PRETORIA, 3 September 2014 – The South African Revenue Service (SARS) is a crucial fiscal institution in a democratic South Africa. It is an institution whose very foundations are built on the trust and the credibility that South African taxpayers confer on it.
Category: Tax Administration
Employer interim reconcilation open between 1 September and 31 October 2014
The employer interim reconciliation for the transaction period 1 March to 31 August 2014 is open between 1 September and 31 October 2014. During this period you should submit your interim reconciliation declaration to SARS.
Electronic communication with SARS
The South African Revenue Service (SARS) recently released the new rules for dispute resolution prescribed under section 103 of the Tax Administration Act No 28 of 2011 (TAA). Among the many new features, it is interesting to note the provisions relating to the delivery of documents by a taxpayer to SARS, and specifically with reference to the delivery of documents by electronic means.
Government improves customs efficiency but holds off on tax increases
Author: Kayn Woolmer (Deloitte) The draft Customs Duty Bill and Customs Control Bill have been under development for almost six years now. As such it was expected that the Minister of Finance would make some mention as to when these bills would be promulgated into legislation thereby paving the way for enhanced customs controls and potentially improved customs management techniques and opportunities for both SARS and businesses in his Budget Speech earlier this year.
Remedy for declined tax clearance certificate
On 18 February 2014 the North Gauteng High Court delivered a judgment on the remedies available when a tax clearance certificate (‘TCC’) is declined by SARS. What is clear from the judgment is that when a taxpayer is dependent on a TCC for financial or business purposes and it gets declined by SARS, the potential impending economic harm that may come to a taxpayer from such refusal does not entitle the taxpayer to a court order compelling SARS to issue such a TCC sought.
Request for "relevant material" by SARS
The South African Revenue Service (SARS) has extensive powers in terms of the Tax Administration Act No. 28 of 2011 (the TAA). In terms of section 46(1) of the TAA, SARS may, for the purposes of the administration of a tax Act in relation to a taxpayer, require such taxpayer or another person (third party) to submit relevant material that SARS requires within a reasonable period. SARS may require such relevant material to be submitted orally or in writing.
Tax Administration Act – Tax clearance certificates
Taxpayers who wish to tender for State contracts do not qualify unless they can produce a valid tax clearance certificate. The refusal, withdrawal or non- renewal of such a certificate would consequently be the death knell of any business whose lifeblood is the securing of state tenders.
Changes to payroll tax forms submission to SARS
Manually completed payroll tax forms dropped-off at a SARS branch or posted, will no longer be accepted from 25 August 2014. The forms impacted include: Monthly Employer Declaration (EMP201) Employer Reconciliation Declaration (EMP501) Employee Tax Certificates [IRP5/IT3(a)] Tax Certificate Cancellation Declaration (EMP601) Reconciliation Declaration Adjustment (EMP701). Top Tip: An exception will be made for employers with a maximum of five IRP5/IT3(a)s. In such cases the employer can still go into a SARS branch where an agent will help them capture these IRP5/IT3(a)s and the EMP501.
What is your compliance status?
Currently, section 256 of the Tax Administration Act, No 28 of 2011 (TAA) houses the provisions governing the application for and granting of Tax Clearance Certificates (TCC). It is commonplace for taxpayers to require a TCC for a number of reasons including tenders, good standing, foreign investment allowance and emigration. The amendments to section 256 propose to remove the granting of a TCC and instead provide the taxpayer with a “confirmation of the taxpayer’s tax compliance status”.
Liquidations and arbitrations: the consequences of the definition of "debts" in section 345 of the Companies Act 61 of 1973 for bringing a liquidation application
By Ashton Crommelin of Hogan Lovells Interim costs awards in arbitration proceedings are not often the precursors to winding up applications. However, it may happen that if such an award of costs is not paid, the possibility of winding up the non-paying party may arise. This possibility leads to the following question, “Is a bill of costs drafted pursuant to an arbitration award and taxed by the taxing master of the High Court a “debt” for purposes of section 345 of the Companies Act 61 of 1973?”