More than R20 billion saved in fraudulent claims  

PRETORIA, MONDAY 30 OCTOBER 2017 – SARS is pleased to announce that it has paid over R120-billion in refunds across all tax types in the last 7 months, that is, from the beginning of April of the tax season to date.

An amount of R100.6 billion in VAT refunds has been paid this year. This is a five percent increase compared to R95.6 billion paid last year at the same time.

For Personal Income Tax this year to date, refund payments have increased by 16% with R14, 9 billion already paid compared to R12, 8 billion paid last year at the same time. 

For the year to date (01 April 2017 -10 October 2017), R6.9 billion in CIT refunds has been paid, compared to R5.7 billion last year this time, marking a 21% increase.

Also, SARS wishes to announce that, for this current financial year to date, its risk mitigation measures have saved the fiscus R20 billion in fraudulent claims across all tax types.

It must be noted that there has been an increase in refund pay-outs across all tax types in the last three years.

Value-Added-Tax (VAT) refund payments increased from R162.1 billion in 2014/15 to R167.1 billion in 2015/16, and R181.5 billion in 2016/17.  This year, 2017/2018, is no exception, with SARS already having paid R100.6 billion in VAT refunds, year to date.  This is a five percent increase compared to R95.6 billion paid last year at the same time. 

Personal Income Tax (PIT) refund payments increased from R20.5 billion in 2014/2015 to R20.8 billion in the following year (2015/2016) and R23 billion in 2016/2017.  For the year to date, refund payments have increased by 16% with R14, 9 billion already paid, compared to R12, 8 billion paid last year at the same time. 

Corporate Income Tax (CIT) refund payments totalled at R10.8 billion in both the 2014/2015 and 2015/2016 financial years, and increased to R13 billion in the 2016/2017 year.  For the year to date (01 April 2017 -10 October 2017), R6.9 billion in CIT refunds has been paid, compared to R5.7 Billion last year this time, marking a 21% increase.

While SARS is committed to ensuring taxpayers get their refunds, it also has a mandate to avoid revenue loss to the country’s fiscus.  It does this through a series of risk mitigation measures to detect fraudulent claims and non-compliance. 

During the 2016/2017 financial year, SARS’s risk detection measures prevented R35 billion of unwarranted refunds from being paid.  For the current financial year to date (01 April 2017 to date), SARS has already saved the fiscus R20 billion in fraudulent claims across tax types.

SARS wishes to acknowledge the frustration that taxpayers feel when they expect a refund and it is delayed. But, the organisation aims to implement effective preventative measures to detect fraud and non-compliance.

SARS wishes to apologise for any inconvenience caused while having agile systems that make it easier to interact with SARS and prevent revenue leakages due to fraud and non-compliance.

SARS wishes to reiterate that the majority of tax refunds are processed within 72 hours without an audit. In the VAT refund space, for example, during the 2016/2017 financial year, 89% of VAT refunds were released without an audit.

In the last three years, VAT refund fraud cases investigated by SARS’ criminal investigations team amounted to over R2 billion and were handed to the National Prosecuting Authority (NPA).  These cases related to the establishment of fictitious entities and the submission of fictitious VAT invoicing schemes. 

Personal Income Tax (PIT) refund fraud cases investigated by SARS and handed to the NPA amounted to R148 million, for the same period.  SARS currently performs at a conviction rate of 95% for all cases presented and finalised in court.

SARS strives to balance taxpayer service and risk detection as both are essential for an efficient tax administration. It is of utmost necessity to SARS to pay legitimate refunds as the flow back into the economy sustains economic momentum and assists companies to meet their cash flow requirements.

Taxpayers should be assured that processes are in place to ensure the integrity of the revenue outcome. The National Treasury, South African Reserve Bank and SARS perform joint oversight and analysis of revenue on a monthly basis and base budget estimates on the performance of taxes across tax types.  

Managing refunds in order to achieve targets in excess of a trillion rand requires large scale redirection of refunds which would skew economic projections and certainly attract the attention of independent rating agencies. The parameters in place do not allow for this level of redirection of refunds.

PRETORIA, THURSDAY 26 OCTOBER 2017 – The South African Revenue Service will celebrate its 20th anniversary during the month of October 2017.

Celebrations will take place at its branches throughout the country under the theme At Your Service.

The 2017 national celebrations pay tribute to the efforts that have been made by parliament, government, SARS leadership and, especially, its employees towards establishing a revenue collection agency that has grown to be one of the best on the African continent and the whole world.

Over the last 20 years SARS has grown to be a highly esteemed revenue collection agency that is regarded as South Africa’s strongest and most efficient government institution. 

The 20 years celebrations will explore this legacy and the evolution of the revenue authority, reflecting on its impact on the country, on taxpayers, and globally. Significantly, it will provide an opportunity and platform for SARS to tell its good news story.

SARS’ technological systems have evolved throughout the years to make it easier and more attractive for taxpayers to meet their tax obligations. SARS was amongst the first state institutions to provide e-government services.

