Multiple Outstanding SARS Returns: How to Fix Years of Non-Compliance

How Penalties Stack Across Multiple Returns

If you have multiple outstanding SARS returns — whether across different tax years, different tax types, or both — each unfiled return attracts its own separate penalty. This means your total exposure can escalate quickly.

For example, a taxpayer with 3 outstanding ITR12 returns and 6 outstanding EMP201 returns faces 9 separate penalty streams, each accumulating monthly.

Calculating Your Total Exposure

Consider this example for a small business owner earning R800,000 with a company earning R2,000,000, with 2 years of non-compliance:

This doesn't include late payment penalties, interest, or any VAT obligations. The total cost of multi-year non-compliance can be devastating.

Strategic Order for Filing

When you have multiple outstanding returns, the order in which you file matters:

• File the oldest returns first — these have accumulated the most penalty months. Filing them stops the oldest (and largest) penalty streams.
• Prioritise returns with the highest penalty rate — EMP201 and VAT201 penalties at 10% per month can exceed ANC penalties quickly.
• File all returns for a single tax type together — this helps SARS process them efficiently and may make remission requests simpler.
• Don't wait for perfection — a filed return that might need a correction later is better than an unfiled return accumulating penalties.

Requesting Bulk Remission

You can submit a single remission request covering multiple penalties. In your request:

• List all penalty assessments you are requesting remission for
• Explain the overall circumstances that led to the non-compliance
• Demonstrate that all outstanding returns have now been filed
• Highlight any reasonable grounds (business failure, illness, change of tax practitioner, etc.)
• Show that you have taken steps to prevent recurrence

When to Consider the VDP

If your non-compliance involved undeclared income — not just late returns but actually understating what you earned — you may also face understatement penalties. In this case, the Voluntary Disclosure Programme can significantly reduce your exposure.

The VDP must be used before SARS initiates an audit. If SARS has already started investigating, the VDP is no longer available. This is why acting quickly is critical.

Do You Need a Tax Practitioner?

For multiple outstanding returns, professional help is strongly recommended. A tax practitioner can:

• Reconstruct financial records for prior years
• File returns in the optimal order to minimise penalties
• Negotiate with SARS on your behalf
• Submit remission requests with the strongest possible case
• Set up a payment arrangement for any remaining balance