Administrative Penalty Remission Request
Member Query
I took on a new client with a June year-end. Due to a diary error, I submitted and paid their 2nd provisional tax late. SARS levied penalties and interest. The client typically pays all taxes early.
As the tax practitioner, I recognise that it was my error, and therefore, I feel it’s inappropriate to submit the remission request via the client’s eFiling profile. Should I submit it in my personal capacity instead?
Our Response
Who must submit the remission request?
Only the taxpayer (the client) may submit the request for remission of administrative penalties.
As the tax practitioner, you submit the request on behalf of the client, but in the client’s name through their eFiling profile, not in your personal capacity.
Can the penalty be remitted?
Yes, potentially. Based on the facts shared:
The client has not incurred administrative non-compliance in the 36 months preceding the 2024 tax year.
This incident qualifies as a ‘first incidence of non-compliance’ under section 208 of the Tax Administration Act.
The client also meets the criteria under section 217(1)(a) and (b), since:
It’s the first offence, and
The delay was less than five business days.
What is not a valid excuse?
Practitioner error is not a reasonable excuse. Do not rely on this as the basis for the remission request.
What is required for the remission request?
Include:
A detailed description of the circumstances that caused the late submission.
Any supporting documents to substantiate the reason (e.g., illness, IT failure with credible evidence).
What are examples of reasonable excuses SARS may accept?
Documented illness of the taxpayer or practitioner.
Verified IT failure (e.g., system crash with evidence).
How do I submit the remission request on eFiling?
Follow these steps:
Log in to SARS eFiling under the client’s profile.
Click SARS Correspondence.
Select Request for Admin Penalty SOA.
Choose the relevant tax year and click View.
Select Request Administrative Penalty – Statement of Account.
Ensure the “All Periods” box is ticked to cover multiple penalty entries if applicable.
Submit the remission request with the full explanation and documents.
Important considerations
If the non-compliance is not remedied within one month, the penalty increases monthly.
SARS has discretion to remit up to R2,000 of the penalty amount.
It’s essential to verify that no administrative penalties were incurred during 2021, 2022, or 2023.
📌Note: Always review the client's compliance history carefully and ensure your explanation includes valid, credible evidence. Avoid referencing tax practitioner error as the reason in any remission application.
