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Glossary

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

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 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
 
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

 

BLNS
Botswana, Lesotho, Namibia and Swaziland

 

BM
Branch managers

 

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

 

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.

Cabbotage permit
Grants permission to means of transport registered in another country to operate in South Africa (domestic transport).

 

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).

 

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

 

CCAE
Customs Controlled Area Enterprise

 

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 (*).

 

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

 

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.

 

CM
Change Management

 

CMDB
Configuration Management Database

 

CMO
Current Mode Operations

 

CMP
Customs Modernisation Programme

 

CMS
Customs Management System

 

CMT
Case Management & Tracking

 

CNC
Continuous Non-Compliance

 

CO
Company

 

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.

 

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.

 

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.

 

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.

 

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.

 

CPO
Chief Procurement Officer

 

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

 

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

 

CTS
Core Tax Systems

 

CU
Control Unit

 

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 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.
 
Declarants
The entity/ legal entity that declared the dividend (also referred to as the issuer of the dividend).
 
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 origineclaration 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:
  1. 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);
  2. 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;
  3. Any amount of any claim acquired by the deceased estate under the Matrimonial Property Act, 1984 in terms of the accrual system; and
  4. 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.
 
DFA
Department of Foreign Affairs
 
DGT
Daily gross takings
 
DHA
Department of Home Affairs
 
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.
 
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.
 
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: a) importer is registered in terms of the Act – Schedule 5 Part 1; b) goods are manufactured from imported products; and c) 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

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
 
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.
 
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.
 
EI
Exempt Institution (e.g. approved Public Benefit Organisations).
 
Electric Filament Lamp
Non energy-saving light bulbs.
 
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.
 
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
 
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.
 
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.
 
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
Full container load – a term used to distinguish goods consigned from one (1) or more exporters to one (1) importer.
 
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
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
 
Foals
Very young, immature male or female horse
 
FOBO
Front office-back office
 
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
 
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
 
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

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 licence (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”.
 
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).
 
Intervivos
Legal term for a trust created during the lifetime of a person.
 
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.
 
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.
 
LEAP
Leadership Effectiveness Advanced Programme.
 
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.
 
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.
 
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
 
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
 
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.

N

Nairobi convention
The expression commonly used to refer to the International Convention on Mutual Administrative Assistance for the prevention, investigation and repression of Customs offences adopted by the Customs Co-operation Council in Nairobi in 1977.
 
National budget
The projected revenue and expenditure that flows through the National Revenue Fund. It does not include spending by provinces or local government from their own revenues.
 
National legislation
Laws, regulations and other measures imposed by a competent authority of a contracting party and applicable throughout the territory of the contracting party concerned or treaties in force by which that party is bound.
 
National Revenue Fund
The consolidated account of national government into which all taxes, fees and charges collected by the South African Revenue Service and departmental revenue must be paid.
 
Natural person
Individuals
 
Natural resources
Includes precious stones, metal or minerals, natural oil or natural gas.
 
Nature of person
Nature of person in respect of an employee includes: A for an individual with an identity or passport number. B for an individual without an identity or passport number. C for a director of a private Company or member of a Close Corporation. D for a Trust. E for a company or a Close Corporation. F for a partnership. G for a corporation. H for a personal service provide. N for a pensioner (e.g. Member, former member or beneficiary of a member or former member) receiving a pension (including any lump sum or annuity payable by a fund in consequence).
 
NCCC
National Collections Call Centre
 
NCF
National Consulting Forum
 
NCT
Non-core Tax
 
Net amount of dividend
For STC purposes: The amount of a dividend declared less the amount of dividends received during a dividend cycle.
 
Net estate value 
Refers to amount that remains after deducting all allowable deductions and a given amount of R3.5 million.
 
Net remuneration
Refers to the balance of remuneration remaining (as determined by the employer) after accounting for specific deductions, which include: (i) current and arrear pension fund contributions; (ii) any current and arrear retirement annuity fund contributions; (iii) income protection policy contributions; (iv) medical scheme contributions (only for taxpayers aged 65 years and older); and (v) donations made by the employe eall of which are subject to various conditions as provided for in paragraph 2(4) of the Fourth Schedule to the Income Tax Act.
 
NEU
National Enforcement Unit
 
New returns
For VAT and PAYE, this refers to a case with three and fewer returns.
 
NGO
Non-Governmental Organisation
 
NMF
National Management Forum
 
NOA
Notice of Appeal
 
Nominal exchange rate
The current rate of exchange between the rand and foreign currencies. The “effective” exchange rate is a trade-weighted average of the rates of exchange with other currencies.
 
Nominee companies
Commonly formed by a bank or other organisation to manage the assets on behalf of the actual owner under an agreement.
 
Non Resident
Any person who falls outside the definition of “resident” in section 1 of the Income Tax Act.
 
Non-eligible purchases
Purchases of diesel/bio diesel fuel and not used as fuel for own primary production activities in farming, forestry and mining on land and in commercial fishing vessels, coasting vessels, offshore mining or vessels owned by the NSRI or locomotives and includes such fuel used in transport for reward/if resold/used in farming/forestry or rail freight haulage outside the borders of the republic.
 
Non-interest expenditure
Total expenditure by government less debt service costs.
 
NOO
Notice of Objection
 
Normal deceased estates
A deceased estate where the value of assets is more than R125 000 (“normal” deceased estate) will be administered in accordance with sections 13 and 14 of the Administration of Estates Act. The Master gives the appointed representative directions on form J190 of how to liquidate and distribute the assets. However, it should be noted that if the representative appointed does not have knowledge on how to administer the estate, the Master will request the executor to appoint an agent (for example an attorney or auditor) who will assist in administrating the estate in detail. The liquidation and distribution account must be lodged with the Master of the High Court after a period of six months. When the Master accepts the account, it shall be advertised to lie open for inspection for a period of 21 days.
 
Notice of motion
An application made to Court, filed together with an affidavit, where: The applicant states the reasons for the application for sequestration of the estate (individual) or liquidation of the estate (Close Corporation or Company); or One or more of his/her creditors states the reason for the application for the sequestration or liquidation of the estate.
 
NREQD
Not required status
 
NSRI
National Sea Rescue Institute

O

OAC
Objections and Appeals Coordinator
 
Objection
This refers to the process whereby a taxpayer, who is aggrieved by an assessment or decision, may object thereto. The objection is made in accordance with the provisions of section 104, read together with the rules and regulations as laid down in section 103 of the TAA. An ADR1 or a NOO would be regarded as the official medium through which an objection can be raised.
 
OD
Organisational Development
 
OD&CM
Organisational Development and Change Management
 
OECD
Organisation for Economic Co-operation and Development
 
OFB
Other Fermented Beverages produced in the same way as wine, but from fruit types other than grapes.
 
Offence
Any breach or attempted breach of Customs Law.
 
Office
The Office of the Commissioner for Customs and Excise.
 
Office en route
Customs office where goods are imported or exported in the course of a Customs transit operation (*). (*) Annex E.1. to the Kyoto Convention of 1974 and Specific Annex E, Chapter 1 of the revised Kyoto Convention.
 
Officer
A person employed on any duty relating to Customs and Excise by order or with the concurrence of the Commissioner, whether such order has been given or such concurrence has been expressed before or after the performance of the said duty. The Commissioner of SARS is not deemed to be an “Officer” for the purposes of Section 4(3). (Legal Opinion Reg. 40 / 98 File 1/2/1/1).
 
Official rate of interest
With reference to taxable benefits, “official rate of interest” refers to the rate of interest fixed by the Minister from time to time by notice in the Gazette. Where the loan is denominated in rands, the official rate of interest will be the South African repurchase rate plus 100 basis points (1%). Where the loan is denominated in a foreign currency, the official rate of interest will be that which is equivalent to the South African repurchase rate in that currency, plus 100 basis points (1%). This is in accordance with the definition of “official rate of interest” in paragraph 1 of the Seventh Schedule to the Income Tax Act.
 
Old returns
For VAT and PAYE purposes, refers to a case with four and more returns.
 
OLO
Outlying Offices
 
OMS
Operations Management System
 
Once-off mandates
A mandate that is given by a taxpayer to a representative of the taxpayer. Once-off mandates will only be allowed under the following exceptional circumstances:
  • Estates
  • Incapacitated/terminally ill client
  • Non-resident
  • Imprisonment
  • SARS Registered Tax practitioners
  • When a taxpayer is located more than 200 km from nearest the SARS branch.
One time vendor
A collective vendor master record for vendors with whom only a once-off transaction is entered into.
 
OOC
Office of the Commissioner
 
OR CMT
Outstanding returns case management tracking tool on Microsoft access database.
 
Origin of goods
The establishment of the 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.
 
Originator
A person who sends, generates, stores or transmits any electronic message to be sent, generated, stored or transmitted to any other person, but does not include an intermediary.
 
ORP
Outstanding Returns Project
 
ORTIA
OR Tambo International Airport
 
OSBP
One Stop Border Post
 
Outline agreement
A longer-term arrangement between the procurement centre and a vendor for the supply of materials and/or provision of services over a certain period based on predefined terms and conditions.
 
Outlying branch office
This is an FMO branch office with certain back office functionalities for the interim period only. The taxpayer’s folder is still located and maintained in this office.
 
