Glossary A-M

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.

A

AA88
Agent appointment process

ABSA
Amalgamated Banks of South Africa
 
AC
Assessment Centre
 
ACB
Automated Clearing Bureau
 
ACC
Account
 
Accelerated depreciation
Any method of depreciation used for accounting or Income Tax purposes that allows greater deductions in the earlier years of the life of an asset.
 
Acceptable documents
Acceptable documents are documents that form part of the defined Scanning Strategy.
 
Access
Gaining entry into, instructing or communicating with the logical, arithmetical or memory function resources of a computer system or computer network.
 
ACM
Automated Cargo Management
 
Ad Valorem duties and taxes
Duties and taxes which are calculated on the basis of value.
 
Ad Valorem Products
These products are generally those which are seen as ‘luxury items’ and include, amongst others, Motor Vehicles, Electronic Equipment, Cosmetics, Perfumeries and other products. They will be subject to Ad Valorem Excise Duty.
 
Addressee
A person who is intended by the originator to receive the electronic message, but does not include an intermediary.
 
Adjustments estimate
Presentation to Parliament of the amendments to be made to the appropriations voted in the main budget for the year.
 
Administrative non-compliance Penalty
An administrative non-compliance penalty is a penalty imposed by SARS in accordance with Chapter 15 of the TAA.
 
Administrator of a Trust and/or Fund
A member of a board that manages the affairs of the fund. Any references to trustees and/or fund administrators includes liquidators of retirement funds.
 
ADR1
Alternate Dispute Resolution – Notice of Objection
 
ADR2
Alternate Dispute Resolution – Notice of Appeal
 
AEO
Authorised Economic Operator
 
AFS

Annual financial statements

Aggregate
The total amount payable by the purchaser in respect of the acquisition of the immovable property.
 
AGOA
African Growth and Opportunity Act
 
Aircraft general declaration
Declaration conforming to the provisions of Annex 9 to the Convention on International Civil Aviation, Chicago 1944. The general declaration is the basic document on arrival and departure providing information concerning the aircraft itself and summary information relating to the itinerary, crew, passengers and health.
 
Airport Transit Sheds
The airport transit shed operator is either the airline operator or another agent acting on behalf of the airline to store the goods until released by Customs.
 
Alternate Dispute Resolution (ADR)
ADR is a form of dispute resolution other than litigation, or adjudication through the courts. It is less formal, less cumbersome and less adversarial and a more cost effective and speedier process of resolving a tax dispute with the South African Revenue Service.
 
Alternate period
A period, whether of 12 months or not, commencing on the day following the last day of the preceding alternate period in relation to the employer and ending on a date falling not more than 14 days before or after the last day of February, or such greater number of days as the Commissioner, having regard to the circumstances of the case, may allow.
 
Annual equivalent
An amount equal to the sum of net remuneration multiplied by the ratio which a full year bears to the period in respect of which such net remuneration is payable.
 
Annual payment
An amount of net remuneration that is, in accordance with the employee’s conditions of service or the employer’s practice, paid in a lump sum to the employee or it is an amount that is calculated without reference to a period.
 
Annuity
Usually a fixed sum of money or benefit paid to a person in monthly, quarterly, yearly or similar, recurrent instalments.
 
AP34
Penalty assessment notice
 
APE
Approved exporter
 
APP
Advance Passenger Processing
 
Appeal
The act by which a person who is aggrieved by a tax decision seeks redress before a competent authority.
 
Appropriation
The approval by Parliament of spending from the National Revenue Fund, or by a provincial legislature from the Provincial Revenue Fund.
 
Approved Fund
A fund, the rules of which, have been approved by the Commissioner for SARS in accordance with the requirements as laid out in the definition of “provident fund”, “pension fund”, “pension preservation fund”, “provident preservation fund” and “retirement annuity fund” in section 1 of the IT Act.
 
ARP
Automated Reconciliation Process
 
ASD
Application System Development
 
Assessment
An assessment as defined in terms of section 1 of the TAA and section 1 of the IT Act.
 
Assessment of duties and taxes
Declaration conforming to the provisions of Annex 9 to the Convention on International Civil Aviation, Chicago 1944. The general declaration is the basic document on arrival and departure providing information concerning the aircraft itself and summary information relating to the itinerary, crew, passengers and health.
 
Asset price bubble
A condition occurring when prices for a category of assets rise above the level justified by economic fundamentals.
 
Assignment field
A field type within the SAP system that is used as a unique reconciliation key in order to group or assign line items to each other, such as bank statement entries to cash book entries.
 
Association not for gain
A religious institution or other society, association or organisation (including an educational institution of a public character) which is not carried on for profit and is required to use any property or income solely in the furtherance of its aims and objects. It could also qualify as a “welfare organisation” if it conducts certain activities. The VAT414 guide deals specifically with associations not for gain and welfare organisations.
 
ATA 
Admission Temporaire/Temporary Admission
 
ATA Carnet
An international Customs document which, issued under the terms of the ATA Convention and the Istanbul Convention, incorporates an internationally valid guarantee and may be used, in lieu of national Customs documents and as security for import duties and taxes, to cover the temporary admission of goods and, where appropriate, the transit of goods. It may be accepted for controlling the temporary exportation and re-importation of goods but, in this case, the international guarantee does not apply. Notes: 1. The ATA carnet may not, in principle, be used for the temporary admission of means of transport (See Commentary 2 to Article 1, Annex A of the Istanbul Convention). 2. Instead of “import duties and taxes” the ATA Convention uses the term “import duties”, giving it the same scope as the Glossary gives to the former expression.
 
ATA Convention
The expression commonly used to refer to the Customs Convention on the ATA carnet for the temporary admission of goods (ATA Convention) adopted by the Customs Co-operation Council in Brussels in 1961.
 
ATAF
African Tax Administration Forum
 
ATM
Automatic Teller Machine
 
ATO
Australian Tax Office, the Revenue Authority of Australia
 
ATP
Automated Tax Processor
 
Audit-based Control
Measures by which the Customs satisfy themselves as to the accuracy and authenticity of declarations through the examination of the relevant books, records, business systems and commercial data held by persons concerned. Note: Audit-based control is dealt with in the General Annex, Chapter 6 of the revised Kyoto Convention
 
Audit category
A = high risk audit
 
Audit pool
This refers to the pool of cases on Case Management and Tracking system from which the Manager can select cases.
 
Authorisation letter
A written authorisation granted by the Commissioner or by a senior SARS official to a SARS official under section 41 of the Tax Administration Act, authorising the SARS official to conduct an inspection, field audit or/and a criminal investigation for the purpose of administration of a tax Act.
 
Authorised Debit Push
These are payment transactions initiated on the eFiling site and authorised for each transaction. The transaction is only successful after the bank has confirmed that the transaction went through. This payment mechanism utilises the inter-banking facility, ACB that involves the initiation of payment instructions from the originating bank to the client’s bank. The Debit Push mechanism may reverse due to insufficient funds once the request is processed by the originating bank. This is similar to a debit order.
 
Authorised User
That is a person authorised by a licensed exchange to perform one or more securities services in terms of the exchange rules, and includes an external authorised user, where appropriate
 
AVS
Account Verification Solution

B

B coded
Estate
B/F
Brought forward
BAC
Bid adjudication committee – a committee constituted to assist the Commissioner in executing his/her PFMA responsibility of ensuring that SARS has and maintains an appropriate procurement and provisioning system which is fair, equitable, transparent, competitive and cost effective. This committee was previously known as the procurement committee.
Back scan
Copies of forms that have already been processed via an electronic channel but need to be digitally stored in Documentum for compliance reasons.
Backdated salary
Salary, wage or similar remuneration payable by the employer to an employee retrospectively, but does not include any bonus.
 
BAIT
Business and Individual Taxes
Balance of payments
The balance of payments of a country is the record of all economic transactions between the residents (individuals, firms and government bodies) of the country and the rest of the world in a particular period (over a quarter of a year or more commonly over a year).
Balance of remuneration
Any amount of remuneration after deducting the allowable deductions for employees’ tax purposes.
BAM
Business Area Manager
Baseline
The initial allocations used during the budget process, derived from the previous year’s forward estimates.
Basic Amount
The basic amount is the latest assessed taxable income and excludes any taxable capital gain and the taxable portion of any lump sum, and also includes an 8% increase for each year from year last assessed.
Batho Pele
A government initiative aimed at “putting people first”
BCOCC
Border Control Operational Coordinating Committee
BCSA
Banking Council South Africa
BDC
Bulk Data Capture
BDCS
Bulk Data Capture System
BEC

The Bid Evaluation Committee, also known as the Tender Evaluation Committee is a committee of representatives from Procurement, BEE, Finance and Business which is responsible for the evaluation of tenders.

BEE
Black Economic Empowerment
Beneficial owner of shares
A person who is entitled to the benefit of the dividend attaching to a share.
Beneficiated/beneficiation
The treatment of raw material (such as iron ore) to improve physical or chemical properties especially in preparation for smelting.
 
Beneficiary of a trust

Any person who has a vested or contingent interest in all or a part of the receipts, accruals or the assets of a trust. The benefit available to a beneficiary depends on the settlor’s purpose when creating the trust and on the extent of the property held in trust.

BFE
Branch Front End – the customer-facing part of a SARS branch that directly engages with taxpayers/traders.
Bills of landing
A contract between shipper and shipping company for the conveyance of certain goods from a specified port to another specified port.
BIU
Business Intelligence Unit
BELN
The Republic of Botswana;
The Kingdom of eSwatini;
The Kingdom of Lesotho; and
The Republic of Namibia.
BM
Branch managers
Blanket clearing instruction
Open ended clearing instruction that is signed by the importer or exporter but does not pertain to a specific consignment.
 
BO
Branch Office
Boarding and search of means of transport
The operations under which means of transport are visited by Customs for: (a) collection of information from the person responsible for the means of transport and examination of commercial, transport or other documents concerning the means of transport, the cargo, stores, crew and passengers; and (b) inspection, examination and search of the means of transport.
BOE
Branch Operations and Engagements
Booking reference number

The reference number assigned by a carrier to the booking of cargo by a shipper immediately on completion of the booking process.

  1. Only after the cargo has been booked is a transport document number assigned by the carrier.

The booking reference number does not equate to a transport document number and cannot be reflected in the transport document number field of the clearance declaration.

