Category Archives: SARS

South African Revenue Services

25 July 2018 – Explosives and illicit cigarettes intercepted at Beitbridge border post

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Pretoria, 25 July 2018 – Last week Customs officers made busts of capped fused explosives, as well as illicit cigarettes, at the Beitbridge border post.

On Thursday 19 July a foreign registered panel van travelling from Zimbabwe to South Africa was intercepted by Customs officers for a random search. When conducting the physical search of the vehicle, all the passengers were ordered to go through the customs red and green channels.

During the search, officers found two bags that were left unattended in the panel van. When the driver was questioned about the bags, he claimed to not know who the owner was.

Customs officers searched the bags in the presence of the driver and found 300 units of suspected cables of explosives valued at approximately R75 000.

The South African Police Services and its bomb squad were immediately called to identify the explosives. A criminal case was opened and a foreign Zimbabwean national and the explosives were handed over to the police. The panel van was detained and placed into the SARS state warehouse.

In another bust that took place on Saturday 21 July, a random search of a bus by Customs officers led to the discovery of cartons of Pacific Blue cigarettes totalling 3997 hidden within 40 bags.  The estimated street value of these cigarettes is approximately R966 915.

The bags belonged to a passenger who is a Zimbabwean national. The goods were declared to Customs officers as 500 brooms packed in 40 bags in the bus trailer. Upon physical inspection, it was discovered that illicit cigarettes were concealed under the brooms.

The police were called to the scene and a criminal case was opened. The passenger was handed over to the police and the bus was released after all necessary processes were completed.

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13 July 2018 – Goods valued at R1.7 billion bust by Customs in the past six months

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MEDIA STATEMENT

Pretoria, 13 July 2018 – The South African Revenue Service (SARS) has released its latest statistics of Customs busts for the period 1 January 2018 until 30 June 2018. The total value of all goods confiscated amounts to R1 732 339 421.

Some of the statistics include:

  • Narcotics: 339 busts valued at R171 177 653

  • Cigarettes: 159 busts valued at R33 345 064

  • CITES (including endangered species such as abalone): 16 busts valued at R13 996 635

  • Currency: 13 busts valued at R52 903 426

  • Viagra / Viagra Generics: 97 busts valued at R40 441 400

  • Counterfeit clothing, footwear and other goods: 3351 busts valued at R1 414 740 024

  • Clothing and Textiles (second hand and other infringements): 20 busts valued at R5 187 702

  • Alcohol: 117 busts valued at R196 868 

Compared with the same period last year (Jan to June 2017), the number and value of busts has increased this year – 4 122 busts valued at R1 732 339 421 this year, compared to 1 763 busts valued at R1 648 779 675 last year.

Acting Chief Officer: Customs and Excise, Beyers Theron, congratulated his officers for the above successes. However, he added that he believed there was more that Customs and SARS could do to make inroads into the illicit economy. “We need to start looking at trends and patterns and becoming more strategic in the way we are dealing with some of these risks.”

Some of the high-profile busts which took place during the first six months of this year include the following:

  • Ketamine and Methaqualone (precursors to mandrax) with an estimated value of R32 000 400, en route from Kenya to South Africa, seized at OR Tambo International Airport on 10 April.

  • Methaqualone with an estimated value of R30 000 000, en route from China to South Africa, seized at OR Tambo International Airport on 31 January.

  • Sexual Enhancement Tablets (Generic Viagra) valued at R30 000 000, en route from India to South Africa, seized at OR Tambo International Airport on 13 May.

  • Currency (USD & GBP) valued R15 000 000, en route from South Africa to Dubai, seized at OR Tambo International Airport on 1 February.

  • Abalone with an estimated value of R10 000 000, en route from South Africa to China, seized at Port Elizabeth Harbour on 26 January.

  • Currency (ZAR & USD) valued R6 992 569, en route from South Africa to Mauritius, seized at OR Tambo International Airport on 4 May.

  • Currency (ZAR) valued R6 332 008.00, en route from South Africa to Dubai, seized at OR Tambo International Airport on 27 March.

  • Kamagra (Generic Viagra) valued at R4 000 000, en route from India to South Africa, seized at OR Tambo International Airport on 15 January.

  • Abalone with an estimated value of R2 370 000, en route from South Africa to Sri Lanka via Dubai, seized at Durban Harbour on 21 February.

  • 1 766 200 Cigarettes seized at Beit Bridge Border Post on 17 April.

  • 500 000 Cigarettes seized at Beit Bridge Border Post on 27 April.