Outright exportation
Customs procedure applicable to goods which, being in free circulation, leave the Customs territory and are intended to remain permanently outside it (*). (*) Specific Annex C, Chapter 1 of the revised Kyoto Convention.
 
Outstanding tax debt
Total liability including capital, penalty, additional tax and interest per tax type.
 
Outward processing
The Customs procedure under which goods which are in free circulation in a Customs territory may be temporary exported for manufacturing, processing or repair and then reimported with total or partial exemption from import duties and taxes. This facility is provided for in the Customs and Excise Act in the form of rebate provisions which can be found in Schedule 4.
 
Owner
The person who has legal rights to possess imported or exported goods and includes any person lawfully acting on behalf of the owner.
 
Ownership in terms of BEE
This refers to economic interests. It recognises and measures the entitlement of black people to the voting rights and economic interest associated with equity holding.
 
Ox
A sterilised bull

P

PA
Project Administrator
 
Package
Any container, wrapping or outer cover and its contents or any bundle or single piece in the case of unpacked goods.
 
Packings
All articles and materials used, or to be used, in the state in which they are imported, to pack, protect, stow or separate goods, excluding packing materials such as straw, paper, glasswool, shavings, etc., when imported in bulk. Containers and pallets are also excluded. Notes: 1. Temporary admission facilities for packings are dealt with in the Customs Convention on the temporary importation of packings, and in Annex B.3. to the Istanbul Convention. 2. The Convention on the valuation of goods for Customs purposes and the Agreement on Implementation of Article VII of the GATT 1994 (commonly referred to as the WTO Agreement on Customs Valuation) contains provisions dealing with the treatment of packings for valuation purposes 3. General Rule 5 (b) for the Interpretation of the Harmonized System (International Convention on the Harmonized Commodity Description and Coding System) contains provisions on the tariff classification of packing materials and packing containers 4. In the case of specific duties and taxes, the weight of packings is included in the dutiable weight, gross weight or net weight, as the case may be.
 
PAIA
The Promotion of Access to Information Act
 
PAJA
The Promotion of Administrative Justice Act
 
Pallet
A device on the deck of which a quantity of goods can be assembled to form a unit load for the purpose of transporting it, or of handling or stacking it with the assistance of mechanical appliances. This device is made up of two decks separated by bearers, or of a single deck supported by feet; its overall height is reduced to the minimum compatible with handling by fork lift trucks or pallet trucks; it may or may not have a superstructure. Note: This item is defined in Annex B.3. to the Istanbul Convention.
 
Park
The cashier or team member (depending on the specific transaction) will save the journal in order for the team leader to verify it and post the journal if correct.
 
Partial release
This release only changes the CI’s or modules that have changed since the last full release. These changes are minor and must be of direct benefit to the business’s core function. Examples are data fixes, bug fixes.
 
Partial relief
Relief from payment of a part of the total amount of import duties and taxes which would otherwise be payable had the goods been cleared for home use on the date on which they were placed under the temporary admission procedure. Note: This term is defined in Annex E to the Istanbul Convention.
 
PASA
Payments Association of South Africa
 
Pay-as-you-earn
Is a tax that employers withhold or deduct from the remuneration of employees, thus ensuring that an employee’s income tax liability is settled in a continuing fashion, at the same time that the remuneration accrues or is paid.
 
PAYE
Pay As You Earn
 
PAYFIN
Payments at your financial institutions’ system.
 
Payment in instalments
A request received from a taxpayer to defer the full payment and make payments in recurring instalments over a period of time, as provided for in sections 167 and 168 of the TAA.
 
Payment in one sum after prescribed period
A firm written request from a debtor to extend payment of the full account until a specified period, longer than 7 calendar days, has prescribed.
 
Payment lots
The payments received that are combined to be processed together.
 
Payment pending
It means the payment still hase to be made.
 
Payment period
The period of time in which the payment will be made.
 
Payment Reference Number (PRN)
The payment reference number (PRN) is the number which forms part of the 2010 ADOBE EMP201 declaration. The PRN is only allocated by SARS and the employer may under no circumstances create his / her own payment reference number (PRN). The PRN will be pre-populated by SARS when the EMP201 declaration is issued to the employer. The PRN must be used when a payment is made to SARS as this number links the payment made with the allocation portion declared on the EMP201.
 
Payor (WTI)
The person paying the interest
 
Payroll taxes
Tax an employer withholds and/or pays on behalf of their employees based on the wage or salary of the employee. Payroll taxes include Employees’ Tax (PAYE), Skills Development Levy (SDL) and/or Unemployment Insurance Fund (UIF).
 
PBC
Program and Budget Committee – a governance 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.
 
PCA
Proactive compliance approach
 
PD
Post dated
 
Penalty Assessment Notice
This is the written or electronic notice sent to a taxpayer indicating the amount of the penalty imposed by virtue of existing tax legislation.
 
Penalty debt case
Debt items that require human intervention.
 
Penalty debt item
Any transaction(s) recorded against an account that requires a recovery/collection action to be initiated, whether in the form of tracking, follow-up or resolution (systematically).
 
Performance
Any personal activity exercised as an entertainer or sportsperson, whether alone, or with any other person.
 
Person
Both natural and legal persons, unless the context otherwise requires(*).
 
Personal effect
Articles (new or used) which a traveller may reasonably require for his or her personal use during the journey, taking into account all the circumstances of the journey and of any intermediate stays, but excluding any goods imported or exported for commercial purposes.
 
Personal Service Provider (PSP)
Means any company or trust, where any service rendered on behalf of such company or trust to a client of such company or trust is rendered personally by any person who is a connected person in relation to such company or trust. This is defined in par 1 of the Fourth Schedule to the IT Act, and contains further requirements and exclusions.
 
PFMA
Public Finance Management Act
 
Phishing
Use of email “phishing” scams requesting you to provide your private and confidential information via a website link is a key tool currently used by these conmen. SARS will never ask you for information such as your eFiling details (login credentials, passwords, pins, credit / debit card information, etc) in an email.
 
Physical Presence Test
A natural person, who is not ordinarily resident in South Africa at any time during a relevant year of assessment but meets with all three requirements of the physical presence test, will be deemed to be a resident. To meet the requirements that person must be physically present in South Africa for a period or periods exceeding – (i) 91 days in aggregate during the year of assessment under consideration; (ii) 91 days in aggregate during each of the five years of assessment proceeding the year of assessment under consideration; and (iii) 915 days in aggregate during those five preceding years of assessment. If that person fails to meet any one of these three requirements, he/she will not satisfy the physical presence test and will, for the purpose of the Act, be a non-resident.
 
Pilot
In relation to any aircraft, means any person having charge of such aircraft.
 
PIMS
Process Implementation Management Systems
 
PIT
Personal Income Tax
 
PM
Procurement Manager
 
PM
Project Manager
 
PMO
Present Mode of Operation
 
PO
Purchase Order
 
POCA
Prevention of Organised Crime Act
 
POD
Proof of Delivery – generated by the relevant supplier and signed off by the end-user.
 
POL
Policy
 
Poor quality documents
With respect to the Scanning Solution in SARS Processing Centres, poor quality documents are documents that are either smudged or poorly printed and are deemed to be “un-scannable”. The Scanning of these documents is futile as they will yield images from which data cannot be extracted.
 
Port
A harbour/haven/inlet or recess of the sea where ships may be secure from storms.
 
Ports of entry
Contemplated in section 9(1) of the Immigration Act 13 of 2002 and defined in section 1 of that Act as “a place designated as such by the Minister where all persons have to report before they may enter, sojourn or remain within, or depart from the Republic;…”
 
POS
Points of Service
 
Postal items
A public or private body authorized by the government to provide the international services governed by the Acts of the Universal Postal Union currently in force.
 
Postal parcels
Items called postal parcels within the meaning of the Acts of the Universal Postal Union currently in force .According to the Acts of the Universal Postal Union postal parcels are required to be accompanied by a Customs declaration form CN22/CN23.
 
Postal service
A public or private body authorized by the government to provide the international services governed by the Acts of the Universal Postal Union currently in force.
 
Power of Attorney
The appointment of an intermediary with the right to perform functions on behalf of another entity.
 
PPPFA
Preferential Procurement Policy Framework Act
 
PPS
Passenger Processing System
 
PRCT
Provisional Return Control Table
 
Prescribed
Prescribed by the Customs and Excise Act
 
Preventative Penalties
Sanctions intended to deter contraventions of the Act, which can include fines.
 
Primary sector
The agricultural and mining sectors of the economy.
 
Private-sector credit extension
Credit provided to the private sector by banks. This includes all loans, credit card balances and leases.
 
PRN
Payment Reference Number
 
Procedure codes
Customs Procedure Codes describes the combination of the RPC (Requested Procedure Code which defines the purpose for which goods are to be cleared and released, either for home use or a permissible Customs procedure) and PPC (Previous Procedure Code which defines the purpose for which goods were cleared under a previous Customs procedure).
 
Processing of goods for home use
The Customs procedure under which imported goods may be manufactured, processed or worked, before clearance for home use and under Customs control, to such an extent that the amount of the import duties and taxes applicable to the products thus obtained is lower than that which would be applicable to the imported goods (*). (*) Specific Annex F, Chapter 4 of the revised Kyoto Convention.
 