Bona fide donation
A bona fide donation is a voluntary, gratuitous gift disposed of by the donor out of liberality or generosity, where the donee is enriched and the donor impoverished. There may be no quid pro quo, no reciprocal obligations and no personal benefit for the donor. If the donee gives any consideration at all it is not a donation. The donor may not impose conditions which could enable him or any connected person in relation to himself to derive some direct or indirect benefit from the application of the donation.
Bond
An undertaking in due legal form by which a person binds himself to the Customs to do or not to do some specified act.
Bonded warehouse
A building or other secured area licensed in terms of the Customs and Excise Act where goods can be stored while the duty and tax on it is suspended.
BPMS
Business Process Management Solution
BRA
Business Resolution Agent
Break bulk cargo
Goods packed loose and individually into containers and transported as such. May be allowed to be stored in empty containers while at sea for convenience purposes only, but must be removed from the containers before being landed at the port of discharge.
BRICS
The world’s top emerging economies – Brazil, Russia, India, China and South Africa
Brokers
A labour broker is a person who, for reward, provides and remunerates workers for a client and is either in or not in possession of an exemption certificate (IRP 30). The labour broker either makes available his / her own employees to perform work for a client or he / she procures workers for a client. The labour broker pays the workers.
BRS
Business Requirement Specification
BSDOC
File back scanning coversheet
Budget balance
The difference between expenditure and revenue. If expenditure exceeds revenue, the budget is in deficit – or, if the reverse is true, it is in surplus.
Bulk asset request
Request for more than one of exactly the same asset (multiple assets purchase request).
Bull
Male cattle
Bunkering of vessels
Supplying bunker fuel to a ship for propulsion of the vessel or for the operation of any equipment on the vessel.
Business day
Any day that is not a Saturday, Sunday or public holiday. For the purposes of determining the days or a period allowed for complying with the provisions of Chapter 9 of the Tax Administration Act No.28 of 2011 (Dispute Resolution), excludes the days between 16 December of each year and 15 January of the following year, both days inclusive.
Business owner
The owner of the application or system to be released, changed or enhanced.
Business partner
A natural or legal person or a group of natural or legal persons, not part of the business organisation but with whom a business interest exists.
Business service
Services as defined in the service catalogue.
Buyer
An appointed person responsible for procuring goods (IT and non-IT) or services requested through the purchase requisition process.

C

CA
Contract Account
CAB

Change advisory board consists of managers and senior managers of SARS’ IT and Business System divisions.

Cabotage
Domestic transport in another country utilising a vehicle registered (roadworthy) in that specific country.  The number plates and license of the vehicle used to transport the goods must be issued in that country.
Cabotage permit
Grants permission to means of transport registered in another country to operate in South Africa (domestic transport).
CAI
Change Acknowledgement Indicator
Calendar Day
All days in a month, including weekends and holidays. Each month contains thirty-to thirty-one Calendar days, unless it’s the month of February which only has 21 Calendar days unless it’s a leap year.
Calves
Immature bull or cow still feeding off its mother
CAPE
Customs Authorised Processing of Entries
Capital flow
A flow of investments in and out of the country.
Capital Gains Tax (CGT)
Tax levied on the profits realised from the disposal of capital assets or investments by a taxpayer. A capital gain is the excess of the proceeds over the base cost.
Cargo Declaration
Information submitted prior to or on arrival or departure of a means of transport for commercial use that provides the particulars required by the Customs relating to cargo brought to or removed from the Customs territory. Notes: 1. The nature and contents of Cargo declarations may vary from country to country according to the commercial means of transport used. The particulars of the cargo (freight) may include kind, number, marks and numbers of packages, brief description of the goods, gross weight, etc. In some countries, these particulars may be submitted by electronic means. 2. Cargo declarations are often referred to as “manifests”; in some countries Aircraft cargo manifests, Ship’s manifests or Goods manifests are accepted in place of the Cargo declarations. Cargo declarations are also sometimes referred to as freight declarations. 3. The Annex to the Convention on Facilitation of International Maritime Traffic, London, 1965, provides for a Cargo declaration (Model Form IMO FAL Form 2). With regard to air transport, the corresponding declaration is called Cargo manifest (Model Form as on International Civil Aviation, Chicago, 1944). 4. Goods declarations may subsequently be presented in respect of the individual consignments covered by the Cargo declarations. 5. Cargo declaration is defined in Specific Annex A, Chapters 1 and 2 of the revised Kyoto Convention.
Cargo Manifest
A listing of the goods comprising the cargo (freight) carried in a means of transport or in a transport-unit. The Cargo manifest which gives the commercial particulars of the goods, such as transport document numbers, consignors, consignees, marks and numbers, number and kind of packages, descriptions and quantities of the goods, may be used in place of the Cargo declaration. Note: Examples of Cargo manifests are Aircraft cargo manifests, Ship’s manifests, Goods manifests and “bordereaux” (road traffic).
Cargo Report

Any report prescribed in the Rules that must be submitted for the purpose of the CPS, namely:

  1. Advance container loading notice in respect of containerised cargo in the sea modality for import cargo;
  2. Pre-arrival cargo reports in respect of sea, air, rail and road import (including transit and transhipment) cargo;
  3. Cargo departure reports in respect of sea, air, rail and road export cargo;
  4. Outturn reports including discharge and load reports, terminal gate reports, depot gate reports, as well as packing and unpacking reports;
  5. Notifications from SARS to depots of advance cargo information to enable the submission of outturn reports by licensees; and
  6. Manual and electronic acquittal of manifests
CARN
Cargo Assigned Reference Number
Carrier
The person actually transporting goods or in charge of or responsible for the operation of the means of transport(*). (*) Annex A.1. to the Kyoto Convention of 1974 and Specific Annex A, Chapter 1 and Specific Annex J, Chapter 4 of the revised Kyoto Convention.
Cash equivalent
For taxable benefit purposes, a cash equivalent shall be the value of the taxable benefit less any consideration (if applicable) given by the employee.
Cashier
Cashier at branch office level (including back-up cashier which is a team member).
CBCU
Customs Border Control Unit
CBD
Central Business District (usually the business hub of a city, or the inner city).
CBM
Collaborative Border Management
CBRTA
Cross-Border Road Transport Agency
CC
Close Corporation
CC/CK
Close Corporation/identification of registrar of company number.
CCA
Customs Controlled Area – a geographical area within which any Customs formalities with regards to the import, export, entering or departing of goods and/or people are required according to legislation.
CCAE
Customs Controlled Area Enterprise
CCC
Customs Compliance Centres
CCD
Customs clearance declaration
CCM
Cost Centre Manager
CCMA
Commission for Conciliation, Mediation and Arbitration.
Certificate of origin – the form or the document
A specific form identifying the goods, in which the authority or body empowered to issue it, certifies expressly that the goods to which the certificate relates originate in a specific country. This certificate may also include a declaration by the manufacturer, producer, supplier, exporter or other competent person. Notes: 1. In this definition the word “country” may include a group of countries, a region or a part of a country. 2. Specific forms for certificates of origin have been laid down in Annex D.2. to the Kyoto Convention of 1974 and Specific Annex K, Chapters 2 and 3 of the revised Kyoto Convention and in the framework of preferential arrangements such as the Generalized System of Preferences.
Certificate type
Type of certificates for which tax is to be levied. Types of certificates include: IRP5; IT3(a); ITREG (to be used when registering an employee for income tax). Note: Additional certificate types may be added at a later stage.
Certified declaration of origin
A declaration of origin certified by an authority or body empowered to do so (*).
C&F
Costs and Freight
CGT
Capital Gains Tax, namely, the normal tax attributable to the inclusion of a taxable capital gain in taxable income under s 26A of the Income Tax Act.
CH
Cash Halls
Change assignee
A person whom a change has been assigned to in their respective group. A change assignee is responsible for building the change record; assigning the change implementer and ensuring that the change is carried out according to the documented plans within the change record.
Change implementer
A person whom a change has been assigned to for implementation. He/she must implement the change according to the agreed documented plans within the change record.
Change management team
The change management team reside in the IT service management departments within the service support division.
Change owner
The resource that logs the production change/s and drives the release through the release process.
Change requestor
A user permitted to open, query and submitting a change that he/she needs implemented.
Chinchillas
A type of rodent farmed as a pet, but especially for its fur
CI
Configuration item
CIF
Costs Insurance and Freight
CIFC
Costs Insurance Freight and Commission
CIFI
Costs Insurance Freight and Interest
CIPC
Companies and Intellectual Property Commission
CIPRO
Companies and Intellectual Property Registration Office
CIRC
Change Initiation Review Committee
CIT
Corporate Income Tax
CITES
Convention on International Trade in Endangered Species
Clarification case
When a payment that has been received from a client cannot be allocated to the client’s account due to a number of reasons. A clarification case is created in SAP to ensure that all unallocated transactions due to unknown or incorrect client details are followed up in the prescribed manner and posted correctly to a valid client’s account on a timely basis.
Clearance (of goods)
The accomplishment of Customs formalities necessary to allow goods to enter home use, be exported or to be replaced under another Customs procedure. The term “Due Entry” in relation to imported goods may be for many purposes, e.g. transit removal, warehousing or home consumption which includes entry under rebate and the declaration sight. The latter being for liability purposes – Section 44(9). Goods duly entered in most instances would be the first declaration made to Customs advising of the intended action to be taken for imported goods. (the purpose). A clear distinction must however be made between goods “cleared for home consumption” and goods “duly entered,” for the purposes of establishing the rate of duty applicable. Goods duly entered for warehousing or for transit (in bond) are liable to the rate of duty applicable at the time of entry for home consumption. (Section 45).
Clearance for home use
The Customs procedure which provides that imported goods enter into free circulation in the Customs territory upon the payment of any import duties and taxes chargeable and the accomplishment of all the necessary Customs formalities.
Client
Any person or enterprise conducting business with SARS.
Client Type
A Registration, licensing or accreditation status granted to a client in order for them to trade within a specific capacity.
CM
Case Management – Workflow process for application processing; that is to approve or reject an application.
CM
Change Management
CMDB
Configuration Management Database
CMO
Current Mode Operations
CMP
Customs Modernisation Programme
CMS
Customs Management System
CMT
Case Management & Tracking
CN1
Customs Notification 1 is used to notify clients of the status of declarations submitted, which may include specific actions required e.g. request for supporting documents etc.
CNC
Continuous Non-Compliance
CO
Company
COD
Cash on Delivery
Conditional release
It is the release of goods with the payment of a PP amount, pending the fulfilment of certain conditions by the declarant within a specific time period, for example supplies supporting documents, embargo release or the release of goods detained or stopped.  The full consignment may be released but still require finalisation.
COP
Customs Operations Portal – Web Portal where a user may login and undertake Customs functions. The available functionality is determined by the permissions that have been granted to the logged in user.
Collection Information Statement (CIS)
Document utilised to review taxpayers’ financial status.
Colt
Young male horse
Commercial fraud
Any offence against statutory or regulatory provisions which Customs is responsible for enforcing, committed in order to: – evade, or attempt to evade, payment of duties/levies/taxes on movements of commercial goods; and/or- evade, or attempt to evade, any prohibition or restrictions applicable to commercial goods; and/or – receive, or attempt to receive, any repayments, subsidies or other disbursements to which there is no proper entitlement; and/or – obtain, or attempt to obtain, illicit commercial advantage injurious to the principle and practice of legitimate business competition.
Commissioner
The Commissioner for the South African Revenue Service (SARS).
Common customs area
The combined area of the Member States of the South African Customs Union (SACU).
Company
Company means any corporation, or company incorporated, established or formed by or under any law.
Compensating products
Products obtained within the country or abroad, during or as a result of the manufacturing, processing or repair of goods temporarily admitted for inward processing (temporary Importation), or of goods temporarily exported for outward processing. (Temporary Exportation / Setting-off with equivalent goods).
Competent Authority
Division in SARS tasked with interacting with any foreign tax administration.
Compound Duties
A combination of both a specific rate of duty and an ad valorem rate of duty. Whereas specific duties are based on factors such as weight or quantity, ad valorem duties are based on the value of the goods.
Compromise settlement
An agreement under which the Customs, being so empowered, consent to waive proceedings in respect of a Customs offence subject to compliance with certain conditions by the person(s) implicated in that offence.
Compulsory sequestration
Where a creditor or creditors (or his or their agent) may apply to court for the sequestration of the debtor’s estate.
Computed method
Where the value is derived from the built- up cost of the imported goods.
Computer
Processing. (Temporary Exportation / Setting-off with equivalent goods), which performs logical, arithmetic and memory functions by manipulation of electronic, magnetic or optical impulses and includes all input, output, processing, storage computer software or communication facilities which are connected or related to the computer in a computer or a computer network.
Computer Network
The interconnection of one (1) or more computers through the use of satellite, microwave, terrestrial line or other communication media and terminals or a complex consisting of two (2) or more interconnected computers whether or not the interconnection is continuously maintained. The exchange of information between various computers is known as EDI – Electronic Data Interchange.
Conditional fields
Fields that must be completed subject to defined conditions, e.g. mandatory if related fields have been completed.
Conditional grants
Allocations of money from one sphere of government to another, conditional on certain services being delivered or on compliance with specified requirements.
CON-NAVR
Consolidated enquiry screen for VAT and PAYE.
Connected person or relative
A connected person or relative means your spouse or anybody related to you or your spouse by blood in the third degree (e.g. great great grandfather etc.), and any spouse of these persons.
C3P
Customs Third Party Data
Consideration (Income Tax)
For taxable benefit purposes means any consideration given by an employee but does not include any consideration in the form of services rendered by the employee.
Consideration
In relation to a supply of goods or services, includes any payment made, whether in money or otherwise, but does not include a donation, a deposit (except a deposit on a returnable container) or any grant. Where, however, a supply is for no consideration the value of that supply is nil, except where the supply is between connected persons.
Consideration (Transfer Duty)
This is the total amount of money (including VAT) received for a sale. For barter transactions where the consideration is not in money, the consideration will be the open market value of goods or services (including VAT) received for making the taxable supply. Section 10 determines the value of supply or consideration for VAT purposes for different types of supplies.
Consolidated government expenditure
Total expenditure by national and provincial government, social security funds and selected public entities, including transfers and subsidies to municipalities, businesses or other entities.
Consultant
An individual with appropriate experience and recognised level of expertise in a specific field of activity, with ability to perform a particular service and give comprehensive and independent advice without influence from external interests. A consultant can be appointed through a private consulting firm or in his/her personal capacity.
Consumer price inflation (CPI)
The main measure of inflation, charting the price movements of a basket of consumer goods and services.
Consumption expenditure
Expenditure on goods and services, including salaries, which are used up within a short period of time – usually a year.
Container (transport)
With respect to transport equipment: a) having an internal volume of not less than one (1) cubic meter; and b) designed for the transport of goods by any means of carriage, without intermediate reloading.
Container (Income Tax Return)
With respect to an income tax return, refers to the various portions of the return that are created systematically in line with a taxpayer’s specific tax return requirements (e.g. IRP5 container, other income container, travel deduction container, capital receipts container, etc.).
Container convention
The expression commonly used to refer to the Customs Convention on Containers, concluded in Geneva in 1972 under the auspices of the United Nations and administered by the Customs Co-operation Council.
Container Depots
Container depots, usually outside the harbour area, are approved for the purposes of creating additional container capacity as well as for the purposes of unpacking cargo for individual delivery or packaging of goods for export. The Depot Operator must meet the standards and conditions required by Customs and this includes the lodging of security in the prescribed form prior to a license being issued.
Containerised
Goods in the form of loose pieces, cartons, pallets etc. packed into transport equipment known as containers.  These containers are then usually loaded onto specially constructed container vessels for transportation from the country of export to the country of imports.
Container Terminals
Container terminals can store containers with uncleared goods that are approved by Customs subject to certain specified conditions. No security is required if the terminals are within the harbour (control area) and if Customs are satisfied with the control measures.
Contingency reserve
An amount set aside, but not allocated in advance, to accommodate changes to the economic environment and to meet unforeseen spending requirements.
Contract