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9 July 2018 – Ten taxpayers sentenced for failure to submit tax returns

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Pretoria, 09 July 2018 – Ten taxpayers have been convicted and sentenced since April 2018 for failure to submit outstanding tax returns. Fines ranging from R2000 to R20 000, as well as admission of guilt fines have been handed down by the courts.

These taxpayers have now submitted their outstanding returns. 

SARS announced in April that it is embarking upon an initiative with the National Prosecuting Authority (NPA) to enforce compliance by prosecuting taxpayers who have failed to submit their tax or VAT returns, after continuous communication with the relevant taxpayers did not yield the required results. See April Statement at 16 April 2018 – SARS, NPA to prosecute taxpayers for outstanding returns.

The taxpayers who have been convicted now have a criminal record, as it is a criminal offence not to submit a tax return within the prescribed time for any of the tax types a taxpayer is registered for in terms of the Tax Administration Act No. 28 of 2011 (TAA), specifically Section 234 (d).

Since April, the NPA has issued 35 summonses to taxpayers and VAT vendors to face criminal charges relating to their failure to submit returns. To date, ten cases have been finalised and 20 cases have been remanded after the first appearance of the relevant taxpayers in court. Some taxpayers have opted to make representations to the NPA.  

An additional 24 cases have been handed over to the police for further investigation, while 25 cases are currently still under investigation by SARS criminal investigations for handover to the relevant authorities for further investigation and possible prosecution. The courts have issued three warrants of arrest to taxpayers who failed to appear in court after being summonsed to face criminal charges for non-submission of tax returns.  

The following taxpayers, in alphabetical order according to first names, have been convicted and sentenced:

  • Mr Anapurani Samson Joseph representing Tidal Investments CC in Port Shepstone

  • Mr Christopher John Fletcher

  • Mr Farhad Ebrahim Limalia representing Aquawood Linen CC in Durban

  • Mr Kevin Trevor Benjamin Steele, and Ms Suzanna Magdalena Steele representing Thermo Dynamic Cooling Solutions CC in Durban

  • Mr Michael Sonnyboy Moloi and Ms Regina Pulane representing Happy Recordings and Transcriptions CC in Johannesburg

  • Mr Niraj Ramral representing SPS Distributors Pty Ltd in Port Shepstone

  • Mr Pieter Yzelle Morrison representing Taxkon Ficksburg (PTY)Ltd 

  • Mr Sivalingam Govender  Trading as Trans SA in Durban

  • Mr Thinyane Duncan Leboea representing Qwaqwa Funeral Parlour CC

  • Mr Tsholofelo Teko Modise

29 June 2018 – Trade Statistics for May 2018

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SARS releases trade statistics for May 2018

Pretoria, 29 June 2018 – The South African Revenue Service (SARS) today releases trade statistics for May 2018 recording a trade balance surplus of R3.52 billion. These statistics include trade data with Botswana, Lesotho, Namibia and Swaziland (BLNS). The year-to-date (01 January to 31 May 2018) trade balance deficit of R14.18 billion is a deterioration on the surplus for the comparable period in 2017 of R16.41 billion. Exports year-to-date decreased by 0.4% whilst imports for the same period showed an increase of 6.4%.

Click here for the full media statement.

For the Trade Statistics webpage, click here.

29 June 2018 – SARS ditches drop boxes and certain printed forms

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PRETORIA, 29 June 2018 – The South African Revenue Service (SARS) will remove drop boxes for the submission of income tax returns and other paper documents, in its drive to encourage taxpayers to use eFiling for all tax transactions where possible. 

As of 01 July 2018, SARS will also no longer provide certain printed forms at its branches, including forms used to register as a taxpayer (IT77C for companies and IT77TR for trusts), as a VAT vendor (VAT101), as an employer (EMP101), as well as forms used to apply for tax directives (IRP3(a), (b), (c) and (d)).

These transactions, together with the filing of income tax returns, payments and the uploading of supporting documents, can all be done electronically on eFiling with the support of Help-You-eFile and the contact centre if taxpayers get stuck.

SARS has increased the size threshold of files from 2 megabytes to 5 megabytes in time for tax season.

The increase in digital transactions means a significant saving on paper, printing and courier costs for both SARS and the taxpayer.  This will also reduce traffic in branches – one of SARS’ objectives for Tax Season 2018. 

A digital and paperless approach was initiated more than a decade ago when the internet-based eFiling system was made available for the electronic submission of personal income tax returns.  Drop boxes were, however, provided in addition to the branch and electronic channels for taxpayers who chose to submit their returns and documents manually.

SARS will ensure that taxpayers switching to eFiling are supported.

