What’s New at SARS

Legal Counsel – Legal Advisory – Published Binding Rulings – Binding Private Rulings (BPRs) – BPR 361-380

24 May 2022 – Binding Private Rulings (BPRs)

  • BPR 374 – Determination of Group of Companies
  • BPR 373 – STT Treatment of the Proposed Transfer of Listed Shares to the Applicant in order to Hedge its Exposure under Over-the-Counter Derivative Transactions

New scam with blockchain wallet link

24 May 2022 – SARS received reports about phishing attempts that indicate tax payments should be made to blockchain wallets. The notification is purporting to be from SARS, please ignore and do not click on any links. See an example of this blockchain scam here. For the latest scams, keep an eye on our Scams & Phishing webpage and report new scams to [email protected]

 

Invitation to the PAYE webinar for SMMEs

23 May 2022 – SARS is inviting all Small, Medium and Micro Enterprises (SMMEs) taxpayers and traders to a webinar on Thursday, 26 May 2022, from 17:00 – 19:00. The following Pay-As-You-Earn (PAYE) topics will be covered:

  • Registration requirements
  • Completion of returns
  • Accurate and timeous filing
  • Reconciliations
  • Payment processes
  • Employment Tax Incentive (ETI)
  • Deregistration.

Date: Thursday, 26 May 2022
Time: 17:00 – 19:00
YouTube link: https://youtu.be/hm5SHbyEYzM

Media Statement on negotiations between SARS and Organised Labour

22 May 2022- The leadership of South African Revenue Service (SARS) met with the Organised Labour represented by the National Education Health and Allied Workers Union (NEHAWU) and Public Servants Association of South Africa (PSA) to find resolution to the matters on which the unions declared a dispute.

We had shared the leadership of the two trade unions that their current demands for a  CPI + 7% is simply not affordable.

Like all Government institutions, SARS is affected by the financial challenges facing the country, and as a result, in SARS’ funding allocation from National Treasury, no provision was made for salary increases. Through its own diligence in managing costs, and other initiatives, SARS is therefore able to make some funds available towards Bargaining Unit employees.

These funds are from some savings from last year (2021/22) as well as projected savings from this current year (2022/23) which has been approved towards people costs. Commissioner Kieswetter said: “I am pleased that under difficult conditions we are able to provide some financial relief to our employees. I also remind our employees that we are inordinately privileged to have employment security at a time when so many are unemployed and financially destitute.”

Following a special National Bargaining Forum convened on Saturday, 21 May 2022, the unions where informed of the Employer’s proposal and subsequently started engaging SARS on various  options to allocate the available funding towards financial relief for employees, and in an attempt to resolve the dispute.

SARS has formally extended this offer to Organised Labour on Sunday, 22 May 2022, in full and final settlement of the dispute relating to the salary increase demand of the 2022/23 Substantive Wage Negotiations, on a without prejudice basis. The unions will engage their members to obtain a mandate, after which the parties will meet again to continue engagements.

SARS has further committed to continue discussions on a number of non-monetary items shared between the parties, to review and improve the overall employee value proposition. This process already commenced around the middle of last year.

SARS leadership is pleased that engagement between the parties on the wage dispute has been revived, and remains constructive and positive. We remain confident that with this offer, we can resolve the current dispute and move forward to focus on serving taxpayers and executing the important mandate we serve.

Tender

20 May 2022 – RFP50/2021: Provision of Fleet Management Services for a Period of Five (5) Years.  Questions and answers part one is now available.

Legal Counsel – Secondary Legislation – Tariff Amendments 2022

20 May 2022 – Publication details for tariff amendment notice R2093, as published in Government Gazette 46380 on 20 May 2022, are now available

Legal Counsel – Secondary Legislation – Tariff Amendments 2022

19 May 2022 – The tariff amendment notice, scheduled for publication in the Government Gazette, relates to the amendments to –

  • Part 2 of Schedule No. 5, by the insertion of refund item 522.02/22.00/01.04 and Note 7, to provide for a refund item for certain alcoholic beverages that have undergone post-manufacturing deterioration (Expired Stock) (with retrospective effect from 15 March 2019).

Publication details will be made available later

Legal Counsel – Dispute Resolution & Judgments – Tax Court: 2022-2020

19 May 2022 – Tax Administration Act, 2011, and Income Tax Act, 1962

Tax administration; income tax: (a) Whether management fees claimed by Taxpayer Z in the sum of R16 million, made up of management fees excluding value-added tax are expressed in the financial accounts of Taxpayer Z as “management fees”. (b) Whether SARS was entitled to impose interest under Act 58 of 1962, and whether SARS should have remitted that interest. (c) Whether SARS was entitled to impose an understatement penalty of 125% under Act 28 of 2011. (d) Whether Taxpayer Z or SARS should pay the costs of the appeal.

Updated [email protected] version

19 May 2022 – An updated version of [email protected] was released. The changes include adjustment to EMP501 submission files to align validation for Tax Directive numbers with the SARS PAYE BRS and adjustment to the PDF rendering to allow Operating System (OS) default application. For the latest version 7.2.6 (including 7.2.5), see the [email protected] webpage.

Legal Counsel – Legal Counsel Publications – Tables of Interest Rates

18 May 2022 – Income Tax Act, 1962: Tables of Interest Rates

  • Table 1 – Interest rates on outstanding taxes and interest rates payable on certain refunds of tax
  • Table 2 – Interest rates payable on credit amounts

SARS Nigel branch closed

18 May 2022 – The SARS Nigel branch is closed for visits until further notice. All virtual appointments will still be honoured. Our apologies for the inconvenience.

 

Update on Disputes issue on eFiling

17 May 2022 – As previously indicated, SARS is aware of issues with submitting disputes on eFiling which has resulted in some disputes being rejected. A fix was implemented on 13 May 2022 to address this matter. The team is working on resolving any remaining issues. Where a taxpayer or Practitioner had submitted a dispute between 22 April 2022 and 14 May 2022 ,  please check your dispute history on eFiling to verify if your dispute is reflecting as received or rejected. If the dispute is rejected, may you kindly submit this dispute to SARS as soon as possible. SARS apologises for the inconvenience.

Legal Counsel – Dispute Resolution & Judgments – Tax Court: 2022-2020

17 May 2022 – Tax Administration Act, 2011

Whether it is correct, lawful or appropriate for MB to deduct capital expenditure incurred at its AA mine from the revenue earned at its BB and CC mines

Legal Counsel – International Treaties & Agreements – Double Taxation Agreements & Protocols

17 May 2022 – Income Tax Act, 1962: Status overview of all DTAs and Protocols – Multilateral Convention to implement tax treaty related measures to prevent base erosion and profit shifting (MLI) Synthesised Texts

Cameroon and Thailand have been added to the list of treaty partners that ratified the MLI

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