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2021 Legal and Policy

Legal and Policy - 21 January 2021

Description

21 January 2021

SARS:

    • Rates and Monetary Amounts and Amendment of Revenue Laws Act 22 of 2020
    • Taxation Laws Amendment Act 23 of 2020
    • Tax Administration Laws Amendment Act 24 of 2020
    • IT3 Data Submission v3.0.0-32
    • IT3 Data Submission v2.0.3-27

Due date for public comment: 12 February 2021

The judgements and their summaries are available on the high court judgments page

  • CONTINUED SUSPENSION OF PHYSICAL VISITS TO SARS BRANCHES
    The South African Revenue Service (SARS) had earlier communicated that its branches would re-open on 18 January 2021. Following yesterday’s national address by President Cyril Ramaphosa regarding the worsening of the second wave of COVID-19 infections, the SARS Management has decided to extend until further notice the suspension of physical visits to SARS branches while continuing with the utilisation of virtual branches to service taxpayers. The facilitation of these visits is mainly through:
    • The SARS Contact Centre (Voice)
    • Electronic Channels (eFiling, Mobile App, Email)
    • Virtual Branch Channel (Video/Teleconference)

All offices will continue to operate and serve the public remotely via our digital channels until further notice. Branches will also engage with taxpayers via the use of virtual meetings using Microsoft Teams. As part of SARS’ commitment to all members of the public, please take note of the following:

    • Bookings may be made via this SARS website
    • All new bookings via the SARS website will be honoured via a virtual engagement (Microsoft Teams or telephonic engagement)
    • The SARS Contact Centre will continue to service any queries from members of the public.
    • All South African Ports of Entry manned by SARS customs officials will continue to operate during this lockdown period. Please note that strict social distancing measures will apply, and all members of the public are required to properly wear masks at all times when entering any SARS Customs building, or engaging with any customs officials. No access will be allowed without the wearing of a mask.
    • All provisional taxpayers will be expected to file their returns before the deadline on 29 January 2021 by utilising the above electronic channels, or visiting the virtual branch for assistance.

In light of the evolving COVID-19 pandemic situation, SARS is convinced that transacting through virtual branches will be the only way in which it will continue to deliver its public services to taxpayers for the foreseeable future. SARS will also continue to assist taxpayers through its Contact Centre.
SARS Management believes that the above arrangement will continue to enable taxpayers to transact with SARS without difficulty while ensuring the observance of the COVID-19 protocols, as well as protecting taxpayers and employees.

    • Part 2 of Schedule No. 4, by the insertion of various items under rebate item 460.15, in order to create a rebate provision on Aluminium plates, sheets or strips – ITAC Report No. 622 (with retrospective effect from 31 December 2020).