Processing of goods to the customs
The act of presenting goods to the competent Customs authorities, at the place designated or accepted by them, for completion of the Customs formalities. Note: The production of goods to the Customs is itself one of the Customs formalities.
 
Product catalogue
A structured collection of data about products and services on approved contract available for procurement requests on SAP.
 
Productivity
A measure of the amount of output generated from every unit of input. Typically used to measure changes in labour efficiency.
 
Professional equipment
Equipment necessary for the exercise of the calling, trade or profession of a person who enters a country to exercise his or her profession in that country.Notes:1. This equipment includes the equipment set out in the illustrative lists in :(a) Annexes A, B and C to the Customs Convention on the temporary importation of professional equipment, Brusssels,1961;(b) Annex B.2 to the Istanbul Convention, 1990.2. In countries where the ATA system is applied, ATA carnets are as a rule accepted for the temporary admission of professional equipment.
 
Pro-forma return
A return manually completed by the SARS branch office.
 
Prohibition of goods
Goods whose importation or exportation is prohibited by law.
 
Project manager
Refers to the resource responsible for managing a particular SARS project to ensure readiness prior to a pre-determined implementation date (release). This can be a dedicated resource from EPMO or the change owner from within SMT.
 
Promise to pay
A firm, written or telephonic, commitment from a debtor of full payment, in respect of the arrear tax debt, which payment will be made within 7 or less calendar days from date of receipt of such commitment.
 
Provisional Tax Liability
The amount that is owing (and which must be paid) in respect of provisional tax.
 
PS
Postscript. It usually refers to an addition made after a letter/email has been completed and signed.
 
PSU
Parliamentary Service Unit which deals with taxpayers who are serving in Parliament.
 
PSV file
Pipe Separated Value file, which is a file that is used by various applications for data storage or transfer.
 
PT
Preferred Trader
 
Public benefit activity (PBA)
A PBA is an activity determined by the Minister of Finance as being of a benevolent nature having regard to the needs, interests and well-being of the general public. A list of PBAs approved by the Minister is published in Part I of the Ninth Schedule to the IT Act. The approved PBAs are grouped into categories each with specific activities that qualify as PBAs. Refer to Part I of the Ninth Schedule to the IT Act for the comprehensive list of approved PBAs.
 
Public Benefit Organisations
The term “public benefit organisation” is defined in section (30)1 of the IT Act as an organisation that is not for gain, a non-profit organisation whose sole object is to conduct, and be involved in, one or more public benefit activities.
 
Public entities
Companies, agencies, funds and accounts that are fully or partly owned by government or public authorities and are regulated by law.
 
Public sector borrowing requirement
The consolidated cash borrowing requirement of general government and non-financial public enterprises.
 
Public-private partnership (PPP)
A contractual arrangement in which a private party performs part of a government function and assumes the associated risks. In return, the private party receives a fee according to predefined performance criteria.
 
PWD
People with disabilities

Q

QMS
Quality Management System
 
QMT
Queue Management Tool, a system employed in SARS branch offices to manage queues.
 
Qualifying Company
In terms of section 12J(1) ‘qualifying company’ means any company if: that company is a resident; the company is not a controlled group company in relation to a group of companies contemplated in paragraph (d)(i) of the definition of ‘connected person’; the tax affairs of the company are in order and the company has complied with all the relevant provisions of the laws administered by the Commissioner; the company is an unlisted company as defined in section 41 or a junior mining company; the company is not carrying on any impermissible trade; the sum of the investment income, as defined in section 12E(4)(c), derived by that company during any year of assessment does not exceed an amount equal to 20 per cent of the gross income of that company for that year.
 
Qualifying share
An equity share held by a venture capital company which is issued to that company by a qualifying company, unless that venture capital company has an option to dispose of the share, or the qualifying company has an obligation to redeem that share, for an amount other than the market value of the share at the time of that disposal or redemption.
 
Quality check
With regard to the Scanning Solution in the SARS Processing Centre, this refers to a visual check of the quality of pre-sorted documents received from Scanning Preparation routed for scanning and includes the following: Checking for smudged documents; Checking for poorly printed documents (fading ink) and; Inferior photo copies of original documents. NOTE: The Quality Check will only be conducted on documents within the scan strategy i.e. no quality check will be conducted on supporting documentation received with returns. The quality check also includes a visual check to ensure that splitter pages have been inserted.
 
Quantitative quota
Any pre-set quantity, authorized for importation or exportation of given goods, during a specified period, beyond which no additional quantity of these goods can be imported or exported.

R

RAE
Released As Entered
 
RAF
Road Accident Fund
 
Rams
Male sheep
 
RCF
Regional Consultative Forum
 
RCT
Return Control Table
 
R/D cheque
A cheque which has been “referred to the drawer”. The cheque has been returned as unpaid due to not enough funds being available.
 
RDM
Risk Differentiation Mechanism
 
RDS
Return to Drawer payments
 
Real effective exchange rate
A measure of the rate of exchange of the rand relative to a tradeweighted average of South Africa’s trading partners’ currencies, adjusted for price trends.
 
Real expenditure
Expenditure measured in constant prices, i.e. after taking account of inflation.
 
Real interest rate
The level of interest after taking account of inflation.
 
Reasonable grounds
The ordinary dictionary meaning of “reasonable” is “having sound judgement; moderate; ready to listen to reason; not absurd; within the limits of reason; not greatly less or more than might be expected; tolerable, fair” (Concise Oxford Dictionary). Essentially, for a decision to be reasonable the Commissioner is required to consider all relevant matters. The Constitutional Court has held that there is no absolute standard of reasonableness – what is “reasonable” would depend on the particular circumstances of each case.
 
Rebate
A facility provided for in the Act, subject to the compliance of specific conditions, whereby the full or part of the duty is reduced or remitted.
 
Received refund(s) on contributions(s) made to this trust (on the ITR12T)
Means any contribution(s) received by the trust both of a capital and/or non-capital nature.
 
Receiving state
RSA government
 
Receiving state (Foreign Diplomats)
The Government of the Republic of South Africa.
 
Reconciliation declaration
The reconciliation declaration is the EMP501 document on which an employer’s PAYE, SDL and UIF liabilities are declared with associated payments, certificate values and the resulting net effect of setting off payments again liabilities.
 
Reconciliation submission process
This is the process through which an employer submits all required PAYE, SDL and UIF documentation to SARS for processing i.e. IRP5/IT3(a), EMP501, EMP601 and an EMP701 if applicable.
 
Re-exportation
Exportation from a Customs territory of goods previously imported into that territory.
 
Refundable
Capable of being given back or repaid.
 
Registered Representative
A natural person appointed with full rights to act on behalf of another legal entity.
 
Registered tax practitioner
The duty to register as a tax practitioner applies to– Every natural person who: Provides advice to another person with respect to the application of a tax Act; or Completes or assists in completing a document to be submitted to SARS by another person in terms of a tax Act; Such person must register as a tax practitioner with SARS within 30 days after the date that person for the first time provides advice, or assists in completing documentation. The duty to register as a tax practitioner does not apply to a person who: Provides the advice and completes or assists in completing a document solely for no consideration to that person or his or her employer or a “connected person”, as defined in section 1 of the Income Tax Act No.58 of 1962, in relation to that employer or that person; Provides the advice solely in anticipation of or in the course of any litigation to which the Commissioner is a party or where the Commissioner is a complainant; Provides the advice solely as an incidental or subordinate part of providing goods or other services to another person; Provides the advice or completes or assists in completing a document solely:- to or in respect of the employer by whom that person is employed on a full time basis or to or in respect of that employer and “connected persons” in relation to that employer; or under the direct supervision of a person who is registered as tax practitioner in terms of the subsection above. A person may not register as a tax practitioner if :- During the preceding five years, that person has been removed from a related profession; during the preceding five years, that person has been convicted (whether in the Republic or elsewhere) of theft, fraud, forgery or uttering a forged document, perjury, an offence under the Prevention and Combating of Corrupt Activities Act, 2004 (Act No.12 of 2004), or any offence involving dishonesty – for which the person has been sentenced to a period of imprisonment exceeding two years without option of a fine or to a fine exceeding the amount prescribed in the Adjustment of Fines, 1991 (Act No.101 of 1991).
 
Regulated intermediary
A regulated intermediary is a specified regulated person which administers dividend payments that were declared by a company after having received those payments from the company that declared the dividend. A regulated intermediary includes, for example, central securities depository participants, brokers, nominee companies, and approved transfer secretaries.
 
Re-importation
Importation into a Customs territory of goods previously exported from that territory.
 
Re-importation in the same state
The Customs procedure under which goods which were exported may be taken into home use free of import duties and taxes, provided they have not undergone any manufacturing, processing or repairs abroad and provided that any sums chargeable as a result of repayment or remission of or conditional relief from duties and taxes or of any subsidies or other amounts granted in connection with exportation must be paid. The goods that are eligible for re-importation in the same state can be goods that were in free circulation or were compensating products (*). (*) Specific Annex B, Chapter 2 of the revised Kyoto Convention.
 
