Month: October 2023

31 October 2023 – Income Tax Act, 1962

• Interpretation Note 24 (Issue 5) – Public benefit organisations: Partial taxation

Source: SARS Tariffs
Legal Counsel – Interpretation and Rulings – Interpretation Notes 21–40

31 October 2023 – Interpretation Notes

• Interpretation Note 112 – Section 18A: Audit certificate
• Interpretation Note 24 (Issue 4) – Public benefit organisations: Trading rules – Partial taxation of trading receipts

Source: SARS Tariffs
Legal Counsel Archive – Interpretation Notes Archive

31 October 2023 – South Africa recorded a preliminary trade balance surplus of R13.1 billion attributable to exports of R174.65 billion and imports of R161.51 billion.

See the full media statement here – Media Release – September 2023

Visit the Trade Statistics webpage.

Source: SARS Tariffs
Media release: Trade Statistics for September 2023

30 October 2023 – If a taxpayer incurred interest and penalty on provisional tax, a taxpayer is allowed to submit a Request for Remission prior to submission of the annual return.

In this scenario, the user must click on the ‘Add Dispute Item’ button and select the applicable source code from the list:

• 9995 – Interest (section 89bis) on provisional tax
• 9996 – Penalty (paragraph 27(1)) on provisional tax

The Guide to submit a dispute via eFiling was updated to align to the above.

Source: SARS Tariffs
Guide to submit a dispute via eFiling was updated

30 October 2023 – To mitigate the risks associated with compromised passwords, an additional security layer has been integrated to access the SARS MobiApp. The two-factor authentication (2FA) security system method consists of two distinct forms of identification requirements.

SARS MobiApp users or taxpayers can now enable the 2FA method on their eFiling profile. This implies that once implemented, they will be prompted to provide a one-time-pin (OTP) after they have successfully entered their username and password on the SARS MobiApp. Access to their SARS MobiApp profile will only be granted once they have completed the OTP successfully on their smart device.

The following external guide has been updated with this new development:

• IT-AE-47-G01 – How to register for the use of the SARS MobiApp – External Guide

Source: SARS Tariffs
Implementing two-factor authentication to login on the SARS MobiApp

30 October 2023 – The Tax Compliance Status (TCS) process relating to the approval of international transfer (AIT) applications have been adjusted to address feedback from stakeholders. Below is a summary of the key revisions:

TCS Application Form (TCR01):

• All the fields under the “Foreign Assets and Liabilities Details” container have been made optional based on the date the TCS applicant ceased to be a South African tax resident.
• The “Net Worth” field under the “Assets and Liabilities Details” container has been amended to “Net Amount (At cost)”.
• The “Trust No.” and “Passport No. of Main Trustee/Representative Taxpayer of the Trust” under the “Local and Foreign Trust Details” container, and the “Local and Foreign Loan to a Trust Details” container have been made optional when “Foreign Trust” is selected.
• The “Trust No.” under the “Distribution from Trust Additional Details” container has been made optional when the “Foreign Trust” is selected.
• The “Share code” field and “Number of shares sold” field under the “Sale of Shares and Other Securities Details” container have been disabled when the “Listed Shares” is selected.

TCS Verification Letter (TCR006):

The TCR006 letter has been amended to display the residency status under which the application was approved.

TCS Dashboard:

• An “Amount” column has been added to the TCS dashboard to enable the AIT Reviewers and Approvers to view the total value of the international transfer per the TCR01 application (where the application has not yet been approved) or the approved amount per the AIT case.

See the updated Guide to the Tax Compliance Status functionality on eFiling here.

Source: SARS Tariffs
Enhancements: Tax Compliance Status

27 October 2023 – If you suspect that your tax profile has been compromised, you can now report it electronically. As part of our ongoing efforts to enhance taxpayer confidence, we are introducing a new feature today. Simply click here to report the incident and follow the prompts to register your case. This will assist SARS to manage and prioritise your case while making it easier for you to interact with SARS when it comes to digital fraud.

Source: SARS Tariffs
Digital fraud reporting now online

26 October 2023 – The South African Revenue Service (SARS), strives to always clarify and remind taxpayers of their obligation in law, as well as the potential consequences should they not comply. Notwithstanding the legal mandate of SARS to act against taxpayers who fail to comply, it is generally expected that we first remind, and give the taxpayers the opportunity to comply, ahead of SARS commencing legal action. The SMS message that was sent out earlier this week, in relation to outstanding returns, fell short of the high professional standard we seek to uphold. SARS therefore sincerely apologises for the manner in which this matter was handled, the frustration it may have caused honest taxpayers, and any inconvenience caused.

See full statement here.

Source: SARS Tariffs
Media release – SARS apologises to taxpayers