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2023 Legal and Policy

Legal and Policy - 19 January 2023

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SARS:

See the full Media Release here.

The Questions and answers document is now available.

  • 12 January 2023 – A survey will be distributed to a sample of VAT vendors. Below is the wording for you to know it’s legit and not a scam. For future studies, surveys, SMS and email campaigns from SARS, remember to visit our Current surveys, SMSs and Emails webpage.

Dear VAT Vendor,

SARS is conducting a customer experience survey and you have been selected to participate in the study. We kindly request your feedback on your interaction with SARS regarding your VAT registration. Your feedback will be used to understand your views and to help SARS improve on its VAT registration process.

Please be assured that your responses will remain anonymous, as the survey is completely confidential. If you would like to verify the authenticity of this email and the survey, please visit the SARS website at www.sars.gov.za.

Click the link below to complete this short survey.

Survey Link XXX

Sincerely,

SOUTH AFRICAN REVENUE SERVICE

The following documents are now available:

If you have received a Personal Income Tax Administrative Penalty notification, this was issued due to the late or non-submission of one or more Income Tax Returns.

To remedy this, please submit your outstanding returns as soon as possible. Failure to do so will result in a monthly recurring admin penalty being levied until you are compliant. For more information, visit the Admin Penalty webpage or log on to your eFiling profile to view your personalised admin penalty notice. You can submit your outstanding returns via eFiling, the SARS MobiApp, or by booking an appointment with a Branch Agent.

  • 9 January 2023 – National Legislation: The following Amendment Acts were promulgated on 5 January 2023:
  • Act No 16 of 2022 – Tax Administration Laws Amendment Act, 2022 (GG 47827 – 16/01/2022)
  • Act No 19 of 2022 – Rates and Monetary Amounts and Amendment of Revenue Laws Act, 2022 (GG 47825 – 19/01/2022)
  • Act No 20 of 2022 – Taxation Laws Amendment Act, 2022 (GG 47826 – 20/01/2022)
  • Explanatory Memorandum
  • Amendment to Part 1 of Schedule No. 1 by the insertions of new 8-digit tariff subheadings, deletions and substitutions under several Chapters;
  • Amendment in Schedule No. 4 by the substitution of the title in Schedule No. 4 to delete the reference made to refunds and a new item 460.18/9001.10.19/01.08 in Part 2 of Schedule No. 4 is inserted as a consequence to the amendment in Part 1 of Schedule No. 1; and
  • Amendment in Part 4 of Schedule No. 5 by the deletion of refund items 540.01/195.10/0105, 540.01/195.10/02.05 and 540.01/195.20/01.05.

Publication details will be made available later

  • 3 January 2023 – The awarded tenders list was updated – 2019-2022 Awarded Tenders.
  • 30 December 2022 – The South African Revenue Service (SARS) today releases trade statistics for November 2022 recording a preliminary trade balance surplus of R7.98 billion attributable to exports of R172.67 billion and imports of R164.69 billion.

See the full Media Release here.

  • 26 December 2022 – The latest scam appears to be a SMS from SARS, indicating a payment to be received from SARS via Pay_Fast. Please don’t click on any links and report any suspicious correspondence from SARS to phishing@sars.gov.za.

See an example of the Pay_Fast scam here.

  • 23 December 2022 – Customs & Excise Act, 1964: Publication details for tariff amendment notice R2884, as published in Government Gazette 47765 on 23 December 2022, are now available.
  • 22 December 2022 – Customs & Excise Act, 1964: The tariff amendment notice, scheduled for publication in the Government Gazette, relates to the amendments to –
  • Part 1 of Schedule No. 1, by the substitution of tariff subheading 8418.10.90 in order to increase the rate of customs duty on combined refrigerator-freezers, fitted with separate external doors from 25% to 30% and the insertion of tariff subheading 8418.10.20 to exclude those with a total capacity not exceeding 400li – ITAC Report 618

Publication details will be made available later

  • 21 December 2022 – Customs officers of the South African Revenue Service (SARS) have seized possible counterfeit shoes (sneakers and sandals) with an estimated value of R3-million this past weekend.

