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2024 Legal and Policy

Legal and Policy - 17 October 2024

Overview

Legal and Policy - 17 October 2024

Description

SARS

  • 10 October 2024 – 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 and technology infrastructure. To provide clarity and certainty, make it easy for taxpayers and traders to comply with their obligations and building public trust and confidence, our technology assets must demonstrate the highest levels of availability, robustness and security.

In accordance with 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 and technology infrastructure are available, robust and secure, by performing regular upgrades, enhancements and maintenance.

Considering the above, SARS Digital platform maintenance is scheduled for Friday 11 October 2024 from 18:00 to 22:00.

During this time, you may experience intermittent service interruption on the eFiling platform.

  • 10 October 2024 – The latest scam is an email talking about unsettled payment. The scam leads you to a malicious website.

See an example of the latest payment scam here.

Make sure the email or SMS is genuine before you click on any link.

Protect yourself from scams and phishing!

· Do not open or respond to emails from unknown sources.

· Beware of emails or SMSs asking for personal, tax, banking or eFiling details.

· SARS will never send you hyperlinks to other websites. Watch our short tutorial video on how to spot scams.

All known scams are listed on the Scams and Phishing webpage and if in doubt, email the IT security team on phishing@sars.gov.za.

· 10 October 2024 – Income Tax Act, 1962, and Value-Added Tax Act, 1991

· BPR 411 – Tax consequences of a deemed input tax deduction under the VAT Act

· 10 October 2024 – Customs & Excise Act, 1964

· Nigeria CMAA Agreement – date of entry into force is 1 May 2024

  • 11 October 2024 – As we approach the personal income tax filing deadline of 21 October 2024, we are extending our service hours at certain branches to assist taxpayers with returns:

· Mpumalanga – Emalahleni – 08:00-12:00

· Mpumalanga – Mbombela – 08:00-12:00

· North West – Rustenburg – 08:00-13:00

· North West – Mmabatho – 08:00-13:00

· North West – Klerksdorp – 08:00-13:00

· Western Cape – Paarl – 08:00-13:00

· Western Cape – Bellville – 08:00-13:00

· Western Cape – Cape Town – 08:00-13:00

· Western Cape – Mitchells Palin – 08:00 – 13:00

· Western Cape – George – 08:00-13:00

· Western Cape – Beaufort West – 08:00-13:00

· Gauteng – Alberton – 08:00-13:00

· Gauteng – Edenvale – 08:00-13:00

· Gauteng – Springs – 08:00-13:00

· Gauteng – Krugersdorp – 08:00-13:00

· Eastern Cape – 08:00-13:00

· Eastern Cape – Mthatha – 08:00-13:00

· Eastern Cape – Gqeberha – 08:00-13:00

· Kwa Zulu Natal – Durban – 08:00-13:00

· Kwa Zulu Natal – Port Shepstone – 08 :00-12 :00

· Kwa Zulu Natal – Umhlanga – 08 :00-13 :00

· Kwa Zulu Natal – Richards Bay – 08 :00-13 :00

· Kwa Zulu Natal – Pitermaritzburg – 08 :00-13 :00

· Limpopo – Polokwane – 08 :00-13 :00

· Limpopo – Thouyandou – 08 :00-13 :00

· Limpopo – Gyani – 08 :00-13 :00

· Limpopo – Lebowakgomo – 08 :00-13 :00

· Free State – Bloemfontein – 08 :00-13 :00

· Free State – Upington – 08 :00-13 :00

· Free State – Kimberly – 08 :00-13 :00

· Free State – Kroonstad – 08 :00-13 :00

· Free State – Welkom – 08 :00-13 :00

· Free State – Bethleem – 08 :00-13 :00

· Gauteng – Ashley Gardens – 08 :00-13 :00

· Gauteng – Doringkloof – 08 :00-13 :00

· Gauteng – Pretoria CBD – 08 :00-13 :00

· Gauteng – Randburg – 08 :00-13 :00

· Gauteng – Roodepoort – 08 :00-13 :00

· Gauteng – Rissik – 08 :00-13 :00

· Gauteng – Soweto Orlando – 08 :00-13 :00

  • 11 October 2024 -The Tax Administration Act stipulates that an individual must register with both a Recognised Controlling Body (RCB) and SARS as a Tax Practitioner if they wish to provide tax related services to taxpayers. An RCB is responsible for overseeing the registration and admission of Tax Practitioners. RCBs are also required to manage their tax practitioner members’ compliance to the registration requirements. To support RCBs and tax practitioners in fulfilling these responsibilities, SARS has reworked the ‘Criteria for the registration of Tax Practitioners and the recognition of controlling bodies’ as previously published and agreed to.