An agreement between parties, including a formal written contract, a properly authorised purchase order (with attached terms and conditions relating to that purchase) and any other agreement in writing between SARS and a supplier of goods and/or services.

Contribution to/from a trust
A contribution to a trust is any transfer of an asset, whether current or non-current, during the year of assessment excluding the following items:
  • Loan
  • Donation
  • Distribution from another trust or foundation.
Controller
In relation to any area or any matter, means the officer designated by the Commissioner to be the Controller of Customs and Excise in respect of that area or matter and includes an officer acting under the control or direction of any officer so designated by the Commissioner.
Controller/ Branch manager
In relation to any area or any matter, means the officer designated by the Commissioner to be the Controller of Customs and Excise in respect of that area or matter and includes an officer acting under the control or direction of any officer so designated by the Commissioner. In certain instances the Controllers are referred to as “Branch Managers”.
Controlling body
A body established, whether voluntary or under a law, with power to take disciplinary action against a person who, in carrying on a profession, contravenes the applicable rules or code of conduct for the profession.
Conveyancer
An attorney who has specialised in the preparation of deeds and documents which by law or custom are registerable in a Deeds Office and who is permitted to do so after practical examination and admission by the Supreme Court of South Africa.
Conveyancer reports
  1. Schedule information relating to the impending arrival of foreign going ships and aircraft as well as cross border trains; and
  2. Arrival and departure reports for foreign going ships and aircraft as well as cross border trains
COO
Chief Operating Officer
Copy tax invoice
A copy tax invoice is issued by a supplying vendor where the original tax invoice is lost, and the words ‘copy tax invoice’ appears on the document.
stances the Controllers are referred to as “Branch Managers”.
Controlling body
A body established, whether voluntary or under a law, with power to take disciplinary action against a person who, in carrying on a profession, contravenes the applicable rules or code of conduct for the profession.
Conveyancer
An attorney who has specialised in the preparation of deeds and documents which by law or custom are registerable in a Deeds Office and who is permitted to do so after practical examination and admission by the Supreme Court of South Africa.
Conveyancer reports
  1. Schedule information relating to the impending arrival of foreign going ships and aircraft as well as cross border trains; and
  2. Arrival and departure reports for foreign going ships and aircraft as well as cross border trains
COR
Costs of Repairs
Core system
Core Tax Systems including ITS, Sessions and Service Manager.
Corporate Income Tax (CIT)
The income tax paid by a company.
Corporate tax rate
The rate (%) at which companies pay income tax.
Corresponding issuing association
An issuing association established in another Contracting Party and affiliated to the same guaranteeing chain. Note: This term is defined in Annex A to the Istanbul Convention.
Cost centre
An accounting term that refers to a unit or organization for which costs are accumulated or computed. In the State this may take several forms: (1) a significant activity within a department for which administrative control is desirable and/or necessary, (2) a designated area within a department with costs that have significance in terms of financing and budgeting of the department, (3) an area or activity under a single supervisor with costs that can be controlled by direct budgeting to such supervisor.
Countercyclical fiscal policy
Policy that has the opposite effect on economic activity to that caused by the business cycle, such as slowing spending growth in a boom period and accelerating spending in a recession.
Country of origin of goods
Country in which the goods have been produced or manufactured, according to the criteria laid down for the purposes of application of the Customs tariff, of quantitative restrictions or of any other measure related to trade (*). Note: In this definition the word “country” may include a group of countries, a region or a part of a country. (*) Annex. D.1. to the Kyoto Convention of 1974 and Specific Annex K, Chapter 1 of the revised Kyoto Convention.
Cow
Female cattle
CPC
Customs Procedure Code
CPD Cabinet
An international Customs document which incorporates an internationally valid guarantee and may be used, in lieu of national Customs documents and as security for import duties and taxes, to cover the temporary admission of means of transport and, where appropriate, the transit of means of transport. It may be accepted for controlling the temporary exportation and re-importation of means of transport but, in this case, the international guarantee does not apply. Note: The CPD (Carnet de Passage en Douane) carnet is issued under the terms of the Istanbul Convention, the Customs Convention on the temporary importation of private road vehicles, the Customs Convention on the temporary importation of commercial road vehicles and the Customs Convention on the temporary importation for private use of aircraft and pleasure boats.
CPD Carnet
Carnet De Passages en Douane for motor vehicles and trailers is the French for a booklet allowing motor vehicles and trailers through a Customs territory
CPO
Chief Procurement Officer
CPS
Cargo processing system
CR
Credit journal
CRA
Canada Revenue Agency, the Revenue Authority of Canada.
CRA01
Confirmation of Entity Residential/Business Address.
CRE
Customs Risk Engine
Credit Note
A note from a seller to a buyer which states how much will be credited to the buyers account by the seller.
Credit push transaction
A credit push transaction is a payment transaction that is captured on external sources (eFiling) and the requested payment instruction is deducted from the specified bank account.
Crew
Includes every person (except the master or pilot) employed in any capacity on board any ship or aircraft.
Crew’s effect
Items in everyday use and any other articles belonging to the crew, carried on board a means of transport, and which may be required to be declared to Customs.
Criminal Investigation
Criminal investigation can be defined as the discovery of relevant facts, the making of inferences from these facts, the reconstruction of the crime scene, the identification and apprehension of the offender, and the preparation of the case for prosecution and trial of the suspect (s) (Van der Westhuizen. J. 1996:354).
CRM
Customer relationship management
CSBD
Centre for Small Business Development
CSC
Cargo Support Console
CSI
Corporate social investment
CSR
Corporate Social Responsibility
CSV file
Refers to a Comma Separated Value file which is a text file which has a certain format that allows for the saving of text or data in a more readable and organised manner (e.g. employee and remuneration data for IRP5 certificate purposes).
CTH
Community Tax Helpers
CTP
Customs Trader Portal – Web Portal where a Trader/Client may login and undertake Customs, functions.
CTS
Core Tax Systems
CU
Control Unit
CUSCAR (Manifest)
Represents a collection of bills of lading (BOL) submitted by a carrier, freight forwarder or registered agent.  Each bill of lading represents a consignment destined for a consignee.  Each consignment may have a number of line items, usually a line for each type of cargo.  Cargo may be packed into one (1) or more containers.
CUSDEC (Customs Clearance Declaration)
Is a goods declaration made which is received by Customs for each consignment of goods that are Customs cleared for import, export and transit clearances to declare goods imported, exported, moved in bond/transit or moved across the land border-post.
CUSRES Messages
Customs Clearance Declaration and Status Response Messages.  For an updated list of all the CUSRES Messages please refer to SC-CF-55-A09.
Customer number
The unique identification number with your diesel/bio diesel supplier, being your account number.
Customs
The Government Service which is responsible for the administration of Customs law and the collection of duties and taxes and which also has the responsibility for the application of other laws and regulations relating to the importation, exportation, movement or storage of goods(*). Notes: 1. This term is also used when referring to any part of the Customs Service or its main or subsidiary offices. 2. This term is also used adjectivally in connection with officials of the Customs, duties and taxes or control on goods, or any other matter within the purview of the Customs (Customs officer, Customs duties, Customs office, Customs declaration). (*) General Annex, Chapter 2 of the revised Kyoto Convention.
Customs approved route
Any road, railway, waterway, airway and any other route (pipeline, etc.), which must be used for the importation, Customs transit and exportation of goods.
Customs clearing agent
A person who carries on the business of arranging for the Customs clearance of goods and who deals directly with the Customs for and on behalf of another person (*). Notes: 1. Examples of Customs clearing agents are Customs agents, Customs brokers and freight forwarders 2. Some countries require that Customs clearing agents or Customs brokers be approved or licensed by the Customs. 3. See also the term “Third party” (*) Annex G.2. to the Kyoto Convention of 1974.
Customs control
Measures applied by the Customs to ensure compliance with Customs law(*). Note: The measures may be general, e.g., in relation to all goods entering the Customs territory, or may be specifically related to, e.g.: (a) the location of the goods; (b) the nature of the goods (liable to a high rate of duty, etc.); (c) the Customs procedure applied to the goods (Customs transit, etc.). (*) General Annex, Chapters 2 and 6 of the revised Kyoto Convention.
Customs declaration
Any statement or action, in any form prescribed or accepted by the Customs, giving information or particulars required by the Customs.
Customs duties
Subject to the provisions of sub-section (3), any duty leviable under Schedule 1 (except parts 3, 4 and 5 thereof) or Schedule 2, on goods imported into South Africa.
Customs formalities
All the operations which must be carried out by the person concerned and by Customs in order to comply with the statutory or regulatory provisions which Customs are responsible for enforcing in connection with the control of persons at Customs places of entry and exit and the clearance of baggage, goods and means of transport at importation, exportation and / or in transit, (removal in bond) at such places.
Customs fraud
Any act by which a person deceives or attempts to deceive Customs and thus evades or attempts to evade, wholly or partly, the payment of import or export duties and taxes or the application of prohibitions or restrictions laid down by the statutory or regulatory provisions enforced or administered by Customs administrations or obtains or attempts to obtain, advantage contrary to such provisions, thereby committing a Customs offence.
Customs frontier
The boundary of a Customs territory.
Customs Law
The statutory and regulatory provisions concerning the importation and exportation of goods, the administration and enforcement of which are specifically charged to Customs and any Regulations or Rules made by Customs under their statutory powers.
Customs maritime zone
The sea area under the control of the Customs in accordance with their domestic legislation. In this regard refer also to definition “surveillance zone or under the control of Customs” which must be read with Section 10 of the Customs and Excise Act.
Customs offence
Any breach, or attempted breach, of Customs law (*).
Customs office
The Customs administrative unit competent for the performance of Customs formalities, and the premises or other areas approved for that purpose by the competent authorities (*).
Customs office of departure
Any Customs office at which a Customs transit operation commences (*).
Customs office of destination
Any Customs office at which a Customs transit operation is terminated (*).
Customs or economic union
A Union constituted by and composed of Members of the CCC (WCO), of the United Nations or its specialized agencies, which has competence to adopt its own legislation that its binding on its Members, in respect of matters governed by the Convention to which it wishes to accede, and has competence to decide, in accordance with its internal procedures, to sign, ratify or accede to that international instrument.
Customs procedure
Treatment applied by Customs to goods which are subject to Customs control: a) Clearance for home use; b) Customs Warehousing; c) Temporary admission for inward processing or temporary admission subject to re-exportation in the same state; and d) Customs Transit, etc.
Customs seal
An assembly consisting of a seal and a fastening which are joined together in a secure manner. Customs seals are affixed in connection with certain Customs procedures (Customs transit, in particular) generally to prevent or to draw attention to any unauthorized interference with the sealed items. Customs seals are generally affixed to packages, containers, load compartments of means of transport, etc. They may also be used as means of identification of the goods themselves. Customs seals can also be seals affixed by the transporter, importer or exporter provided this is done in the presence of a Customs Officer or by a competent authority handling goods prior to due entry or entry for home consumption.
Customs Source Office
The Customs Branch Office nearest to the exporter’s place of business is referred to as the source office.
Customs tariff
Schedule No: 1 Part 1 in relation to imported goods.
Customs territory
The territory in which Customs laws of a specific state / country applies in full. As a rule, the Customs territory of a State / Country corresponds to its national territory including land, sea and air space. However, certain portions of the national territory may be excluded, e.g., free zones or the waters between the coastline and the State’s territorial boundary at sea. The excluded portions of the national territory are called “Customs Exclaves”. By international agreement Customs territory of a State may include a Customs Exclave of another State. The area so included is called a “Customs Enclave”.
Customs transit
Customs procedures under which goods are transported under Customs control from one Customs office to another. Notes: 1. The Customs normally allow goods to be transported under Customs transit in their territory: (a) from an office of entry into the Customs territory to an office of exit from the Customs territory (through transit); (b) from an office of entry into the Customs territory to an inland Customs office (inward transit); (c) from an inland Customs office to an office of exit from the Customs territory (outward transit); (d) from one inland Customs office to another inland Customs office (interior transit). Customs transit movements as described in (a) – (c) above are termed “international Customs transit” when they take place as part of a single Customs transit operation during which one or more frontiers are crossed in accordance with a bilateral or multilateral agreement.
Customs transit operation
Transport of goods from an office of departure to an office of destination under Customs transit (*). (*) Annex E.1. to the Kyoto Convention of 1974 and Specific Annex E, Chapter 1 of the revised Kyoto Convention.
Customs union
Entity forming a Customs territory replacing two or more territories and having in its ultimate state the following characteristics : – a common Customs tariff and a common or harmonized Customs legislation for the application of that tariff; – the absence of any Customs duties and charges having equivalent effect in trade between the countries forming the Customs Union in products originating entirely in those countries or in products of other countries in respect of which import formalities have been complied with and Customs duties and charges having equivalent effect have been levied or guaranteed and if they have not benefited from a total or partial drawback of such duties and charges. – the elimination of restrictive regulations of commerce within the Customs Union.
Customs union agreement
The agreement concluded between the governments of South Africa, the Republic of Botswana, the Kingdom of Lesotho, the Kingdom of Swaziland and the Republic of Namibia to form a “Common Customs Area.”
Customs warehousing procedure
Customs procedure under which imported goods are stored under Customs control in a designated place (a Customs warehouse) without payment of import duties and taxes. Notes: 1. Customs warehouses may be for general use (public Customs warehouses) or for the use of specified persons only (private Customs warehouses). 2. The Customs warehousing procedure is dealt with in Annex E 3. to the Kyoto Convention of 1974 and Specific Annex D, Chapter 1 of the revised Kyoto Convention.
Cycle end date
The day that the dividend declared by a company, accrued to the shareholders for STC purposes.
Cycle start date
The day immediately after the date that the previous dividend cycle of a company ended.

