Glossary

This glossary describes some of the terms used on the SARS website. While every effort has been made to present accurate and up-to-date definitions, this glossary should be used as an interpretive aid only and not as an authority. SARS will not be liable for any damages of whatsoever nature arising out of the use of, reference to or reliance on any of the definitions contained herein.
 
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RAE
Released As Entered

RAF
Road Accident Fund

Rams
Male sheep

RCF
Regional Consultative Forum

RCT
Return Control Table

R/D cheque
A cheque which has been "referred to the drawer". The cheque has been returned as unpaid due to not enough funds being available.
 
 
RDM
Risk Differentiation Mechanism

RDS
Return to Drawer payments

Real effective exchange rate
A measure of the rate of exchange of the rand relative to a tradeweighted average of South Africa’s trading partners’ currencies, adjusted for price trends.

Real expenditure
Expenditure measured in constant prices, i.e. after taking account of inflation.

Real interest rate
The level of interest after taking account of inflation.

Reasonable grounds
The ordinary dictionary meaning of “reasonable” is “having sound judgement; moderate; ready to listen to reason; not absurd; within the limits of reason; not greatly less or more than might be expected; tolerable, fair” (Concise Oxford Dictionary). Essentially, for a decision to be reasonable the Commissioner is required to consider all relevant matters. The Constitutional Court has held that there is no absolute standard of reasonableness – what is “reasonable” would depend on the particular circumstances of each case.

Rebate
A facility provided for in the Act, subject to the compliance of specific conditions, whereby the full or part of the duty is reduced or remitted.
 
 
Received refund(s) on contributions(s) made to this trust (on the ITR12T)
Means any contribution(s) received by the trust both of a capital and/or non-capital nature.
 
 
Receiving state
RSA government

Receiving state (Foreign Diplomats)
The Government of the Republic of South Africa.

Reconciliation declaration
The reconciliation declaration is the EMP501 document on which an employer’s PAYE, SDL and UIF liabilities are declared with associated payments, certificate values and the resulting net effect of setting off payments again liabilities.

Reconciliation submission process
This is the process through which an employer submits all required PAYE, SDL and UIF documentation to SARS for processing i.e. IRP5/IT3(a), EMP501, EMP601 and an EMP701 if applicable.

Re-exportation
Exportation from a Customs territory of goods previously imported into that territory.

Refundable
Capable of being given back or repaid.
 
Registered Representative
A natural person appointed with full rights to act on behalf of another legal entity.

Registered tax practitioner
The duty to register as a tax practitioner applies to-- Every natural person who: Provides advice to another person with respect to the application of a tax Act; or Completes or assists in completing a document to be submitted to SARS by another person in terms of a tax Act; Such person must register as a tax practitioner with SARS within 30 days after the date that person for the first time provides advice, or assists in completing documentation. The duty to register as a tax practitioner does not apply to a person who: Provides the advice and completes or assists in completing a document solely for no consideration to that person or his or her employer or a “connected person”, as defined in section 1 of the Income Tax Act No.58 of 1962, in relation to that employer or that person; Provides the advice solely in anticipation of or in the course of any litigation to which the Commissioner is a party or where the Commissioner is a complainant; Provides the advice solely as an incidental or subordinate part of providing goods or other services to another person; Provides the advice or completes or assists in completing a document solely:- to or in respect of the employer by whom that person is employed on a full time basis or to or in respect of that employer and “connected persons” in relation to that employer; or under the direct supervision of a person who is registered as tax practitioner in terms of the subsection above. A person may not register as a tax practitioner if :- During the preceding five years, that person has been removed from a related profession; during the preceding five years, that person has been convicted (whether in the Republic or elsewhere) of theft, fraud, forgery or uttering a forged document, perjury, an offence under the Prevention and Combating of Corrupt Activities Act, 2004 (Act No.12 of 2004), or any offence involving dishonesty - for which the person has been sentenced to a period of imprisonment exceeding two years without option of a fine or to a fine exceeding the amount prescribed in the Adjustment of Fines, 1991 (Act No.101 of 1991).

Regulated intermediary
A regulated intermediary is a specified regulated person which administers dividend payments that were declared by a company after having received those payments from the company that declared the dividend. A regulated intermediary includes, for example, central securities depository participants, brokers, nominee companies, and approved transfer secretaries.

Re-importation
Importation into a Customs territory of goods previously exported from that territory.

Re-importation in the same state
The Customs procedure under which goods which were exported may be taken into home use free of import duties and taxes, provided they have not undergone any manufacturing, processing or repairs abroad and provided that any sums chargeable as a result of repayment or remission of or conditional relief from duties and taxes or of any subsidies or other amounts granted in connection with exportation must be paid. The goods that are eligible for re-importation in the same state can be goods that were in free circulation or were compensating products (*). (*) Specific Annex B, Chapter 2 of the revised Kyoto Convention.