See the following guides for more information:

  • 11 October 2024 – The South African Revenue Service (SARS) wishes to announce that to date it has received 1,213,646 applications for tax directives for withdrawals from the Savings Withdrawal Benefit of the two-pot system. Of the total number of applications 1,148,729 tax directives were approved for funds to be released. The remainder were declined for a variety of reasons, including incorrect Identity Numbers, incorrect tax numbers, amongst others.

A total gross lumpsum of R R21.4 billion has been paid out to date.

In line with SARS’ intent for taxpayers to use digital channels, SARS is happy to announce that the simulated WhatsApp calculator was used 51,547 times since implementation of the process. The simulated calculator on the SARS website, which forms part of the SARS Online Query System, has been used 655,801 times. SARS has also received 53,519 and queries through the voice channel, and 8,655 at branches.

Taxpayers are encouraged to continue to use the digital channels, which are simple, easy and user-friendly. Using these channels means taxpayers do not have to leave their homes or places of employment to stand on undignified queues.

SARS would like to thank retirement fund management entities for their friendly and professional co-operation that has allowed SARS to play its part effectively and efficiently by speedily issuing the volumes of tax directives needed to date.

SARS reminds taxpayers who want to apply for a withdrawal to make sure that they verify their tax numbers, have supplied the correct Identity Numbers and that they do not have any outstanding debt with SARS.

After a registered taxpayer has applied, a successful tax directive informs the fund management how much tax to deduct from a withdrawal. Directive applications are accepted by SARS 24/7 and processed within an hour 365 days a year from 8:00 to 19:00. Unless a directive application is submitted outside of these hours, the response if the taxpayer is compliant be sent to the fund within an hour.

Before a final amount is paid to the applicant, the pension fund will be informed to also deduct any outstanding debt on behalf of SARS before any payout is made to the member. If a person has a debt arrangement with SARS, the withdrawal will not be affected. If there is a debt owed to SARS, it will be deducted in terms of such arrangement.

Taxpayers are reminded that tax will be imposed on a withdrawal at a marginal tax rate ranging between 18%-45% depending on their scales. Despite this public information, there are taxpayers who are wilfully understating their incomes.

SARS Commissioner Mr Edward Kieswetter said that “SARS is deeply concerned that 213,654 taxpayers have been identified where they have declared incorrect taxable income with the view to have a more favourable tax rate. If a taxpayer understates their income, they are intentionally involved in evading their tax obligation. A penalty will be imposed on taxpayers who have understated income. Finally, I wish to caution taxpayers to refrain from this conduct that borders on criminality as there are real consequences for this behaviour”.

For more information, please contact SARS at SARSMedia@sars.gov.za.

  • 11 October 2024 – Customs officers of the South African Revenue Service (SARS) uncovered 47 bricks of compressed cocaine, with an estimated street value of R25 million, at the OR Tambo International Airport this morning.

The cocaine bricks that weighed about 50 kg, were packed into a luggage bag that was spotted by Customs officers and airport security this morning on a carousel for a flight from Sao Paolo in Brazil and heading to Kinshasa in the Democratic Republic of the Congo (DRC).

SARS Customs officers inspected the luggage bag and saw suspicious looking objects in the bag. These objects tested positive for narcotics. There were no passengers accompanying the bag and no arrests were made. The South African Police Service will now investigate the matter after everything was handed over to them.

Sao Paolo in Brazil is a high-risk departure point for drug mules, accompanied as well as unaccompanied luggage containing cocaine. There have been several busts of drug mules at ORTIA in recent weeks.

