PRETORIA: Failure to regularise your affairs with SARS may place taxpayers at risk, should they be selected by SARS for an audit.
The South African Revenue Service (SARS) has announced its wishes to advise property owners who host fee-paying guests that the rental income must be declared in their income tax return.
“This is the same principle that applies to any person who has rental income from letting out their property as a home-owner, placing them under the same obligation to declare such rental income to SARS,” said the agency.
On 11 March 2021, the Sars announced that property owners who host fee-paying guests to also register as VAT vendors with the accompanying obligations, if the short-term rental income exceeds R1-million in a 12 month period.
The agency says it has been working hard to provide clarity and certainty for taxpayers to enable them to meet their obligations effortlessly and also strives to make it easy for taxpayers who are willing to comply.
Failure to regularise your affairs with SARS may place taxpayers at risk, should they be selected by SARS for an audit.
“We also strive to make it easy for taxpayers who are willing to comply, our approach has always been that every taxpayer should pay their fair share. We are, however, equally determined to make it hard and costly for non-compliant taxpayers not willing to meet their obligations,” they said in a statement.
“We are working hard to improve system capabilities, in order to detect those taxpayers who do not comply by using data to identify risk,” SARS added.
Property owners who have not declared rental income tax return to date, are encouraged to regularise their affairs with immediate effect.
Affected Taxpayers may choose to use Voluntary Disclosure Programme (VDP) which offers more favourable terms in terms of the penalty amount than to be selected for an audit.
“Taxpayers are reminded that failure to comply with their tax obligations may result in administrative penalties being imposed in addition to interest, or even criminal action being taken against them,” they added