Tax Practitioner Connect Issue 35 (August 2022)

SARS Tax Practitioner Readiness Programme

SARS advised in the June Tax Practitioner Connect (TPC) that any member of an RCB who wishes to register as a tax practitioner (effective 1 July 2022) is required to complete the Tax Practitioner Readiness Programme and successfully complete the assessment. The education material is available on the SARS website and SARS YouTube TV Channel.

This month, there is a live session scheduled for 30 August, for all members of RCBs awaiting registration as tax practitioners. Any prospective tax practitioner can register for this programme via their RCB and can either access the material as self-learning or they can register for the live session of 30 August.

From previous live sessions held in June and July a number of wide-ranging FAQs emerged, ranging from eligibility to attend the SARS Tax Practitioner training; eFiling; charging of contingency fees and debt management issues. A full set of the FAQs and SARS responses can be found on the Tax Practitioner webpage.

SARS Security System Enhancements

In light of the various incidents of cyber fraud cases reported to SARS, SARS has taken various steps to enhance its security features on its systems to protect taxpayers. It is intended to roll out additional security features in the next week provided the current testing is successful.

Currently, the one-time pin (OTP) is used as a security feature for sensitive transactions such as login retrieval and resetting of passwords. SARS is now extending this to certain key updates done on the Registration Amendments and Verification (RAV) form. This will be for updates for security contact details (individuals) and bank details (any authorised user as per RAV rules) as a first phase. Should the logged in user have the relevant access to perform sensitive transactions, SARS will send the OTP in cases where the sensitive details are changed.

Essentially, if an eFiler makes either a security contact detail or banking detail change on the RAV form, they will be requested to capture an OTP (to email or SMS) for the changes to be submitted.

Coming Soon: Restriction of simultaneous logins by the same username

SARS has noted that at some tax practitioner practices, multiple persons use the same user log in details. This practice has contributed to significant risks. SARS therefore intends to change its systems in due course to ensure that a username is only allowed for a single active login session. That means that tax practitioners will have to actively manage the usernames and passwords.

SARS values your support and hope you will continue to work with us in creating a safer environment for taxpayers.

Individual Filing Season 2022/2023

Information Sessions on Filing Season

SARS convened information sessions with certain RCBs to explain the amendments in the new Filing Season. One of the key changes pertained to auto assessments and the value of third-party data. Please refer to the information below for the steps to ensure the correctness of third-party data.

How do I know that the data is correct?

This year, for the first time, you can view third-party data certificates submitted by third party data providers on your behalf. Simply log in to eFiling and follow the steps below:

Once successfully logged in, click on Third Party Data Certificate Search menu option displayed as part of the left menu option.
Once you have selected the Third Party Data Certificate Search menu option, the Request Third Party Certificates screen will be displayed.
On the Request Third Party Certificate form, select the Certificate Type and Tax Year.
Click on the Certificate Type drop down list and select the appropriate certificate type.
Click on the Tax Year drop down list and select the appropriate tax year.
Once you have made the applicable selection, click on the Submit Query button displayed at the bottom of the page.
The Certificate Type selected will be displayed and you will be able to click on Download Certificate to view your Certificate.
Note the certificate cannot be used to submit to SARS.

If there is an error or the data is incomplete:

Ask the institution which provided the data to SARS to correct it by sending updated data to SARS and yourself.
When you receive the updated data, access your tax return on eFiling or MobiApp, update the data on the tax return, and file your tax return via eFiling or the SARS MobiApp.

For more information, see the Guide on how to view submitted third party data returns or data files via eFiling.

Queues at branch offices

SARS is aware that tax practitioners and taxpayers are experiencing long waiting periods at SARS branch offices and at the Contact Centre. All our online services are available, and we encourage tax practitioners to make use of these.

SA Sign Language Interpreters at designated branches

SA Sign Language interpreters will be available to assist deaf taxpayers and those with hearing loss at the following branches on Fridays 19 and 26 August; and on 2 and 9 September 2022:

Pretoria CBD
Johannesburg CBD
Durban CBD
Cape Town CBD (Lower Long St)
Gqeberha
East London
Mbombela

Rustenburg
Klerksdorp
Giyani
Thohoyandou
Port Shepstone
Newcastle
Mthatha

Contact [email protected] for more information.

Women’s Month

South Africa commemorates Women’s Month in August each year to pay homage to the more than 20 000 women who, on 9 August 1956 marched in defiance against the extension of pass laws to women.

Now, almost 30 years later these rights are inalienable, form part of the SA Bill of Rights, and are enshrined in the Constitution. Revenue, through taxation, is vital to translate these rights into goods and services for the common good of citizens; hence the importance of ensuring high levels of tax compliance in the country.

It is interesting to note that women continue to do the right thing in the tax world. A study of the compliance behaviours of men and women in four different countries (UK; USA; Sweden and Italy) was published by John D’Attoma, Clara Volintiru, Sven Steinmo, in 2017. It was found, contrary to the research hypothesis, that there were significant differences between men and women’s tax compliance behaviours. They found that women were significantly more tax compliant than men whether they were in Western more gender-neutral countries or in more traditional communities. For more information see the article called Willing to share? Tax compliance and gender in Europe and America – John D’Attoma, Clara Volintiru, Sven Steinmo, 2017 (sagepub.com) proc

What’s New

Tax Directives: Emigration withdrawal changes

The tax directive system currently includes a validation that results in tax directive applications, with the ‘Emigration withdrawal’ reason where the date of accrual is on or after 1 March 2022, being rejected. This tax directive validation has been subsequently removed. This means that the accrual date for tax directive applications with the reason ‘Emigration withdrawal’ can be a date after 1 March 2022 but the following supporting documents must be attached to the tax directive application submitted through eFiling to prevent the tax directive being rejected:

The emigration application (MP336(b)) with a date stamp before 1 March 2021, and
The letter issued by the authorised dealer must indicate that the emigration is recognised for purposes of exchange control before 1 March 2022 (SARB approval date).

The Tax Directive Guides have been updated with the information:

Proposed amendments emanating from the Budget 2022/23

National Treasury and SARS published the following 2022 draft tax bills on 29 July 2022, which you can access on the SARS website by clicking on the links below.

Comments on the 2022 draft tax bills can be submitted in writing by close of business on 29 August 2022 to either the National Treasury’s tax policy depository at [email protected] or to SARS at [email protected] See the media statement for more information.

VAT Issues

SARS has published the documents below as regards VAT Binding General Rulings, Guides and FAQs.

Binding General Ruling 59 – Calculation of VAT for table games of chance – issued 13 December 2021
VAT 404 – Guide for Vendors – issued 29 June 2022
Frequently Asked Questions: Domestic Reverse Charge Regulations for VAT – issued 19 July 2022

Latest Trade Statistics

SARS released the trade statistics for June 2022, recording a preliminary trade balance surplus of R24.23 billion attributable to exports of R184.61 billion and imports of R160.38 billion.

These statistics include trade data with Botswana, Eswatini, Lesotho and Namibia (BELN).

See the full Media Release or visit the Trade Statistics webpage.

IT14SD

SARS will decommission the IT14SD in September 2022. A letter providing further clarity will be issued ahead of the change being implemented.

New Scam

SARS continues to raise awareness about scams that affect taxpayers. The latest of these can be viewed at:

https://www.sars.gov.za/sars-scam-319-summons-letter-13-july-2022/
https://www.sars.gov.za/scam-sars-electronic-statement-july-2022/

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