SARS Commissioner Edward Kieswetter warned those involved in drug trafficking that an inter-agency approach is being implemented to bring them to book. SARS Customs, the Border Management Authority, the Airports Company, the SAPS and the Department of Home Affairs were working to safeguard citizens from the scourge of narcotics. He said that “This multi-disciplinary approach is having palpable results demonstrated by arrests and interceptions recently. Through these actions, we are protecting the wellbeing of our citizens, especially young people who are our future,” the SARS Commissioner said.

For more information contact sarsmedia@sars.gov.za.

  • 13 October 2024 – The South African Revenue Service (SARS) pays special tribute to the late Mr. Tito Mboweni who helped to stabilise our macro-economic landscape in the pivotal roles he played as Governor of the Reserve Bank and Minister of Finance, working closely with SARS as part of the broader Finance family.

For ten years from 1999 to 2009, he was the Governor of the Reserve Bank, a decade that coincided with the 10 years served by the late Mr. Pravin Gordhan as Commissioner of SARS. It was this decade of stability in leadership, along with Mr. Trevor Manuel as the then Minister of Finance, that helped SARS in its strategic repositioning and modernization as a world-class revenue authority.

No other portfolio of government had such stability in leadership over such a long time, which was essential for building our democracy and strengthening institutions such as SARS and the Reserve Bank.

SARS Commissioner Edward Kieswetter paid homage to Mr. Mboweni as being a part of a generation of young leaders who prioritise the fight against apartheid when it seemed impossible to defeat the minority regime.

“Mr. Mboweni willingly made the sacrifices necessary to realise our goal of freedom in a non-racial, non-sexist and democratic order. His generation was known as the “young lions” because of their bravery and selflessness. For that, SARS salutes him for his fight against minority rule and for building our democracy. His leadership as Minister of Finance came at the most important juncture in the history of SARS after it had suffered a deliberate and systematic decimation of its governance in pursuit of corrupt intent. It was the late Minister Mboweni acting on the recommendation of the Committee that proposed to the President to appoint me as Commissioner of SARS.

Since May 2019, I had the pleasure of working alongside Tito Mboweni, as we started the journey to rebuild SARS, post the period of state capture. In the lead up to the recent elections, Tito called to encourage me to continue the work we are doing at SARS, stressing how important it is to never give up in strengthening our democracy. He was unwavering in his quest to help not only the rebuilding efforts but to ensure that SARS once more enjoys pride of place in our society. His wise counsel and unstinting support to SARS to fulfil its mandate of collecting all that is due to Government will be solely missed. Coming so soon after the passing of Mr. Gordhan this untimely death robs us as SARS and the broader South African society of a patriot, an irrepressible individual and an intellectual giant.

Farewell Tito, you have played your part, we shall continue the path of strengthening our fiscal policies and administrative capacity for the betterment of all South Africans.”

SARS wishes to convey its condolences and deepest sympathies to the extended Mboweni family on the sad passing away of the former Minister of Finance.

Hamba Kahle!

For further information, please contact SARS at SARSMedia@sars.gov.za.

  • 14 October 2024 – The state provides state warehouses for the safekeeping of goods. These are managed by Customs. The purpose of this list of unentered goods is to notify the importer, exporter and any other person that has interest in the goods that the goods have been taken up into the State warehouse and if they remain unentered they will be disposed in accordance with the provisions of the Customs & Excise Act.

See the latest Customs Weekly List of Unentered Goods here.

For all SARS reports, see the Annual Reports & Strategic plans webpage.

  • 14 October 2024 – The South African Revenue Service (SARS) has noted media statements alluding to the pending shortage of jet fuel, known as kerosene, due to what is purportedly SARS’ dithering to issue licences to fuel companies. This is an incorrect position. The importation and movement of both aviation kerosene and illuminating kerosene is strictly governed by the Customs and Excise Act. It is the adherence to the provisions of the Act that has proven difficult for the fuel industry.

SARS wishes to clarify that the demand for both aviation kerosene and illuminating kerosene in the Republic, is met by the supply from licensed fuel manufacturers (“refineries”) and importation.

