PRETORIA, Friday 29 March 2019 – SARS Customs operations at ports of entry, especially borders, have been without major interruptions.

All Customs border posts are operational with the contingencies that have been put in place. Customs has received great support from law enforcement agencies across all border posts, especially from the South African Police Service, and this resulted in minimal impact on them. SARS assessed media reports, which highlighted a number of trucks piling up at a land border, which could have been attributed to normal traffic and not the strike, as trucks wait for clearance before proceeding.

SARS advised the neighbouring countries, Southern African Development Community (SADC) and Southern African Customs Union (SACU) of the impending strike a few days ago, so that they are not caught by surprise. There has been no impact on them.

There were isolated attempts to intimidate staff members and to disrupt the flow of traffic at border posts, but the situation was swiftly dealt with by the SAPS. One SARS official was arrested at the Lebombo border post, and we are not aware of any other incidents or delays.

With regard to SARS branches, SARS is continually monitoring developments at all sites, and updates can be accessed via our website and twitter feed @sarstax. Details regarding branch services, as well as what to do if you cannot access a SARS branch, services are also available on these platforms.

Out of 53 SARS branches throughout the country, 33 have been closed due to poor turn out of staff. The South African public is encouraged to use alternative payment mediums:

For Tax payments:

• At a bank branch;
• EFT; or
• Via eFiling.

For Customs payments:

For more info on Customs payment options, visit Customs Payments webpage on www.sars.gov.za.

With respect to any outstanding debt queries and deferred arrangements, requests may be sent to the following email addresses:

• Debt1@sars.gov.za for Alberton branch (including Nigel, Germiston, Brakpan, Boksburg, Benoni, Vereeniging and Springs)

While SARS recognises the constitutional right of workers to strike, it is equally cognisant of the state’s obligation to ensure that it has adequate resources to provide citizens with access to healthcare services, sufficient food and water, social support, housing and basic education.

SARS is doing everything in its power and affordability to resolve the dispute.

SARS has obtained an interim Labour Court order interdicting Labour Union members from picketing in places other than those specified in the CCMA Picketing Rules issued on 18 March 2018. This follows illegal picketing and several gatherings that took place outside the agreed upon areas, namely, SARS Head Office in Brooklyn, Pretorius and Alberton Campus.

SARS and Organized Labour are meeting today, Friday, 29 March 2019 at the CCMA to engage in formal discussions in a bid to amend the Picketing Rules.

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PRETORIA, Wednesday 27 March 2019 – Over the past weekend, SARS had confirmed that it had reached a deadlock in negotiations with the recognised trade unions, PSA and NEHAWU, over salary increases and improvements in conditions of service and benefits for bargaining unit employees.

This deadlock came after months of negotiations which commenced in November 2018.

Organised Labour had referred a dispute to the CCMA in February 2019 but despite the dispute, parties continued with negotiations in an attempt to resolve the impasse.

Of the 26 initial demands tabled by Organised Labour, parties through their negotiations had managed to reach some form of consensus on most, with only 4 key matters remaining in dispute.

SARS acknowledged the CCMA certificate of non-resolution issued on 19th March 2019, together with the Rules for Picketing and that both PSA and NEHAWU had provided SARS with an official notice of their intention to commence industrial action tomorrow, Thursday the 28th March 2019.

The deadlock reached at the CCMA was with SARS offering a 7% increase which amounts to CPI plus 2.9% based on the published February inflation rate of 4.1%. SARS considered this offer reasonable and fair considering that it is far above increases of public institutions and most other industries.

SARS can only negotiate within its financial affordability which is influenced by amongst other factors the economic growth, resultant revenue collection and its reduced financial grant allocation from the National Treasury.

The details of the SARS financial position for financial year 2019/20, down to general ledger level have not only been disclosed to Organised Labour in a special joint financials task team, but Organised Labour were also given opportunity to make input into the budget considerations for the next three years including areas where cost containment can be further exercised.