Relative
A relative as defined in section 1 of the IT Act means, in relation to any person, the spouse of such person or anybody related to him or his spouse within the third degree of consanguinity, or any spouse of anybody so related, and for the purpose of determining the relationship between any child referred to in the definition of “child” in this section and any other person, such child shall be deemed to be related to its adoptive parent within the first degree of consanguinity.

Release of goods
The action by the Customs to permit goods undergoing clearance to be placed at the disposal of the persons concerned (*). (*) General Annex, Chapter 2 of the revised Kyoto Convention.

Release unit
Describes the IT infrastructure components that are normally released together.

Relevant material
As defined per section 1 of the TAA means any information, document or thing that is foreseeably relevant for tax risk assessment, assessing tax, collecting tax, showing non-compliance with an obligation under a Tax Act or showing that a tax offence was committed.

Relief consignment
Goods, including vehicles and other means of transport, foodstuffs, medicaments, clothing, blankets, tents, prefabricated houses, water purifying and water storage items, or other goods of prime necessity, forwarded as aid to those affected by disaster; and - all equipment, vehicles and other means of transport, specially trained animals, provisions, supplies, personal effects and other goods for disaster relief personnel in order to perform their duties and to support them in living and working in the territory of the disaster throughout the duration of their mission (*). (*) Specific Annex J, Chapter 5 of the revised Kyoto Convention.

Relief from import duties and taxes
Clearance of goods for home use free of import duties and taxes, irrespective of their normal tariff classification or normal liability, provided that they are imported in specified circumstances and for specified purposes. Note: Relief from import duties and taxes is dealt with specifically in Annex B.2. to the Kyoto Convention of 1974 and in Specific Annex B, Chapter 3 of the revised Kyoto Convention.

REM
Regional Enforcement Manager

Remedy
System to track and monitor all IT-related calls that were logged at the SARS Service Desk.

Remission of import duties and taxes
The waiver of payment, in whole or in part, of import duties and taxes where payment has not been made. Note: Remission of import duties and taxes is dealt with in Annex F.6. to the Kyoto Convention of 1974. That Annex also covers the refund, in whole or in part, of import duties and taxes paid on goods declared for home use.

Removal of goods in bond
The removal of goods from a place of entry or warehousing place to another place of entry or warehousing place in certain approved instances where the duties on such goods have not been paid. In terms of the Kyoto Convention removal of goods in bond is referred to as “transit” movements and the convention document elaborates further to divide such movements into three (3) categories, namely “inward transit / removal in bond” which is the removal of goods in bond from a Customs office of entry to another inland Customs office, “outward transit / removal in bond” which is the removal of goods in bond from an inland Customs office to a Customs office or exit and “interior transit / removal in bond” which is the removal of goods in bond from one (1) inland Customs office to another inland Customs office. All the aforementioned movements are for the purposes of the Act termed “Removals in bond”. The Kyoto Convention furthermore considers the movement of goods from a place of entry direct to the place of exit as “through transit”. In terms of the current Act however such movements are merely termed “removals in transit”.

Removal of goods in transit
The direct transportation of goods on which duty has not been paid, from a place of entry in South Africa through the Customs Union to a place outside the Customs Union.

Remuneration
Remuneration is defined in paragraph 1 of the Fourth Schedule to the IT Act as-- any amount of income which is paid or is payable to any person by way of any salary, leave pay, wage, overtime pay, bonus, gratuity, commission, fee, emolument, pension, superannuation allowance, retiring allowance or stipend, whether in cash or otherwise and whether or not in respect of services rendered. The definition is more extensive and provides for further inclusions and exclusions.

Repayment
The refund, in whole or in part, of duties and taxes paid on goods and the remission, in whole or in part, of duties and taxes where payment has not been made (*). (*) General Annex, Chapter 2 of the revised Kyoto Convention.

Repo (re-purchase) rate
The rate at which the Reserve Bank lends money to commercial banks.

Representative employer
In the case of any company, the public officer of that company, or, in the event of such company being placed in liquidation or under judicial management, the liquidator or judicial manager, as the case may be; in the case of any municipality or anybody corporate or unincorporated (other than a company or a partnership) any manager, secretary, officer or other person responsible for paying remuneration on behalf of such municipality or body; in the case of a person under legal disability, any guardian, curator, administrator or other person having the management or control of the affairs of the person under legal disability; or in the case of any employer who is not resident in the republic, any agent of such employer having authority to pay remuneration. The full definition can be found in paragraph 1 of the Fourth Schedule to the IT Act.
 
Representative taxpayer
A natural person who resides in the Republic. Paragraph 1 of the Fourth Schedule of the Income Tax Act No. 58 of 1962 and section 46 of the Value-Added Tax (VAT) Act refers to the following persons as representative taxpayers:
  • Treasurer
  • Guardian
  • Curator
  • Public officer
  • Accountant
  • Tax Consultant
  • Attorney
  • Advocate
  • Legal Advisor
  • Auditor
  • Bookkeeper
  • Conveyancer in a case of Transfer Duty
  • Director
  • Employer
  • Executor/administrator
  • Fund Administrator
  • Insurance Broker
  • Relative/Parent
  • Secretary
  • Trustee
  • Etc.
Request correction
The process whereby a capture error on a tax return can be quickly corrected without resorting to an objection.