D

D coded case
Cases registered on the PAYE system for SDL purpose only.

Data
A representation of information, knowledge, facts, concepts or instructions which are being or have been prepared, in a formalised manner and is intended to be processed, is being or has been processed in a computer system or network and may be in any form (including computer printouts, magnetic optical storage media, punched cards and punched tapes) or stored internally in the memory of the computer.

Day
Refers to a business day as contemplated in section 1 of the TAA, unless specified otherwise.

DB
Debit journal

DCOO
Deputy Chief Operations Officer

DDU
Detector Dog Unit

Debt-service cost
The cost of interest on government debt.

Decision
The individual act by which the Customs decide upon a matter relating to Customs law (*).

Declarant
Any natural or legal person who makes a Customs declaration or in whose name such a declaration is made.The declarant may be any natural or legal person who makes a Customs declaration whether in his / her own name and on his / her own behalf or in the name and on behalf of another natural or legal person or in his / her own name but on behalf of another natural or legal person. A natural person is any individual human being. A legal person is a person(s) representing a company, firm organisation, closed corporation etc.

Declaration Case
All declarations submitted, on which the supporting documents were requested, in order for further inspection purposes will be managed through the SARS system which refer to declarations routed in this manner as a case.

Declaration date of a dividend
The date of declaration of a dividend, whether in cash or otherwise, is the date of payment by a company or close corporation or the date of the prior approval of the declaration by the directors or members.

Declaration of arrival or declaration of departure
Any declaration required to be made or produced to Customs authorities upon the arrival or departure of a means of transport by the person responsible for the means of transport or his / her agent and containing the necessary particulars relating to the means of transport and to the journey, cargo, stores, crew or passengers.

Declaration of origin
An appropriate statement as to the origin of the goods made in connection with their importation or exportation, by the manufacturer, producer, supplier, importer, exporter or other competent person on the commercial invoice or any other document relating to the goods.

Declarations
For Customs is the act whereby a person indicates (on a single administrative document or SAD form) the wish to place goods under a given Customs procedure such as importation, exportation, removing in bond/transit or moving across the borders between the SACU countries.

Deductive method
Where the customs value is derived from the selling price of the imported goods.

Deemed Property of the Deceased
Deemed Property of the Deceased includes:
Any amount due and recoverable under any policy of insurance which is a life policy issued or payable in South Africa (subject to certain conditions having been met);
Any property donated by the deceased in terms of a donation which is exempt from donations tax, if that property is not otherwise included as property of the deceased for purposes of the Estate Duty Act;
Any amount of any claim acquired by the deceased estate under the Matrimonial Property Act, 1984 in terms of the accrual system; and
Any property which the deceased was competent to dispose of immediately prior to his or her death.

Deferred payment arrangements
Arrangements  are made for payment to be made at a later date.

Departmental transfer
Payment is transferred from one tax type to another.

Deposit
A sum of money provisionally paid (French : “consignation”), or title deeds, bearer bonds, etc. lodged as security for the payment of such duties, taxes or other sums as may become chargeable.

Depreciation (capital)
A reduction in the value of fixed capital as a result of wear and tear or redundancy.

Depreciation (exchange rate)
A reduction in the external value of a currency.

De-register or de-registration
Refers to the act of removing a taxpayer from the tax register, usually when that taxpayer is no longer liable to pay tax.

Detain for OGA
The consignment is Customs released but may not be released by the release authority until the relevant OGA release is obtained.

DFA
Department of Foreign Affairs

DGT
Daily gross takings

DHA
Department of Home Affairs

DI
Documentary Inspector

DIP
Diplomat

DIP Act
The Diplomatic Immunities and Privileges Act, no. 37 of 2001.

Diplomatic employer
Any person in a foreign diplomatic mission who has the authority or is responsible to pay any amount by way of remuneration to a locally recruited staff member under the provisions of any law.

DIRCo
Department of International Relations and Cooperation.

Direct deposits
The deposit of funds directly into a bank account as a form of payment.

Disability
A “disability”, as defined in section 6B(1) of the IT Act means – a moderate to severe limitation of a person’s ability to function or perform daily activities as a result of a physical, sensory, communication, intellectual or mental impairment. The disability must be diagnosed by a duly registered medical practitioner, and that disability must have lasted or has a prognosis of lasting more than one year.

Disposal
Any event, act, forbearance or operation of law which results in a creation, variation, transfer or extinction of an asset (e.g. sale or transfer).
Displaced Employee (for ETI purposes only)
An employee that has been discharged from their service and has been replaced with a qualifying employee with the intention of benefiting from the ETI.

