What’s New at SARS

19 January 2024 – Customs and Excise Act, 1964: Publication details for the tariff amendment notices , as published in Government Gazette 50012 (R4260, R4261, R4262, R4263, R4264), and Government Gazette 50013 (R4265), on 19 January 2024, are now available.

19 January 2024 – The South African Revenue Service (SARS) has today published draft rule amendments for public comment with the view to facilitate transfer pricing adjustments.

The rule amendments under the Customs and Excise Act, 1964, (Act No91 of 1964) will provide clarity and certainty for multi-national enterprises on how to account for their transfer pricing adjustments on previous Customs declarations. This will ensure that they are compliant with their Customs obligations.

Price fluctuations of goods and services delivered by multinationals have a knock-on effect and impact the profits and, as a result, the tax liability of the multinationals. It is then the obligation of the multinational to adjust the transfer pricing payment retrospectively to ensure compliance.

The draft amendments have been published on the SARS website for public comment and announced on SARS social media. The Customs community is requested to participate in the process.

“This is another step to make it easy and simple for taxpayers and traders to comply voluntarily with their obligations,” said SARS Commissioner Mr Edward Kieswetter.

“Legislation allows the organisation to outline the rules and procedures that promote compliance in unambiguous terms and strengthen the tax and Customs eco-system that affects our stakeholders, nationally and internationally.”

For further information, please contact [email protected].

19 January 2024 – Customs and Excise Act, 1964

• Draft amendments to rules under sections 40(3), 41(4) and 120 – Effect of transfer pricing on customs value

Due date for comment: 9 February 2024

18 January 2024 – Customs and Excise Act, 1964: The tariff amendment notices, scheduled for publication in the Government Gazette, relate to the amendments to –

• Part 1 of Schedule No. 2, by the imposition of definitive anti-dumping duties on windscreens for vehicles, classifiable in tariff subheading 7007.21.20, originating in or imported from China – ITAC Report No. 722;
• Part 1 of Schedule No. 1, to provide for technical amendments, by the insertion of new 8-digit tariff subheadings under Chapters 5, 12, 20, 30, 41 and 72 (with retrospective effect from 1 January 2024);
• Part 1F of Schedule No. 6, by the substitution of Note 1 to remove the reference to rebate item 623.01, as it no longer exists (with retrospective effect from 1 January 2024);
• Part 1 of Schedule No. 1, by the insertion tariff subheading 2009.89.55 and 2009.90.15 to provide for nut juices in subheading 2009.89 and mixtures of nut juices in subheading 2009.90 (with retrospective effect from 1 January 2022);
• Part 2 of Schedule No. 4, by the creation of a temporary rebate provision for the importation of optic fibre cables and electrical apparatus, classifiable under tariff subheading 8544.70, used in the international submarine optical fibre cable infrastructure, as well as the creation for a temporary rebate provision for electrical apparatus for making connections to or in electrical circuit, for a voltage not exceeding 1000 volts, other, classifiable under tariff subheading 8536.90.90, for use in international submarine optical fibre cable infrastructure – ITAC Report 614; and
• Appendix II to Annex 1 of the SADC Protocol on Trade, where it appears in Part B to the General Notes in Schedule No. 1, is being amended to substitute the 12-block SADC Certificate of Origin template with the 13-block SADC Certificate of Origin template as agreed on the 28th meeting of the SADC CMT.

Publication details will be made available later

18 January 2024 – High Court Judgments

• SMI Pty Ltd and Another v CSARS – Appeal (CA25/2023) [2023] ZAECMKHC 129 (21 November 2023)
• The Petroleum Oil and Gas Corporation of South Africa (SOC) Ltd v CSARS and Another (8808/2020) [2024] ZAWCHC (18 January 2024)
• International Version Trading and Projects (Pty) Ltd v SARS (6012/21) [2024] ZAGPPHC (17 January 2024)

Summaries are available on the High Court judgments page

18 January 2024 – The deadline for individual taxpayers and trusts that are provisional taxpayers to file their income tax returns for the 2023 tax year, is Wednesday 24 January 2024. The 2023 year of assessment refers to the period between 01 March 2022 to 28 February 2023.

