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Tax Practitioners’ Connect Issue 25 (September)

Third Party Data Bi-Annual Submissions 2021: Now Open! 

The SARS Third Party Data Bi-Annual Submissions for the period 1 March 2021 – 31 August 2021 opened on 01 September 2021, and will close on 31 October 2021.  Submissions of data files and declarations of the various reportable data types are now due.

 

At this time, we are implementing the updated IT3 business requirement specification, effective for reporting by 31 October 2021. Should you experience any challenges while making your submissions, please email SARS Third Party Data Support at [email protected].

 

Please follow the SARS Third Party Data Submissions Platform webpage to stay abreast of changes and further communication on the subject.

 

SARS system changes & enhancements

Corporate Income Tax (CIT)

Form and system changes introduced in September 2021

SARS recently introduced form and system changes to the Income Tax Return for Companies (ITR14) and the Notice of Assessment for Companies (ITA34C). A limited number of source code descriptions will also be updated.

 

For more information click here.

 

Accessing payment arrangement request through eFiling

Previously taxpayers were restricted to making payment arrangements in person at a SARS branch. We have now enhanced the debt management systems to allow taxpayers with outstanding debt to initiate a Payment Arrangement Request (PAR) via eFiling.

 

This is available for outstanding debt due to administrative penalties or the different tax types through the following options:

·        Statement of Account (SOA)

·        SOA admin penalties

·        Return Work-Page

·        Notice of assessment

·        Notice of assessment for administrative penalties

·        My Compliance Profile page

·        Final demand letter

·        Final demand reminder letter.

 

For employers

2021 Employer Interim Reconciliation Submission:
13 September to 31 October 2021

The Employer Interim Reconciliation Declaration (EMP501) submission period began on 13 September 2021 and closes on 31 October 2021.

 

SARS is Making it Easy for you to comply by: 

  • Enabling access to required information through eFiling and [email protected]™ Employer
  • The latest version of [email protected]™ Employer became available on 10 September 2021. Employers must register employees for income tax purposes using Single (“Individual ITREG”) or bundled IT Registration (“Bundled ITREG”) for existing tax numbers as well as new registrations on [email protected]™ Employer.

Please note that employers must submit outstanding monthly declarations (EMP201) and annual reconciliations (EMP501) to SARS before submitting the Interim EMP501 for 2021.

 

Criminal charges for employers who fail to submit a return

Any employer who, wilfully or negligently, fails to submit an EMP201 or EMP501 to SARS is guilty of an offence and is liable, upon conviction, to either imprisonment for up to two years or both imprisonment and a fine. 

Please follow this link for information on how to submit an Employer Interim Reconciliation Declaration that includes information on:
    

  • Submission Channels
  • Unemployment Insurance Fund (UIF) ceiling earnings
  • 2021 Emergency Tax Relief

 

[email protected] employer updated


SARS [email protected]™ Employer has been updated and the release notes for version 7.1.5 have been published.

Changes included an adjustment to the EMP501 submission process when “Own Values” is selected to accurately reflect certificate totals for liabilities. Additional validation was added to the EMP501 submission process to correct misaligned information submitted previously resulting in rejections. An update to the [email protected] Forms Viewer component (V1.2.7) in conjunction with the additional validation on EMP501 submission data has been made.  

For more details, see the full Release notes here – [email protected] version 7.1.5

 

SARS browser now includes MAC browsers

The SARS browser now includes MAC users. The browser enables access to all eFiling forms, including the few that still require Adobe Flash, thus enabling compliance with filing obligations. 

Click here to download the SARS browser. 

To see our easy steps on how to download the browser, see 
GEN-ELEC-21-G01 – How to download the new SARS eFiling Browser – External Guide

 

Updates are published on the Browser Compatibility Guidelines webpage.

Tax practitioner services

Registration via eFiling

In order to register as a tax practitioner you must meet the criteria below:

  • You must be an individual.
  • You must have an active Income Tax reference number.
  • You must be a member of a Recognised Controlling Body (RCB) – it is recommended that you confirm with your RCB that you want to register and work as a tax practitioner. The RCB will capture the member’s details and submit them to SARS.
  • The information submitted by the RCB should match with SARS’ registered particulars for the member.

