Tax Practitioner Connect Issue 52 (May 2024)

Employer Annual Reconciliation period

The submission period for the Employers’ Annual Reconciliation Declaration (EMP501) is 1 April to 31 May 2024. These reconciliation declarations (EMP501) should include the latest and most accurate payroll information about employees, and the tax deducted by employers, covering the full tax year from 1 March 2023 to 28 February 2024.

Submit the Employer Annual Reconciliation Declaration by 31 May 2024. Submitting the EMP501 reconciliation through eFiling offers a seamless experience for small and medium businesses. Employers with 50 or fewer employees can file up to 50 IRP5/IT3(a) certificates electronically with ease. Employers with more than 50 employees should file through e@syFile which offers a seamless experience.

Accessing the EMP501 work page on SARS eFiling allows employers to complete their tax certificates and annual reconciliation process efficiently. To save time and improve data accuracy, the Employee Tax Incentive field is automatically populated on the platform. 

Note: submitting a reconciliation already filed through e@syFile will result in an error message, prohibiting submission on eFiling.

For more information, watch these videos:

Business Rescue Email Address

The Business Rescue email address changed to [email protected] on 1 May 2024. Any notices relating to business rescue sent after 30 April 2024 to the old email address ([email protected]) will not be acknowledged or accepted.

Dispute Resolution Enhancements for Trusts

On 20 April 2024, SARS improved its process to resolve Trust tax disputes. These enhancements will provide clarity and certainty and will make it easy for taxpayers and traders to comply with their obligations.

  • The Trust dispute process was always a manual process that was done using the ADR1 and ADR2 forms (Alternative Dispute Resolution forms). The new enhancements for Trusts will entail the submission of disputes through eFiling or by visiting a SARS branch. Therefore, the current electronic functionality for disputes, Requests for Reasons, Requests for Remission, Notices of Objection, and Notices of Appeal, now accommodate submissions by Trusts.
  • Both channels will help taxpayers to capture the Request for Remission, or dispute, through a fully guided process.
  • Important note: Trusts that submitted any of the processes mentioned above before 20 April 2024 should still conclude their dispute through the manual process.

The following guide provides useful information: GEN-PEN-05-G02 — Guide to submit a dispute via eFiling — External Guide

Reporting Digital Fraud

If your taxpayer profile on eFiling has been compromised, you can report this to SARS via SOQS (SARS Online Query System). The enclosed guide from page 9 onward explains how to report digital fraud and what supporting documentation SARS will need.

GEN-GEN-51-G01 – SARS Online Query System – External Guide

Enhancements to Curb eFiling Registration Fraud

SARS has identified fraudulent activities where users attempt to register to use the eFiling platform. To curb these illicit activities, a taxpayer is required to provide a valid email address and cell phone number to register for and use eFiling. This information will serve as the eFiling security contact details and will be used to send a one-time-pin (OTP) to authenticate the eFiler.

If SARS identifies that the email address or cell phone number has already been provided by an eFiler and is actively in use (maximum usage reached), an error message will be displayed on the user’s screen. The taxpayer will be required to insert alternative contact details to continue or to book an appointment with a SARS Branch for assistance.

The relevant guides have been updated:

Customs: Registration, Licensing, and Accreditation

The facility codes used in Box 30 on the Customs Clearance Declaration have been updated to include the details of the new approved container depots in O.R. Tambo International Airport, Johannesburg: ISS Global Forwarding South Africa (Pty) Ltd and Allport Cargo Services (Pty) Ltd.

SC-CF-19-A02 — Facility Code List — External Annexure

Mandatory Disclosure Rules

The Mandatory Disclosure Rules (MDR) process has been designed to improve compliance within the Common Reporting Standard (CRS). The process aims to identify practices of tax avoidance and opaque offshore structures that attempt to circumvent the reporting.

The updated MDR system can receive and send information on reportable arrangements to improve compliance and the quality of data received within CRS. SARS will receive declarations from local and foreign intermediaries based on prescribed rules, and send validated reports in line with Automatic Exchange of Information.

A new webpage and eFiling guide have been published:

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