Taxpayers will still be able to visit a SARS branch if they need an assisted filing experience. However, they are encouraged to migrate to electronic submission. Original paper documents will be handed back to the taxpayer for safekeeping.

SARS encourages taxpayers to use eFiling (www.sarsefiling.co.za), which is the most convenient method for the majority of transactions with SARS, and is available 24 hours. There are also email addresses available on the SARS website for taxpayers to interact with SARS, as well as the SARS Contact Centre (0800 00 7277).

22 June 2018 – SARS reminds VAT vendors to submit outstanding returns or face legal action

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Pretoria, Friday, 22 June 2018 – The South African Revenue Service (SARS) is reminding Value-Added Tax (VAT) vendors to submit their outstanding returns to avoid administrative penalties and/or criminal prosecution.

In accordance with the Tax Administration Act No. 28 of 2011 (TAA), and specifically Section 234 (d), it is a criminal offence not to submit a tax return for any of the tax types a taxpayer is registered for. The tax types are:

  • Personal Income Tax (PIT)

  • Corporate Income Tax (CIT)

  • Pay As You Earn (PAYE)

  • Value-Added Tax (VAT)

Failure to submit the returns within the relevant period could result in administrative penalties being imposed per outstanding return. It could also result in criminal prosecution which could lead to a fine or imprisonment.

All VAT vendors with outstanding returns, including those who failed to submit a due return for the first time, or did not submit a VAT201 return in time for the April/May 2018 VAT period, will receive SMS or eMail-reminders from SARS from today to submit their outstanding returns.

To avoid any penalties, interest, prosecutions as well as imprisonment, taxpayers are urged to rectify their compliance status by submitting any outstanding returns as soon as possible at their nearest SARS Branch or via SARS eFiling at www.sarsefiling.co.za.

It is important to note that should any return result in a tax debt, the debt must be paid before the relevant due date to avoid any interest for late payment and legal action. SARS will ensure that refunds are paid, unless there is a legal reason to withhold a refund.

All vendors are reminded to submit accurate declarations as SARS may conduct an audit.

For further clarity, taxpayers can call the SARS Contact Centre on 0800 00 7277.

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13 June 2018 – SARS to host BRICS Tax Experts and Heads of Tax Administrations

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PRETORIA, Wednesday, 13 June 2018 – The South African Revenue Service (SARS) will host the tax experts and heads of tax administrations from BRICS member countries, namely Brazil, Russia, India China and South Africa, in Sandton next week.

This will take place at the Hilton Hotel in Sandton from 18 to 21 June 2018.

The BRICS Tax meetings follow on BRICS Customs meetings held in April this year, which contributed to creating an enabling framework for BRICS Customs cooperation.  

To build further on this gain, the BRICS Tax meetings will discuss contemporary tax issues such as the improvement of tax enforcement technology with a focus on the Fourth Industrial Revolution.

Digitalization is regarded to be the most significant development of the world economy since the industrial revolution. This development creates opportunities for innovation, investment, new business, jobs, and it is one of the main drivers of sustainable development.

However, the taxation of the digital economy has not fully reflected the advantages created by the spread of technology.

This meeting will also explore new approaches to taxation governance and economic and technological cooperation which is expected to contribute significantly to the improvement of a global economic governance system.

At the closing of this meeting, SARS Acting Commissioner, Mark Kingon, will host a special media briefing on Thursday, 21 June 2018 to announce the outcomes of the meeting as well as any agreements reached.

4 June 2018 – Tax Season 2018

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MEDIA BRIEFING ON 04 JUNE 2018

 

STATEMENT BY ACTING COMMISSIONER, MARK KINGON

We have been hard at work taking stock of how we can be more efficient and improve service to taxpayers. This requires that we make better use of our resources and technology, while factoring in feedback from taxpayers on what their pain-points are.

Our main objective is to make tax compliance a simple and routine experience for the taxpayer. This is a work in progress, and we will be refining our initiatives with every tax season, over the next two years, taking on board the lessons learned.

One of the key mechanisms to assist taxpayers to file simply and conveniently is eFiling. It is a channel anyone with internet access can use – anywhere, anytime, and is available 24/7.

We give our commitment to provide effective, professional, transparent and fair services to all taxpayers. 

In assessing our operations and taxpayer trends, we analysed data on the volumes at branches, the reason for the taxpayer’s visit, as well as who was filing a tax return and which filing channel they were using.

Our findings show that:

  • Too many people who are not required to file, due to them earning a single source of income from one employer of up to R350 000, are going to a branch. During the 2016 tax season, 1,8 million people who did not need to submit a tax return did so, while in the 2017 tax season, 1,6 million people who did not need to submit a return did so.

