Month: June 2023

26 June 2023 – A new scam is doing the rounds where an email titled ‘Internal Communication’ from a fake DIRCO email domain is sent, asking the email recipient to click on a fraudulent link to verify their identity. Please don’t click on any links and delete the email. If in doubt, always visit our Scams & Phishing webpage, where an example of this latest scam is published.

 

Source: SARS Tariffs
Scam alert – Email asking people to verify their ID

26 June 2023 – The South African Revenue Service (SARS) welcomes the election of its Commissioner Mr. Edward Kieswetter as Chairperson of the World Customs Organisation (WCO). The election took place on 24 June 2023 at the organisation’s Council session at the WCO headquarters in Brussels, Belgium.

The WCO has 185 members, three-quarters of which are developing countries and the Council is its highest decision-making body. It was established in 1952 as the Customs Cooperation Council (CCC), is the only intergovernmental organisation exclusively focused on Customs matters and is recognised as the voice of the global Customs community. In 1994, the CCC adopted the working name of the World Customs Organization (WCO).

In accepting the challenge to lead the WCO for a year, Mr. Kieswetter expressed appreciation to his colleagues, who found him appropriately suitable to lead such a prestigious body. He said that “leadership is an inordinate responsibility and a rare privilege to assist international efforts to bring matters of Customs to the centre of international trade facilitation. This election is ample evidence that the leadership of SARS in matters of Customs is acknowledged after many years of State Capture”.

The elections were preceded by the Policy Commission. The discussions at the Policy Commission ranged from progress on WCO Customs technical programmes, emerging and new challenges plaguing the Customs world, and organisational development issues around governance and modernisation of the WCO as a members-driven organisation.

Given the foregoing topical issues on the agenda currently, Commissioner Kieswetter sits at the pinnacle of a global stage to provide appropriate stewardship that will ensure that the WCO is fit for purpose and stays relevant in providing leadership and support to the global Customs community.

Commissioner Kieswetter outlined the agenda that will inform his chairmanship as:

1. Working with his colleagues and peers from member countries to listen actively and ensure that WCO’s strategic intent finds practical expression through:
   • an effective, well managed Secretariat,
   • a transformational modernisation plan,
   • an appropriate set of priorities,
   • a clear sense of what winning means.
2. Advocate for greater inclusivity with a strong focus on women and people with disabilities.
3. Build resilient and effective partnerships with all stakeholders.
4. Strive towards an enhanced profile of the important role of Customs in the service of Society and ensuring the well-being especially of the most vulnerable.

The previous and only other time the country chaired the WCO Council was between 2001 to 2006 under the leadership of the then Commissioner, Mr. Pravin Gordhan.

Commissioner Kieswetter thanked the outgoing Secretary General, Dr Kunio Mikuriya and Chairman Mr. Ahmed Al-Khalifa for their abled stewardship that drove so successfully the agenda of the organization.

The Policy Commission also elected Mr. Ian Sanders of the United State as the new Secretary-General of the WCO. Mr. Sanders will start his term on 01 January 2024.

Finally, Commissioner thanked his colleagues from the African continent especially the East and Southern Africa, our BRICS partners and other regions for bestowing this honour to South Africa.

For more information contact SarsMedia@sars.gov.za

 

Source: SARS Tariffs
Media Release – SARS Commissioner Mr Edward Kieswetter elected Chairperson of the World Customs Organisation

23 June 2023 – The following guides were updated for Filing Season 2023 starting on 7 July 2023 @ 8pm:

• Guide to submit a dispute via eFiling
• Guide to submit your individual income tax return via eFiling
• Guide to complete the Company Income Tax Return (ITR14) eFiling
• Guide to the Individual (ITR12)Return for Deceased and Insolvent Estates
• Comprehensive Guide to the ITR12 Income Tax Return for Individuals
• Submit Request for Reduced Assessment (RRA01) via eFiling
• Guide for Provisional Tax

For more information, keep an eye on the Filing Season 2023 webpage.

Source: SARS Tariffs
Updated Guides for Filing Season 2023

23 June 2023 – We are currently experiencing technical issues on the Customs Processing Platform where submitted transactions may not get responses (CUSRES messages), however arrival and exit management functions are available at land border posts for all released declarations and manifests.

Traders are requested not to resubmit declarations which are awaiting responses, especially large declarations because this impacts on processing. We further request your assistance in processing large declarations after business hours.

Our teams are working around the clock to bring the Customs Processing Platform back to the robustness that renders responses within seconds.

We apologise  for the inconvenience and request your patience and co-operation in bringing back service to optimal levels.