Publication details will be made available later

  • Status overview of all DTAs and Protocols – Multilateral Convention to implement tax treaty related measures to prevent base erosion and profit shifting (MLI) Synthesised Texts
  • A reminder to check on a regular basis which borders are temporarily closed. See our Customs & Excise landing page.
  • RFP16/2020: Procurement of an Application Performance Monitoring solution including maintenance and support services. More Questions and Answers were published:
    • Notice R1432 – The Agreement establishing the African Continental Free Trade Area (AfCFTA) (with effect from 1 January 2021).
    • Notice R1430 – Insertion of rule 49G to implement the Economic Partnership Agreement (EPA) between the Southern African Customs Union (SACU) member States and Mozambique, of the one part and the United Kingdom of Great Britain and Northern Ireland, of the other part (DAR207)
  • Publication details for tariff amendment notices R1428, R1429, R1431, R1433 and R1434, as published in Government Gazette 44049 of 31 December 2020, are now available
  • We wish to inform that SARS Management in line with President Cyril Ramaphosa’s extension of lock-down period for the next two weeks, have agreed that SARS staff at all our offices will continue to operate remotely via our digital channels until further notice.
    Branches will also engage with taxpayers via the use of virtual meetings using MS Teams. As part of SARS’s commitment to all members of the public, please take note of the following:
    • All existing branch appointments will be honoured
    • Bookings can only be made via the SARS website
    • All new bookings via the SARS site will be honoured via a virtual engagement (MS Teams or telephonic engagement)
    • The SARS contact centre will continue to service any queries from members of the public.
    • All South African Ports of Entry manned by SARS customs officials will continue to operate during this lockdown period. Please note that strict social distance measures will apply, and all members of the public are required to wear masks at all times when entering any SARS building or engaging with any customs officials. No access will be allowed without the wearing of a mask.
    • the General Notes to Schedule No. 1, to give effect to the implementation of the agreement to establish the African Continental Free Trade Area (AfCFTA) (with effect from 1 January 2021);
    • insert Part F in the Schedule to the General Notes to implement the Rules of Origin contained in Annex II to the African Continental Free Trade Area (AfCFTA) (with effect from 1 January 2021);
    • Part 1 of Schedule No. 1, by the insertion of the AfCFTA column, in order to give effect to the implementation of the agreement to establish the African Continental Free Trade Area (AfCFTA) (with effect from 1 January 2021);
    • insert Part 8 to Schedule No. 10 to give effect to the implementation of the agreement to establish the African Continental Free Trade Area (AfCFTA) (with effect from 1 January 2021); and
    • Part 1 of Schedule No. 1, by the substitution of various tariff subheadings under tariff heading 76.06 and 76.07, to increase the rate of customs duty on aluminium rolled sheets, plates, strips, can stock and foil products from free of duty to 15% – ITAC Report 622.
    • General Notes in the General Notes to Schedule No. 1, to give effect to the implementation of the EPA between the SACU Member States and Mozambique (SACU-M), of the one part, and the UK and Ireland on the other part (with effect from 1 January 2021);
    • insert Part E in the Schedule to the General Notes, to implement the Rules of Origin contained in Protocol 1 to the EPA between the SACU Member States and Mozambique (SACU-M), of the one part, and the UK and Ireland on the other part (to be gazetted in January 2021);
    • insert Part 1C to Schedule No. 10, to give effect to the implementation of the EPA between the SACU Member States and Mozambique (SACU-M), of the one part, and the UK and Ireland on the other part (to be gazetted in January 2021);
    • Part 4 of Schedule No. 6, by the insertion of Note 5 in order to administer refunds of environmental levy on tyres by qualifying persons having the necessary documentary evidence that the tyres have been sold to them by the manufacturer of tyres;
    • Part 1 of Schedule 4, by the insertion of rebate item 413.00 in order to make provision for ship or aircraft stores consumed in the Republic;
    • Part 3 of Schedule 2, by the substitution of safeguard item 260.03/7318.15.39/01.08 to include Thailand in the list of countries liable to payment of safeguard duties – Minute M11/2019;
    • Part 1B of Schedule 6, by the insertion of various notes to provide for destruction of alcoholic beverages that have become off-specification, contaminated or have undergone post-manufacturing deterioration to be destroyed at premises other than the customs and excise manufacturing warehouse or SVM;
    • Part 1C of Schedule 6, by the insertion of various notes to provide for destruction of alcoholic beverages that have become off-specification, contaminated or have undergone post-manufacturing deterioration to be destroyed at premises other than the customs and excise manufacturing warehouse or SVM;
    • Part 1 of Schedule No. 1, to provide for technical amendments by the insertion of new 8-digit tariff subheadings for Chapters 11 and 30 (with effect from 1 January 2021);
    • Part 1 of Schedule No. 1, to give effect to various technical amendments in terms of Chapters 44, 72 and 94 (with effect from 1 January 2021);
    • Part 2 of Schedule No. 4, to increase the annual rate quota for bone-in cuts of the species Gallus Domesticus, frozen and imported from or originating in the United States of America (USA) – Minute M06/2020 (with retrospective effect from 1 April 2020); and
    • Part 1 of Schedule No. 1, by the insertion of tariff subheadings 3208.20.20, 3906.90.30 and 3906.90.40 in order to increase the rate of customs duty on acrylic resins from 10% and free to 15% – ITAC Report No. 600.

Whether Consol was entitled to deduct as input tax the VAT paid on the services supplied to it by local service providers depended upon whether these services were acquired by Consol for the purpose of consumption, use or supply in the course of making taxable supplies; whether Consol was obliged to pay VAT on the services supplied to it by the service providers who carried on their business outside of South Africa, a similar enquiry is required

    • Part 1 of Schedule No. 1 – To implement the changes to the rates of customs duties in terms of the economic partnership agreement between the European Union and the Southern African Development Community EPA states. With effect from 1 January 2021; and
    • Correction Notice – By the substitution of the article description where it appears in Notice No. R.1222 of Government Gazette No. 43901 on 13 November 2020. With effect from 18 December 2020 up to and including 31 May 2021.
    • Whether the Public Protector is authorised to subpoena taxpayer information under section 7(4) of the Public Protector Act 23 of 1994; whether the Commissioner for the South African Revenue Service may withhold such information under section 11(3) of the Public Protector Act read with section 69(1) of the Tax Administration Act 28 of 2011; whether an order that the Public Protector must pay de bonis propriis (in her personal capacity) 15% of the costs of the Commissioner ought to stand

What else can you do via the Send us a Query functionality?

    • Submit supporting documents
    • Submit a payment allocation
    • Request your Tax Reference Number if you have forgotten it
    • Report New Estate Case
    • Conveyancers can submit required supporting documents for Transfer Duty bank detail changes.

TREASURY:

OECD:

SARB:

DivisionLegal and Policy
Date21 January 2021