Disposal date
The date on which an agreement is concluded. If there are suspensive conditions in the agreement (such as, the sale is subject to the purchaser obtaining financing from a bank), the time of disposal is when the suspensive condition is fulfilled.

Dispute
A disagreement on the interpretation of either the relevant facts involved or the law applicable thereto, or of both the facts and the law.

Distinct persons (ITR12T)
Distinct persons mean each person that has taken part in any of the listed transactions (on the first page of the return) at least once. E.g. Taxpayer A received a distribution from the trust for non-taxable income and has granted the trust a loan. This will be considered to be 2 distinct persons.

DI TR
Documentary Inspector Technical Reviewer

Diverting goods
Removing goods in bond to a destination other than the destination declared on entry for removal in bond or delivering such goods or causing such goods to be delivered in South Africa except in the control of the Controller/Branch Manager at the place of destination.

Dividend cycle
A dividend cycle is the period between dividend declaration dates. A dividend cycles begin immediately after the previous cycle has ended. A dividend cycle ends on the date on which a dividend accrues to a shareholder.

Dividend declarant
The entity/ legal entity that declared the dividend (also referred to as the issuer of the dividend).

Dividend declare date
The date on which a dividend is declared by a company.

Dividend declared
Approval of the payment or distribution of a dividend by the directors of a company or by any other person with comparable authority or, in the case of the liquidation of a company, the liquidator thereof.

Dividend declaring entity
The entity/legal entity that declared the dividend (also referred to as the issuer of the dividend).

Dividend in specie
A dividend paid in a form other than cash.

Dividend withholding tax
Dividends tax is withheld and paid to SARS by the company paying the dividend or by a regulated intermediary (i.e. a withholding agent).

Dividends
A dividend is defined in section 1(1) of the Income Tax Act, and means any amount transferred or applied by a company for the benefit or on behalf of any person in respect of a share in that company (excluding a return of contributed tax capital, the issue of capitalisation shares and certain buy-back of shares by a listed company).

Dividends Tax (DT)
Dividends Tax (DT) is a tax levied on shareholders (beneficial owners of dividends) when they receive dividend distributions from companies.

Dividends tax liability
Dividends tax payable by a company that declared and paid a dividend in specie or dividends tax payable by the beneficial owner in respect of a cash dividend.

Division of revenue
The allocation of funds between the spheres of government as required by the Constitution.

DM
Debt Management

DME
Department of Minerals and Energy

DOA
Delegation of Authority

Document
Any medium designed to carry a record of data entries, including magnetic tapes and disks, microfilms, etc. Note: This term is defined in Annex J.1. to the Kyoto Convention of 1974.

Document checking area
The Document Checking Area is a dedicated area within the scanning facility (within the received & sort area) within which the sorting accuracy of pre-sorted documents (received from scanning preparation) will be checked. Documents will be checked against the following criteria: Applicability to the Scanning Strategy; and Document quality and suitability for scanning.

Documentary evidence of origin
A certificate of origin, a certified declaration of origin or a declaration of origin (*). (*) Annex D.2. to the Kyoto Convention of 1974 and Specific Annex K, Chapters 2 and 3 of the revised Kyoto Convention.

Domicilium Citandi et Executandi
Address for legal purposes

Donations Tax
Donations tax is a tax payable on the value of property disposed of by a resident by means of a donation.

Donor/Founder/Settlor of a trust
Is the person who starts the process leading to the creation of a trust and establishes the terms of the trust. The property may be transferred to a trustee to be held in trust or may declare a trust of the property which is already held.

Donkey
A domesticated ass

Double Taxation Agreement (DTA)
An agreement between two countries to prevent income that is taxed in one country from being taxed in the other country as well.

DPS
Declaration Processing System

DPW
Department of Public Works

DQP
Data Quality Programme

DR
Depository Receipts

Drawback
When Part or all of the import duties are refunded to importers after the following conditions are met:

Importer is registered in terms of the Act – Schedule 5 Part 1;
Goods are manufactured from imported products; and
End products have been legally exported out of the Customs Union

Drawback procedure
The Customs procedure which, when goods are exported, provides for a refund (total or partial) to be made in respect of the import duties and taxes charged on the goods, or on materials contained in them or consumed in their production (*). (*) Annex E.4. to the Kyoto Convention of 1974 and Specific Annex F, Chapter 3 of the revised Kyoto Convention.

Drop box
SARS managed/owned container for the submission of documents and/or payments to SARS.

Dry
In line with Schedule 6 of the Customs and Excise Act, “dry” or “contracted or hired on a dry basis” means that any vehicle, vessel, machine or any other equipment whatsoever using distillate fuel is hired or a person using such vehicle, vessel, machine or other equipment is contracted by a user for the purpose of performing any qualifying activity and the user supplies the distillate fuel from eligible purchases.

DTCA
Dutch Tax and Customs Administration

DTI
Department of Trade and Industry

Dual channel system (red/green)
Simplified Customs control system allowing travellers on arrival to make a Customs declaration by choosing between two types of channel. One, identified by green symbols, is for the use of travellers carrying goods in quantities or values not exceeding those admissible duty-free and which are not subject to import prohibition or restriction. The other, identified by red symbols, is for travellers with goods to declare. Note: The purpose of this system is to facilitate rapid baggage clearance and traveller flow.

Due date
Date on which payment of duties and taxes become due (*).

Dummy number
The VAT/PAYE/UIF/SDL systems historically treated unknown payments or a payment with an invalid reference number by allocating these payments to a tax account with a number commencing with 799/499/U99 or L99, which were the dummy numbers. These payments were then investigated and where possible allocated to the correct taxpayer. This process was replaced over time by the SAP clarification process, where any unknown payment or invalidly referenced payment is held until the correct taxpayer is identified and allocated to the taxpayer.  The dummy accounts concept however remained active for specific invalidly referenced payments and other exceptions. SARS is now standardising the unknown payments process and is in the process to discontinue the dummy account concept in the systems to only resolve invalidly referenced or unknown payments via the standard SAP clarification process.

Duties and taxes
Import duties and taxes and/or export duties and taxes (*).

Duty
Any duty leviable under the Customs and Excise Act No 91 of 1964. Subject to the provisions of Section 47B, includes any passenger tax leviable under that section and any environmental levy leviable under Chapter VA.

Duty-free shop
Shops under Customs control, generally located in sea ports or airports at which ‘travellers, proceeding abroad, may acquire goods free of Customs duties and taxes. These shops usually have storage areas for the goods and such warehouses and shops are managed by Customs as bonded warehouses.

Dwelling
Means, except where it is used in the supply of commercial accommodation, any building, premises, structure, or any other place, or any part thereof, used predominantly as a place of residence of abode of any natural person or which is intended for use predominantly as a place of residence or abode of any natural person, including fixtures and fittings belonging thereto and enjoyed therewith.

E

[email protected]
Scan solution Custom developed for external use by clients and agents.

[email protected]
A software package provided by SARS which has the functionality to create reconciliation documents in the prescribed formats and produce a ZipCentral file for submission purposes.

[email protected]™ Employer
A software package supplied by SARS which has the functionality to create reconciliation documents in the prescribed formats and produced an electronic file in ZipCentralFile format submission purposes.

EBE
Enterprise Business Enablement

EBR
Enterprise Business Reporting

EC
Eastern Cape

EC
Enforcement Centre

EC
European Commission

Economic cost
The cost of an alternative that must be forgone to pursue a certain action. Put another way, the benefits that could have been received by taking an alternative action.

EDI
Electronic Data Interchange

EDMS
Electronic Document Management System

eFiling
A free, convenient and secure electronic channel for submission of tax returns and payments to SARS.

eFiling Profile Administrator
eFiling has the concept of an Administrator that can manage aspects of the eFiling setup. There are 3 different eFiling Administrator roles:
Manage Users – This administrator can create and change users and assign them to groups;
Manage Taxpayers – This administrator can create and change taxpayers and assign them to groups; or
Manage Groups – This administrator can create and change groups and assign users and taxpayers to groups.

eFiling user
This is the individual that has registered on eFiling and thus have eFiling login credentials. If this user is registered for Personal Income Tax this user will also have a corresponding taxpayer entry on eFiling.

EFT
Electronic funds transfer (EFT) is the electronic exchange, transfer of money from one account to another, either within a single financial institution or across multiple institutions, through computer-based systems.

EFTA
European Free Trade Area

EI
Exempt Institution (e.g. approved Public Benefit Organisations).

Electric Filament Lamp
Non energy-saving light bulbs.

Electronic Road Freight Manifest(eRFM)
The simplification and standardisation of a commercial road manifest that carriers will present to the Customs Officer at the land border-port on arrival.

Electronic Submission
Electronic submitted and cognate expressions relating to electronic communication means the electronic communication between a user and the Commissioner, the Controller or an officer in accordance with the provisions of Section 101A, its Rules, the user agreement contemplated in that section and the user manual referred to tin such agreement.

Eligible purchases
Purchases of distillate fuel for use as fuel for own primary production activities in farming, forestry and mining on land and in commercial fishing vessels, coasting vessels, offshore mining or in vessels owned by the NSRI or locomotives.

Embargo release
The process whereby the declarant gets permission to have the goods inspected at their premises instead of the port or depot.

Emergency change (EM)
Emergency changes are changes that are requested to be implemented urgently into our environment. Change management needs to assess if it is really an emergency by evaluating the impact and risk that is the cause and whether it will be resolved by the requested change.

EMP
Employer

EMP201
Monthly employer declaration form.

EMP501
Employer reconciliation declaration form.

EMP601
Tax certificate cancellation declaration form.

EMP701
Reconciliation adjustment declaration form.

Employee
An employee for employees’ tax purposes is defined as: Any person (other than a company) who receives remuneration or to whom remuneration accrues; Any person who receives remuneration or to whom remuneration accrues by reason of any services rendered by such person to or on behalf of a labour broker; Any labour broker; Any person or class or category of person whom the Minister of Finance by notice in the Government Gazette declares to be an employee for the purposes of this definition; Any director of a private company who is not otherwise included in terms of paragraph (a); Any personal service provider.

Employee tax certificate
A certificate in the form prescribed by the Commissioner which shows the remuneration paid or payable to the employee/former employee by the employer and the sum of amounts of Employees’ Tax deducted or withheld by the employer from such remuneration. The Employee Tax certificate format is prescribed on the: 1999 to 2007 format: IRP5 and IT3(a); and From 2008 format: IRP5/IT3 (a).

Employees’ Tax
An amount of tax that an employer must deduct or withhold from remuneration paid or payable to an employee. Employees‘ Tax is deducted during the tax period.

Employer
Any person who pays or is liable to pay any person any amount by way of remuneration, and any person responsible for the payment of any amount by way of remuneration, to a person under the provisions of a law or out of public funds (including the funds of any provincial council or any administration or undertaking of the State) or out of funds voted by Parliament or a provincial council. This definition excludes any person not acting as a principal but includes any person acting in a fiduciary capacity or in his/her capacity as trustee in an insolvent estate, an executor or an administrator of a benefit fund, pension fund, pension preservation fund, provident fund, provident preservation fund, retirement annuity fund or any other fund.

EMPSA
Employer Statement of Account

Entity
All SARS clients which includes:ll SARS clients which includes:
Individuals
Companies (Local and Foreign)
Trusts
Partnerships
Clubs
3rd parties
Traders, etc.

