By Evan Pickworth

The South African Revenue Service (SARS) has ramped up its efforts through on-site visits to encourage business owners to apply for the Small Business Tax Amnesty and to date has received close to 18,000 applications ahead of the cut-off date of 31 May.

When the national Budget was released on February 21, Treasury reported that they had received 11,301 applications by 13 February 2007.

Over the last week teams of SARS officials visited a large number of businesses in designated areas to ensure business owners understand that the deadline for the amnesty remains 31 May 2007.

SARS emphasised that "after the deadline SARS will assume a vigorous enforcement campaign against businesses that are not tax compliant".

"Today SARS officials visited 97 small businesses in Beaufort-West in the Western Cape to check the levels of tax compliance and assist businesses to apply for amnesty. The Karoo town is a fast-growing centre of economic activity in the Western Cape, in particular the transport sector and associated services. About 20 applications for amnesty were received," the revenue services reported.

They said that on Friday the amnesty unit received 201 small business tax amnesty applications on the spot during an outreach drive in Gauteng. The registration drive consisted of inspections in Springs and Pretoria.

"SARS had identified specific business locations based on a risk assessment of the levels of tax compliance in these areas," they added.

"The inspections were exceedingly successful. In Pretoria, SARS officials visited 593 businesses located in Bloed and Van der Walt Streets and received 158 amnesty applications.

As many as 53 additional businesses have been earmarked for follow-up inspections," said SARS.

"In Springs on Friday the SARS effort was complemented with assistance from the Department of Home Affairs and the South African Police Service (SAPS).

Businesses in the area are largely owned by foreign nationals operating small-scale retail shops.

"The inspections secured 43 amnesty applications from the 217 businesses that were visited.

During the inspection 11 boxes of counterfeit cigarettes were also seized and 6 unlicensed and unroadworthy vehicles were impounded.

A hair salon owner was also arrested for being in possession of 2 grams of cocaine," it was reported.

The small business tax amnesty was announced by the Minister of Finance during in the 2006 Budget Speech last year.

The amnesty is applicable to businesses with a turnover of less than R10 million per annum.

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