We are today releasing SARS’ preliminary revenue collection outcome, twelve hours after the close of the 2014/15 fiscal year. Despite challenging economic conditions, SARS collected R986.4 billion which is a 9.6 % growth in total revenue from 2013/14. This is R7.4 billion above the revised estimate announced in the February 2015 Budget. This revenue performance was made possible by an extraordinary drive by SARS on compliance improvement, which in aggregate, added about R22bn. This closing of the compliance gap compensated for revenue collection shortfall caused by a slowing economy.
Category: Tax Administration
Sars accuses Malema of lying, hits him with R14m bill – report
Pretoria – The SA Revenue Service (Sars) has accused Economic Freedom Fighters leader Julius Malema of lying about his source of income and hit him with an additional R14m tax bill, the Sunday Times reported. This was according to court papers filed in the North Gauteng High Court by Sars which has launched an application for Malema’s final sequestration. According to the report, Sars, in the court papers explaining why it had dumped its deal with Malema, said he had lied about the source of the funds used to settle part of his tax bill.
SARS’ new list of ‘Reportable Arrangements’
SARS’ list of reportable arrangements, as envisaged by section 35 of the Tax Administration Act, 2011 (TAA), has been widened extensively. The arrangements, deemed reportable, were published on 16 March 2015 in a public notice (‘the Notice’) in the Government Gazette. Reportable arrangements must be reported to SARS within 45 business days after becoming a participant in a reportable arrangement or 45 business days after the date on which an arrangement qualifies as a reportable arrangement. Every participant has the duty to disclose the prescribed information regarding the arrangement to SARS unless the participant obtains a written statement from another participant that the other participant has disclosed the arrangement.
SARS' new list of ‘Reportable Arrangements'
SARS’ list of reportable arrangements, as envisaged by section 35 of the Tax Administration Act, 2011 (TAA), has been widened extensively. The arrangements, deemed reportable, were published on 16 March 2015 in a public notice (‘the Notice’) in the Government Gazette. Reportable arrangements must be reported to SARS within 45 business days after becoming a participant in a reportable arrangement or 45 business days after the date on which an arrangement qualifies as a reportable arrangement. Every participant has the duty to disclose the prescribed information regarding the arrangement to SARS unless the participant obtains a written statement from another participant that the other participant has disclosed the arrangement.
Corruption trial of former SARS official delayed
Author: Natasha Marrian (BDlive) The fraud and corruption case against former South African Revenue Service (SARS) official Mandisa Mokwena has again been shifted, this time to October 5. The case dates back to 2011. Ms Mokwena’s attorney, Johann Schafer, said on Monday that the National Prosecuting Authority (NPA) had asked for more time to decide whether to proceed with a corruption case against her. This was after she had made representations to the national director of public prosecutions on why the charges should be dropped.
Provisional tax penalties made simpler – and harsher
Author: Mark Bechard Some of the penalties imposed on provisional taxpayers who fail to meet their obligations have recently been simplified, but others have been made more onerous. The changes to the penalties were made in amendments to the Income Tax Act and the Tax Administration Act.
SARS extends the list of reportable arrangements
The Commissioner for the South African Revenue Service (SARS) issued an important notice (SARS Notice) on 16 March 2015. The SARS Notice was published in terms of s35(2) and s36(4) of the Tax Administration Act, No 28 of 2011 (TAA). Sections 34 to 39 of the TAA deal with so-called ‘reportable arrangements’. Essentially, if an arrangement has certain characteristics (as listed in s35(1) of the TAA) or if SARS has listed the arrangement in a public notice (in terms of s35(2) of the TAA), then the person who promotes the arrangement (called a promoter) and the person who may derive a tax benefit from the arrangement (called the participant) must report the arrangement to SARS.
Temporary rental of units – Extension of cut-off date
Where developers are unable to sell their units and decide to find a tenant to temporarily let the property in order to earn rental income, they were previously required to account for VAT on the market value of the property, as the change in use of the property from making taxable supplies to exempt supplies, resulted in a deemed supply. Specifically, when a developer temporarily changed the use of properties held for resale (taxable supplies) by letting them as dwellings to tenants (exempt supplies), s18(1) of the Value-Added Tax Act, No 89 of 1991 (VAT Act) provided for a change in use adjustment and the developer was obliged to pay VAT on the deemed supply of the property as at the date that it was applied for exempt purposes.
SARS Media Release: Response to recent media speculation pertaining to internal disciplinary processes faced by some employees
Pretoria, 13 January 2015 – The South African Revenue Service takes note of the article, ‘Pillay fights back’, published in one of the Sunday Newspapers of the 11 January 2015. SARS would like to place on record its serious concern with what appears to be the ‘fighting’ of internal SARS matters through the media without following the proper processes that SARS has in place. This approach is wrought with problems, the most apparent being that the suspension process in question is still underway and subject to internal proceedings. Very worryingly, the response seen by some media had not been provided to SARS by Mr Pillay at the time of the published article.
Tax u-turns on cards after probe into SARS rogue unit
Authors: Mzilikazi Wa Afrika, Stephan Hofstatter, Piet Rampedi and Malcolm Rees (Times Live) Tax settlements worth billions of rands risk being reversed as an independent investigation into a rogue spy unit rocked the South African Revenue Service this week. Billionaire businessman Dave King is the most prominent among high-profile South Africans who could be slapped with far higher tax bills if their deals with the taxman are reviewed. The findings of the investigation, carried out by a panel headed by Johannesburg advocate Muzi Sikhakhane, largely confirm reports by the Sunday Times over the past few months – and vociferously denied by SARS at the time – that the rogue unit engaged in a wide array of illegal tactics.