SARS already had to put budgetary cuts and cost containment in place with regards to travelling expenditure and no provisioning has been made for payment of bonuses and external bursaries due to current budget deficits.

SARS has explained to Organised Labour that it has a bigger responsibility than only considering the current salary increases. It needs to also consider the organisation’s financial wellbeing for the next three years, especially considering the weak economic conditions and SARS’ current and projected budgetary deficits.

One will therefore understand that any increase that is above affordability will have a ripple effect on SARS capacity and ability to continue functioning optimally in the years to come.

SARS is a crucial and critical institution for this country whose work touches each and every South African. Taxes left uncollected have a dire impact on the country’s ability to render critical services where the bulk of taxes collected go towards education, health services, social protection and other public services. SARS and its employees take pride in the role that SARS plays in our democratic dispensation.

SARS OFFER TO ORGANISED LABOUR

SARS, being committed to ensuring that all efforts are deployed to resolve the impasse and to avoid any adverse impact to the country’s revenue which SARS delivers to the fiscus, met with Organised Labour on Monday, 25 March 2019 until late evening.

At this session, SARS tabled a differentiated salary increase model for employees in the bargaining unit that finds its basis in principles of addressing salary anomalies, and reducing the ever-widening salary gaps caused by across-the-board increases. This model could see top performing SARS employees who are paid at the lower-end receiving increases up to 9.2% (CPI plus 5.1%). In this model, no employee would receive an increase of less than 5.2% (CPI plus 1.1%).

This proposal was unfortunately still rejected by Organised Labour and they insisted on an across-the-board increase of 11.4%.

Engagements continued yesterday, Tuesday 26 March 2019 until late at senior leadership level between SARS and the unions’ leaders. Engagements centred on the CCMA Mediator’s proposal of 8 March 2019 of an 8% increase as a possible settlement to the dispute. The CCMA Mediator’s proposal involved the following:

– 8% increase across-the-board over a single term

– introduction of pre-natal leave

– long service awards to increase with the same percentage as the salary increase

– status quo to remain on leave benefits

– introduction of a 2-year cycle for Family Responsibility Leave 

SARS, considering all its financial constraints tabled an offer to settle of 8%, conditional to it being a multi-term agreement for implementation on 1 April 2019. This offer to settle included agreement on an 8% increase in year 1 aligned to the CCMA proposal, with CPI plus 1% increases for year 2 and 3 of the Agreement.

In addition as a way of showing commitment, the settlement offer also included SARS acceding to pre-natal leave, long service awards increase and the status quo on other leave demands. The Family Responsibility leave demand would then be deliberated at a task team level together with other matters which were referred to the task team.

The only remaining point of difference between SARS and Organised Labour was the term of agreement.

Whist Organised Labour was not inclined to a multi-term agreement, SARS explained that for it to have reprioritised its expenditure for an 8% increase, a multi-term agreement was essential to create a level of financial certainty for the organisation based on the fiscal framework of the Medium-Term Expenditure Framework (MTEF), as well as the time needed to close on the savings that the organisation will need to make to afford the 8% increase.

Furthermore a multi-term agreement would provide for stable employer/employee relations over the period which would be conducive for SARS to focus on key improvements to take the organisation forward.

Organised Labour unfortunately rejected SARS’ settlement offer without offering an alternative viable counter-proposal.

Since this was a settlement offer, the rejection by Organised Labour of a multi term agreement, left SARS with no option but to revert to its previous position of 7% across the board increase at single term, based on its affordability and not compromising the sustainability of the organisation’s operations over the next three years. However, if Organised Labour consulted their members and they accept the offer of 8% across the board, and CPI plus 1% in subsequent years, the dispute will be resolved.

SARS SEEKING CCMA INTERVENTION 

While SARS recognises the constitutional right of workers to strike, it is equally cognisance of the state’s obligation to ensure that it has adequate resources to provide citizens with access to healthcare services, sufficient food and water, social support, housing and basic education.