Relative
A relative as defined in section 1 of the IT Act means, in relation to any person, the spouse of such person or anybody related to him or his spouse within the third degree of consanguinity, or any spouse of anybody so related, and for the purpose of determining the relationship between any child referred to in the definition of “child” in this section and any other person, such child shall be deemed to be related to its adoptive parent within the first degree of consanguinity.
 
Release of goods
The action by the Customs to permit goods undergoing clearance to be placed at the disposal of the persons concerned (*). (*) General Annex, Chapter 2 of the revised Kyoto Convention.
 
Release unit
Describes the IT infrastructure components that are normally released together.
 
Relevant material
As defined per section 1 of the TAA means any information, document or thing that is foreseeably relevant for tax risk assessment, assessing tax, collecting tax, showing non-compliance with an obligation under a Tax Act or showing that a tax offence was committed.
 
Relief consignment
Goods, including vehicles and other means of transport, foodstuffs, medicaments, clothing, blankets, tents, prefabricated houses, water purifying and water storage items, or other goods of prime necessity, forwarded as aid to those affected by disaster; and – all equipment, vehicles and other means of transport, specially trained animals, provisions, supplies, personal effects and other goods for disaster relief personnel in order to perform their duties and to support them in living and working in the territory of the disaster throughout the duration of their mission (*). (*) Specific Annex J, Chapter 5 of the revised Kyoto Convention.
 
Relief from import duties and taxes
Clearance of goods for home use free of import duties and taxes, irrespective of their normal tariff classification or normal liability, provided that they are imported in specified circumstances and for specified purposes. Note: Relief from import duties and taxes is dealt with specifically in Annex B.2. to the Kyoto Convention of 1974 and in Specific Annex B, Chapter 3 of the revised Kyoto Convention.
 
REM
Regional Enforcement Manager
 
Remedy
System to track and monitor all IT-related calls that were logged at the SARS Service Desk.
 
Remission of import duties and taxes
The waiver of payment, in whole or in part, of import duties and taxes where payment has not been made. Note: Remission of import duties and taxes is dealt with in Annex F.6. to the Kyoto Convention of 1974. That Annex also covers the refund, in whole or in part, of import duties and taxes paid on goods declared for home use.
 
Removal of goods in bond
The removal of goods from a place of entry or warehousing place to another place of entry or warehousing place in certain approved instances where the duties on such goods have not been paid. In terms of the Kyoto Convention removal of goods in bond is referred to as “transit” movements and the convention document elaborates further to divide such movements into three (3) categories, namely “inward transit / removal in bond” which is the removal of goods in bond from a Customs office of entry to another inland Customs office, “outward transit / removal in bond” which is the removal of goods in bond from an inland Customs office to a Customs office or exit and “interior transit / removal in bond” which is the removal of goods in bond from one (1) inland Customs office to another inland Customs office. All the aforementioned movements are for the purposes of the Act termed “Removals in bond”. The Kyoto Convention furthermore considers the movement of goods from a place of entry direct to the place of exit as “through transit”. In terms of the current Act however such movements are merely termed “removals in transit”.
 
Removal of goods in transit
The direct transportation of goods on which duty has not been paid, from a place of entry in South Africa through the Customs Union to a place outside the Customs Union.
 
Remuneration
Remuneration is defined in paragraph 1 of the Fourth Schedule to the IT Act as– any amount of income which is paid or is payable to any person by way of any salary, leave pay, wage, overtime pay, bonus, gratuity, commission, fee, emolument, pension, superannuation allowance, retiring allowance or stipend, whether in cash or otherwise and whether or not in respect of services rendered. The definition is more extensive and provides for further inclusions and exclusions.
 
Repayment
The refund, in whole or in part, of duties and taxes paid on goods and the remission, in whole or in part, of duties and taxes where payment has not been made (*). (*) General Annex, Chapter 2 of the revised Kyoto Convention.
 
Repo (re-purchase) rate
The rate at which the Reserve Bank lends money to commercial banks.
 
Representative employer
In the case of any company, the public officer of that company, or, in the event of such company being placed in liquidation or under judicial management, the liquidator or judicial manager, as the case may be; in the case of any municipality or anybody corporate or unincorporated (other than a company or a partnership) any manager, secretary, officer or other person responsible for paying remuneration on behalf of such municipality or body; in the case of a person under legal disability, any guardian, curator, administrator or other person having the management or control of the affairs of the person under legal disability; or in the case of any employer who is not resident in the republic, any agent of such employer having authority to pay remuneration. The full definition can be found in paragraph 1 of the Fourth Schedule to the IT Act.
 
Representative taxpayer
A natural person who resides in the Republic. Paragraph 1 of the Fourth Schedule of the Income Tax Act No. 58 of 1962 and section 46 of the Value-Added Tax (VAT) Act refers to the following persons as representative taxpayers:
  • Treasurer
  • Guardian
  • Curator
  • Public officer
  • Accountant
  • Tax Consultant
  • Attorney
  • Advocate
  • Legal Advisor
  • Auditor
  • Bookkeeper
  • Conveyancer in a case of Transfer Duty
  • Director
  • Employer
  • Executor/administrator
  • Fund Administrator
  • Insurance Broker
  • Relative/Parent
  • Secretary
  • Trustee
  • Etc.
Request correction
The process whereby a capture error on a tax return can be quickly corrected without resorting to an objection.
 
Request for Remission (RFR)
Request for Remission of the penalty is a means for the taxpayer to dispute the Administrative Penalty that was levied to his / her account and to request that the penalty be waived.
 
Requestor
The person responsible for accepting and interpreting the initiator’s paper request into an online request on the SAP r/3 or EPB system.
 
Reserves (foreign exchange)
Holdings of foreign exchange, either by the Reserve Bank only, or by the Reserve Bank and domestic banking institutions.
 
Resident
As defined in section 1 of the IT Act– Includes: Any natural person who is ordinarily resident in South Africa; or Any natural person who complies with the physical presence test; and Any person (other than a natural person) which is incorporated, established or formed in South Africa or which has its place of effective management in South Africa, but: Excludes any person who is deemed to be exclusively a resident of another country for purposes of the application of any agreement entered into between the government of South Africa and that other country for the avoidance of double taxation.
 
Responsive bid
A bid submitted by a bidder which conforms in all material respects to the invitation to bid.
 
Restriction of goods
A legal requirement by law for the submission and approval of an application or other document (other than for Customs purposes) as a prior condition to importation or exportation.
 
Retirement funding employment
Any remuneration of the employee that is taken into account in the determination of the retirement fund contributions made by an employee or by the employer on behalf of such employee (to, for example, a pension or provident fund).
 
Retirement funds
Approved funds which are administered for the provision of pensions.
 
Retirement Funds Tax
Refers to the tax on retirement funds as provided by the Retirement Funds Act, 1996 (Act No. 38 of 1996), which has been repealed with effect from 1 March 2007.
 
Return
With respect to Employees’ Tax (PAYE), a return refers to an EMP201 monthly declaration for employers.
 
Returns lot
Returns that are grouped to be processed collectively. These can be returns related to incoming and outgoing payments that were created automatically (such as bank collections) that are sent back by the relevant banking institution. A returns lot can be created manually or automatically (transferring data from electronic payment mediums). 
 
Revenue management
The collecting, accounting and reporting of all taxes, duties and levies that become due in terms of legislation administered by SARS. This process is a primary component of the country’s national financial supply chain, forming a critical link in ensuring sustainable cash flows for Government and comprises of three basic components, namely: Reporting (which measures the effectiveness of the Organisation’s financial performance and enables the prediction of future cash flows); Revenue accounting (which accounts for all revenue, expenditure, assets and liabilities and which is responsible for optimising cash transfers to Government); and Tax accounting (which is responsible for recording, transacting and reconciliation of all taxpayer/trader obligations.
 
Revised Arusha Declaration
The expression commonly used to refer to the Declaration of the Customs Co-operation Council concerning good governance and integrity in customs, adopted by the Customs Co-operation Council in Arusha in 1993 and revised in 2003.
 
Revised Kyoto convention
The expression commonly used to refer to the international Convention on the simplification and harmonization of Customs procedures (amended), adopted by the Customs Co-operation Council in Brussels in 1999.
 
Reward
Any financial gain, money, goods or services
 
RFC
Request For Correction
 
RFI
Request For Information – is used to test the market and to obtain information for business on particular goods and/or services required.
 
RFP
Request For Proposal – an invitation to prospective suppliers of goods or services to respond with a proposal as to how they will meet the requirements set out in a tender.
 
RFQ
Request For Quotation – an invitation to prospective suppliers to provide a quotation for the good or services set out in a tender.
 
RFR
Request For Remission
 
RFR form
Request for Remission of penalty form
 
RFT
Retirement Fund Tax
 
Risk engine
Refers to the advanced statistical analysis that is performed systematically, and which is programmed on the probability of compliance risk.
 
RMF
Regional Management Forum
 
Road Accident Fund
Means, subject to subsection (4), any duty leviable under Part 5B of Schedule No. 1 on any Road Accident Fund levy.
 
ROC (now CIPRO)
Registrar of Companies
 
Role (RACI)
R= Responsible; A= Accountable; C= Consulted; I= Keep Informed.
 