Since 2022, some of the coastal refineries have stopped manufacturing due to various reasons including destruction of infrastructure and relied on importation to meet the demand. During April 2024, some of the refineries applied for and were granted temporary special storage warehouse (SOS) licenses for the storage and subsequent distribution of imported aviation kerosene to ORTIA and other airports. This was done to avert an impending crisis of the shortage of aviation kerosene that was occasioned by statutory maintenance of certain refineries.

The licenses granted were for a specific period, and under specific conditions at that time. These licenses were granted on the premise that the institutions would follow the formal process for licensing and have the necessary facilities in compliance with the Customs and Excise legislation. The special customs and excise warehouse ensures control of goods and enables SARS to protect the state revenue.

SARS has endeavoured to provide clarity and certainty to the relevant entities that are transitioning from a manufacturing-based model to an import model. In this regard, SARS has been assisting and guiding the entities to continue to trade within the bounds of the law while adhering to the necessary governance processes.

Importantly, SARS will be engaging with industry to announce a solution to immediately implement measures that will address the current challenges while ensuring that the provision of the law is upheld. It is in SARS’ interest that the country’s economy and travelling is not impeded in anyway. It is equally important that all the role players should also act expeditiously in meeting their obligations.

For further information, please contact SARS Media at SARSMedia@sars.gov.za

  • 15 October 2024 – The latest Monthly Tax Digest newsletter for October 2024 is now available.
  • 15 October 2024 — Following the media statement by the South African Revenue Service (SARS) yesterday, 14 October 2024, about an engagement with industry to avert fuel shortages at all airports, SARS wishes to announce the following:

After careful consideration, SARS Commissioner has granted special permission for the importation of kerosene fuel from 21 October 2024 until 20 October 2025. The special permission is granted to allow parties to attend to the complexities involved in the process of the deregistration of manufacturing warehouses and reregistration of affected storage facilities.

The Commissioner requests all parties to conclude the outstanding work urgently and ensure that all compliance requirements are met and that the current licensing provision, in respect of the importation of kerosene fuel and its derivatives, may be confirmed where appropriate. Every taxpayer that is involved will be communicated with individually, in line with their applicable circumstances. SARS believes that this announcement will bring certainty to the industry, which will benefit the country’s economy and enable everyone to travel smoothly.

For further information, please contact SARS Media at SARSMedia@sars.gov.za

  • 16 October 2024 – The facility codes used in Box 30 of Goods Declaration (GD) have been updated to include the details of the newly approved degrouping depot – Savino Del Bene South Africa (Pty) Ltd (located in Kempton Park, OR Tambo International Airport). This enables Customs to communicate the status of the consignment by transmitting electronic messages to these facilities.

SC-CF-19-A02 – Facility Code List – External Annexure

  • 16 October 2024 – 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 and technology infrastructure. To provide clarity and certainty, make it easy for taxpayers and traders to comply with their obligations and building public trust and confidence, our technology assets must demonstrate the highest levels of availability, robustness and security.

In accordance with 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 and technology infrastructure are available, robust and secure, by performing regular upgrades, enhancements and maintenance.

Considering the above, SARS Digital platform maintenance are scheduled for Friday, 18 October 2024 from 18h00 to 22h00.

During this time, you may experience intermittent service interruption on our Customs Digital Platforms.

Responses (CUSRES messages) to transactions submitted during this time will be delayed, however, arrival and exit management functions are available at land border posts for all released declarations and manifests.

Stakeholders are therefore urged to submit all Goods Declarations (bills of entry) and Road Manifest, especially those deemed priority, by Friday, 18 October 2024 @ 17h00.

  • 16 October 2024 – In October edition we remind you of the changes pertaining to the Employer Interim Reconciliation process which closes on 31 October. Companies registered for Company Income Tax (CIT) may no longer need to pay CIT if they have ceased trading, undergone liquidation or dissolution, or has no taxable income or assets in South Africa. Read more about the deregistration process. Take note of the Income Tax Return filing dates to ensure that you are compliant and submit your returns on time. Finally, taxpayers can learn about tax through the many workshops SARS offer.

NATIONAL TREASURY

OECD

SARB

AuthorLegal and Policy
DivisionTax
Categories
Legal and Policy
Date17 October 2024