Page 40 - P6 Slide Taxation - Lecture Day 7 - Various Topics

Additional tax, interest and penalties

Second provisional tax payment:

• Late payment

th
• 10% penalty of amount not paid (4 Schedule, par 27)
• Interest @ prescribed rate of amount not paid for period unpaid (s 89bis(2))

• Inadequate year-end estimate

• 20% underestimation penalty

▫ Taxable income > R1 million:
 If estimated taxable income < 80% of actual taxable income and the basic amount
th
 20% penalty on difference between tax that he should have paid and tax actually paid (4 Schedule
par 20(1)(a))

▫ Taxable income ≤ R1 million:
 If estimated taxable income < 90% of actual taxable income

• 20% penalty on difference between tax that he should have paid and tax actually paid (4 th
Schedule par 20(1)(b))

 Year-end estimate late

• 20% penalty on difference between tax that he should have paid and tax actually paid
th
to date (4 Schedule par 20A)