SARS) intensifies efforts for
the small business tax amnesty

9 March 2007

Pretoria: The South African Revenue Service (SARS) will today intensify its
campaign to encourage small business owners to apply for amnesty when a number
of SARS officials will visit various business premises in Hatfield,
Pretoria.

The visits will establish whether these businesses, operating mostly, on the
formal side of the economy, are registered for tax, have any outstanding issues
with SARS and are aware of the small business tax amnesty or whether they had
applied for the amnesty.

During today's initiative in Hatfield businesses operating outside the tax
net will be firmly cautioned that they are breaking the law.

The team of about 40 SARS officials will be led by the SARS executive and
will leave amnesty application forms with each business that qualifies for the
amnesty and will offer assistance to business owners on how to apply.

Business owners will be given a timeframe during which to complete the
amnesty form. SARS will record their details and will conduct follow-up visits
to each business premises that are found to be non-compliant. SARS will
consider whether or not to commence with audit activities and possible
prosecution in the case of non-compliance.

Today's action is in line with the commitment the Minister of Finance made
to Parliament and the public in this year's budget speech in respect of the
small business tax amnesty. SARS will continue to intensify its efforts to
ensure that all businesses are afforded the opportunity to apply for
amnesty.

Similarly business owners must understand that the amnesty process is a
unique window opportunity for them to regularise their tax affairs. The message
to businesses in the Hatfield area today was that SARS will increase its
enforcement action against tax defaulters if they continue to operate as
non-compliant taxpayers in future.

Non-compliant business owners must understand that the deadline for the
amnesty remains 31 May 2007. After the deadline SARS will assume a vigorous
enforcement campaign against businesses that are not tax compliant.

The amnesty period took effect in August 2006 and is available to businesses
with a turnover of less than R10 million.

To date SARS had received 15 383 application forms from business owners.
SARS is aware of the fact that there are many more businesses that may require
amnesty.

The intensified SARS amnesty campaign in Pretoria today will extend to other
parts of the metropole over the weekend and will continue on Monday. SARS has
identified areas where small business activity is concentrated and has grown
exponentially in recent times.

Similar visits to business areas will take place in other regions of the
country over the next few weeks.

The contact details for the SARS small business tax amnesty, where enquiries
can be referred to or application forms obtained from, are:

Call centre number: 086 012 1220
Fax: (011) 602 5502
E-mail: sbau@sars.gov.za
Postal address: P O Box 292, Groenkloof, 0027

For further enquiries please contact:
Adrian Lackay
SARS Communications
Tel: (012) 422 4206
Cell: 083 388 2580

Issued by: South African Revenue Service
9 March 2007

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