Joint Media Release by the National Treasury and the South African Revenue Service PRETORIA – The 2014 Tax Statistics bulletin was released today. This is the seventh edition of the publication. The objective of releasing the country’s Tax Statistics is to publicise available, comprehensive tax revenue data that can assist policy makers and provide insights on economic indicators to researchers, analysts, the media and the public in general. The 2014 Tax Statistics Bulletin provides an overview of tax revenue collection and tax return information for the 2009/10 to 2013/14 fiscal years, and the 2010 to 2013 tax years respectively.
Category: Tax Returns
Coming Soon – changes to the dispute forms and process
All saved or pending income tax dispute forms, Notice of Objection (NOO) or Notice of Appeal (NOA), will be deleted from eFiling after 31 October 2014. The dispute forms and process will be changed in November 2014. Taxpayers, who haven’t submitted their forms (NOO or NOA), by 31 October 2014, will need to manually transfer the information to the updated NOO or NOA, which will be available in November 2014. Top Tip: The deadline for submitting a dispute is 30 business days: Objection – from the date of the assessment Appeal – from the date the objection wasn’t allowed or wasn’t allowed in full.
Employment Tax Incentive (ETI) Refund Process
How does it work? The Employment Tax Incentive Act and the draft amendments to this Act in terms of the Draft Taxation Laws Amendment Bill, 2014, allows for the introduction of a refund process that will refund employers the amount of the allowable ETI that wasn’t used to reduce the Employees’ Tax amount payable at the end of each six month reconciliation period (1 March to 31 August and 1 September to 28/29 February). An ETI refund will only be paid if an employer is tax compliant. This means that all tax returns have been submitted and there is no outstanding tax debt, when the Employer Reconciliation documents [EMP501 and IRP5/IT3(a)s] are received and processed by SARS. Top Tip: A non-compliant employer will have six months from the start of the next reconciliation cycle (1 September to 28 February or 1 March to 31 August in respect of the interim Read More …
Sars takes aim at 'reluctant taxpayers'
Author: Ingé Lamprecht (Moneyweb) Wants wider information gathering powers. JOHANNESBURG – Proposed statutory amendments to widen the information gathering powers of the South African Revenue Service (Sars) could have significant time and cost implications for taxpayers. There are also concerns that it may infringe on taxpayers’ rights in specific cases. The Tax Administration Act (TAA) that was introduced on October 1 2012 allows Sars to require a taxpayer or third party (for example a bank, medical aid or pension fund) to submit “relevant material” for administration purposes within a reasonable period.
Do you have tax skeletons in your closet?
Author: Erich Bell (SAIT Technical) For most tax professionals, standing at a braai and explaining what one’s profession entails may be an uncomfortable experience, especially if one’s guests do not have an accounting or law background. Some of the questions that would normally arise include, ‘oh, so you work for SARS?’ or ‘that’s nice, I’m, however, not keen on talking about my financial affairs’. A couple of moments later, that awkward silence starts to set in. With this example, I’m almost certain that SARS officials receive an even warmer welcome among their fellow guests.
New tax dispute resolutions promulgated
The new rules governing objections and appeals were promulgated under section 103 of the Tax Administration Act No. 28 of 2011 (‘TAA’) in Government Gazette 37819 on 11 July 2014. These rules replace the rules which were promulgated under section 107A of the Income Tax Act and for all practical purposes the new rules took effect on 11 July 2014 and will therefore regulate the resolution of tax disputes going forward.
Sars wins war on tax dodgers
Author: Babington Maravanyika (IOL) Johannesburg - More than 260 cases of tax evasion were successfully prosecuted by the National Prosecuting Authority during the last financial year. Sars spokeswoman Marika Muller said about 330 tax-related criminal cases were finalised during the 2013/14 financial year, of which 267 were successfully prosecuted.
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.
The importance of documentation in tax disputes highlighted in the new dispute resolution rules
Authors: Stephen Lavetan and Taryn Solomon of ENSafrica With effect from 1 January 2013, new rules were introduced in the Income Tax Act No. 58 of 1962 (‘the Act’) governing the tax consequences flowing from the reduction or waiver of debts. According to the Explanatory Memorandum, the amendments were prompted in response to the global financial crisis and the unusually large number of companies facing financial distress. The intention was therefore to establish a mechanism which facilitated debt reductions without creating an additional obligation to pay further tax.