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How do I apply for remission of a SARS AEOI penalty using DISP02?
How do I apply for remission of a SARS AEOI penalty using DISP02?
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Direct answer
SARS says an RFI must first remedy all incidences of non-compliance. For a first non-compliance penalty, it may request remittance where it has a reasonable basis for the non-compliance, or where exceptional circumstances rendered it incapable of complying. Use DISP02, select Request for Remittance, provide the grounds and retain proof of submission. Remission is not automatic.
The correct action is case specific. Correcting a data file may be necessary, but it does not itself prove that SARS must remit an administrative penalty.
What this means in practice
Do not begin by drafting a broad explanation. First preserve the penalty notice, filing reference, correspondence, payment status and data-submission records. Build a dated timeline showing what was due, what the organisation did, when it discovered the issue and what corrective action it has taken. This is more useful than an unsupported assertion that the failure was administrative.
SARS's current AEOI area publishes specifications and compliance updates, including compliance reason-code information. Use only the material and form instructions that apply to the relevant penalty period. The SARS page may be updated for a later cycle, so a newer BRS is not automatically the correct authority for the older notice.
Step-by-step
- Read the notice in full. Record the taxpayer, period, penalty amount, stated ground, payment information, response route and every deadline shown on the notice.
- Freeze the evidence. Save the original submission file, acknowledgements, errors, user logs, correspondence and any corrected file. Keep a version history instead of overwriting an earlier record.
- Identify the applicable SARS AEOI penalties guidance and download current DISP02. The current SARS guide says DISP02 is not hosted on eFiling. Use a verified SARS link, not an old template received by email.
- Prepare a factual remission pack. State the events in date order, the evidence for each statement, the corrective action and the person responsible. Avoid claiming a legal ground unless it has been reviewed.
- Obtain internal and technical approval. The compliance owner, data owner and tax adviser may each need to confirm different parts of the request.
- Submit through the current SARS-directed channel. SARS says DISP02 can be submitted at the nearest SARS branch or by post. Large Business clients may use the specific SARS email route published on the AEOI penalties page. Check that all mandatory fields and attachments are present, then save the final submission, reference and acknowledgement.
- Monitor the outcome and respond to any SARS request. Keep the penalty case and the underlying filing correction as linked but separate records.
Documents and records to keep
- Penalty notice and all SARS communications.
- Original and corrected AEOI filing evidence.
- Timeline, validation output and corrective-action records.
- Current form instructions and completed form copy.
- Approval and acknowledgement records.
Important limits and exceptions
SARS's AEOI page does not establish that a particular taxpayer qualifies for remission. Do not promise an outcome, infer a deadline that does not appear on the applicable notice or assume a correction removes the penalty. SARS says outstanding non-compliance should be remedied before a remission or dispute is lodged, otherwise the request may be rejected. Keep the request factual and indexed, rather than adding unrelated documents or speculative legal conclusions. Have an independent reviewer confirm dates, notices and attachments before submission.
When to get tailored advice
Take urgent advice where the amount is material, the issue affects multiple reporting periods, a payment dispute exists, data may have been disclosed incorrectly or the time to respond is short. Legal and tax review is especially important where the organisation intends to challenge the factual basis or legal validity of a penalty.