A provisional taxpayer is any person who receives income or to whom income accrues, other than remuneration.  A Trust is included under the definition of a “person” in terms of the Income Tax Act, no.58 of 1962 and is therefore regarded as a taxpayer.

All Trusts are required to file a tax return annually, including those that are not economically active. A trustee is the representative taxpayer of a Trust and is liable to file on behalf of the Trust or appoint a registered tax practitioner to do so.

The South African Revenue Service (SARS) is taking a zero-tolerance approach to taxpayers not registering for the applicable tax, not filing tax returns, not making accurate declarations in their tax returns and failing to make payments due to SARS where applicable. Non-compliance with these obligations is a criminal offence and will attract penalties and interest.

As of the 2023 year of assessment, trustees are required to submit mandatory supporting documents during the filing process. These documents include amongst others, the Trust instrument, Annual Financial Statements, Letters of Authority, resolutions/minutes of trustee meetings and an organogram depicting the Beneficial Ownership of the Trust. Additionally, beneficiaries of Trusts are required to declare their income, including income derived from a Trust, in their personal income tax returns.

SARS has made it easy for taxpayers to comply through online filing solutions. The personal income tax return (ITR12) and Trust income tax return (ITR12T) may be obtained on eFiling while an appointment with a SARS branch may be made on the SARS website. Taxpayers are encouraged to refer to the SARS website for further information on their tax obligations, Trusts, Tax Filing Season 2023 and Provisional Tax.

For more information, contact [email protected]

18 January 2024 – The tax workshop schedules for North West province during February are now available.

18 January 2024 – The mobile tax unit schedule for Western Cape during January is now available.

17 January 2024 – Achieving our Vision 2024 of a smart, modern SARS with unquestionable integrity that is trusted and admired is of paramount importance. Pivotal to the delivery of our vision are our digital platforms and technology infrastructure. To provide clarity and certainty, make it easy for taxpayers and traders to comply with their obligations and building public trust and confidence, our technology assets must demonstrate the highest levels of availability, robustness and security.

In accordance with our Vision and Strategic Objectives, which include modernising our systems to provide Digital and Streamlined online services, we are hard at work ensuring that our digital platforms and technology infrastructure are available, robust and secure, by performing regular upgrades, enhancements and maintenance.

Considering the above, SARS Digital platform upgrades are scheduled for Friday, 19 January 2024 from 22h00 to 02h00 on Saturday 20 January 2024.

Responses (CUSRES messages) to transactions submitted during this time will be delayed, however, arrival and exit management functions are available at land border posts for all released declarations and manifests.

Stakeholders are therefore urged to submit priority Goods Declarations (bills of entry) and Road Manifest by Friday, 19 January 2024 @ 21h00.

15 January 2024 – Supreme Court of Appeal Judgments

• BP Southern Africa (Pty) Ltd v CSARS (801/2022) [2024] ZASCA 2 (12 January 2024)
• Enviroserv Waste Management (Pty) Ltd v CSARS (154/2022) [2023] ZASCA 180 (18 December 2023)

Summaries are available on the Supreme Court of Appeal judgments page

15 January 2024 – Income Tax Act, 1962

• Unitrans Holdings Limited v CSARS (A3094/2022) [2024] ZAGPJHC 3 (9 January 2024)

Appeal from the Tax Court – whether interest expenditure is tax deductible, as having been incurred in the course of carrying out ‘any trade’ and in the production of income – section 24J(2) of the Income Tax Act – the taxpayer trading as an investment holding company – the interest expenditure claimed not closely linked to its income earning operations as an investment holding company – the purpose of the expenditure was not to produce income but to further the interest of the subsidiaries – therefore, the expenditure was not incurred in the production of the taxpayer’s income.
Appeal dismissed with costs.

