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21 May 2018 South Africa amends law to introduce penalty for non-compliance with Country-by-Country Reporting On 11 May 2018, the South African Revenue Service (SARS) released a Public Notice, extended by Government Gazette No. 41621, to advise multinational entities who are required to file Country-by-Country (CbC) reports in South Africa that non-compliance will result in a fixed amount penalty in accordance with section 210 (1) and 211 of the Tax Administration Act, 2011 (TAA). Amendments are effective as of 11 May 2018. The public notice on CbC reporting, dated 20 October 2017, requires the submission of CbC report as well as Master File and Local File documentation, non-compliance with respect to this public notice would now result in a non-compliance fixed penalty. Prior to 11 May 2018, the filing of the CbC report was compulsory however, no specific interest or penalties were assigned for non-compliance. The fixed amount penalty imposed by section 211 varies from R250 to R16,000 per month, dependent on the amount of an assessed loss or taxable income for the preceding year. The amount of the penalty will increase automatically by the same amount for each month that the person fails to remedy the non-compliance. On the 23 June 2017, the SARS released guidance with respect to Country-by-Country and Financial Data reporting (CbCR). The release is in accordance with section 25 of the TAA. Subsequently on the 20 October 2017, the SARS released a final public notice requiring CbCR as well as Master File and Local File documentation to be submitted. The South African CbCR only applies to multinational entities where the group has total consolidated group revenue of more than R10 billion during the fiscal year immediately preceding the reporting fiscal year. The CbCR must be filed no later than 12 months after the last day of each reporting fiscal year of the group beginning on or after 1 January 2016.
Document ID: 2018-5672 |
