Legal and Policy - 25 May 2023

SARS:

• 24 May 2023 – Tax Administration Act, 2011

Interpretation Note 129 – Understatement penalty: Meaning of “maximum tax rate applicable to the taxpayer”

• 24 May 2023 – Mobile tax unit schedules for Gauteng South during June and July

• 23 May 2023 – The latest scam is an email seemingly from a Gauteng.gov.za email address with the subject title ‘Urgent letter from SARS attached for your attention’. The scam is a PDF with a button to click called ‘View account in arrears’. Don’t click on any suspicious links, if you hover over the link it is clear that it is not legit. See the scam here.

• 23 May 2023 – Tax Administration Act, 2011

Dispute Resolution Guide: Guide on the Rules Promulgated in terms of Section 103 of the Tax Administration Act, 2011 (Issue 3)

• 23 May 2023 – Customs Weekly List of Unentered Goods

• 22 May 2023 – Mobile tax unit schedules for Free State and Northern Cape during May and June have been published.

• 20 May 2023 – The South African Revenue Service (SARS) Customs Division intercepted on Saturday 20 May 2023 a truck carrying 440 master boxes of Remington Gold cigarettes, with estimated total value of R9 million, which were falsely declared as Cotton Oil Cake.

The Customs Officer conducting random inspection became suspicious when the value of goods declared on the document and the load on the truck did not match. Upon questioning the driver, the answers provided were inconsistent with the document. He then redirected the truck to the inspection ramp and unpacked the load and discovered goods hidden under Cotton Oil Cake.

Read the full statement here.

• 19 May 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, 19 May from 18:00 until 22:00. During this time eFiling will be intermittently available.

• 19 May 2023- The Commissioner of South African Revenue Service (SARS) Mr Edward Kieswetter welcomed the decision of the Constitutional Court of 17 May 2023 to dismiss the application for leave to appeal the Supreme Court of Appeal verdict by the African Global Holding (Pty) Ltd (AGH).

The matter arose from the decision of the Supreme Court of Appeal which upheld the appeal by liquidators and purchasers of assets, which opposed an earlier High Court decision that set aside the auction of the property of AGH. It should be noted that a cross appeal had also been noted against the decision to not put the company into business rescue.

Read the full statement here.

• 19 May 2023 – The Commissioner for the South African Revenue Service (SARS), Mr Edward Kieswetter, said he was pleased to note the decision of the Supreme Court of Appeal on 18 May 2023 in the matter of Commissioner for SARS v Regiments Regiments Capital (Pty) Ltd and Others.

Several parties, with an “interest” in Regiments brought an application to set aside Regiments’ liquidation. SARS intervened and opposed the setting aside of Regiments’ liquidation; however, the High Court made a decision to, inter alia, set aside Regiment’s liquidation.

Read the full statement here.

• 19 May 2023 – The latest Government Connect Issue 10 Newsletter is now available. This issue includes information on the Employer Annual Reconciliation Declaration period which closes on 31 May 2023, enhancements to the dispute resolution process, how to prepare for an appointment with SARS, services offered by SARS via the SARS MobiApp and enhancements to the Tax Compliance status system.
• 19 May 2023 – RFP33/2022: Acquisition of Software Asset Management Tool, Professional Services and Maintenance and Support.

Answers to questions posed by bidders can now be viewed in communication no 1.

• 18 May 2023 – The May and June 2023 mobile tax unit schedules for Eastern Cape are now available.

• 18 May 2023 – The latest Tax Practitioner Connect Newsletter Issue 41 is available. This issue includes information on the Employer Annual Reconciliation Declaration period which closes on 31 May 2023, enhancements to the dispute resolution process, how to prepare for an appointment with SARS, services offered by SARS via the SARS MobiApp and enhancements to the Tax Compliance status system.
• 18 May 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, 19 May from 18:00 until 22:00. During this time eFiling will be intermittently available.

• May 18, 2023

Excise – Clarity on the extension of the Diesel Refund to manufacturers of foodstuffs

18 May 2023 – In the 2023 budget speech, the Minister of Finance announced the following tax relief measures in an effort to address the current load-shedding problem the country is facing:

“Government implemented the diesel refund system in 2000, to provide full or partial relief for the general fuel levy and the RAF levy to primary sectors. The refund system is in place for the farming, forestry, fishing, and mining sectors. In light of the current electricity crisis, a similar refund on the RAF levy for diesel used in the manufacturing process (such as for generators) will be extended to the manufacturers of foodstuffs. This will take effect from 1 April 2023, with refund payments taking place once the system is developed and will be in place for two years until 31 March 2025. This relief is implemented to limit the impact of power cuts on food prices.”

SARS will administer the new refund to the extent of 80% of the RAF levy for diesel purchased for use and used in the manufacturing of foodstuffs through the DA66 Excise Refund System. The currently manual DA66 process will be automated in the last quarter of 2023 and is separate from the diesel refund system that is administered through the VAT system by way of submitting VAT 201 returns.

For more information, see the letter to stakeholders.

NATIONAL TREASURY:

• Speech by Deputy Minister of Finance, Dr David Masondo at the Launch of Rand Merchant Bank – 19 May

OECD:

• Viet Nam deposits its instrument for the ratification of the Multilateral BEPS Convention - 23 May 2023
• Study Group on Asia-Pacific Tax Administration and Research and Asian Infrastructure Investment Bank join global fight against tax evasion as Global Forum's 22nd and 23rd observers - 22 May 2023

SAFLII:

• Commissioner for the South African Revenue Service v Nyhonyha and Others (1150/2021) [2023] ZASCA 69 (18 May 2023)