Source: SARS Tariffs
Issues on the Customs Processing Platform

23 June 2023 – In line with the strategic objective of the South African Revenue Service (SARS) of making it easy and simple for taxpayers to meet their legal obligations, individuals (provisional and non-provisional taxpayers) as well as trusts may start filing their income tax returns on Friday 7 July 2023 after 8pm.

SARS Commissioner Mr. Edward Kieswetter said, “The submission of accurate personal income tax returns on time is important for a seamless filing season. This year, taxpayers must take control of their own tax affairs to ensure they are aware of their obligations and remain compliant.”

“SARS continues to provide enabling technology, the expanded use of data, enhanced by machine learning, algorithms and artificial intelligence.  We also continue to make progress in various aspects of online and in-person taxpayer services through an investment in our people. These enabling and service improvements are intended to ensure that there is no need for walk-in tax consultations and long queues at SARS offices,” Mr. Kieswetter said.

As a result of these enabling service improvements:

AUTO-ASSESSMENT

1. From Friday 30 June 2023, SARS will communicate directly with selected taxpayers by SMS notifying taxpayers of their auto-assessments.
2. Taxpayers can access the auto-assessment through any of SARS’s channels, such as the SARS MobiApp or SARS eFiling, to review and verify the completeness and accuracy of the information that resulted in the auto-assessment.
3. A taxpayer who has been selected for auto-assessment, may choose to accept the assessment outcome without edits, or if there is justification, may choose to edit their declaration, and resubmit it along with the necessary supporting documents.
   • Taxpayers who accept the assessment outcome without any edits, and who qualify for a refund, will receive it directly into their bank account within 72 hours after the notification;
   • Taxpayers who submit an edited declaration will be assessed on the basis of their resubmission. A revised assessment may be issued as set out below. If there is money owing to SARS, it must be paid to SARS’ Bank Account, eFiling or through the MobiApp by the stipulated date.
4. If a taxpayer is satisfied with the auto-assessment, they don’t have to do anything further and the process terminates at this point.
5. SARS wishes to implore taxpayers who have been selected for an auto-assessment to exercise patience and not visit any of our branches or call the Contact Centre to enquire about the progress. SARS will pro-actively and continuously communicate with such taxpayers.

FILING A DECLARATION

All taxpayers who submit an edited declaration, or file a declaration in the normal way, may submit such a declaration, along with any supporting or additional information through the SARS eFiling platform. For taxpayers from the auto-assessment group, SARS will process the return and issue a revised assessment, which may result in a different financial obligation e.g. reduced refund, increased refund or payment due to SARS. All other taxpayers will receive an assessment.

In the event that taxpayers experience any difficulty with filing their returns  through e-Filing or the SARS Mobi-App, they must first book an appointment to visit a branch.

Further clarity is also provided in a number of aspects:

Objections and appeals: If not in agreement with the revised assessment, a taxpayer can initiate an objection, through the normal SARS objections process.

Non-provisional taxpayers: Non-provisional taxpayers who did not get an auto-assessment and who are required to file a return can do so from 7 July 2023 after 8 pm until 23 Oct 2023.

If all the information contained in a return is for the current year and accurate, the transaction will take no more than 10 seconds. SARS welcomes efforts by taxpayers to bring their tax affairs into compliance status. SARS will endeavour to expeditiously attend to these taxpayers who will be filing the previous years’ outstanding returns and requests their patience and understanding.

Provisional taxpayers as well as Trust submissions can start with filing a return from 7 July 2023 after 8 pm until 23 January 2024.

Taxpayers, not selected for auto-assessment are urged to wait for the email and SMS and not to visit SARS branches during the first week before 7 July 2023.

Mr. Kieswetter said the introduction of auto-assessments, was one of many filing improvements that bears testimony to SARS’ commitment to build a smart, modern organization with unquestionable integrity, trusted and admired by all. In delivering such an important service, SARS is helping to build a capable state for the social and economic development of our country and its people – the Higher Purpose of SARS.

Importantly, the use of technology and data has enhanced the ability of SARS to refine and improve its resources to detect instances of non-compliance. Taxpayers must not inflate their expenses and under-declare their income to obtain impermissible refunds as this will make the taxpayer potentially guilty of fraud.

SARS will make it hard and costly for taxpayers who intentionally attempt to claim impermissible expenses or understate their income, by imposing harsh penalties. In addition, there will be administrative non-compliance penalties for those taxpayers who do not adhere to the deadlines of this year’s Filing Season.

This year SARS will allow taxpayers, who did not agree with the auto-assessment outcome, to file an amended return until the normal filing season deadline, 23 October 2023. This is a change from the 40 days allowed last year.

SARS has had engagements with various associations, including Recognised Controlling Bodies to refine the system. This is done in recognition that SARS works with and through partnerships to ensure that taxpayers are enabled to meet their legal obligation in the most efficient manner.

