Pretoria, 20 February 2018 – Customs officials of the South African Revenue Service (SARS) made two drugs busts at OR Tambo International Airport this past week seizing crystal meth valued at over R18 million.

On Saturday SARS Customs officials were conducting a baggage scan of a male passenger who had arrived in South Africa from Nairobi, Kenya.

They noticed suspicious objects in his three bags and conducted a further search, subsequently discovering 12 plastic bags containing a white powdery substance.

Drug tests confirmed that the substance was crystal methamphetamine valued at R17 202 000. The drugs and the passenger were handed over to the South African Police Service for further investigation.

In a separate incident on Friday, SARS Customs officials found a parcel which was destined to Malaysia via courier. The parcel was declared as “gifts” but on closer inspection, officials discovered sachets containing a white crystal substance. A drug test confirmed it was crystal meth, valued at just under R1 million. The case was also handed over to the SAPS.

Pretoria, Tuesday, 30 January 2018 — The South African Revenue Service (SARS) is this week host to a global seminar on strengthening the fight against tax evasion. 

The seminar is hosted jointly with the Global Forum on Transparency and Exchange of Information for Tax Purposes, and the African Tax Administration Forum (ATAF).  It brings together global tax experts, predominantly from developing countries, to share insights and lessons on issues of beneficial ownership and exchange of information on tax matters. The seminar is part of a global effort to ensure that participating tax authorities have the tools needed to adequately tackle tax evasion.

Throughout the world, tax authorities are facing immense challenges to collect national revenues and ensuring that everyone pays their rightful taxes in the prevailing global economic climate. In such a globalised world, it has become increasingly important for tax authorities to collaborate by sharing information.

Tax evasion negatively impacts on the development agenda and fiscal space of virtually every country in the world, and the absence of crucial information about who ultimately owns and controls companies and other legal entities is a factor that enables tax evasion and money laundering, amongst others. In specific cases, this lack of information about ownership and control has enabled the illicit flow of funds from all countries, but particularly from the developing world.

Tax transparency and exchange of information among tax authorities on the activities of their taxpayers are valuable tools in this fight. They allow tax authorities to obtain information about taxpayers in cases where the revenue authorities might not have been aware of specific (and questionable) cross-border financial transactions.

South Africa has committed itself to the automatic exchange of tax information with revenue authorities of over 50 jurisdictions under the OECD’s Common Reporting Standard (CRS).

The seminar runs from 29 January to 2 February in Pretoria.

Pretoria, 31 January 2018 – The South African Revenue Service (SARS) today releases trade statistics for December 2017 recording a trade balance surplus of R15.72 billion. These statistics include trade data with Botswana, Lesotho, Namibia and Swaziland (BLNS). The year-to-date (01 January to 31 December 2017) trade balance surplus of R80.55 billion is an improvement on the surplus for the comparable period in 2016 of R1.05 billion. Exports for the year-to-date grew by 7.9% whilst imports for the same period showed an increase of 0.7%.

Read more here.
 
Or visit the Trade Statistics webpage.

PRETORIA, 30 January 2018 – The South African Revenue Service (SARS) wishes to announce the resignation of Mr Jed Michaletos as Chief Officer:  Customs and Excise.

Mr Michaletos resigned in December 2017 after being with SARS for two years. His last day at SARS will  be 7 February 2018.

Making the announcement SARS Commissioner Tom Moyane said: “I would like to thank Jed for the good work he has done at SARS during his tenure. I wish him well in his future endeavours and have no doubt that he will add tremendous value in his future ventures.

“Although his resignation is regrettable, I would like to assure all South Africans and taxpayers that SARS has a leadership bench strong enough to take over from within. As a result, I have appointed Mr Teboho Mokoena who until recently held the position of Chief Officer: Human Capital & Development as the new Chief Officer Customs and Excise.

“Once again, SARS wishes to thank Mr Michaletos for the valuable contribution he has made,” Commissioner Moyane said.

Pretoria, 26 January 2018 – The South African Revenue Service (SARS) will engage religious institutions with the intention to investigate possible tax non-compliance in this sector.

The decision follows SARS’ own preliminary investigation, its meeting with the CRL Rights Commission and general reports suggesting that certain religious organisations and leaders are not in compliance with tax laws, and may be enriching themselves at the expense of tax compliance and their altruistic and philanthropic purpose.

SARS also acknowledges that a number of religious organisations are indeed complying with their tax obligations. 

Religious institutions may apply to SARS to be exempted from the payment of Income Tax and certain other taxes in terms of section 10(1) (cN) of the Income Tax Act, 1962,  read together with the provisions of section 30 of the Income Tax Act, 1962.  Once such tax exemption status is granted, there are a number of specific criteria that have to be complied with, including but not limited to: 

a. Conducting activities in a non-profit manner with an altruistic or philanthropic intent;

b. No such activity is intended to directly or indirectly promote economic self-interest of any person other than by way of reasonable remuneration paid for services rendered;

c. Religious institutions are prohibited from directly or indirectly distributing funds to any person other than in performing their religious activity

SARS is also concerned that proper taxes on trading activities that are unrelated to religious activities as well as Pay As You Earn (PAYE) on remuneration and other benefits are not being paid in terms of legislation. Over and above, SARS has further found a number of religious institutions issuing tax deductible receipts in terms of section 18A of the Income Tax Act, 1962, for donations towards religious activities. This is not permitted in terms of the Income Tax Act, 1962. 

These entities are encouraged to use the SARS Voluntary Disclosure Programme to regulate their taxes.