Financial managers and payroll administrators in non-compliant employers will become an extinct species, if the 2003 Budget is anything to go by, says Deloitte & Touche.
According to the Revenue trends and tax proposals section of the Budget, certain employers and vendors that are required to withhold and pay over PAYE, VAT and UIF use these funds for their private purposes.
It is accordingly proposed that disbursing agents and other responsible persons become directly liable if they have direct or indirect authority over withheld funds. According to the memorandum, international experience shows that personal liability contributes to reducing misuse of tax and social security funds.
The aforementioned may have alarming effects for administrators who could find themselves in a potentially compromising position and personally liable.
Taking the current climate of compliance, collection agents (i.e. person`s responsible for PAYE withholding, UIF or VAT) should give serious thought to approaching SARS with full disclosure. In our experience, where SARS is approached, a favourable treatment may often be negotiated.
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