Entry for home consumption
When goods are cleared for use in South Africa and include entry under any item in Schedule 3, 4 or 6. “Entry for home consumption” is also regarded as “Duly entered”. Goods cleared terms of Rebate Items listed in Schedule 3 and 4, although deposited in rebate stores and controlled by Customs are still regarded as goods being “entered for home consumption”.

Environmental Levy
Means the environmental levy imposed on any goods which have been manufactured in or imported into South Africa under Schedule 1 Part 3.

epayment
Electronic payments are payments that are made directly to payee from your bank accounts using security features over the Internet to process the transactions.

EPMO
Enterprise Project Management Office.

Equitable share
The allocation of revenue to the national, provincial and local spheres of government as required by the Constitution.

Equity instrument
An equity share in a company or a member’s interest in a Close Corporation, including an option to acquire such a share or member’s interest and any other financial instrument which is convertible to a share or member’s interest.

Equivalent compensation
System allowing, under certain Customs procedures, the exportation or importation of goods identical in type, description, quality and technical characteristics to those previously imported or exported (*). Notes: 1. In the context of the ECE Convention on Customs treatment of pool containers used in international transport, this term means the system that allows the re-exportation or re-importation of a container of the same type as that of another container previously imported or exported. 2. In certain countries, this system only allows a temporary admission for inward processing procedure or a temporary exportation for outward processing procedure to be discharged on presentation of a compensating product obtained from goods equivalent to those that have been exported or imported. 3. In certain countries, this system can also be applied to goods that will be imported or exported. (*) See the Guidelines to Chapters 1 and 2 of Specific Annex F to the Revised Kyoto Convention.

Equivalent goods
Goods identical in description, quality and technical characteristics to those imported or exported for inward or outward processing.

ER
Employee relations

Estate Duty
Estate duty is levied in terms of the Estate Duty Act, 1955, Act 45 of 1955 (the Act) and constitutes a tax which has been levied on deceased estates since 1 April 1955. Under current legislation it is levied on the dutiable amount of the estate which exceeds R3 500 000, at a rate of 20%.

eSTT System
Electronic Securities Transfer Tax system.

EU
European Union

Ewes
Female sheep

EWP
Examination Without Prejudice

Examination of goods
The physical inspection of goods by the Customs to satisfy themselves that the nature origin, condition, quantity and value of the goods are in accordance with the particulars furnished in the goods declaration.

Exception management
Exception management is the process where documents that do not conform to the requirements of the process within which the exception is identified are resolved or processed.

Exceptional circumstances
This concept is not defined in the Income Tax Act, but it is accepted law that when an Act refers to ‘exceptional circumstances’ it contemplates something out of the ordinary and of an unusual nature. The South African Constitutional Court has held that the lawgiver cannot be expected to prescribe that which is inherently incapable of delineation – if something can be imagined and outlined in advance it is probably because it is not exceptional.

Excisable goods
Any goods specified in Part 2 of Schedule 1 which have been manufactured in South Africa.

Excise Duty
Subject to the provisions of sub-section (3), any duty leviable under Schedule 1 Part 2 on any goods manufactured in South Africa.

EXCO
The Executive Committee of SARS.

Executor
Any person who is authorized to act under letters of executorship granted or signed and sealed by a Master, or under an endorsement made under section 15 of the Administration of Estates Act.

Exempt
An ‘exempt’ item refers to an item which is not subject to tax.

Exempt supplies
Goods and services exempt from VAT and in respect of which no input tax may be claimed.

Exit event
Termination of employment e.g. death, resignation, withdrawal, retirement, retirement due to ill health or winding up of the fund.

Exit Scan
The message reflected on the SARS system when an exit scan has been conducted will read as follow Manifest has successfully been marked for exit.

Export duties and taxes
Customs duties and all other duties, taxes or charges which are collected on or in connection with the exportation of goods, but not including any charges which are limited in amount to the approximate cost of services rendered or collected by the Customs on behalf of another national authority (*). (*) General Annex, Chapter 2 of the revised Kyoto Convention.

Exportation
The act of taking goods out of the country / Customs territory.

Exporter
Includes any person who, at the time of exportation: a) owns any goods exported; b) carries the risk of any goods exported; c) represents or acts as if he / she is the exporter or owner of any goods exported; d) actually takes or attempts to take any goods from South Africa; e) is beneficially interested in any way whatever in any goods exported; f) acts on behalf of any person referred to above and, in relation to imported goods, includes the manufacturer, supplier or shipper of such goods or any person inside or outside South Africa representing or acting on behalf of such manufacturer, supplier or shipper.

EX-works
The full and final price paid for the product delivered outside the factory gate.

F

FAI-001
Tax Clearance Certificate i.r.o Foreign Investment Allowance for Individuals.

FAN
Financial Account Number (An account number for financial purposes allocated by SARS to a trader)

FAQs
Frequently Asked Questions

Farming
Own primary production in agriculture for gain on an agricultural property.

Farming operations
Bona fide farming activities carried on by a farmer, including livestock and produce, but also game and plantation farming, amongst others.

FAS010
A follow-up created 30 days after the date on which an STC payment was journalised to an STC cycle where there is no return information captured.

FAS041
This follow up is programmatically created on IT’S once an IT return has been filed through the eFiling website and manual intervention by the standard or complex business area is required before such assessment can be processed.

FAU001
This follow up is programmatically created on IT’S once the assessment is processed and there is a credit amount greater than the audit limit present on the taxpayers account. This assessment must therefore first be verified (refund screening unit) or audited (audit section) and subsequently approved before the refund will be effected to the taxpayer.

FCL
A container with a full container load, containing goods from one (1) or more exporters to one (1) importer.  These containers are delivered to container terminals.

FCL container
A container with a full container load, containing goods from one (1) or more exporters to one (1) importer.

FCL groupage container
A container with a full container load, containing goods from one (1) or more exporter to more than one (1) importer. Such container(s) are sent from the container terminal to the licensed premises of the Associate Groupage Agents in South Africa for unpacking and distribution.

FES
Front end system, such as SARS eFiling, payments at banks and SARSbank.

FF&R
Financial Forecasting and Reporting

FIA
Foreign Investment Allowance

FICA
Financial Intelligence Centre Act

Fiduciary
A person who is entrusted with the financial affairs and management of a Trust or fund, for the benefit of other persons.

FIF
Fundamental investments in the future

FIFA
Federation Internationale de Football Association

FIFO
First-in-First-out

Fillies
Young female horses

Final cash up
This cash up must be performed at the end of the day. Offices must bank daily as required in terms of the PFMA. Only a limited amount of cash must be rolled-over to the following day’s deposit.

Financial account (of the balance of payments)
A statement of all financial transactions between a country and the rest of the world, including portfolio and fixed investment flows and movements in foreign reserves.

Financial and Fiscal Commission
An independent body established in terms of the Constitution to make recommendations to Parliament and provincial legislatures about financial issues affecting the three spheres of government.

Financial hardship
Inability to meet minimum living standards / depriving the tax payer of the ability to maintain minimum living expenses if ignored / or extraordinary circumstances beyond taxpayer’s control.

Financial year
The 12 months according to which companies and organisations budget and account.

Fiscal policy
Fiscal assurance assures that all goods consigned to South Africa or exported therefrom has been lawfully accounted for and all relevant duties and taxes have been paid.

Fiscal policy
Government policy on taxation, spending and borrowing.

Fiscal space
The room in a government’s budget to provide additional programme resources without jeopardising fiscal sustainability.

Fishing vessels
Vessels designed or adapted and used for commercial sea fishing, which are propelled by inboard engines of which the fuel tanks form an integral part of the structure and any dedicated mother ship in which fish is processed.

FM
Financial Manager

FMO
Future Mode of Operation (Siyakha)

FNB
First National Bank

FO
Front office

FO
Finalisation Officer

Foals
Very young, immature male or female horse

FOB
Free on Board

FOBO
Front office-back office

FOR
Duty Tax Type: Provisional payment amounts for Forfeiture.

Foreign diplomatic mission
Includes all embassies and consulates and their respective affiliates with same diplomatic status as well as international organisations and specialised agencies as defined in the DIAP (i.e. Diplomatic Immunities and Privileges) Act.

Foreign direct investment
The acquisition of long-term business interests in another country, usually involving management, technology and financial participation.

Foreign National
An individual who is a citizen of any country other than South Africa.

Foreign Person
Includes individuals, companies, etc.

Foreign Tax Credit
A non-refundable tax credit for income taxes paid to a foreign government as a result of foreign income tax withholdings. The foreign tax credit is available to anyone who either worked in a foreign country or has investment income from a foreign source.

Formal written communication
All written communications on SARS letterheads excluding e-mails.

Founder of a Trust
See Donor of a Trust.

Fourth Schedule
The Fourth Schedule to the Income Tax Act No 58 of 1962.

FPCHR
Transaction code to generate detailed reports on manual outgoing cheques for other refunds.

FPCPL
Transaction code for clarification processing: payment lot.

FRC006
A follow-up created when a payment received by SARS cannot be allocated to the relevant taxpayer’s tax account. It creates this follow-up once the payment is allocated to the IT’S unprocessed payment account. The payment will not form part of the calculation of the balance of the specific tax account of the taxpayer until such time that the payment is allocated to the account of the taxpayer by way of a journal on ITS.

FRE 030
Rejected RCT/PRCT changes

FRE 036
Authorise RCT/PRCT modifications as per the ITS system.

FRE004
This follow-up is programmatically created on ITS when the taxpayers tax record has been reactivated. The portfolio maintenance units therefore need to re-open the taxpayer’s folder.

FRE012
This follow up is programmatically created on ITS when the address unknown indicator is removed from the taxpayers record. The portfolio maintenance units therefore need to action this follow up and update the taxpayer’s tax record.

Free text field
A free text field may include the following: Alphabet A until Z; Upper and Lower Case Characters; Number 0 to 9; Dash (-); Space ( ); Inverted Commas (“”); Back slash(\); Forward slash (/); Question Mark (?); At sign (@); Ampersand (&); Dollar sign ($); Exclamation Mark (!); Hash (#); Plus (+); Equals (=); Semi colon (;); Colon (:); Comma (,); Apostrophe (‘); Left and Right Brackets (( )); Full Stop (.); Characters such as ê, ë etc. All special characters are allowed, however for XML development purposes the following standard must be adhered to: ISO-8859-1 encoding or informally referred to as Latin-1.

Free trade area
Entity formed by the Customs territories of an association of States and having in its ultimate state the following characteristics: – the elimination of Customs duties in respect of products originating in any of the countries of the area, – each State retains its Customs tariff and Customs law, – each State of the area remains autonomous in matters of Customs and economic policy, – trade is based on the application of rules of origin, to take account of the different Customs tariffs and prevent deflection of trade, – the elimination of restrictive regulations of commerce within the free trade area.

Free zone
A part of the territory of a state where any goods introduced are generally regarded, insofar as import duties and taxes are concerned, as being outside Customs territory and are not subject to the usual Customs control.

