Legal and Policy - 2 March 2023

SARS:

• 1 March 2023 – Tax Administration Act, 2011: The regulation, scheduled for publication in the Government Gazette, relates to the –

regulations for purposes of paragraph (a) of the definition of “international tax standard” in section (1) of the Tax Administration Act, 2011 (Act No. 28 of 2011), promulgated under section 257 of the Act, on the date that the mandatory disclosure rules (MDR) take effect.

Publication details will follow in due course

• 1 March 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 the light of the above, system upgrades are scheduled for Friday, 03 March from 20:30 until Saturday, 04 March 06:00. During this time various services on eFiling may not be available.

• 1 March 2023 – SARS is currently experiencing high call volumes. To book an appointment please make use of our Digital Channels by clicking on the SARS Booking System.

For more information on how to complete the online booking form click on Guide on Book an Appointment at a SARS Branch.

• 28 February 2023 – See our Estate Duty webpage for information and clarification on whether the executor can be held personally liable for estate duty and when and how to request the Deceased Estate Compliance (DEC) letter.
• 28 February 2023 – Customs Weekly List of Unentered Goods
• 28 February 2023 – During the registration process on eFiling, Non-resident (Foreign) Trusts and Collective Investment Schemes Trust (CIS) are now able to register without the mandatory Trust registration number (as indicated on the Letter of Authority (LOA)).

A dropdown was implemented to allow the user to select the Trust Type first. The following Trust types will still be required to provide a Trust registration number: Inter vivos Trusts, Testamentary Trusts, Estate CGT Trusts and Special Trusts. For more information see the updated Guide on how to Register for eFiling and Manage Your User Profile.

• 28 February 2023 – SARS today releases trade statistics for January 2023 recording a preliminary trade balance deficit of R23.05 billion. The R23.05 billion preliminary trade balance deficit for January 2023 is attributable to exports of R139.36 billion and imports of R162.41 billion.

See the full media release here.

Visit the Trade Statistics webpage.

• 28 February 2023 – The Guide for Transfer Duty via eFiling has been updated with the new tax rates.
• 28 February 2023 – The new online Traveller Declaration System was successfully implemented on 29 November 2022 as phase 1 pilot of the system at King Shaka International Airport (KSIA).

The next phase of the implementation is planned at all airports, starting with Cape Town International Airport on 28 February 2023, O.R. Tambo International Airport on 23 March 2023 and other airports in the second and third quarters of 2023, as well as land ports, namely Beit Bridge and Skilpadshek. The Cape Town Seaport is also in line to implement the system during the last quarter of 2023.

The system will continue to be used on a voluntary basis during the pilot phase until further notice. The results of the pilot project will be applied as SARS rolls out the system in line with Customs legislation.

The system allows travellers, including South African citizens and residents, leaving or entering South Africa by air to complete and submit an online traveller declaration and receive electronic confirmation thereof before they travel. Travellers who are travelling with children or infants will also need to complete a declaration on their behalf. Watch our short Traveller Declaration System video on the SARS TV channel.

For more information, visit the Traveller Declaration webpage.

• 27 February 2023 – The South African Revenue Service’s National Customs Enforcement Team working together with the South African Police Service and South African Defence Force over the weekend of 25-26 February intercepted truckloads of illicit cigarettes, based on intelligence received.

This is part of ongoing efforts to enhance the effectiveness of Customs in combating illicit trade, particularly in tobacco and cigarette. The joint intervention took place in areas and farms along South Africa’s borders. These significant detections involving cross-border smuggling are as follows:

• A total 1185 master cases of illicit cigarettes with brands of Remington Gold, Chelsea and Royal Express, worth millions, were detained.

• Four people were arrested and criminal cases opened with regard to dealing in the smuggling of illicit cigarettes.

• Further, 4 trucks, one bakkie and one tractor with a trailer, which were used to carry the illicit cigarettes, were detained worth millions in estimated value.

The outcome of this special operation confirms that since the syndicated investigation work that SARS has been doing over the past three years in the tobacco and cigarette industry, there is a shift to increased cross-border smuggling. In this case, local manufacturers linked to the cigarette brands will be engaged as part of our ongoing investigations as it is known that these cigarettes originate from outside South Africa.

Furthermore, it justifies a conclusion, based on trends observed, that on average, over 500 people cross the border on any given day, with each person smuggling at least two master cases of illicit cigarettes on their backs. These cigarettes are then loaded into trucks, some owned by South Africans, and small vehicles which use alternative routes alongside the border and in collusion with some local farmers with to reach their intended destinations for distribution on the local market.