 

Registration has three steps and starts with the tax practitioner logging into their eFiling profile using their primary user log in credentials. Once logged in, the following process should be followed:

 

Step 1: Tax Practitioner registration: Individual Profile

·        Click on Home tab on e-filing (top left)

·        Maintain SARS registered details tab (left hand side tab)

·       The RAV01 will be generated. Scroll down to “My Tax Practitioner details”

 

Step 2: Adding a Tax Practitioner Portfolio to an existing Profile

The Tax Practitioner may register a new Tax Practitioner Portfolio by clicking on

‘My Profile’ >>> ‘Portfolio Management’ >>>> ‘Add Portfolio’.

 

Step 3: Tax Practitioner Configuration

This functionality allows tax practitioners to confirm their tax practitioner status at SARS and to link their users to other activated practitioner user profiles.

 

On the organisation profile, please ensure that the correct taxpayer is selected from the taxpayer list when registering an individual as a tax practitioner. Select the “Services” menu tab and “Additional Services”. Click on “Tax Practitioner Registration“.

 

SARS Digital Channels make compliance easier

In line with the SARS strategic objectives, we are making the process of meeting your client’s tax obligations easier. Apply on eFiling for the following services:      

 

You can also use our digital channels to:

·     Apply for a Tax Directive 

·     Request a statement of account

·     Dispute an assessment

·     Track your applications via eFiling

·     Track the status of your client’s audits via eFiling.

 

If you are struggling to add users, portfolios and companies, go to SARS TV on YouTube for step by step video guides:

https://www.youtube.com/watch?v=tQShTF345gE

 

Estates

Taxpayers who require information on estates should send an email, quoting the tax number and identity number of the estate in the subject line, to one of the following channels, depending the nature of their query:

 

Taxpayers’ original documents

It is understood that, as a tax practitioner, you need to see original documents from your clients. We have noted that many tax practitioners submit/retain these original documents.    

 

As we all know, taxpayers are obliged to keep their original records. Therefore we urge you to ensure that you work with and keep copies rather than original documents of the taxpayer.

 

SARS Commissioner urges taxpayers to make use of registered tax practitioners

In a recent media statement SARS Commissioner Edward Kieswetter urged taxpayers to use only registered tax practitioners to assist them with their tax affairs. This was in response to the 48 year sentence handed down to convicted fraudster Khathutshelo Mashau who was found guilty of theft, fraud, swindling taxpayers and contravention of the Prevention of Organised Crime Act (POCA).

 

The Commissioner said “Persons who have no tax qualifications and who promise taxpayers huge refunds are likely to be engaged in fraudulent activities which will harm the taxpayer. Taxpayers must report such persons immediately so that other taxpayers can be protected from these criminals.”

In this particular case, the court heard that SARS received a complaint from a taxpayer about his personal income tax refund being paid into an incorrect bank account. Further investigations revealed that refunds were paid into FNB bank account in the name of “Khathutshelo Mashau”.

 

SARS also found that several refunds for other taxpayers were paid into the same account. The affected taxpayers denied knowing about this bank account or requesting that their personal information and bank accounts be changed to Khathutshelo Mashau.

 

“SARS makes it clear to taxpayers and provides certainty on which channels to use to transact with SARS and these are the only channels to use. If these channels are not sufficient to deal with a taxpayer’s needs, they should use the services of a registered tax practitioner,” the Commissioner said.

 

RCB status

In the amendment to section 240A(1) of the Tax Administration Act (the Act), gazetted on 15 January 2020, the Legal Practice Council (LPC) was added as a Recognised Controlling Body (RCB). The Law Society SA (LSSA) and the General Council of Bar of SA (GCB) were removed as RCBs. Tax practitioners who are registered with the LSSA or GCB and wish to remain registered tax practitioners, should register with the LPC or any other RCB as soon as possible to allow for a smooth transition. Should the affected tax practitioners not change their RCB within 60 days – from the time that SARS informs you that the LPC is on our system – their tax practitioner’s status will be removed, and they will be unable to transact with SARS as a registered tax practitioner.

 

The South African Business Institute of Business Accountants (SAIBA) was recently approved by the Commissioner as a RCB in terms of S240A of the TAA.  SARS is in the process of updating its systems to ensure that tax practitioners belonging to the LPC and SAIBA can register as such.

 

Customs SMME traders and travellers webinar

SARS hosted a comprehensive Customs SMME Traders and Travellers webinar on 19 August. It focussed on customs clearance procedures and provided accurate and relevant information required to comply with the Tax and Customs Acts. It also clarified and provided certainty to make it easy for taxpayers to meet their tax and customs obligations.

 

For more information and to access the webinar, go to our SARS TV YouTube channel – https://youtu.be/ei_xN9m47LI

See the content presented showed during the webinar.

 

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