Freight declaration
See Cargo declaration

Frontier traffic
Importations and exportations carried out by frontier zone inhabitants between two adjacent frontier zones. Notes: 1. Frontier traffic may be subject to special Customs regulations. 2. Customs facilities applicable to frontier traffic are dealt with in Annexes B.8. and D to the Istanbul Convention and in Annex F.3. to the Kyoto Convention of 1974 and Specific Annex J.1 to the revised Kyoto Convention.

Frontier Zone
An area of the Customs territory adjacent to the land frontier, the extent of which is determined in national legislation, and whose limits serve to distinguish frontier traffic from other traffic. Note: This term is defined in Annexes B.8 and D to the Istanbul Convention.

Frontier zone inhabitants
Persons established or resident in a frontier zone. Notes: 1. This term is defined in Annexes B.8 and D to the Istanbul Convention. 2. Both natural and legal persons qualify as frontier zone inhabitants.

FS
Free State

FSB
Financial Services Board

FSC
Forward schedule of change

FTC
Foreign Tax Collection

FTR

Duty Tax Type: Provisional payment amounts for Forfeiture.

FTR
Finalisation Technical Reviewer

FTP
File Transfer Protocol

Fuel Levy
Any duty leviable under the Act, specifically Schedule 1 Part 5, on petroleum products which have been manufactured in or imported into South Africa.

Fuel Levy goods
Any goods specified in Schedule 1 Part 5, except any goods specified in any item of that Part for which a free rate of duty is prescribed as contemplated in Section 37A(1)(a), which have been manufactured in or imported into South Africa.

Full release
This is a release where all the components of the release unit have been built, tested, distributed and implemented together e.g. a complete release of a new version of client desktop software.

Full scope audit
As defined per the Audit Results Policy.

Function
In relation to a computer, includes logic, control arithmetical process, deletion, storage and retrieval and communications or telecommunications from or within a computer.

FYE
Financial Year-End

G

GNWI
Get next work item

H

Handover report
E6 in the audit file.

Harmonised system convention (HS)
The expression commonly used to refer to the international Convention of the Harmonized Commodity Description and Coding System, adopted by the Customs Co-operation Council in 1988.

Help-You-eFile
An online solution that will help you complete your individual Income Tax Return (ITR12) by letting a SARS specially trained Contact Centre Agent guide you while you are working online on your eFiling profile. You “share” your screen with our agent who then is able to help you tackle any difficulties you have in completing the tax return.

HIRE
Includes lease or charter

HMRC
Her Majesty’s Revenue and Customs, the Revenue Authority of the United Kingdom.

HNWI
High net worth individuals

Holder of a public office
The president, deputy president, a minister, a deputy minister, a member of the national assembly, a permanent delegate to the national council of provinces, a premier, a member of an executive council or a member of a provincial legislature.

HR
Human Resources

HRA
Human Resources Administrator

HRC
Human Resources Consultant

HRM
Human Resources Manager

I

IACF
Inter-Agency Clearing Forum

IARM
Integrated Account and Revenue Management

IBPS
Integrated Business Processing Systems

IBSA
India-Brazil-South Africa

ICRAS
Integrated Customs Risk Analysis Solution

ICT
Information and Communication Technology

IDB
Income Data Base

ID-number
The 13 digit identity number indicated in the green bar-coded identity document issued in accordance with the Identification Act, No. 72 of 1986.

Illegible
Difficult or impossible to read.

Illicit economy
The illicit economy ranges from the underground economy, which operates outside of the rules and regulations of the country, to organised crime.

Illicit goods
In relation to imported, exported, excisable goods or fuel levy goods, means any such goods in respect of which any contravention under the Act has been committed and includes any preparation or other product made wholly or in part from spirits or other materials which were illicit goods.

Immovable Property
The term ‘immovable property’ includes an interest of at least 20% in a company where 80% or more of its net value consists of immovable property which is situated in South Africa.

IMO
Interim mode of operation

Impermissible trade
In terms of section 12J(1) ‘impermissible trade’ means: any trade carried on in respect of immovable property, other than a trade carried on as a hotel keeper; any trade carried on by a bank as defined in the Banks Act, 1990 (Act No. 94 of 1990), a long-term insurer as defined in the Long-Term Insurance Act, 1998 (Act No. 52 of 1998), a short term insurer as defined in the Short-Term Insurance Act, 2008 (Act No. 53 of 1998), and any trade carried on in respect of money-lending or hire-purchase financing; any trade carried on in respect of financial or advisory services, including trade in respect of legal services, tax advisory services, stock broking services, management consulting services, auditing or accounting services; any trade carried on in respect of gambling; any trade carried on in respect of liquor, tobacco, arms or ammunition; any trade carried on as a franchisee; or any trade carried on mainly outside the Republic.

Implementation date
The initiation or execution date of a specified project, assignment, venture or endeavour.

Import duties and taxes
Customs duties and all other duties, taxes or charges which are collected on or in connection with the importation of goods, but not including any charges which are limited in amount to the approximate cost of services rendered or collected by the Customs on behalf of another national authority (*) (*) General Annex, Chapter 2 of the Revised Kyoto Convention.

Import Permits
Permission to bring into South Africa goods which are subject to import control. The importation of such goods is restricted, usually as a result of legislation issued by government departments other than SARS.ermission to bring into South Africa goods which are subject to import control. The importation of such goods is restricted, usually as a result of legislation issued by government departments other than SARS.

Import/ Export license (or import/export permit)
Authorization issued by a competent authority for the importation or exportation of goods subject to restriction.

Importation
The act of bringing or causing any goods to be brought into a Customs territory.

Importer
Includes any person who, at the time of importation: a) owns any goods imported; b) carries the risk of any goods imported; c) represents or acts as if he / she is the importer or owner of any goods imported; d) actually brings any goods into South Africa; e) is beneficially interested in any way whatever in any goods imported; f) Acts on behalf of any person referred to above.

In bond
Refer to definition “removal of goods in bond”.

In transit
Refer to definition “removal of goods in transit”.

Individual
The individual user that requires shared access to perform the Trader Representative function.

INCO terms
The vendor’s delivery terms.

Industrial development zone
Designated sites linked to an international air or sea port, supported by incentives to encourage investment in export-oriented manufacturing and job creation.

Inflation targeting
A monetary policy framework intended to achieve price stability over a certain period of time. The SA Reserve Bank and government agree on a target rate or range of inflation to be maintained.

Information
Includes information generated, recorded, sent, received, stored or displayed by any means.

Initiator
Any person who puts forward a business need – may also be the end user.

Inland port
A common user facility, other than a port or an airport or road or rail station, with or without public authority status, equipped with fixed installations and offering services for handling and temporary storage of any kind of goods (including containers) carried under Customs transit (removal in bond) by any applicable mode of transport, placed under Customs control and with Customs and other agencies competent to clear goods for home use, warehousing, temporary admission, re-export, temporary storage, export etc. Such facilities are listed in Rule 200.07, for example the City Deep Terminal in Johannesburg.

Insolvency Practitioner
An insolvency practitioner is someone who is licensed and authorised to act in relation to an insolvent individual, partnership or company.

Inspection
An examination of a particular premises (apart from a dwelling-house or domestic premises not used for trade) in order to determine the identity of the person occupying the premises, whether the person occupying the premises is conducting a trade or an enterprise and is registered for a tax and keeps the required records (Section 45 of the TAA).

Instrument
A paper document to be stamped.

Instrument (WTI)
The instrument giving rise to the interest, e.g. the debt or the investment

Integrated resource plan
Government’s plan to ensure that rising electricity demand is matched by expanded supply.

Intellectual property rights
The following rights : 1. Copyright and related rights; 2. trademarks : any sign, including words, names, letters, numerals, figurative elements and combinations of colours, or combinations of these used by a manufacturer or merchant to identify its goods and distinguish them from those manufactured or sold by others; 3. geographical indications, which identify a good as originating in the territory of a State, or a region or locality in that territory, where a given quality, reputation or other characteristic of the good is essentially attributable to its geographical origin; 4. industrial designs; 5. patents which shall be available for any inventions, whether products or processes, in all fields of technology, provided that they are new, involve an inventive step and are capable of industrial application; 6. layout-design (topographies) of integrated circuits : either a protected layout-design or an integrated circuit in which a protected layout-design is incorporated; 7. protection of undisclosed information such as trade secrets and other business confidential information. Notes: 1. This term is defined by the World Intellectual Property Organization. 2. This is an overall definition, and Customs administrations should refer to the Agreement on the Trade-Related Aspects of Intellectual Property Rights (TRIPS), including trade in counterfeit goods, in their application of legislation relating to intellectual property rights.

Interim reconciliation process
An administrative process at a specific point in time which is not subject to the same legal requirements (e.g. Issuing an Employees’ Tax certificate to an employee, etc.) as those which are applied at the end of the Employer’s tax period or the end of the tax year.

Intermediary
With respect to any particular electronic message, means any person who on behalf of another person receives, stores or transmits that message or provides any services with respect to that message.

Internal traffic
The carriage of persons embarked or goods loaded in the Customs territory for disembarkation or unloading within the same Customs territory. Notes: 1. The term ‘internal transport’ is also used with the same meaning. 2. Means of transport under a temporary admission procedure may be used in internal traffic, as provided for by the Customs Convention on Containers, 1972, and the Istanbul Convention (Annexes B.3. and C).

Inter vivos
An ‘inter vivos Trust’ is created during the lifetime of a person by way of an agreement (contract) between the founder and the trustee(s) for the benefit of the beneficiaries.

Inward processing
The Customs procedure under which certain goods can be brought into a Customs territory conditionally relieved from payment of import duties and taxes, on the basis that such goods are intended for manufacturing, processing or repair and subsequent exportation. This facility is provided for in the Act in the form of rebate provisions which can be found in Schedule 4.

iOS
Internetwork Operating System

IPSP
Insolvency Practitioners Selection Panel

IRD
Inland Revenue Department of New Zealand

IRP5
Refers to an Employee Tax certificate which reflects remuneration received, certain deductions and Employees’ Tax deducted or withheld during the period of employment in a particular tax year.

IRP6
An IRP6 is a return for payment of provisional tax.

IRS
Internal Revenue Service of the United States of America.

Issuing association
An association which is approved by the Customs authorities to issue ATA, CPD or TIR carnets and which is affiliated directly or indirectly to a guaranteeing chain. Notes: 1. There is a link between the terms “Guaranteeing chain”, “Guaranteeing association” and “Issuing association”. 2. The issuing association must be approved by the Customs authorities of the Contracting Party on whose territory it is established.

Istanbul convention
The expression commonly used to refer to the Convention on temporary admission, adopted by the Customs Co-operation Council in Istanbul in 1990.

ISV
Independent Software Vendor

IT
Income Tax

IT
Information Technology (relating to computers and systems).

IT Act
The Income Tax Act No.58 of 1962.

IT No.
Income tax number

IT88
Process to appoint a third party as an agent

ITR14
Income Tax Return for Companies and Close Corporations.

IT144
A donation declaration form.

IT21(a)
Application for a Tax Clearance Certificate in respect of citizens emigrating from South Africa.

IT56
Return for payment of Secondary Tax on Companies.

ITA34
Income Tax Assessment Notice

ITA88 Agent Appointment
Where a taxpayer fails to pay the penalty assessments by the specified due date, SARS will appoint their employer or anyone in control of their funds to act as an agent in terms of section 99 of the Income Tax Act.