SARS will continue enhancing its Customs Enforcement capacity and capability to deal with illicit trade in collaboration with other law enforcement agencies aimed at improving the tax and Customs ecosystem and protecting the sovereignty of the Republic of South Africa, by making it hard and costly for traders and taxpayers who are wilfully, criminally and intentionally non-compliant.

SARS Commissioner Mr Edward Kieswetter lauded the joint efforts of the law enforcement agencies that led to this successful operation. He expressed his deep concern at the alleged involvement of many syndicates in these operations, within the bordering farming communities, including those who are using their properties and vehicles in collusion with these syndicates

“We will use all information gathered by enforcement agencies to follow up, and prosecute where necessary, those who are involved in these syndicated crimes. All those who are involved, irrespective of their nationality, will face the full might of the law. We will continue to carry out our enforcement work without fear, favour or prejudice to protect local industries and promote economic development,” Mr Kieswetter said.

• 27 February 2023 – The awarded tenders list was updated – 2019-2022 Awarded Tenders.
• 7 February 2023 – Cancellation of RFP30/2022: SARS hereby notifies bidders that the tender process for RFP30-2022 has been cancelled.
• 27 February 2023 – Cancellation of RFP30/2022: SARS hereby notifies bidders that the tender process for RFP30-2022 has been cancelled.

• 27 February 2023 – Tuesday, 28 February 2023 is the deadline for individual provisional taxpayers to file their second provisional tax return (IRP6).

See Provisional Tax or this article to understand the requirements. Avoid penalties and file on time.

• 24 February 2023 – Income Tax Act, 1962

• Notice 3082 published in Government Gazette 48104 on 24 February 2022 – Further information required in terms of section 18A(2)(a)(vii) for purposes of a receipt issued under section 18A(2)(a) of the Income Tax Act, 1962 (with effect from 1 March 2023)
• 24 February 2023 – Enhanced cooperation and collaboration between SAPS/ DPCI (Hawks) and SARS is being bolstered with the signing of a new memorandum of understanding that promotes the exchange of information, joint initiatives and more effective operational arrangements in line with Financial Action Task Force (FATF) requirements.

View full statement here.

• 24 February 2023 – RFP38/2022: Appointment of a service provider for health and safety training
• 24 February 2023 – RFI0006/2022: E-Learning Management System
• 24 February 2023 – The PAYE Employer Reconciliation BRS for the 2024 tax year has been published.

The following source codes have been amended: 2025, 2036, 3040, 3231, 3232, 3233, 3234 and 4150.

For more information, please visit the Pay As You Earn and Reconciliations webpages.

• 24 February 2023 – Customs officers of the South African Revenue Service (SARS) and the South African Police Service carried out an early morning raid today on a container ship at the Durban harbour and found 378kg of cocaine in one of the containers on board the ship.

The pure cocaine, estimated to have a value of R1.3billion, was detected after a week-long intelligence driven operation led by the SARS National Targeting Unit. The SARS Marine unit, Durban Operations, South African Police Service (SAPS) Crime Intelligence and National Detective Services boarded the vessel heading from South America to secure several containers that were profiled by SARS.

See the full media release here.

• 24 February 2023 – Tuesday, 28 February 2023 is the deadline for individual provisional taxpayers to file their second provisional tax return (IRP6). See Provisional Tax to know if you are an individual provisional taxpayer. This article may provide a simpler explanation to help you understand the requirements.

• 23 February 2023 – Beware of the latest email scam saying SARS has issued correspondence which requires your attention and telling you to click on a link. Please ignore and don’t click on any links. If in doubt, please send an email to phishing@sars.gov.za. See an example of the latest scam – Scam – Scam Revenue letter – 23 February 2023.
• 23 February 2023 – Beware of the latest SMS scam saying that you are eligible to receive a tax refund and telling you to click on a link. Please ignore and don’t click on any links. If in doubt, please send an email to phishing@sars.gov.za. See an example of the latest scam – Scam – Tax notification – 23 February 2023.

NATIONAL TREASURY:

• Statement of the National Revenue, Expenditure and Borrowing as at 31 January 2023 – 28 February 2023

FATF Grey Listing Fact Sheet (Updated) – 24 February 2023

Media Statement: Response to Financial Action Task Force – 24 February 2023