SARS recently introduced a system to increase the PAYE deduction from individuals who receive multiple annuities and/or pensions – or in some cases individuals who earn rental, and other income – in a bid to reduce the likelihood of underpayment penalties and interest being levied on assessment.

Voluntary tax compliance by taxpayers have been undermined by factors such as poor service delivery among other public perceptions hampering tax collections by the South African Revenue Services (“SARS”).

Mr. S concludes an agreement to sell fixed property (“Property S”) to Mr. P on 20 January 2021, subject to Mr. P concluding an unconditional agreement of sale to sell his own fixed property (“Property P”) by 20 February 2021. Mr P concludes an unconditional agreement for the sale of Property P on 2 February 2021. The Deeds Office registers the transfer of Property S on 20 May 2021.

Recent South African case law emphasises the extreme importance of ensuring tax returns are completed accurately. The incorrect disclosure of factual information in a tax return could have far-reaching consequences for the taxpayer – despite such incorrect disclosure being innocently made.