  • A large number of returns are being filed for prior years. A total of 1 million outstanding returns for prior years was submitted during the 2016 tax season and in the 2017 tax season, 733 000 returns were submitted for prior years. While taxpayers’ desire to bring their tax affairs up to date is welcomed, this makes processing returns for the current year of assessment more challenging. We would like to move towards clearing the backlog and encourage taxpayers to be informed about their tax obligations and file their returns on time.

  • A number of registered eFilers are filing at our branches, which is not necessary.  In 2016, a total of 935 269 registered eFilers who were able to eFile used branches to file, while in 2017, a total of 868 562 registered eFilers did so.

  • Tax Practitioners, whose primary filing channel is eFiling, are using branches to file taxpayers’ returns. During 2016, a total of 132 000 returns were submitted by tax practitioners at SARS branches, while in the 2017 tax season, 120 000 were.

  • Some prospective employers and employment agencies request job seekers to first register for a taxpayer reference number before they can be employed. This results in an unnecessary inflow of traffic at our branches. A job seeker does not need to visit us to obtain a taxpayer reference number.  We provide employers with e@syFile – a simple eFiling platform tailored for the employer’s needs, which they can use to register employees for income tax.

  • Approximately 65% of all individual non-provisional taxpayer returns are filed in the first three months of the tax season after which submissions decline, followed by a spike again towards the end of tax season. 

Tax Season 2018 Initiatives

 

We have identified the following initiatives to support our approach.

A shorter filing season

  • Tax Season 2018 will be shortened by three weeks, running from 1 July to 31 October 2018

  • This impacts all individual non-provisional taxpayers

  • This deadline also applies to provisional taxpayers who opt to file at a branch. 

  • Provisional taxpayers who use eFiling have until 31 January 2019 to file.

  • The deadline for manual submissions is 21 September.

Rationale:

  • A shorter filing season allows additional time for SARS, taxpayers and the tax fraternity to deal with return verifications before most taxpayers go on the December holiday break. Often there are delays with taxpayers having to respond to our queries and requests over the holiday break. 

  • The quiet period after the first three months of tax season has now been removed resulting in efficient use of our resources. 

Public Engagement:

  • A draft Public Notice was issued on 9 May to this effect. 

  • We engaged tax practitioner bodies on the shorter deadline and cited reasons which were deliberated and later accepted.

  • The comment period closed on 23 May, with a dozen comments received.  Several comments cited increased workload for tax practitioners while other comments proposed bringing forward the opening of tax season to match the earlier close. 

  • As mentioned, this is a work in progress and we will refine these enhancements every year, considering the feedback we received from our stakeholders. 

Other initiatives:

  • We have sent personalised and direct communication to taxpayers who may not have to submit a return, based on information submitted during tax season 2017, setting out their specific tax obligations.

  • A taxpayer does not need to submit a return if ALL the following criteria apply:

    • The taxpayer’s total employment income / salary for the year of assessment (March 2017 to February 2018) before tax  was no more than R350 000

    • Employment income / salary for the year of assessment was received from one employer

    • The taxpayer has no other form of income (e.g. car allowance, company car fringe benefit, business income, taxable interest or rental income or income from another job)

    • The taxpayer does not want to claim for any additional allowable tax related deductions or rebates (e.g. medical expenses, retirement annuity contributions, travel expenses, etc.). 
  • Verification letters will be more specific in terms of the supporting documents that we require from taxpayers who may have been flagged for a specific risk. This will assist the taxpayer to respond timeously and accurately.

  • Taxpayers will be encouraged to file via eFiling on their own. We will support eFilers with the Help-You-eFile service which connects the taxpayer to one of our tax agents in real time via the contact centre while both are online. The taxpayer is then assisted each step of the way.

  • Tax returns for the current year of assessment will take priority over outstanding returns filed for prior years. Unfortunately, experience has shown that the submission of prior year returns poses a risk to taxpayers that are taken in by scammers and other tax fraud that we have detected.

  • Where an assessment on one return may reflect a refund due, there may be instances where prior returns may reflect that the taxpayer needs to make a payment. These amounts will be offset against each other and the taxpayer will be notified of the outcome.

  • Tax practitioners will be requested to strictly use eFiling for submitting taxpayer returns and avoid doing so at a branch. 

  • Administrative penalties for late submissions will be imposed, as they have been in previous years.

IT and systems readiness

We have increased the testing phases of our systems to ensure smooth running when Tax Season opens on 1 July.

Taxpayer rights and obligations

In turn, taxpayers have the obligation to us to file using accurate and honest information. We commit to treating your tax affairs with confidentiality and fairness.