SARS wishes to thank employers and third-party data providers who have met their 31 May 2023 submission deadline. This step will enable employees to have a seamless and easy transaction with SARS. The employers and third parties who are non-compliant are making transacting with SARS challenging for their employees and will be pursued for transgressing the law.

APPOINTMENT AT BRANCHES

Taxpayers who wish to visit a SARS branch must first make an appointment. They can do this by:

• Sending an SMS to 47277 (iSARS) with the word Booking (Space) ID number/Passport number.
• Dialling *134*7277# free of charge on their cellphone and choosing the eBooking option.
• Going to the SARS website and clicking on the “Book an Appointment” icon. Complete the online form.

For further information please contact SARSMedia@sars.gov.za

#FilingSeason2023 #YourTaxMatters – www.sars.gov.za

Source: SARS Tariffs
Media release – 2023 Filing season for Individuals and Trusts

22 June 2023 – Form and system changes will be introduced from 23 June 2023 to the Income Tax Return for Companies (ITR14) and Notice of Assessment for Companies (ITA34C). A limited number of source code descriptions will also be updated.

The following are the highlights of a non-exhaustive list of Legal Changes impacting the Income Tax Return for Companies (ITR14), Notice of Assessment for Companies (ITA34C), core systems and source codes:

• An update to the core systems to accommodate the assessed loss calculations in terms of section 20.
• An update to the ITR14 to identify paragraph 13(1)(a) and 13(1)(b) deductions for purposes of extending the prescription period on disputes.
• Removal of the Solidarity Fund Donations (excl. any other Donations) container on the ITR14 to align with the new Section 18A requirements.
• The Public Benefit Organisations (PBO) number(s) declared on the return when claiming donations will be validated against the SARS’s PBO register for validity.
• A Share Register will be added to the ITR14 return which will enable the capturing of the classes of shares, and the details of the holders of shares per class of share.
• The “Taxable Distribution(s) from all Trusts(s)” container will be enhanced to enable the taxpayer to declare the details of each distribution received from a Trust.
• An update to source code descriptions where applicable.

SARS gratefully acknowledges compliant taxpayers for filing their tax returns and paying their taxes on time. The support from tax practitioners is appreciated and we would like to remind you of the critical role that practitioners play in bridging the gap between taxpayers and SARS. As legislation, regulations and tax law are continuously changing and evolving, it is of utmost importance for companies and tax practitioners to keep abreast of such changes in so that companies continue to meet their tax obligations.

Source: SARS Tariffs
Corporate Income Tax (CIT) – Form and system changes

22 June 2023 – With Transfer Duty, there is a sequence of events that must be followed. However, there are four scenarios where the sequence of events is not always followed:

1. Divorce and then later inheritance;
2. Massed estate;
3.  Divorce and re-marriage;
4.  Inheritance where the surviving spouse is also donating her share to the children – not mentioned in the will as a massed estate, but clear from the contents that such occurred.

See the sequence of events in relation to the Transfer duty scenarios.

Source: SARS Tariffs
Transfer Duty scenarios’ sequence of events

21 June 2023 – Achieving our Vision 2024 of a smart, modern SARS with unquestionable integrity that is trusted and admired is of paramount importance. Pivotal to the delivery of our vision are our digital platforms & technology infrastructure. In order to provide clarity & certainty, make it easy for taxpayers & traders to comply with their obligations and building public trust and confidence, our technology assets have to demonstrate the highest levels of availability, robustness and security.

Pursuant to our Vision and Strategic Objectives, which include modernising our systems to provide Digital and Streamlined online services, we are hard at work ensuring that our digital platforms & technology infrastructure are available, robust & secure, by performing regular upgrades, enhancements, and maintenance.

In light of the above, a SARS Systems upgrade is scheduled for Friday, 23 June from 18:00 to 23:00. During this time, you may experience intermittent service interruption on the eFiling platform.

Source: SARS Tariffs
eFiling upgrade message on 23 June 2023

21 June 2023 – Value-Added Tax Act, 1991

• Binding General Ruling 64 – Temporary application of new dwellings for exempt supplies simultaneously held by developers for taxable purposes

Source: SARS Tariffs
Legal Counsel – Interpretation and Rulings – Binding General Rulings 61–80

20 June 2023 – The Government Gazette No. 48791 prohibiting the export of waste and scrap metal for ferrous metal and copper (HS codes 72.04 & HS codes 7404.00 and their sub-categories) was published.

The additional six months prohibition is to ensure the Phase 2 Actions of the policy gazetted in 2022 can be fulfilled accordingly. This includes the publishing of updated Regulations of the Second Hand Goods Act, implementation of a metal trading system, updating of systems and other further actions as identified.

Source: SARS Tariffs
Customs and Excise: A further six-month prohibition of exports of waste and scrap metal