SARS Commissioner Tom Moyane is the fourth person to be at the leadership helm of the organisation.

“The 20 years celebrations are to pay tribute to all patriots and their role in establishing and strengthening SARS to be one of the strongest and efficient state owned institutions in the country.

“SARS is a sophisticated and efficient global organisation with advanced technological systems that make it much easier for taxpayers to do the right thing.

“The organization comprises of over 14 000 men and women that are committed to meet their revenue target in touch economic conditions that has seen increasing job losses and unemployment.

“Our mission remains to provide the state with the much needed resources to implement government programs aimed at improving the quality of life of all the people of the country,” said Moyane.

The anniversary celebrations take place against a backdrop of a full blown tax season that has seen SARS pay out a combined amount of more than R115 billion in VAT refunds (R100-billion) and Personal income Tax ( R14. 9 billion ).

Over the last two decades SARS has modernized its operational capabilities, restructured the organisation, recruited new talent, appointed new executive committee leadership, which includes women and has, above all, achieved the historic milestone of collecting more than R1.1-trillion revenue target.

SARS, as collective, remains focused and single-minded about meeting its revenue collection target of R1.265 for this year. As the revenue collection service, SARS fully appreciates the responsibility entrusted by the constitution and remains aware of the implications of not meeting the target.

The anniversary also takes place against a backdrop of a poor performing economy that has seen the revenue target revised downward to R1.214-trillion. Invariably, with growing unemployment due to retrenchments, income tax will be adversely affected by the economic decline and revenue collection may, inevitably, bear the brunt of its resultant negative economic and social effects.

The 2017 celebrations will build on the historical successes and achievements that have happened under the leadership of Commissioner Tom Moyane and his predecessors.

The nation-wide celebrations will also include a special 20 Years campaign and book on the history of SARS, roundtables and various other events to mobilize staff and society to claim the organisation as their own.

PRETORIA, 19 October 2017 – SARS is pleased to announce that almost 12 000 taxpayers have been served to make tax submissions since SARS extended its operating hours to Saturdays at selected branches around the country on 30 September.

A total of 11877 taxpayers have been attended to and 8 838 tax returns were filed on these three days.

It should be noted that SARS will prioritise income tax queries on Saturdays to help taxpayers comply with the tax season deadline of Friday, 24 November 2017, which is a mere six weeks away. 

Hours have been extended at selected branches in an effort to reduce queues at SARS branches on week days and provide taxpayers with more convenience. 

Extended hours at selected SARS branches run between 08:00 and 13:00 on Saturdays, and will continue until 18 November 2017. The arrangement commenced on 30 September 2017.

Other filing channels available

Bring supporting documents

SARS would like to remind taxpayers to bring the necessary supporting documents to avoid frustration and these include the following:

• Your banking particulars
• Your IRP5/IT3(a) certificate(s)
• Certificates [IT3(b)] that you received for any investment income
• Details of medical expenses paid by you and not covered by your medical scheme
• Medical aid certificate for details of medical aid contributions made that do not appear on your IRP5/IT3(a) certificate(s)
• Completed confirmation of diagnosis of disability form (ITR-DD), if applicable
• Information about your retirement annuity contributions
• Details of business travel (if you received a travel allowance or want to claim against a fringe benefit for an employer provided vehicle)
• Information about foreign tax credits withheld
• Financial statements, if applicable e.g. business income
• Any other relevant material relating to income you received or deductions you want to claim.

In the first incident, collaboration between SARS Customs and the South African Police Service, led to the arrest of a passenger disembarking from a Sao Paulo flight via Johannesburg in transit to Mozambique.
 

A scan of the passenger’s luggage revealed irregular images and led to a second inspection which uncovered ten boxes of imitation jewellery. Ninety (90) wooden sticks were found in the boxes concealing a white substance which tested positively for cocaine.

A total of 24.66kg of cocaine with an estimated street value of R7 094 682 was confiscated and handed to the South African Police Service.

In the second incident, SARS Customs officials intercepted 6.3 kg of cocaine with an estimated street value of R1 812 510 concealed in the base of a passenger’s luggage. 

The passenger was also on a Sao Paulo flight travelling via Johannesburg in transit to Mozambique. Both the passenger and the consignment were handed over to the South African Police Service for further investigation.

The successful operations are part of the increased joint operations between SARS and the South African Police Service.

PRETORIA, FRIDAY 6 OCTOBER 2017– SARS is continuing with its outreach project to assist the Deaf and Blind communities nationally with tax matters.

This entails the provision of South African Sign Language interpreters at SARS branches and schools in Gauteng, Limpopo, KwaZulu-Natal, Eastern and Western Cape during October 2017.

The public is invited to disseminate the message to the Deaf in the respective communities to visit the SARS branches to attend to their tax affairs in the language of their choice.

SARS has pledged to improve accessibility for the Deaf and Blind communities and to educate the general public about tax matters.

The project is part of SARS Language Policy provisions whereby commitment is made to serve Deaf taxpayers in South African Sign Language on predetermined dates.

Please find the programme for October attached.