employer Connect Issue no. 6 (october 2013)

SARS is modernising payment and accounting processes to empowering taxpayers to manage their financial responsibilities more independently, effectively and efficiently. As part of this process the debit pull payment option on eFiling will be discontinued at the end of October 2013 and only credit push payments will be accepted.

As of the end of October 2013 Debit Pull transactions will be discontinued for ABSA, FNB, Investec, Nedbank and Standard Bank. Taxpayers are advised to set-up a Credit Push payment option or use one of our alternative methods of payment.

It should be noted that the debit pull option is still available for certain payments until the end of October 2013, on condition that the approved representative agrees to the declaration which appears on the screen.

With debit pull a taxpayer or their approved representative may authorise SARS to collect the money owed directly from their bank on their behalf, which means that SARS is initiating the collection directly from their bank. SARS does so by instructing the bank to collect the amount from the taxpayer’s bank account. There are several problems associated with this:
• There are risks associated with this product in that payment is not guaranteed and can be reversed at the request of the client and can also be rejected due to insufficient funds
• SARS is unable to validate that the person authorising SARS to initiate the debit pull is mandated to do so which can result in payments being withdrawn from incorrect accounts. SARS could be placed at risk as a result of such unauthorised actions.
Very importantly it is in the interest of the client to not allow unauthorised withdrawals from their accounts.

Instead of the Debit Push payment option you can use the Credit Push payment option on eFiling. With a Credit Push, the payment is performed by you, the account holder. When making a payment to SARS, eFiling will send a payment request to your bank which will indicate:
• The amount that needs to be paid
• And gives a payment reference number (PRN).
The taxpayer then physically authorises this request, which acts as an instruction to the bank to make the payment to SARS
Credit Push payments are considered to be irrevocable and can only be made if the account holder has the necessary funds.

For more information on the discontinuation of Debit Pull transactions on eFiling, visit the SARS website http://www.sars.gov.za/ClientSegments/Individuals/Taxpayer/Pages/Discontinuation-of-Debit-Pull-Transactions-on-eFiling.aspx

Alternative methods of payment available include:

• Over the counter payments at a bank (Cheque payments limited to R500 000)
• EFT – electronic funds transfer using internet banking
• At a specific SARS branch (including customs) [cheque payments limited to R100 000 for certain tax types].

 
For the latest payment rules visit the SARS website www.sars.gov.za, call the SARS Contact Centre on 0800 00 SARS (7277) or a SARS branch nearest you.

The Minister of Finance has appointed retired Gauteng Judge President Bernard Ngoepe as South Africa’s first Tax Ombud.

The appointment is in terms of the Tax Administration Act of 2011. The office is intended to provide taxpayers with a low-cost mechanism to address administrative difficulties that cannot be resolved by the South African Revenue Service (SARS).

Judge Ngoepe has sound experience in exercising impartiality, an understanding of how best to balance the powers and duties of SARS and the rights and obligations of tax payers. Above all, he is proficient in tax and administrative law.

Further details of the Tax Ombud's office will be announced in due course.

As from 1 October 2013, all telephone calls to Customs offices in the Western, Eastern and Northern Cape are being routed automatically to the SARS Contact Centre (0800 00 7277).

Customs clients will now enjoy the benefit of a single point of contact and extended hours, with the Contact Centre open until 22:00 on weekdays and over weekends to handle Customs queries.

Calls will be handled by Contact Centre agents trained to deal with Customs queries. If they cannot resolve these, calls will be routed to consultants and then to specialist officers who will handle final resolution.

We have recently tripled the number of Contact Centre agents who will look after Customs-related calls. After the roll-out to the Western, Eastern and Northern Cape, the routing of Customs calls to the Contact Centre will eventually be introduced nationwide.

Additional Customs officers are currently being recruited to handle the increased volumes nationally.

In our continued efforts to assist employers to easily and conveniently complete and submit their reconciliation submissions, eFiling may now be used as a submission channel, where you have 20 or less Employee Tax Certificates [IRP5/IT3(a)s] to submit with your Employer Reconciliation Declaration (EMP501).

Please note: If you have already submitted your reconciliation declaration using a different channel (e.g. using e@syFile™ Employer or at a SARS branch) please continue using that channel for the remainder of this reconciliation period (1 September – 31 October 2013).

It only requires a few simple steps:

1. Ensure you are registered on eFiling (wwww.sarseFiling.co.za)
2. Complete your IRP5/IT3(a)s, limited to a maximum of 20 certificates
3. Complete your EMP501 and submit to SARS by clicking “File”
4. Track the status of your reconciliation submission on eFiling by clicking “Query status” on the Returns workpage.

Please note: Should you wish to cancel an IRP5/IT3(a) on eFiling

1. Navigate to “My tax certificates”
2. Select the IRP5/IT3(a), you wish to cancel
3. Click “Cancel”
4. Resubmit the accurate EMP501 which contains the updated IRP5/IT3(a)s.

For help on how to use eFiling as a submission channel consult our guide (A step-by-step guide to the Employer Reconciliation Process) available on the SARS website www.sars.gov.za.

Stay informed of the latest information concerning the Employer Interim Reconciliation period by visiting the SARS website www.sars.gov.za, calling the SARS Contact Centre on 0800 00 SARS (7277), or visiting your nearest SARS branch.