It is therefore in the public interest that this dispute be resolved given due regard to SARS’ crucial role in revenue collection. SARS has therefore yesterday applied to the CCMA for an intervention in terms of Section 150A of the Labour Relations Act for the Director of CCMA to intervene in an attempt to mediate the dispute. 

TAXPAYER SERVICE CONTINUITY

SARS has done everything in its power and affordability level to resolve the dispute and avert strike action. However, with Organised Labour’s rejection of SARS’ final settlement offer, SARS cannot disregard that strike action may continue on Thursday, 28 March 2019.

SARS leadership and employees alike appreciate that we are at a critical juncture in our revenue collection drive and want to assure the South African public that our systems and processes are in place with several committed SARS employees available to serve taxpayer needs.

SARS has proactively put necessary contingency measures in place and have since activated those plans to endeavour having minimal disruption to taxpayer services across SARS branches and ports of entries in the event PSA and NEHAWU proceed with their industrial action.

SARS appeals to the public’s understanding as some delays could be expected and recommend that taxpayers utilise on-line services where possible while SARS is hopeful that the CCMA intervention will assist in settling the dispute.

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Pretoria, 12 March 2019 – A KwaZulu-Natal woman who defrauded SARS of approximately R 4 million, was handed down an effective seven-year jail sentence in the Durban Regional Court last Thursday.

Ms Saraspathie Vallee (47) of Chatsworth, as sole proprietor of the closed corporation Gutterpride Trading, pleaded guilty to Value Added Tax fraud and contraventions of the Prevention of Organised Crime Act.

Using SARS’ eFiling service, she claimed a VAT refund to the value of R3 972 814 on behalf of Gutterpride for a single tax period in 2014 and SARS was supplied with falsified supporting documents to substantiate the claim. SARS reduced the refund and after outstanding taxes were liquidated an amount of R2 484 683.75 was refunded to the entity.

Within a few days of the refund being paid in the closed corporation’s account, Vallee made numerous transfers from the account.

Vallee pleaded guilty to the two charges in terms of Section 112(1)(a) of the Criminal procedures Act. The entity, Gutterpride was also sentenced to R100 000 fine, provisionally suspended for five years.

AS SARS’ risk engines continuously improves, we will continue to bring VAT fraudsters to book, to rebuild trust in our organisation, create a fair playing field for businesses, and support our mandate of collecting money that is due to the state.

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The discussion document outlines the internationally recognised aspects of an excise administration against which any excise review must be measured. The introduction and current practice of the duty-at-source (DAS) system of excise administration provides the context to the review of the excise legislation. Certain apparent shortcomings in the current legislation regarding DAS licensing, accounting, assessment and acquittal of excise duties have been identified for possible amendment. A comparison of various countries is also provided to demonstrate international examples of reform options. Finally, a summary conclusion reflects the proposals that SARS supports.

The discussion document aims to elicit constructive inputs and comments from all affected industries that manufacture, use, import and export excisable goods, as well as from broader excise stakeholders. Upon completion of the public comment period and once comments have been processed, SARS intends to approach representative industry bodies and applicable government departments for further engagements on those particular reform proposals that require additional inputs and refinement.

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Pretoria, 27 February 2019 – The South African Revenue Service (SARS) Customs officers intercepted a suspected currency smuggler in possession of 997 750 US dollars which equates to R13 798 882.00 at OR Tambo International Airport on Monday, 25 February.

The male passenger had a backpack in his possession at the time. During initial interactions, the officers conducted a physical inspection of the backpack, and in the process, the passenger confirmed that he also had one checked-in bag.

The officers then proceeded to retrieve the bag and instructed the passenger to go into the Customs search area, where he was further interviewed.

During the interview, he admitted to be in possession of foreign currency, but he attempted to downplay the amount. It was however discovered that most of the foreign currency had been concealed at the bottom of two bags.

When he failed to provide a credible explanation for the currency, the officers then apprehended the suspect, and subsequently handed him over to the South African Police Service (SAPS).

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