See full media release here.

The following documents are now available:

  • 12 December 2022 – Skills Development Levies Act, 1999

Interpretation Note 10 (Issue 4) – Skills development levy exemption: Public benefit organisations

  • 12 December 2022 – Skills Development Levies Act, 1999

Interpretation Note 10 (Issue 3) – Skills development levy exemption: Public benefit organisations

  • 12 December 2022 – Value-Added Tax Act, 1991

Binding General Ruling 62 – Value-added tax implications of securities lending arrangements

SARS will introduce enhancements to the Tax Directives process as indicated in the IBIR-006 Tax Directives Interface Specification Version 6.501. The trade testing dates are still to be confirmed and the implementation of the software is planned for implementation in April 2023. You will receive communication with regards to the exact dates for trade testing and the implementation date closer to the time.

The Tax Directives Interface Specification is available on the SARS website www.sars.gov.za and you are encouraged to review it prior to testing.

Please follow these steps to submit test files:
Step 1: Before testing can commence, you will need to email 10 taxpayer reference numbers to ncts@sars.gov.za to ensure the numbers are active. In the email subject line, use “Tax reference numbers for Trade Testing”. A maximum of 10 taxpayer reference numbers will be allowed.
Step 2: You will be notified via the same email address to confirm when testing may commence.

For trade testing queries please email ncts@sars.gov.za

  • 12 December 2022 – Invitation to a tax education session for taxpayers in the arts, entertainment and sports sector

SARS is committed to assisting all taxpayers and small businesses to meet their tax obligations and remain compliant. In this regard, SARS will host a virtual session for small businesses and individual taxpayers within the entertainment, arts, and sports sectors.

The following topics will be covered:

  • Basics of Taxation
  • Voluntary Disclosure Programme
  • Debt Management Process
  • Estates Management Process

Event details:
Date: Tuesday, 13 December 2022
Time: 10:00-14:00
Platform (Virtual): Zoom and YouTube

As a valued taxpayer, you are invited to join the education session, which has a limited capacity.

Register for this session in advance at https://sars-gov-za.zoom.us/webinar/register/WN_AUaI6UG1Qru6lfn9AlbScQ

Meeting ID: 955 2765 7733

Passcode: 685945

YouTube link: https://youtu.be/JYAlMrmN7lE

After registering, you will receive a confirmation email with information on how to log into the webinar for an opportunity to have your questions answered during the session. If you have tax related questions, please send an email to Creativeindustryquestions@sars.gov.za The webinar will also be recorded and published on the SARSTV YouTube channel after the event.

  • 9 December 2022 – Customs & Excise Act, 1964

Glencore International AG v CSARS (34490/2021) [2022] ZAGPPHC (7 December 2022)

Customs: Review application of the Commissioner’s decisions to regard the applicant’s goods diverted in terms of section 18(3) of Act 91 of 1964. As a result, the goods liable for forfeiture in terms of the provisions of section 88(2)(a) and levied an amount in lieu of forfeiture, outstanding VAT and VAT penalty.

  • 9 December 2022 – Tax Administration Act, 2011

SARSTC IT 45710 (ADM) [2022] ZATC CPT (29 November 2022)

Whether the new ground may be relied upon by the applicant on the provisions of rule 32(3), or whether it falls beyond the scope of the type of new ground contemplated in the sub-rule

  • 9 December 2022 – The guides for Income Tax return have been updated.

IT-AE-36-G05 – Comprehensive Guide to the ITR12 Income Tax Return for Individuals – External Guide

Updates for the 2022 Filing Season Phase 2 (letter issued for
change in provisional tax status, returns for future years); IRP5
income for foreign services rendered.

IT-AE-36-G06 – How to submit your individual income tax return via eFiling – External Guide

Enhancements for Filing Season 2022 Phase 2

  • The Shared Access functionality on eFiling has been extended to allow an RLA trader representatives to have access to the RLA functionality of a specific trader.