ROM
Regional Operations Manager
 
ROO
Rules of origin
 
ROO System
Rules of origin applications on the Export System pertaining to trade arrangements.
 
ROT
With respect to retirement fund benefits, ROT refers to Recognition of Transfer. This is a document that is submitted to SARS together with a Tax Deduction Directive application, where a lump sum benefit was transferred from one approved fund or public sector fund to another approved or public sector fund. The transferee and recipient fund must sign the document to be a valid document.
 
RSA
Republic of South Africa
 
RSN01
Reporting of Suspected Non-Compliance
 
RTP
Register Tax Practitioner
 
RTU
Restricted Taxpayer Unit
 
Rule
A Rule made by the Commissioner under the Customs and Excise Act.
 
Rules of origin
Specific provisions, developed from principles established by national legislation or international agreements (“origin criteria”), applied by a country to determine the origin of goods. Note: Rules of origin are dealt with in Annex D.1. to the Kyoto Convention of 1974 and in Specific Annex K, Chapter 1 of the revised Kyoto Convention.
 
RVO
Remote Virtual Outbound

S

S code
Suspense coded
 
SA
South Africa
 
SA/ZM
The bilateral trade agreement between South Africa and Zimbabwe.
 
SACU
Southern African Customs Union which consist of The Republic of South Africa, The Republic of Botswana, the Kingdom of Lesotho, the Republic of Namibia and the Kingdom of Swaziland.
 
SACU-EFTA FTA
The free trade agreement between the Southern African Customs Union and the European Free Trade Association.
 
SAD
Single Administrative Document
 
SADC
Southern African Development Community
 
Safe Frameworks of standards
The expression commonly used to refer to the WCO SAFE Framework of Standards to secure and facilitate global trade, adopted by the Customs Co-operation Council in 2005.
 
SAICA
South African Institute of Chartered Accountants
 
Samples
Articles which are representative of a particular category of goods already produced or are examples of goods the production of which is contemplated; the term does not include identical articles brought in by the same individual, or sent to a single consignee, in such quantity that, taken as a whole, they no longer constitute samples under ordinary commercial usage.
 
Samples of no commercial value
Articles which are regarded by the Customs to be of negligible value and which are to be used only for soliciting orders for goods of the kind they represent (*). Note: Such articles are normally allowed relief from import duties and taxes. In Annex B.2. to the Kyoto Convention of 1974, it is recommended that the following should be regarded as samples of no commercial value : (a) raw materials and products of such dimensions that they are useless except for purposes of demonstration; (b) articles of non-precious materials affixed to cards or put up as samples in the manner usual in the trade, provided that there is not more than one of each size or kind; (c) raw materials and products, and articles of such materials or products, rendered useless, except for purposes of demonstration, by slashing, perforation, indelible marking or by any other effective method; (d) products which cannot be put up as samples of no commercial value in accordance with paragraphs (a) to (c) above and which consist of : (1) non-consumable goods of an individual value not exceeding US$5, and provided there is not more than one sample of each kind or quality; (2) consumable goods of an individual value not exceeding US$5, even if they consist wholly or partly of samples of the same kind or quality, provided the quantity and the manner in which they are put up preclude their being used otherwise than as samples. (*) International Convention to facilitate the importation of commercial samples and advertising material (Geneva, 1952).
 
SAP
System Application Product
 
SAP approver
SAP user with approving rights on SAP system
 
SAP BW
SAP business information warehouse
 
SAP EBP
SAP enterprise buyer professional (product catalogue) and special requests.
 
SAP FI-CA
Financial contract accounts – refers to the financial accounting (sub-ledger) application in SAP.
 
SAP GL
General ledger, refers to the general ledger application in SAP.
 
SAP MM
SAP material management – used for procurement of items by generating purchase orders.
 
SAP PSCD
Systems Application Product – Public Sector Collections and Disbursement.
 
SAP R/3
Systems, applications and products (release 3).
 
SAP R/3 FI-CA
This refers to the financial accounting application (sub-ledger) in SAP r/3.
 
SAP R/3 FI-GL
This refers to the general ledger application in SAP r/3.
 
SAP SRM
SAP supplier relationship management.
 
SAP WF
SAP workflow – used for approvals based on organisational structure.
 
SAPO
South African Post Office
 
SAPS
South African Police Service
 
SARAP
SARS Audit Risk Analysis Programme
 
SARB
South African Reserve Bank
 
SARS
South African Revenue Service
 
SARS Audit
Divisions within SARS which conduct audits including LBC, HNWI, Estate Audit, Restricted Taxpayer Unit (RTU) and PSU.
 
SARS Audit (Big E)
Divisions within SARS which conducts audits including Enforcement Investigations, LBC, HNWI, Estate Audit, RTU and PSU.
 
SARS CTS
SARS Core Tax System
 
SARS i-model
The SARS i-model is SARS’s approach to achieving its core outcomes. The primary approach to achieve these outcomes is to shift resources, particularly human capacity, away from routine low value-adding activity into service, education and enforcement areas with high value-adding activity.
 
SARS liability
Liability according to the core system for a specific period, excluding any payments.
 
SARS official
As defined in section 1 of the Tax Administration Act, it refers to (i) the Commissioner; (ii) an employee of SARS; (iii) or a person contracted by SARS for purposes of the administration of a tax Act and who carries out the provisions of a tax Act under the control, direction or supervision of the Commissioner.
 
SARS Scanning Strategy
The SARS Scanning Strategy is the strategy that defines the types of documents that will be scanned at the specific Processing centre’s scanning facility at a given point in time.
 
SASQ
Self Assessment System Questionnaire
 
SB
Salaried taxpayers with investment income as well as members of Close Corporations/Directors of Companies return category.
 
SB
Small Business
 
SBA
Small Business Tax Amnesty
 
SBAPU
Small Business Amnesty processing unit which is situated in the assessment centre.
 
SBC
Small Business Centre
 
SBC
Small Business Consultant
 
S-Book
SAP Reconciliation Report
 
SBP
Small Business Programme
 
SC
Service Charter
 
Scan batches
Scan Batches are batches of pre-sorted documents that are assembled for scanning. These batches consist of approximately 100 pages.
 
Scanning preparation area
The Scanning preparation area is a dedicated area at the scanning facility within which the following activities will take place: Scanning of documents as “Received for Scanning”; Performing of Quality Check of all prepared scanned batches; Where scan quality or items are not in line with the scanning strategy, forwarding these Error items for manual exception handling; Ensuring that the official SARS form (e.g. IT return) precedes any other documents related to that specific form that may be within the scanning Strategy. Inserting splitter pages.
 
SCM
Single Customer Master
 
SCM
Supply chain management
 
SCOF
Standing Committee on Finance
 
SDL
Skills Development Levy
 
Seal
A piece of metal or other material used to join together two ends of a fastening in a secure manner (*).(*) Council Recommendation concerning Customs sealing systems in connection with the international transport of goods, 1968.
 
Seaport Transit Sheds
The seaport transit sheds usually contain break bulk cargo. No surety bonds are required if the sheds are within the harbour area and if Customs are satisfied with the security and control measures.
 
Seasonally adjusted and annualised
The process of removing the seasonal volatility (monthly or quarterly) from a time series. This provides a measure of the underlying trend in the data. Annualised: to express a rate as if it were applied over one year.
 
Second period
Refers to the second period for Provisional Tax purposes (second payment).
 
Secondary Tax on Companies (STC)
A tax levied on the net amount of dividends declared by a company.
 
Secondary Tax on Companies credits
The amount of dividends calculated under section 64J(2) of the Income Tax Act that were subject to STC, that must be utilised by a company to reduce its liability for dividends tax.
 
Section 18(3) deceased estates case
This section of the Administration of Estates Act provides for a quicker and more efficient process of administration. It can only be applied to an estate where the value of the assets are not more than R125 000 (this is the current amount determined by the Minister of Finance by notice in the Government Gazette). Instead of issuing a letter of executorship, the Master will issue letter of authority (J170). Usually an heir or family member accepts an appointment by the Master as the estate’s representative. The Master gives the representative directions on how to liquidate and distribute the assets in the estate on form J155. These instructions are very basic. The representative must collect and if necessary liquidate the assets and pay the creditors first and then the heirs’. There is no liquidation and distribution account and it does not lie open for inspection.
 
Securities
Share in a company; Member’s interest in a close corporation (CC); or any right or entitlement to receive any distribution from a company or CC.
 
Securities Transfer Tax (STT)
A tax levied on every transfer of a security and is levied at a rate of 0.25%. This tax was known as Uncertificated Securities Tax prior to 1 July 2008
 
Security
That which ensures to the satisfaction of the Customs that an obligation to the Customs will be fulfilled. Security is described as “general” when it ensures that the obligations arising from several operations will be fulfilled. Note: Security usually takes the form of a deposit or of a legal obligation (a bond). A surety to the bond is usually required.
 
