South African Revenue Service on Small Business Tax Amnesty

Taking amnesty to businesses

19 March 2007

The South African Revenue Service (SARS) is continuing its efforts
throughout the country to encourage business owners through on-site visits to
apply for the Small Business Tax Amnesty.

Over the last week teams of SARS officials visited a large number of
businesses in designated areas to ensure business owners 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.

Today SARS officials visited 97 small businesses in Beaufort-West in the
Western Cape to check the levels of tax compliance and assist businesses to
apply for amnesty. The Karoo town is a fast-growing centre of economic activity
in the Western Cape, in particular the transport sector and associated
services. About 20 applications for amnesty were received.

On Friday the amnesty unit received 201 small business tax amnesty
applications on the spot during an outreach drive in Gauteng. The registration
drive consisted of inspections in Springs and Pretoria.

SARS had identified specific business locations based on a risk assessment
of the levels of tax compliance in these areas.

The inspections were exceedingly successful. In Pretoria, SARS officials
visited 593 businesses located in Bloed and Van der Walt Streets and received
158 amnesty applications. As many as 53 additional businesses have been
earmarked for follow-up inspections.

In Springs on Friday the SARS effort was complemented with assistance from
the Department of Home Affairs and the South African Police Service (SAPS).
Businesses in the area are largely owned by foreign nationals operating
small-scale retail shops.

The inspections secured 43 amnesty applications from the 217 businesses that
were visited. During the inspection 11 boxes of counterfeit cigarettes were
also seized and 6 unlicensed and unroadworthy vehicles were impounded. A hair
salon owner was also arrested for being in possession of 2 grams of cocaine
(more information available from the SAPS).

The small business tax amnesty was announced by the Minister of Finance
during the 2006 Budget Speech last year. The amnesty window period for
businesses with a turnover of less than R10 million per annum expires on 31 May
this year.

To date SARS has received close to 18 000 applications for amnesty.

The contact details for the SARS Small Business Tax Amnesty Unit, where
enquiries can be referred to or application forms obtained from are:

Call Centre number: 0860 121 220
Fax: (011) 602 5502
E-mail: sbau@sars.gov.za

Enquiries:
Adrian Lackay
Tel: (012) 422 4206
Cell: 083 388 2580

Issued by: South African Revenue Service
19 March 2007

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