ITAC
The International Trade Administration Commission established by Section 7 of the International Trade Administration Act No. 71 of 2001.

ITC
Information Trust Corporation

ITIL
Information Technology Infrastructure Library.

ITO
In terms of

ITR12
An ITR12 is an annual income tax return for an individual.

ITR12T
An annual income tax return for a trust.

ITREG
An electronic record containing all of the Employee Tax Certificate details for purposes of registering an employee for income tax.

ITRR
An ITRR is a request for an income tax return (ITR12) and is used to personalise the containers that will appear in the ITR12. The online version of the ITRR is actually known as the “tax return wizard”.

ITS
Income Tax System

ITS swapped
This refers to when a taxpayer requests an uncrossed cheque, by means of a single crossed manual cheque. These manual cheques only apply to income tax refunds for individuals. The data cheque will be cancelled and a manual cheque will be issued. This is a type of a replacement cheque.

ITSA
Income Tax Statement of Account

IVR
Integrated Voice Recognition

J

Jacks
Male donkeys

JAD
Joint Application Design

JCPS
Justice, Crime, Prevention and Security

JD
Job Description

Jennies
Female donkeys

Jeopardy assessment
An assessment raised by SARS (in terms of section 94 of the TAA) before the date on which the return is normally due, where the collection of tax could be at risk. SARS (on whom the burden of proof falls) must have reasonable grounds to raise a jeopardy assessment.

Johannesburg convention
The expression commonly used to refer to the International Convention on Mutual Administrative Assistance in Customs Matters, adopted by the Customs Co-operation Council in Brussels in 2003.

Joint venture
An association of persons who choose to enter into a venture or scheme for purposes of sharing expertise, skills and knowledge, and of sharing property and capital to ultimately minimize risks, increase organisational stature and secure a more competitive advantage in the market.

JOURNAL
Re-allocation of payment from one SARS account to another by way of a double entry.

JRNLAPP
This function is used to approve, enquire, cancel, view balance of account or reprint simulated journals.

JRNLPRNT
This function can be used to enquire or reprint an approved journal transaction.

JRNLSIM
This function is used to simulate a journal transaction without effecting the change on the account.

JSE
Refers to “JSE Limited”, previously known as the “JSE Securities Exchange” and the “Johannesburg Stock Exchange”. It is South Africa’s (and Africa’s) largest stock exchange, and the 19th largest in the world. It is based in Johannesburg’s financial hub of Sandton and provides a market where various securities can be freely traded under standardised and controlled processes.

Juristic person
Artificially created entities such as a company and trust.

K

KPE
Kopano Payments Engine

KPI
Key Performance Indicator

KPMG
One of the world’s big four accountancy firms. Offers audit, tax and advisory services.

Kyoto convention
The expression commonly used to refer to the “International Convention on the Simplification and Harmonization of Customs Procedures” adopted by the Customs Co-operation Council in Kyoto in 1973.

KZN
KwaZulu-Natal

L

Labour broker
Refers to an individual who for reward procures or provides a client with other persons who will render a service or perform work for or on behalf of that client.

Land
The process of off-loading any goods from the means of transportation to a Customs-controlled area within South Africa and includes off-loading from any vehicle.

LAPD
Refers to SARS’ Legal and Policy division.

LBC
Refers to SARS’ Large Business Centre.

LBG
Land border gate

LCL container
Less than a full container load – any container containing goods consigned from one (1) or more exporters to more than one (1) importer.

LD&FO
Landing, delivery order and/or forwarding order

LEAP
Leadership Effectiveness Advanced Programme.

Legal Entity
The legal entity that is liable for the various tax products associated with it. This can be an individual, a company, a trust, etc. Taxpayer is another term to use.

LEGIBLE
Written or printed words clear enough to read.

LEI
Leadership Effectiveness Index

Letter-post items
Letters, postcards, printed papers, literature for the blind and small packets described as letter-post items in the Acts of the Universal Postal Union currently in force (*). Note: According to the Acts of the Universal Postal Union certain letter-post items are required to be accompanied by a Customs declaration form CN22/CN23 as appropriate. (*) Annex F.4. to the Kyoto Convention of 1974 and Specific Annex J, Chapter 2 of the revised Kyoto Convention.

Leviable amount
The leviable amount means the total amount of remuneration, paid or payable, or deemed to be paid or payable, by an employer to its employees during any month, as determined in accordance with the provisions of the 4th Schedule to the IT Act for the purposes of determining the employer’s liability for any Employees’ Tax in terms of that Schedule, whether or not such employer is liable to deduct or withhold such Employees’ Tax.

Levied
The imposition or collection of a tax.

Liable
Responsible by law.

Limited scope audit
As defined per the Audit Results Policy.

Line item
The part of a document containing information on a single item. It always includes an amount, an account number, the assignment to debits or credits and further specifications that depend on the business transactions to be posted.

Liquidation
When a business or firm is closed down or made bankrupt. The assets of the business are sold to pay their creditors.

Liquidation and Distribution Account
In case of an insolvent estate: Subject to the provisions of sections 109 and 110 of the Insolvency Act, Act 32 of 1936, a trustee/liquidator shall within a period of six months as from the date of his appointment, submit to the Master a liquidation account and a plan of distribution of the proceeds of the property in the estate available for payment to creditors, or, if all realizable property in the estate has been realized and brought to account and the proceeds are insufficient to cover the costs and charges mentioned in section 97 of Act 32/1936, a plan of contribution apportioning the liability for the deficiency among creditors who are liable to contribute. In case of a deceased estate: An account in the prescribed form as specified by the Master of the High Court within the time specified in section 29 or such further period as the Master may in any case allow.

Liquidator
An officer that is specifically appointed to wind up the matters of a company. The liquidator is legally authorised to act on behalf of the company in various capacities.

Listed security
Any security that is listed on an exchange (e.g. shares in a public company).

LLT
Loose Leaf Tariff System

LOA
Letter of Authority

Long service
For taxable benefit purposes means an initial unbroken period of service of not less than 15 years or any subsequent unbroken period of service of not less than 10 years.

Loose leaf tariff
Customs tariff book including Schedules 1-8 as well as the Trade Agreements with Zimbabwe and Malawi.

LRN
Local Reference Number

LRP
Locally Recruited Personnel – any person who is a South African national or is permanently resident in South Africa and who is employed by a foreign diplomatic mission.

M

Manage sourcing
The identification, evaluation and selection, and approval of suppliers of products and/or services.

Mandatory fields
Fields (for example, of a tax return) that must be completed as a rule, with no option to disregard.

Manifest
See definition “cargo manifest”.

Manual employer
Refers to an employer who completes EMP 501 reconciliations and employee tax certificates manually, and does not create this information electronically (i.e. with a PC which makes use of SARS [email protected] software).

Mares
Female adult horses

Marketable security
Any security, stock, debenture, share, option or other interest capable of being sold in a share-market or exchange or otherwise.

MAS
Manifest Acquittal System

Master
In relation to any ship, means any person (other than a pilot) having charge of such ship.

Master of the High Court
Master in relation to any matter, property or estate, means the Master, Deputy Master or Assistant Master of a High Court, who has jurisdiction in respect of that matter, property or estate and who is subject to the control, direction and supervision of the Chief Master.

MCC
Manual Case Creation

MCS
Movement Control System

Means of transport for commercial use
Any vessel (including lighters and barges, whether or not shipborne, and hydrofoils), hovercraft, aircraft, road vehicle (including trailers, semi-trailers and combinations of vehicles) or railway rolling stock, which is used for the transport of persons for remuneration or for the industrial or commercial transport of goods, whether or not for remuneration. Notes: 1. Customs formalities applicable to means of transport for commercial use are dealt with in Annex A.3. to the Kyoto Convention of 1974 and Specific Annex J, Chapter 3 of the revised Kyoto Convention. Those Annexes cover means of transport for commercial use which are used in international traffic. The definition of “means of transport for commercial use” in those Annexes includes normal spare parts, accessories and equipment, as well as lubrication oils and fuel contained in the normal tanks, when carried with the means of transport for commercial use. 2. In some countries, the term “conveyance” is used with the same meaning as “means of transport for commercial use” . 3. See Commentary 3 to Article 1, Annex C of the Istanbul Convention.

Means of transport for private use
Road vehicles and trailers, boats and aircraft, together with their spare parts and normal accessories and equipment, imported or exported exclusively for personal use by the person concerned and not for the transport of persons for remuneration or the industrial or commercial transport of goods, whether or not for remuneration. Note: Customs facilities applicable to means of transport for private use are dealt with in Annex F.3. to the Kyoto Convention of 1974 and in Specific Annex J, Chapter 1 of the revised Kyoto Convention. These Annexes cover private means of transport which are imported or exported by travellers.

Medical Expenses (out-of-pocket)
Are expenses actually paid, and not covered by a medical scheme and where proof of payment (e.g. receipts) can be produced, if asked for.

Medium-term Expenditure Committee (MTEC)
The technical committee responsible for evaluating the Medium-term Expenditure Framework (MTEF) budget submissions of national departments and recommending allocations.

Medium-term expenditure framework (MTEF)
The three-year spending plans of national and provincial governments published at the time of the Budget.

MFD
Multi-Functional Device

MFN
Most favoured nation refers to the application of the general rate of Customs duty.

MGL
Making Great Leaders, a leadership development programme.

MIDP
Motor Industry Development Programme

Mini cash up
Mini cash up may be performed when the amount received reaches a level that warrants banking. The offices have discretion as to the amount that can be receipted before it needs to be banked, but not more than R100 000 cash can be deposited at a time.

Mining
The exploration or prospecting for minerals or the removal of overburden and other activities’ undertaken in the preparation of a site to enable mining for minerals to commence. Can also be the operation for the recovery (mining) of minerals including the recovery of salts or the beneficiation of those minerals or of ores bearing those minerals.

Minister
The Minister of Finance

Mobi App
Mobile Application

Mod check
Modulus check. This verification method tests the validity of the taxpayer’s reference number. It is an automated verification method.

Money laundering
Money laundering is the process by which the illegal source of proceeds is concealed by means of financial transactions or any other means to make them appear legitimate.

Money supply
The total stock of money in an economy.

Month
In relation to an employer, for taxable benefit purposes, means any twelve portions into which any calendar year is divided.

Mora interest
Mora can be defined as the failure of the debtor, SARS in this case, to perform on time. Mora can only occur where performance remains possible in spite of delay.

Mortis causa
Mortis causa (testamentary) trust is set up in terms of the will of a person and comes into effect after their death.

MOU
Memorandum of Understanding

MPRDA
Mineral and Petroleum Resources Development Act

MPRR
Mineral and Petroleum Resources Royalty

MRN
Movement Reference Number

MRP
Manual Reconciliation Process

MTBPS
Medium Term Budget Policy Statement

MTU
Mobile Tax Unit

Mules
The male or female offspring of a mare-jack coupling

Mutatis mutandis
Can be interpreted as ‘the necessary changes having been made’.

Mutual administrative assistance
Measures taken by a Customs administration on behalf of or in collaboration with another Customs administration for the proper application of Customs law and for the prevention, investigation and repression of Customs offences.

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