Request for Remission (RFR)
Request for Remission of the penalty is a means for the taxpayer to dispute the Administrative Penalty that was levied to his / her account and to request that the penalty be waived.

Requestor
The person responsible for accepting and interpreting the initiator’s paper request into an online request on the SAP r/3 or EPB system.

Reserves (foreign exchange)
Holdings of foreign exchange, either by the Reserve Bank only, or by the Reserve Bank and domestic banking institutions.

Resident
As defined in section 1 of the IT Act-- Includes: Any natural person who is ordinarily resident in South Africa; or Any natural person who complies with the physical presence test; and Any person (other than a natural person) which is incorporated, established or formed in South Africa or which has its place of effective management in South Africa, but: Excludes any person who is deemed to be exclusively a resident of another country for purposes of the application of any agreement entered into between the government of South Africa and that other country for the avoidance of double taxation.

Responsive bid
A bid submitted by a bidder which conforms in all material respects to the invitation to bid.

Restriction of goods
A legal requirement by law for the submission and approval of an application or other document (other than for Customs purposes) as a prior condition to importation or exportation.

Retirement funding employment
Any remuneration of the employee that is taken into account in the determination of the retirement fund contributions made by an employee or by the employer on behalf of such employee (to, for example, a pension or provident fund).

Retirement funds
Approved funds which are administered for the provision of pensions.

Retirement Funds Tax
Refers to the tax on retirement funds as provided by the Retirement Funds Act, 1996 (Act No. 38 of 1996), which has been repealed with effect from 1 March 2007.

Return
With respect to Employees' Tax (PAYE), a return refers to an EMP201 monthly declaration for employers.

Returns lot
Returns that are grouped to be processed collectively. These can be returns related to incoming and outgoing payments that were created automatically (such as bank collections) that are sent back by the relevant banking institution. A returns lot can be created manually or automatically (transferring data from electronic payment mediums). 

Revenue management
The collecting, accounting and reporting of all taxes, duties and levies that become due in terms of legislation administered by SARS. This process is a primary component of the country’s national financial supply chain, forming a critical link in ensuring sustainable cash flows for Government and comprises of three basic components, namely: Reporting (which measures the effectiveness of the Organisation’s financial performance and enables the prediction of future cash flows); Revenue accounting (which accounts for all revenue, expenditure, assets and liabilities and which is responsible for optimising cash transfers to Government); and Tax accounting (which is responsible for recording, transacting and reconciliation of all taxpayer/trader obligations.

Revised Arusha Declaration
The expression commonly used to refer to the Declaration of the Customs Co-operation Council concerning good governance and integrity in customs, adopted by the Customs Co-operation Council in Arusha in 1993 and revised in 2003.

Revised Kyoto convention
The expression commonly used to refer to the international Convention on the simplification and harmonization of Customs procedures (amended), adopted by the Customs Co-operation Council in Brussels in 1999.

Reward
Any financial gain, money, goods or services

RFC
Request For Correction

RFI
Request For Information - is used to test the market and to obtain information for business on particular goods and/or services required.

RFP
Request For Proposal - an invitation to prospective suppliers of goods or services to respond with a proposal as to how they will meet the requirements set out in a tender.

RFQ
Request For Quotation – an invitation to prospective suppliers to provide a quotation for the good or services set out in a tender.

RFR
Request For Remission

RFR form
Request for Remission of penalty form

RFT
Retirement Fund Tax

Risk engine
Refers to the advanced statistical analysis that is performed systematically, and which is programmed on the probability of compliance risk.

RMF
Regional Management Forum

Road Accident Fund
Means, subject to subsection (4), any duty leviable under Part 5B of Schedule No. 1 on any Road Accident Fund levy.

ROC (now CIPRO)
Registrar of Companies

Role (RACI)
R= Responsible; A= Accountable; C= Consulted; I= Keep Informed.

ROM
Regional Operations Manager

ROO
Rules of origin

ROO System
Rules of origin applications on the Export System pertaining to trade arrangements.

ROT
With respect to retirement fund benefits, ROT refers to Recognition of Transfer. This is a document that is submitted to SARS together with a Tax Deduction Directive application, where a lump sum benefit was transferred from one approved fund or public sector fund to another approved or public sector fund. The transferee and recipient fund must sign the document to be a valid document.

RSA
Republic of South Africa

RSN01
Reporting of Suspected Non-Compliance

RTP
Register Tax Practitioner
 
RTU
Restricted Taxpayer Unit

Rule
A Rule made by the Commissioner under the Customs and Excise Act.

Rules of origin
Specific provisions, developed from principles established by national legislation or international agreements ("origin criteria"), applied by a country to determine the origin of goods. Note: Rules of origin are dealt with in Annex D.1. to the Kyoto Convention of 1974 and in Specific Annex K, Chapter 1 of the revised Kyoto Convention.

RVO
Remote Virtual Outbound
Last Updated: 20/07/2016 11:20 AM     print this page
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