Our social contract with taxpayers is captured in our Service Charter which has been finalised and informs taxpayers of our service levels.  We have engaged the Tax Ombud, tax practitioner bodies and other stakeholders on its contents and will use it to ensure a mutual relationship of accountability, trust, respect and fairness between SARS and the taxpayer. 

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Tax Season for Manual submission

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Forgot eFiling password?

We realise that you only file your tax once a year so it’s easy to forget your password. So if you’ve forgotten your eFiling password, here’s some help,

eFiling App and MobiSite

SARS eFiling App and MobiSite are now available to taxpayers who want to file their Personal Income Tax Return (ITR12) via these mobile channels from their mobile devices,

Corporate Income Tax

SARS implemented changes to the Income Tax Return for Companies(ITR14) on 26 February 2018,

Trade Statistics

SARS released trade statistics for June 2018 recording a trade balance surplus of R12.00 billion due to exports of R110.15 billion and imports of R98.15 billion,

Re-establishment of the Large Business Unit and Illicit Economy Team

SARS wishes to announce that it is re-establishing the Large Business Unit and Illicit Economy Team,

Trade Statistics

SARS released trade statistics for May 2018 recording a trade balance surplus of R1.14 billion due to exports of R88.50 billion and imports of R87.36 billion,

Alberton Branch is closed

The SARS Alberton branch has closed today, 30 August 2018, due to water supply problem in the area. It will reopen tomorrow, 31 August. We apologise for the inconvenience.

Two VAT fraudsters sentenced

Western Cape man and an East Rand bogus tax practitioner were sentenced to a combined 26 years direct imprisonment,

How do I get a Tax Directive?

Employers and Fund Administrators can request a tax directive from SARS via the following channels,

Trade Statistics

SARS released trade statistics for February 2018 recording a trade balance surplus of R0.43 billion due to exports of R90.59 billion and imports of R90.16 billion,

VAT rate increase

SARS implemented the increase in VAT from 14% to 15% with effect from 1 April 2018,

Tax Season 2018

Tax Season 2018 will be shortened by three weeks, running from 1 July to 31 October 2018,

Issues with PDF’s?

See our browser compatibility guidelines when you experience any issues with opening PDF’s in eFiling,

Tax Season 2018

Tax Season for Individuals is open and runs from 1 July to 31 October 2018. NO SWEAT!

Mobile Tax Units

Find out where our mobile units are this tax season and see our tax workshops to learn more about tax,

Tax Season for Provisional eFilers

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Penalties for outstanding Corporate Income Tax returns

SARS will soon impose administrative non-compliance penalties for outstanding Corporate Income Tax (CIT) returns,

Tax Statistics was published

National Treasury and SARS have published the 11th annual edition. The 2018 edition provides an overview of tax revenue collections and tax return information,

Corporate Income Tax

SARS implemented changes to the Income Tax Return for Companies(ITR14) on 26 February 2018,

Re-establishment of the Large Business Unit and Illicit Economy Team

SARS wishes to announce that it is re-establishing the Large Business Unit and Illicit Economy Team,

SARS eFiling fully operational

Testimony by SARS executives at the commission of inquiry has led to widespread reporting in the media that the eFiling system is on the verge of collapse,

Trust Enhancements

On 17 September 2018, SARS implemented several changes to the Income Tax Return for Trusts (ITR12T) in respect of the year of assessment ending on 28 February 2018,

Alberton Branch is closed

The SARS Alberton branch has closed today, 3 October 2018, due to water supply problem in the area. We apologise for the inconvenience.

Two VAT fraudsters sentenced

Western Cape man and an East Rand bogus tax practitioner were sentenced to a combined 26 years direct imprisonment,

High call volumes

The SARS Contact Centre is experiencing high call volumes today. Taxpayers are advised to use the call back option and an agent will call the taxpayer back.

Issues with PDF’s?

See our browser compatibility guidelines when you experience any issues with opening PDF’s in eFiling,

VAT rate increase

SARS implemented the increase in VAT from 14% to 15% with effect from 1 April 2018,

Tax Season 2018

Tax Season 2018 will be shortened by three weeks, running from 1 July to 31 October 2018,

Customs bust

SARS Customs officers intercepted a Hong Kong bound female student at ORTIA, with almost R10-million – 630 000 USD,

Beware of scams

Beware of fake SARS jobs on Facebook and refund emails claiming to be from SARS. Also, only use registered Tax Practitioners, ask for the registration number and verify online,

Tax Season 2018 – Preliminary Results

The South African Revenue Service received 5.785 million returns by 31 October 2018, which marked the close of tax season for non-provisional taxpayers,