You might find out that you owe SARS money via SMS or email that you received or when you tried to do an application for a tax clearance. It could be various reasons…
If you are employed, your employer
will deduct PAYE from your salary if you earn more than the tax scale threshold
for a specific year. This however do not necessary exempt you from not filing a
tax return. Here is the current ruling
on whether or not you need to submit an income tax return.
If you are liable to submit an income tax return for a specific year and you are not compliant to the deadline, you can face administrative penalties. These penalties can be levied at R 250 per month of each year outstanding. Very soon you can discover that you owe SARS an enormous amount of money, only due to admin penalties.
Generally SARS will only wave these
admin penalties if you can prove that you were not liable to submit an income
tax return for the specific period.