The revenue service has been attempting to make sure taxpayers file their returns on time with the slogan "pay your taxes or pay the price".

The reason for the intended clampdown was an "increase in taxpayers not submitting their tax returns by the stipulated deadlines", and not settling their outstanding debt with the revenue collection agency, SARS said in a statement. 

It said this was not limited to the current tax year, but included substantial non-compliance across previous tax years.

Pay up on time 

The revenue service said that, in terms of the Tax Administration Act, it was a criminal offence not to submit a tax return for personal income tax, corporate income tax, pay as you earn and value-added tax or VAT.

It said that failure to submit returns within the relevant period would result in fines imposed on a monthly basis per outstanding return, or even "criminal prosecution resulting in imprisonment".

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The United States of America is a federal republic with separate federal, state, and local government(s) with taxes imposed at each of these levels. Taxes are levied on income, payroll, property, sales, capital gains, dividends, imports, estates and gifts, as well as various fees

However, taxes fall much more heavily on labour income than on capital income. Divergent taxes and subsidies for different forms of income and spending can also constitute a form of indirect taxation of some activities over others. For example, individual spending on higher education can be said to be "taxed" at a high rate, compared to other forms of personal expenditure which are formally recognized as investments.

Taxes may be imposed on individuals (natural persons), business entities, estates, trusts, or other forms of organization. Taxes may be based on property, income, transactions, transfers, importations of goods, business activities, or a variety of factors, and are generally imposed on the type of taxpayer for whom such tax base is relevant. Thus, property taxes tend to be imposed on property owners. In addition, certain taxes, particularly income taxes, may be imposed on the members of organizations for the organization's activities. Thus, partners are taxed on the income of their partnership.

Llewellyn Johr 27417794