The Customs Trader Portal – External Guide SC-IT-03 has been changed to SC-CF-42 and the portion regarding relationship management has been transferred to SC-CF-50. SC-IT-03 is therefore withdrawn.

The content that relates to Registration and Licensing of non RLA client types in ECS-LER-02-M01 and SC-CF-39 has been transferred to SC-CF-52. ECS-LER-02-M01 is therefore withdrawn.

The facility codes used in Box 30 on the Customs Clearance Declaration (CCD) have been updated to include the details of the new approved de-grouping depot in ORTIA, Kerry Logistics South Africa (Pty) Ltd. This enables Customs to transmit electronic messages to these facilities communicating the status of the consignment. If the applicable facility codes listed in SC-CF-19-A02 is not inserted in Box 30 on the CCD, the CCD will be rejected by Customs. The facilities code list is an annexure to the External Policy for the Registration, Licensing and Designation.

New guides and updated external policy:

  • 9 December 2022 – Income Tax Act, 1962

Binding Private Ruling 387 – Attribution of nett income to a public benefit organisation

  • Binding Class Ruling 085 – En commandite partnerships investing in photovoltaic solar energy plants
  • Binding Class Ruling 084 – Transfer of funds held in trust to a “beneficiary fund”
  • 9 December 2022 – Income Tax Act, 1962

Interpretation Note 18 (Issue 5) – Rebate and deduction for foreign taxes on income

  • 9 December 2022 – Income Tax Act, 1962

Interpretation Note 18 (Issue 4) – Rebate and deduction for foreign taxes on income

  • 9 December 2022 – The December issue of the VAT Connect newsletter is now available.
  • 9 December 2022 – The South African Revenue Service (SARS) has implemented enhancements to the Tax Directives system in line with the introduction of Par 2(2B) of the Fourth Schedule which requires that employees’ tax to be calculated and withheld at a fixed tax rate from an annuity. Read more.

The following documents have been updated:

  • 7 December 2022 – Customs officers of the South African Revenue Service (SARS) have seized a substance that is used to manufacture the drug Mandrax after inspecting a truck that was entering South Africa from Mozambique.

Customs Inspectors from Lebombo Customs Detector Dog Unit were conducting random searches of cargo at the imports channel at Lebombo Border Post when they stopped a yellow truck with two trailers en route to South Africa.

The officers engaged the driver, a Zimbabwean citizen, to perform a manual inspection to verify the declared goods, which were declared as boxes of hair extensions. A Customs officer requested the declaration documents from the driver which were handed over to the officer.

See the full media statement here.

  • Table A – A list of the average exchange rates of selected currencies for a year of assessment as from December 2003
  • Table B – A list of the monthly average exchange rates to assist a person whose year of assessment is shorter or longer than 12 months
  • 7 December 2022 – SARS launched a new self-service automated system in 2020 to make it easier for stakeholders and intermediaries to register and/or license for Customs purposes. The Registration, Licensing and Accreditation (RLA) system has undergone various enhancements since its launch. Currently customs clients have been able to capture and submit their Registration and Licensing (RLA) applications on the electronic RLA platform through eFiling.

For more information see our letter to Trade.

  • 7 December 2022 – Implementation of Tax Directive system enhancements scheduled for 9 December 2022

The introduction of Par 2(2B) of the Fourth Schedule requires that employees’ tax be calculated and withheld at a fixed tax rate from an annuity, if a taxpayer receives remuneration from more than one source during a year of assessment and where one or more of those sources is from an employer who is a retirement fund or is licensed as an insurer under the Insurance Act.

These employers are required to apply the fixed tax rates prescribed and made available on e@syFile™ Employer or eFiling by SARS. The policy intention aims to ensure that the monthly employees’ tax is calculated correctly so that the taxpayer does not have a substantial tax shortfall due by you to SARS or due to you by SARS on assessment. These tax rates are calculated using prevailing tax rates and information pertaining to the taxpayer at the time of processing. For more information click here.

