SARS Set to Narrow the “Inadvertent Error”
1. Understanding the Current Law Under the Tax Administration Act, 2011 (TAA), SARS may impose an understatement penalty (USP) whenever a taxpayer makes an error or omission that results in a shortfall of tax.The penalty percentage depends on the taxpayer’s behaviour — ranging from 0% (for a bona fide inadvertent error) to 200% (for intentional…