For those of you who were not able to attend, at the short notice given, one of the meetings that SARS called for tax-exempt organisations, C.  Masters Development Services (CMDS) would like to spell out the opportunity that remains for non-profit organisations to apply for tax amnesty.

As you will be aware, non-profit organisations need to consider 3 types of tax registration:

• As an employer, for employees’ income tax, UIF and Skills Development levies;
• As a “vendor” for value-added tax; and
• As a non-profit organisation, for income tax exemption on net income.

If your organisation has not registered, or obtained exemption, when it should have done, the tax amnesty route is open to you if the gross income was less than R10 million in the tax year ended 28th February 2006.

Similarly, if your organisation is registered with SARS but has not fully declared its employment taxes due and/or its income, the amnesty route is also available (subject to the same income limit of R10 million). Amnesty would be applicable to outstanding tax/levy debts as at 31st December 2006 and all penalties and interest as at that date would also be waived (up to a maximum of R1 million!).

Successful applicants for amnesty will be granted relief from the payment of the following taxes/levies, and the submission of outstanding returns, for the following periods:

• Employees tax (PAYE), UIF contributions and skills development levies – for periods up to 28th February 2006.
• Value-added tax – for periods up to 28th February 2006.
• Income tax – for years prior to the 2006 year of assessment.

There will, however, be a tax amnesty levy (maximum 5%) relating to income tax (but not to any of the other taxes). This will only apply to organisations that are not income tax exempt.

To apply for amnesty, you will need to complete forms available on the SARS website – click on the “small business tax amnesty box” and then on “forms”:

• SBA 001 (for “normal” amnesty); and/or
• SBA 001R (for penalties and interest).

The form(s) will need to be accompanied by the relevant tax forms for tax year 2006 and a financial statement for that period. If these are not readily available, SARS will grant a further 60 – 90 days to submit these. The essential deadline is to make sure that you submit the form(s) by 30th June 2007.

CMDS realises that there is little time left for deciding on whether or not to apply for amnesty but we recommend that you consider this option seriously if there any of your tax matters that need regularising. You could speak to your local SARS office or to your auditors if you need further advice, or you are welcome to contact us.

For those of you who were not able to attend, at the short notice given, one of the meetings that SARS called for tax-exempt organisations, C.  Masters Development Services (CMDS) would like to spell out the opportunity that remains for non-profit organisations to apply for tax amnesty.

As you will be aware, non-profit organisations need to consider 3 types of tax registration:

• As an employer, for employees’ income tax, UIF and Skills Development levies;
• As a “vendor” for value-added tax; and
• As a non-profit organisation, for income tax exemption on net income.

If your organisation has not registered, or obtained exemption, when it should have done, the tax amnesty route is open to you if the gross income was less than R10 million in the tax year ended 28th February 2006.

Similarly, if your organisation is registered with SARS but has not fully declared its employment taxes due and/or its income, the amnesty route is also available (subject to the same income limit of R10 million). Amnesty would be applicable to outstanding tax/levy debts as at 31st December 2006 and all penalties and interest as at that date would also be waived (up to a maximum of R1 million!).

Successful applicants for amnesty will be granted relief from the payment of the following taxes/levies, and the submission of outstanding returns, for the following periods:

• Employees tax (PAYE), UIF contributions and skills development levies – for periods up to 28th February 2006.
• Value-added tax – for periods up to 28th February 2006.
• Income tax – for years prior to the 2006 year of assessment.

There will, however, be a tax amnesty levy (maximum 5%) relating to income tax (but not to any of the other taxes). This will only apply to organisations that are not income tax exempt.

To apply for amnesty, you will need to complete forms available on the SARS website – click on the “small business tax amnesty box” and then on “forms”:

• SBA 001 (for “normal” amnesty); and/or
• SBA 001R (for penalties and interest).

The form(s) will need to be accompanied by the relevant tax forms for tax year 2006 and a financial statement for that period. If these are not readily available, SARS will grant a further 60 – 90 days to submit these. The essential deadline is to make sure that you submit the form(s) by 30th June 2007.

CMDS realises that there is little time left for deciding on whether or not to apply for amnesty but we recommend that you consider this option seriously if there any of your tax matters that need regularising. You could speak to your local SARS office or to your auditors if you need further advice, or you are welcome to contact us.

For those of you who were not able to attend, at the short notice given, one of the meetings that SARS called for tax-exempt organisations, C.  Masters Development Services (CMDS) would like to spell out the opportunity that remains for non-profit organisations to apply for tax amnesty.

As you will be aware, non-profit organisations need to consider 3 types of tax registration:

• As an employer, for employees’ income tax, UIF and Skills Development levies;
• As a “vendor” for value-added tax; and
• As a non-profit organisation, for income tax exemption on net income.

If your organisation has not registered, or obtained exemption, when it should have done, the tax amnesty route is open to you if the gross income was less than R10 million in the tax year ended 28th February 2006.

Similarly, if your organisation is registered with SARS but has not fully declared its employment taxes due and/or its income, the amnesty route is also available (subject to the same income limit of R10 million). Amnesty would be applicable to outstanding tax/levy debts as at 31st December 2006 and all penalties and interest as at that date would also be waived (up to a maximum of R1 million!).

Successful applicants for amnesty will be granted relief from the payment of the following taxes/levies, and the submission of outstanding returns, for the following periods:

• Employees tax (PAYE), UIF contributions and skills development levies – for periods up to 28th February 2006.
• Value-added tax – for periods up to 28th February 2006.
• Income tax – for years prior to the 2006 year of assessment.

There will, however, be a tax amnesty levy (maximum 5%) relating to income tax (but not to any of the other taxes). This will only apply to organisations that are not income tax exempt.

To apply for amnesty, you will need to complete forms available on the SARS website – click on the “small business tax amnesty box” and then on “forms”:

• SBA 001 (for “normal” amnesty); and/or
• SBA 001R (for penalties and interest).

The form(s) will need to be accompanied by the relevant tax forms for tax year 2006 and a financial statement for that period. If these are not readily available, SARS will grant a further 60 – 90 days to submit these. The essential deadline is to make sure that you submit the form(s) by 30th June 2007.

CMDS realises that there is little time left for deciding on whether or not to apply for amnesty but we recommend that you consider this option seriously if there any of your tax matters that need regularising. You could speak to your local SARS office or to your auditors if you need further advice, or you are welcome to contact us.