  • 6 December 2022 – Customs & Excise Act, 1964

Protocol amending Zambia CMAA – date of entry into force is 27 October 2022

Status overview of all customs agreements on mutual administrative assistance has subsequently been updated

  • 5 December 2022 – The South African Revenue Service (SARS) wishes to express its heartfelt congratulations to the outstanding recognition of its Head of Technology and Solutions Delivery (TSD), Mr Intikhab Shaik, for receiving the Institute of Information Technology Professionals South Africa (IITPSA) President’s Award as the Visionary Chief Information Officer of the Year.

What makes this prestigious accomplishment so noteworthy is that Mr Shaik’s work was compared against industry peers in both the private and public sectors. The determination that his performance is unmatched and stands head and shoulders above all others is a testament to the quality of his technology leadership. It was during the period of COVID-19 that the genius of Mr Shaik and his team shone the brightest.

SARS Commissioner Mr Edward Kieswetter, in acknowledging the public recognition of Mr Shaik, pointed out: “During the various levels of lockdown, Mr Shaik and his team designed and implemented more than 40 digital in-house solutions that enabled SARS to continue to deliver its services to taxpayers and to deliver on its core mandate of collecting all revenue due. The continued operation of SARS during this time, was measurably enabled through the enabling technology platform built by the TSD team under Intikhab’s leadership. This contributed measurably to the economy of the country functioning despite the severe restrictions imposed during COVID-19. We are immensely proud of this contribution and believe that this public recognition is well deserved.”

The capability of SARS to use data science, artificial intelligence and enabling technology innovation is best demonstrated by the implementation of auto-assessments that covered well over 4 million taxpayers. This is in line with the Strategic Intent to make compliance easy for honest taxpayers whilst making it hard and costly for this who seek to defraud the tax system.”

The exceptional achievement of the TSD team under the exemplary leadership of Mr Shaik, dovetails with the SARS Vision of building “a smart modern SARS with unquestionable integrity, trusted and admired. This is aligned with the collective orientation of the organisation to regard its contribution as a rare privilege in serving South Africa and all its people.

What makes this recognition encouraging, is that it has laid the foundation of SARS to develop an operating model based on automation, insights from data, in an empowering technology-enabled operating model. It is hoped that this system will be further developed to the point where interaction between SARS and all taxpayers and traders will happen digitally, automatically and seamlessly!

What Mr Shaik has achieved at SARS since he joined the organisation more than 30 years ago, speaks aptly to his ability to demonstrate personal and intellectual mastery in his field. It communicates his exceptional competence in how he manages his team to bring about the positive impact on his personal brand and the SARS brand and reputation.

SARS is proud of Mr Shaik’s achievements for continuously improving the important interface between the organization and taxpayers and traders. The recognition he has achieved resoundingly confirms that industry players acknowledge the strides that SARS has made, notwithstanding the financial constrains that the organization faces. Hearty congratulations to Mr Shaik and the team.

Photo SARS – Mr Intikhab Shaik

For more information contact SarsMedia@sars.gov.za

  • 2 December 2022 – The SARS Rustenburg office is closed from 15:00 today for the rest of the day. Our apologies for the inconvenience.
  • 2 December 2022 – Income Tax Act, 1962

Interpretation Note 126 – Extraordinary dividends treated as income or proceeds on the disposal of certain shares

  • 1 December 2022 – Customs & Excise Act, 1964

Customs and Excise Act 91 of 1964 – whether solar home system has the essential character of an energy source and power generation device or that of a lighting kit – product has a utility of its own – it constitutes a fully functioning lamp – classifiable under tariff heading 9405.40.21 of Part 1 of Schedule 1 to the Act.

NATIONAL TREASURY:


OECD:

ATAF:

TAX OMBUD:

DivisionLegal and Policy
Categories
Legal and Policy
Date19 January 2023