SEDA
Small Enterprise Development Agency
 
Selectively Allowed
Administrative penalties recur for each month that the taxpayer is non-compliant, up to a maximum of 35 months. Each recurring penalty will have a unique transaction number. The term ‘selectively allowed’ applies when the user dealing with the objection/appeal case only allows certain transactions to be remitted
 
Sending state (Foreign Diplomats)
The Government of a Foreign Country
 
Senior Auditor
A person who performs reviews in the High Net Worth Individuals division
 
Senior manager
A person who performs first level review in the High Net Worth Individuals division
 
Senior SARS official
In accordance with section 6(3) of the TAA, a senior SARS official refers to (i) The Commissioner; or (ii) A SARS official who has specific written authority from the Commissioner to exercise the power; or (iii) A SARS official occupying a post designated by the Commissioner for this purpose.
 
Service catalogue
List of all services delivered to the business by the technology division.
 
Service entry sheet
A list of services performed by a vendor on the basis of a purchase order, containing service descriptions and details of quantities and values. This is merely a transaction on SAP and not a record or template.
 
Service Manager
Service Manager is the single SARS operational system to be used by all users at back and front offices when completing client transactions with clients. It was an integral part of SARS Modernisation Programme.
 
Services
Anything done or to be done. This includes the granting, assignment, cession or surrender of any right, but excludes a supply of goods, money or any stamp, form or card.
 
SETA
Sector Education and Training Authority
 
Settle
Means to resolve a dispute by compromising any disputed liability, otherwise than by way of either the Commissioner or the person concerned accepting the other party’s interpretation of the facts or the law applicable to those facts, or of both the facts and the law, and “settlement” shall be construed accordingly.
 
Settlor of a trust
 
Seventh Schedule
The Seventh Schedule to the Income Tax Act No 58 of 1962.
 
Ship
Any ship, vessel or boat (including a flying boat – hovercraft) of any kind whatsoever.
 
Ship stores
Fuel pumped on board a vessel for its own consumption.
 
Ship’s general declaration
Declaration (IMO FAL Form 1) conforming to the provisions of the Annex to the Convention on Facilitation of Maritime Traffic, London, 1965. The general declaration is the basic document on arrival and departure providing information concerning the ship itself and summary information relating to the cargo, crew, passengers and voyage.
 
SIC
Standard Industrial Classification Codes.
 
Single view integration layer
System integration where payments are processed.
 
Single window (SW)
A facility that allows parties involved in trade and transport to lodge standardized information and documents with a single entry point to fulfil all import, export, and transit-related regulatory requirements. If information is electronic, then individual data elements should only be submitted once. (*) (*) UN/CEFACT). Recommendation No. 33.
 
SIPP
SARS Insolvency Practitioners Panel
 
SITE
Refers to Standard Income Tax on Employees and is payable on the first R60,000 remuneration (or an annual equivalent thereof) for any period on remuneration received from standard employment. SITE is being phased out entirely, and will not applicable from 1 March 2013. Refer to section 6(5) of the IT Act, read with paragraph 11B of the Fourth Schedule to that Act.
 
Siyakha
Means “We are building”, and also refers to the process SARS underwent between 2001 and 2005 with regard to restructuring its operations nationally.
 
Skills Development Levy
SDL is a levy payable by employers and is calculated at a prescribed percentage of the leviable amount. The levy is used for national skills development.
 
SLA
Service Level Agreement
 
SM
Service Manager
 
SME
Subject Matter Expert – an individual who is fully conversant and highly experienced in a particular field or on a specific subject.
 
SMME
Small, Micro and Medium Enterprises
 
SMR
State Miscellaneous Revenue Account
 
SMS
Short Message Service
 
SMT
Strategy, Modernisation and Technology Division.
 
Smuggling
A Customs offence where goods are moved across a Customs frontier in any clandestine manner, thereby evading Customs control (*). Notes: 1. This term may also cover certain violations of Customs legislation relating to the possession and movement of goods within the Customs territory. 2. In certain countries :- The concept of clandestine movement of goods across frontiers is not a mandatory feature of smuggling. – An offence is not defined as smuggling unless it is intentional. (*) Nairobi Convention.
 
SNR HRM
Senior Human Resources Manager
 
SO
Suspension of Payment
 
SOA
Statement of Account
 
Solicited relevant material
Documents requested by SARS
 
SOP
Standard Operating Procedure
 
Sorting errors
Sorting Errors are those documents that have slipped through the sorting conducted at Rough Sorting, including the following: Not a part of the Scanning Strategy; and Returns with no barcode; poor quality; incorrect form type, incorrect form year and faxes.
 
Source codes
A source code is a four digit identifier / number that SARS uses to capture information on the income tax return. It will usually appear alongside the amount it relates to.
 
Southern African Customs Union (SACU) Agreement
An agreement that allows for the unrestricted flow of goods and services, and a sharing of customs and excise revenue, between South Africa, Botswana, Namibia, Lesotho and Swaziland.
 
Southern African Development Community (SADC)
A regional governmental organisation that promotes collaboration, economic integration and technical cooperation throughout Southern Africa. Member states of the SADC include Angola, Botswana, Democratic Republic of the Congo, Lesotho, Malawi, Mauritius, Mozambique, Namibia, Seychelles, South Africa, Swaziland, Tanzania, Zambia and Zimbabwe.
 
Sovereign debt
Debt issued by a government.
 
Special request
This is a free text shopping cart for goods and/or services not available on the product catalogue.
 
Specific duties and taxes
Duties and taxes which are calculated on a basis other than value. Note: The basis for calculation may be, for example : gross or net weight, the number of items, the volume, the length, the alcoholic strength by volume.
 
Spirits
Ethyl alcohol obtained from the distillation of various base products to an alcoholic strength of usually more than 60% per volume.
 
Spot rate
The exchange rate at the date of the transaction.
 
SS
Salaried taxpayers without allowances return category.
 
SSA
Sub-Saharan Africa
 
SSMO
SARS Service Monitoring Office
 
Stale cheque
A cheque is normally valid for six months from the date of the cheque, after which, the cheque is considered a ‘stale cheque’.
 
Stallion
Male adult horse
 
Standard employment
Any employment where an employee (including scholars and students), is required to render services to a single employer for a period of at least 22 hours in every full week provided that no regard shall be had to — periods of temporary absence of the employee due to leave or exceptional circumstances; or any temporary reduction in working hours imposed by the employer, for instance due to a reduction in the demand of the company’s product, the employer imposes a temporary working week of less than 22 hours.
 
Standard letter templates
e.g. Final Demand
 
State Warehouse
Any premises provided by the State for the deposit of goods for the security thereof and of the duties due thereon or pending compliance with the provisions of any law in respect of such goods.
 
Statement of account
A record for each employer reflecting all entries made with regards to PAYE, UIF and skills development levies. The records also contain sub-records for type of tax for each month.
 
Status codes
S – suspense
 
STC
Secondary Tax on Companies is a tax that is imposed on the after-taxed profits of a company that are distributed to its shareholders.
 
STC Credits
The amount of dividends calculated under section 64J(2) of the Income Tax Act that were subject to STC, that must be utilised by a company to reduce its liability for dividends tax.
 
Stock dividend
A dividend in specie in the form of additional shares issued by a company for no consideration. Also known as a “scrip dividend” or capitalisation shares.
 
Stop order
Function on ITS indicating the transaction(s) for which the ITA88 process is introduced against a taxpayer.
 
Stores
Goods intended for consumption by the passengers and the crew on board vessels, aircraft or trains, whether or not sold.
 
Stores declaration
Documents providing the particulars concerning stores carried on board the means of transport, to be presented as required by the Customs. Note: The Annex to the Convention on Facilitation of International Maritime Traffic, London, 1965, provides for a Ship’s stores declaration (Model Form IMO FAL Form 3). Usually only the following stores need to be listed in detail in the Ship’s stores declaration: narcotics for medical use, tobacco products, beer, spirits, wines. Some countries require some or all of the information to be incorporated in the Ship’s cargo declaration. The Annex to the IMO Convention contains provisions limiting the conditions under which the presentation of Stores declaration can be required, whilst Annex 9 to the Convention on International Civil Aviation, Chicago, 1944, provides for the abolition of such requirement in respect of stores remaining on board an aircraft. Annex A.4. to the Kyoto Convention of 1974 takes into account the provisions of the above instruments.
 
Stores to be taken away
Goods for sale to the passengers and the crew of vessels and aircraft with a view to being landed, which are either on board upon arrival or are taken on board during the stay in the Customs territory of vessels and aircraft used, or intended to be used, in international traffic for the transport of persons for remuneration or for the industrial or commercial transport of goods, whether or not for remuneration (*). (*) Specific Annex J, Chapter 4 of the revised Kyoto Convention.
 
Street walk
Physical surveillance of a business area to identify persons or entities who should be registered for tax.
 
STT
Securities Transfer Tax
 
Submitting entity
It can either be the beneficial owner, the declaring company or regulated intermediary.
 
Substantial Transformation Criterion
The criterion according to which origin is determined by regarding as the country of origin the country in which the last substantial manufacturing or processing, deemed sufficient to give the commodity its essential character, has been carried out (*). (*) Annex D.1. to the Kyoto Convention of 1974 and Specific Annex K, Chapter 1 of the revised Kyoto Convention.
 
Summary level supporting data
Data, used for completion of the VAT201,i.e credit note, debit note, contract information, that is obtained from the accounting software and submitted to SARS.
 
Supporting data
Physical or scanned images of documents supporting the completion of the VAT201.
 