12 January 2024 – RFP32/2023: Appointment of a Panel of Service Providers for the destruction and disposal of non-compliant goods for a period of five (5) years

12 January 2024 – Customs and Excise Act, 1964: The following High Court Judgments were published:

• BP Southern Africa (Pty) Ltd v CSARS (2021/49805) [2024] ZAGPPHC 1 (12 January 2024)
• FITA and Others v CSARS and Another (115176/2023) and Bozza and Others v CSARS and Others (115375/2023) [2023] ZAGPPHC (29 December 2023)
• Karino Homeland Distribution (Pty) Ltd v CSARS (21279/2023) [2023] ZAWCHC 329 (27 December 2023)
• Assmang Proprietary Limited v CSARS and Others (91960/2015) [2023] ZAGPPHC 2036 (18 December 2023)

Summaries are available on the High Court Judgments page.

12 January 2024 – The SARS branch in Rissik Street, Johannesburg CBD, will be closed until Monday, 15 January due to a gas leak. All virtual appointments will still be honoured. Those who want to visit our offices can make an appointment to visit either Randburg or Alberton branches. We apologise for the inconvenience.

11 January 2024 – Kindly note that the Rissik street branch closed for the rest of today, Thursday 11 January 2024.

10 January 2024 – Achieving our Vision 2024 of a smart, modern SARS with unquestionable integrity that is trusted and admired is of paramount importance. Pivotal to the delivery of our vision are our digital platforms and technology infrastructure. To provide clarity and certainty, make it easy for taxpayers and traders to comply with their obligations and building public trust and confidence, our technology assets must demonstrate the highest levels of availability, robustness and security.

In accordance with our Vision and Strategic Objectives, which include modernising our systems to provide Digital and Streamlined online services, we are hard at work ensuring that our digital platforms and technology infrastructure are available, robust and secure, by performing regular upgrades, enhancements and maintenance.

Considering the above, SARS Digital platform upgrades are scheduled for Saturday, 13 January 2024, from 22h00 to Sunday morning 02h00.

During this time, you may experience intermittent service interruption on our Tax and Customs Digital Platform.

Stakeholders are therefore urged to submit priority Goods Declarations (bills of entry) and Road Manifest by Saturday, 13 January 2024 @ 21h00.

6 January 2024 – Customs officers of the South African Revenue Service seized 23 kilogrammes of narcotics disguised as moulded artwork, with an estimated street value of R37-million, at the cargo sheds of the OR Tambo International Airport this week.

The Customs officers were doing their inspection rounds when they came across a box headed for New Zealand. The box contained items of moulded artwork, which looked suspicious. The officers used a narcotics test kit and some of the items tested positive for crystal meth, which weighed 10kg.

A test by the South African Police Service (SAPS) on other items tested positive for fentanyl which weighed 13kg. The narcotics were handed over the SAPS for further investigation.

SARS Commissioner Edward Kieswetter praised the vigilance of the Customs officers who detected the narcotics. “SARS Customs will spare no effort in stopping the export or import of narcotics and any illegal substance which cause so much pain and hardship for families, particularly their youth.

“Drug smugglers must know that our Customs Division is fully committed to this objective, and will act without fear or favour against those criminals involved in the drugs trade. They must know that they will face the full might of the law,” Commissioner Kieswetter said.

For more information, contact [email protected]

29 December 2023 – National Treasury and the South African Revenue Service (SARS) have jointly published the 16^th annual edition of the Tax Statistics. The 2023 edition provides an overview of tax-revenue collection and tax-return information for the 2019 to 2023 tax years, as well as for the 2018/19 to 2022/23 fiscal years.

See the full media statement here.

Visit the Tax Statistics webpage.

29 December 2023 – South Africa recorded a preliminary trade balance surplus of R21.0 billion in November 2023. This surplus was attributable to exports of R185.8 billion and imports of R164.8 billion.

See the full Media Release here.

Or visit the Trade Statistics webpage.

22 December 2023 – National Legislation: The following amendment acts were promulgated on 22 December 2023:

• Rates and Monetary Amounts and Amendment of Revenue Laws Act 19 of 2023
• Tax Administration Laws Amendment Act 18 of 2023
• Taxation Laws Amendment Act 17 of 2023