Fallen Behind with SARS? Here’s How to Fix It Before It Gets Worse

Introduction

If you’ve fallen behind with your tax, you’re not alone.

Many business owners and individuals miss deadlines, fall behind on submissions, or simply don’t know where to start. The problem is — SARS doesn’t forget, and penalties don’t stop accumulating.

The good news? This is fixable — but the sooner you act, the better.

How Do People Fall Behind?

It usually starts small:

  • Missed income tax returns (ITR12 or ITR14)
  • Late or skipped provisional tax (IRP6)
  • VAT returns not submitted
  • Payroll submissions (EMP201/EMP501) not up to date
  • Bookkeeping falling behind month by month

Before long, it builds into a situation that feels overwhelming.

What SARS Does (And Why It Gets Expensive)

SARS is systematic — and strict.

If you fall behind:

  • Penalties are applied for late submissions
  • Interest is charged on outstanding amounts
  • SARS may raise estimated assessments (often higher than reality)
  • Your compliance status can be negatively affected

👉 The longer it is left, the more expensive it becomes.

What NOT to Do

Many people make the situation worse by:

  • Ignoring SARS correspondence
  • Hoping it will “sort itself out”
  • Submitting incomplete or incorrect returns
  • Guessing figures just to get something filed

👉 This often leads to higher penalties and more complications

What NOT to Do

Many people make the situation worse by:

  • Ignoring SARS correspondence
  • Hoping it will “sort itself out”
  • Submitting incomplete or incorrect returns
  • Guessing figures just to get something filed

👉 This often leads to higher penalties and more complications.

How to Fix It (Step-by-Step)

Here’s the correct approach

1.Get a clear picture

Understand exactly what is outstanding:

  • Returns
  • Taxes
  • Penalties

2. Bring your bookkeeping up to date

Everything starts here:

  • Bank accounts reconciled
  • Income and expenses correctly recorded
  • Supporting documents in place
 

3. Submit outstanding returns properly

Not rushed. Not guessed.
👉 Correct and complete submissions reduce risk.

4. Review penalties and interest

In many cases:

  • Penalties can be reduced or reversed
  • Payment arrangements can be negotiated

5. Stay compliant going forward

Once fixed:

  • Keep books updated monthly
  • Submit on time
  • Plan ahead for tax

Why Acting Now Matters (Especially Right Now)

We are moving into a critical period:

  • Financial year-end just passed (February)
  • Tax season is approaching (mid-year)
  • Provisional tax planning becomes important

👉 Fixing issues now puts you back in control before pressure builds again.

Need Help Getting Back on Track?

If your tax or bookkeeping is behind, we can help you:

  • Catch up outstanding returns
  • Clean up your books
  • Deal with SARS correctly
  • Reduce penalties where possible
  • Get you fully compliant again

📞 WhatsApp: 082 061 2300
📩 david@smarteraccounting.co.za
🌐 https://smarteraccounting.co.za/

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