Surety
A natural or legal person (generally a bank or insurance company) who accepts responsibility in due legal form for the financial consequences of non-fulfilment of another’s obligations to the Customs.
 
Surveillance zone or under the control of customs
Part of the Customs territory in which the possession and movement of goods may be subject to special Customs control measures and which is monitored by Customs for control purposes. The Customs surveillance zone generally includes frontier (border) zones, Customs maritime zones, Customs approved routes, Customs offices and any premises or sites authorised by Customs, on a permanent or temporary basis for the conduct of Customs operations. This definition must be read with Section 10. Goods are deemed imported from such time described in the mentioned section and until legitimate Customs clearance has taken place, shall be deemed to be under Customs control. Examples of the types of areas considered to be “under Customs control” would be as follows: a) Customs maritime zones; b) Air flight control areas of South Africa; c) Wharves within harbour areas where goods are landed or loaded on board vessels; d) Storage areas within the premises of airports capable of accommodating foreign aircraft and / or local aircraft flying out of South Africa’s borders; e) Licensed bonded warehouses; f) Licensed container depots; g) Licensed container terminals; h) Sheds within controlled harbour areas; i) Approved transit sheds; j) Approved railway depots; k) Registered rebate stores; l) Licensed manufacturing warehouses; m) All land border posts.
 
SUS-SMR
Control account between SARS bank account and National Treasury bank account.
 
Sweeping account
Control account between SARS bank account and National Treasury bank account.
 
SWIFT message
The Society for Worldwide Inter-bank Financial Telecommunication is an electronic communication method used by banks all over the world to correspond with each other in a secure and standardised way.

T

T
Template
 

TAA/TAACT
Tax Administration Act (Act No. 28 of 2011)

TAB
Tax Administration Bill
 
Tariff ceiling
Any pre-set value or quantity, authorized for importation or exportation of given goods, during a specified period, with a reduction of the normal Customs duties, and beyond which the granting of the said tariff reduction may be suspended until the end of the period in question.
 
Tariff classification of goods
Determination of the tariff subheading in a tariff nomenclature under which particular goods should be classified.
 
Tariff description
Description of an article or product in accordance with the terminology used in the tariff nomenclature.
 
Tariff heading (or subheading)
The textual designation in a tariff nomenclature of a single commodity or a single group of related commodities. Notes : 1. For ease of reference, each tariff heading (or subheading) is identified by a code number which is used, inter alia, for the purposes of Customs declarations. For those countries or Customs or Economic Unions using a tariff based on the Nomenclature of the Harmonized Commodity Description and Coding System (generally referred to as the Harmonized System Nomenclature), this code number may be the heading or subheading number in the Nomenclature of the Harmonized Commodity Description and Coding System. 2. In certain countries the term “Tariff item” is used instead of “Tariff heading”.
 
Tariff Nomenclature
Any classification and coding system introduced by national administrations or Customs or Economic Unions to designate commodities or groups of related commodities for Customs tariff purposes. Notes: 1. At present, a majority of countries base their tariff nomenclatures on the Nomenclature of the Harmonized Commodity Description and Coding System (generally referred to as the Harmonized System Nomenclature), which comprises General Rules for its interpretation, Section and Chapter Notes and a list of headings arranged in systematic order. 2. Some countries and Customs or Economic Unions combine in one system the requirements for Customs tariff and for external trade statistics.
 
Tax Act
As defined in section 1 of the TAA means the TAA or an Act, or portion of an Act, referred to in section 4 of the SARS Act, excluding the Customs and Excise Act.
 
Tax Affairs
The tax obligations of a taxpayer. For example, the returns due for all types of taxes (e.g. PAYE, VAT, STC, etc.) are submitted, deferred arrangements are in place for outstanding taxes, registered details are up to dated, etc.
 
Tax Clearance Certificate (TCC)
A tax clearance certificate (TCC) is issued by SARS to validate the tax status of a taxpayer, specifically with regard to compliance.
 
Tax deductible receipt
This is a specific receipt that is issued to a donor by an organisation that has been approved by the Commissioner under section 18A of the IT Act. A taxpayer making a bona fide donation in cash or of property made in kind is entitled to a deduction from his taxable income if the donation is supported by the necessary tax deductible receipt.
 
Tax Directive
A tax directive (IRP 3) is issued by SARS to instruct the employer / fund how to deduct employees’ tax from certain payments where the prescribed tax tables do not cater for certain remuneration or other payments.
 
Tax offence
In accordance with the definition thereof in section 1 of the TAA, it refers to an offence in terms of a tax Act or any other offence involving fraud on SARS or on a SARS official relating to the administration of a tax Act.
 
Tax period (Employer)
In relation to any employer, as a period of 12 months ending on the last day of February of the relevant tax year or at the option of the employer, an alternate period, in respect of which remuneration is paid or has become due. In relation to an employee, a tax year (1 March to 28/29 February of the next year) or any unbroken period during the tax year —during which the employee was employed by one employer in the Republic in standard employment; or during which any annuity was paid or became payable to him/her by one employer; or such period as the Commissioner considers appropriate in the circumstances, where the Commissioner has in relation to the employment of any employee, issued a ruling to the employer.
 
Tax period (VAT)
There are five different tax periods. Category A–2 monthly (ending at the end of every odd month) e.g. January, March, May, July, etc.; Category B–2 monthly (ending at the end of every even month).e.g. February, April, June, etc.; Category C–monthly (taxable supplies greater than R30 million per annum); Category D–6 monthly (certain farmers only); Category E–annually (only in exceptional circumstances for connected persons with only one transaction per year); and Category F– four monthly. Due to a change in legislation from 1 July 2015, the four monthly tax period will no longer be available. Vendors that were registered under Category F will be migrated to, either Category A or B.
 
Tax Practitioner
A natural person who provides tax advice for reward or who for reward completes or assists in the completion of any documents for submission to SARS.
 
Tax Return Wizard
Refers to the online version of the ITRR that consists of a series of questions used to determine the personalised containers to be created for that particular income tax return.
 
Tax supplies
Standard-rated and zero-rated goods or services.
 
Taxable amount
The amount on which tax is payable.
 
Taxpayer
A person or entity who is liable to pay tax.
 
Taxpayer representative (Contact)
A person who acts on behalf of a registered taxpayer/trader without being registered as a tax practitioner.
 
TCC
Tax Clearance Certificate
 
TCC-001
Application for a Tax Clearance Certificate in respect of Tenders & Good Standing
 
TCS
Telephone Configuration System
 
TD
Transfer Duty
 
TDCA
Trade, Development and Cooperation Agreement
 
Team member: treasury
Team member in revenue accounting at head office level
 
Temporary admission
The Customs procedure under which certain goods can be brought into a Customs territory conditionally relieved totally or partially from payment of import duties and taxes; such goods must be imported for a specific purpose and must be intended for re-exportation within a specified period and without having undergone any change except normal depreciation due to the use made of them (*).
 
Temporary storage of goods
This is the storing of goods under Customs control in premises and enclosed or unenclosed spaces approved by the Customs pending lodgement of the Customs declaration and obtaining release. The purpose of a temporary storage facility is to provide for the storage of goods until customs formalities have been complied with and release of the goods has been granted. All temporary storage facilities must be approved by Customs, which reserves the right to request security in an acceptable form.
 
Tender
Tenders include written quotations, proposals and bids
 
Terms of trade
An index measuring the ratio of export prices to import prices.
 
TEU
Tax Exemption Unit
 
TDREP
Transfer Duty Receipt
 
The carriage of goods coastwise procedure
Some countries and Customs or Economic Unions combine in one system the requirements for Customs tariff and for external trade statistics.
 
The Republic
The Republic of South Africa
 
The universal postal union
The inter-governmental organization founded in 1874 by the Treaty of Bern as the “General Postal Union” which, in 1878, was renamed the “Universal Postal Union (UPU)” and which since 1948 has been a specialized agency of the United Nations (*). (*) Specific Annex J, Chapter 2 of the revised Kyoto Convention
 
Third party
Any person who deals directly with the Customs, for and on behalf of another person, relating to the importation, exportation, movement or storage of goods (*). (*) General Annex, Chapter 2 of the revised Kyoto Convention.
 
Third party data
Data obtained for use from third party organisations
 
This Act
Includes any proclamation, government notice, regulation or rule issued or made or agreement concluded or deemed to have been concluded there under, any agreement contemplated in Section 49 thereof or any taxation proposal contemplated in Section 58 thereof which is tabled in the National Assembly.
 
Threshold
The level of income or money earned above which people or companies must pay tax, or must pay a higher rate of tax.
 
TIO
Taxpayer Interface Officer
 
TISA
Tobacco Industry of SA
 
TKC
Trans-Kalahari Corridor
 
TL
Team Leader
 
TM
Team Member
 
TMS
Tariff Management System
 
Tollies and Heifers
Young bulls and cows that have never bred
 
TOPP
Training Outside Public Practice
 
TP
Taxpayer
 
TPA
Third Party Appointment
 
TPD
Technology and Process Division
 
TPS
Taxpayer Services
 
TPSC
Taxpayer Service Centre
 
TR
Trusts return category
 
Trade balance
The monetary record of a country’s net imports and exports of physical merchandise.
 
