Value-Added Tax Act, 1991 (Act No. 89 of 1991)

Part VI - Payment, Recovery and Refund Tax

39. Penalty for failure to pay tax when due

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1)If any person who is liable for the payment of tax and is required to make such payment in accordance with the provisions of section 14, 28(1) or 29, fails to pay any amount of such tax within the period for the payment of such tax specified in the said provisions, the Commissioner must, in accordance with Chapter 15 of the Tax Administration Act, impose a penalty equal to 10 per cent of the said amount of tax.

 

2)[subsection (2) was deleted by the Tax Administration Act, 2011 (Act No. 28 of 2011)].

 

3)If any person who is liable for the payment of tax in accordance with the provisions of section 8(2C) or 8(2D) fails to pay any amount of such tax within the period allowed for the payment of such tax in terms of that section, the person shall, in addition to such amount of tax, pay where payment of the said amount of tax is made on or after the first day of the month following the month during which the period allowed for payment of the tax ended, interest on the said amount of tax, calculated at the prescribed rate (but subject to the provisions of section 45A) for each month or part of a month in the period reckoned from the said first day.

 

4)Where any importer of goods which are required to be entered under the Customs and Excise Act, fails to pay any amount of tax payable in respect of the importation of the goods on the date on which the goods are entered under the said Act for home consumption in the Republic or the date on which customs duty is payable in terms of the said Act in respect of the importation or, if such duty is not payable, the date on which it would be so payable if it had been payable, whichever date is later, the Commissioner must, in accordance with Chapter 15 of the Tax Administration Act, impose on that importer a penalty equal to 10 per cent of the said amount of tax.

 

5)Where any person who is liable for the payment of tax fails to pay any amount of such tax on the date on which in terms of the Customs and Excise Act, liability arises for the payment of the excise duty or environmental levy referred to in section 7(3)(a), the Commissioner must, in accordance with Chapter 15 of the Tax Administration Act, impose on that person a penalty equal to 10 per cent of the said amount of tax.

 

6)[subsection (6) was deleted by the Tax Administration Act, 2011 (Act No. 28 of 2011)].

 

6A)[subsection (6A) was deleted by the Tax Administration Act, 2011 (Act No. 28 of 2011)].

 

7)[subsection (7) was deleted by the Tax Administration Act, 2011 (Act No. 28 of 2011)].

 

8)[subsection (8) was deleted by the Tax Administration Act, 2011 (Act No. 28 of 2011)].