Trade facilitation
The simplification and harmonization of international trade procedures, including activities, practices, and formalities involved in collecting, presenting, communicating, and processing data required for the movement of goods in international trade’ Note: This concept refers to the WTO definition of trade facilitation.
 
Trader
Someone registered or licensed in terms of the Customs and Excise Act, such as an importer or warehouse licensee.
 
Traditional African Beer
Non clear beer made from sorghum or malt within alcoholic strength of usually less than 5% per volume.
 
Transport unit
Any means of transporting goods suitable for use in a Customs transit operation or under Customs seal. Notes 1. The term transport-unit means : (a) containers having an internal volume of one-cubic metre or more, including demountable bodies; (b) road vehicles, including trailers and semi-trailers; (c) railway coaches or wagons; (d) lighters, barges and other vessels; and (e) aircraft (*). (*) Specific Annex E, Chapter 1 of the revised Kyoto Convention. 2. Approval of transport-units for transport of goods under Customs seal is dealt with in various international instruments, for example, the Kyoto Convention of 1974 (Annex E.1.), the Customs Convention on Containers, 1972, and the Customs Convention on the international transport of goods under cover of TIR carnets (TIR Convention), 1975.
 
Transaction
With respect to dividends, a transaction is defined as the declaring of a dividend, the receipt of a dividend from a declaring company or regulated intermediary and the passing of the dividend to a regulated intermediary or the payment of a dividend to beneficial owners.
 
Transaction period
A transaction period relates to the month in which a dividend was paid or became payable. Each transaction period will have an associated transaction due date. The transaction due date will always be the last business day of the month following the date the dividend was paid or became payable. E.g. if a dividend was paid to a beneficial owner in May, the transaction period will be May and the transaction due date will be the last business day of June.
 
Transaction year
The tax year during which the employer deducted and paid employees’ tax in respect of remuneration paid or payable to an employee. This could include employees’ tax on remuneration which accrued during a previous tax year.
 
Transhipment
The Customs procedure under which goods are transferred under Customs control from the importing means of transport to the exporting means of transport within the area of one (1) Customs office (control area) which is the office of both importation and exportation.
 
Transit
Refer to definition “removal of goods in transit”.
 
Transit bond – note
National Customs document providing authority for goods to be conveyed in Customs transit without prior payment of import duties and taxes, generally containing all the particulars necessary for the assessment, where appropriate, of import duties and taxes, and an undertaking, covered by security, to produce the goods at the Customs office of destination with Customs seals intact.
 
Transit shed
A storage facility, approved by Customs, normally situated within a Customs controlled area at the place of entry / exit for the purpose of temporary storage of unlearned goods until due entry has taken place in terms of Section 38.
 
Traveller
(1) Any person who temporarily enters the territory of a country in which he or she does not normally reside (“non-resident”) or who leaves that territory; and (2) any person who leaves the territory of a country in which he or she normally resides (“departing resident”) or who returns to that territory (“returning resident”) (*). (*) Specific Annex J, Chapter 1 of the revised Kyoto Convention.
 
Traveller card
A form used by persons upon arrival in and departure from South Africa to declare possession of restricted or prohibited goods, goods in excess of the duty free allowance (DFA), currency held and goods intended for commercial trade.
Treasury
A function within Revenue Accounting.
Trust
Any trust fund consisting of money or other assets which are administered and controlled by a person acting in a fiduciary capacity, and the person is appointed under:
  • A deed of trust or
  • By agreement or
  • Under the will of a person that has died.

See more information on the different types of trust.

Trustee
In addition to every person appointed or constituted as such by act of parties, by will, by order or declaration of court or by operation of law, includes an executor or administrator, tutor or curator, and any person having the administration or control of any property subject to trust, usufruct, fideicommissum or other limited interest or acting in any fiduciary capacity or having, either in a private or in an official capacity, the possession, direction, control or management of any property of any person under legal disability.
 
TT
Turnover Tax
 
TTTT
Taxpayer, Trader, Tax practitioner and Taxpayer representative
 
Turnover tax
A form of presumptive tax which is calculated on the tax liability of a taxpayer based on certain assumptions. Presumptive taxes are used mainly in developing countries where formalisation and accurate record-keeping are difficult for a large portion of the businesses.

U

U3TM
Unified Taxpayer, Trader & Traveller Master (refers to a SARS database of taxpayer information).
 
UI
Unemployment Insurance
 
UI ACT
The Unemployment Insurance Act, no 63 of 2001.
 
UI Commissioner
The Unemployment Insurance Commissioner.
 
UIC ACT
The Unemployment Insurance Contributions Act, no 4 of 2002.
 
UIF
Unemployment Insurance Fund
 
UIF contributions
Contributions to the UIF are the compulsory contributions payable in terms of the UIC Act to fund the benefits available to workers in terms of the UI Act. Effective 1 April 2002, contributions collected by SARS are transferred to the UIF which is administered by the UI Commissioner.
 
Unaccompanied baggage
Personal items that are imported into or exported from South Africa independently from the baggage that accompanied a traveller on his/her flight and do not include commercial goods.
 
UNCTAD
United Nations Conference on Trade and Development.
 
Underground economy
The economy which operates outside of the rules and regulations of the country.
 
Unit labour costs
The cost of labour per unit of output. Calculated by dividing average wages by productivity (output per worker per hour).
 
Unlisted Security
Any security other than a listed security (generally refers to shares not listed on a stock exchange).
 
Unmarked Illuminating Kerosene
Unmarked Paraffin
 
Unprocessed minerals
Gold, Diamonds
 
Unrestricted equity instrument
Refers to an equity instrument which is not a restricted equity instrument (as defined in s 8C of the IT Act). In other words, it is not subject to a restriction that prevents the taxpayer from freely disposing of that equity instrument, etc.
 
Unsolicited relevant material
Documents not requested by SARS.
 
Urgent consignments
Goods which require rapid clearance as a matter of priority due to: – their nature; – their meeting a fully justified urgent need. Note: Urgent consignments should be granted priority and rapid clearance.
 
URS
User Requirement Specification
 
USA
United States of America
 
USD
US Dollars ($)
 
UST
Uncertified Securities Tax

V

Valuation Agreement
Price actually paid or payable for the goods.
 
Value of debt/outstanding debt
Includes capital tax amount, additional tax, duties, levies, penalties and interest.
 
Value of the total of the aggregate of all assets outside South Africa
For the SVDP purposes, the value is the market value determined in the relevant foreign currency translated to South African Rand at the spot rate at the end of the tax period in which the highest value fell. The highest value of the total of the aggregate of all assets outside South Africa derived from undeclared income and accumulated between or deemed to be between 1 March 2010 and 28 February 2015 will be included in the taxable income and subject to tax in South Africa.
 
Variable rate
Is defined as a rate determined with reference to an interest or indexation rate or similar factor, being a rate or factor that varies or may vary during the term of the instrument.
 
VAT
VAT (Value-Added Tax) is an indirect tax based on consumption of goods and services in the economy. Revenue is raised for the government by requiring certain traders or vendors to register and to charge VAT on taxable supplies of goods or services.
 
VAT Act
The Value-Added Tax Act, No 89 of 1991.
 
VAT201
Vendor Declaration form
 
VATSA
Value-Added Tax Statement of Account
 
VCC
Venture Capital Company
 
VDP
Voluntary Disclosure Programme
 
VDU
Voluntary Disclosure Unit
 
Vehicle
Any aircraft, train, motor car, van, truck, cart, barrow or other conveyance of any kind whatsoever and includes the fittings, furnishings and equipment thereof and also pack animals and their harness and tackle.
 
Vendor
A person who is liable to register for VAT in terms of the VAT Act.
 
Vermouth
Refers to a wine with flavouring or flavouring agents.
 
VIP
Very Important Person
 
Visitor
Taxpayer, Trader, Tax Practitioner, Taxpayer representative who comes to a SARS office for service.
 
VOC
A Voucher of Correction document used to correct errors or / and omissions on the original Customs declaration.
 
VRA
Vat Refund Administrator
 
VRP
Vendor Risk Profiling

W

WC
Western Cape
 
WCO
World Customs Organisation
 
Weaned kids
Very young goats
 
Weaned lambs
Immature sheep newly weaned
 
Wethers
Sterilised ram
 
Wine
An alcoholic beverage obtained through the natural fermentation of fresh grapes to an alcoholic strength of usually between 8% and 15% per volume.

World Economic Forum (WEF)
A Swiss non-profit foundation committed to improving the state of the world by engaging business, political, academic, and other leaders of society to shape global, regional, and industry agendas. Meets annually at Davos, Switzerland.

Written Communication
Any form of communication carried out in written form either manually or electronically and which cannot be said to be communicated orally. Examples include email, written letters, fax transmissions, memorandums, etc.

X

X coded
Unknown cases
 
XBRL
Extensive Business Reporting Language
 
XML
Extensive Mark-up Language

Y

Year of assessment
The year of assessment for taxpayers covers a period of 12 months. For individuals and Trusts, the commencement date of the year of assessment starts on 1 March and ends on the 28/29 February each year. For Companies and Close Corporations the year of assessment is the applicable financial year.

Z

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