What’s New at SARS

17 February 2025 – The state provides state warehouses for the safekeeping of goods. These are managed by Customs. The purpose of this list of unentered goods is to notify the importer, exporter and any other person that has interest in the goods that the goods have been taken up into the State warehouse and if they remain unentered they will be disposed in accordance with the provisions of the Customs & Excise Act.

See the latest Customs Weekly List of Unentered Goods here.

14 February 2025 – The Commissioner for the South African Revenue Service (SARS), Mr Edward Kieswetter welcomed the judgement delivered on 12 February 2025 in the matter between Greyvensteyn v Commissioner for SARS and Others.

This judgement was preceded by a provisional preservation order in chambers against Andries Greyvensteyn (“Greyvensteyn”) and The Gold Kid (Pty) Ltd (Gold Kid) under section 163 of the Tax Administration Act, 28 of 2011 (TA Act) on 28 February 2023. The order authorised a repatriation of foreign assets and limiting a taxpayer right to travel outside the Republic in terms of section 186 and 186(3). It also allowed for the preservation of Greyvensteyn’s and Gold Kid’s assets as well as the compulsory repatriation of Mr Greyvensteyn’s foreign assets. 

The Applicant, Andries Greyvensteyn (“Greyvensteyn”), challenged the constitutionality of sections 180, 184(2), and 186(3) of the Tax Administration Act 28 of 2011. Section 180 holds a person personally liable for a taxpayer’s tax debt if their negligence or fraud resulted in the failure to pay the tax debt. Section 184(2) requires SARS to provide an opportunity for representations before holding a person liable for a taxpayer’s tax debt. Section 186(3) allows a court to order the repatriation of a taxpayer’s foreign assets and limit their ability to travel or conduct business.

Greyvensteyn argued that these provisions violated his constitutional rights, specifically section 34 (right to access to court) and sections 21 and 22 (rights to freedom of movement and to choose a trade, occupation, or profession freely). He contended that SARS’ actions amounted to self-help, undermining his right to a fair public hearing.

The court found that SARS’ actions under sections 180 and 184(2) constituted administrative action, which is reviewable under the Promotion of Administrative Justice Act (PAJA). The court emphasised that Greyvensteyn has the right to judicial review of SARS’ decisions, ensuring access to court. The court also found that the limitations imposed by section 186(3) on Greyvensteyn’s rights were reasonable and justifiable in an open and democratic society, given the importance of tax collection for public interest. The court upheld the constitutionality of sections 180, 184(2), and 186(3). The application was dismissed with costs, including the costs of four counsel on scale C.

SARS’ powers and duties of recovery of taxes are not absolute and this judgement confirms that though SARS may not carry out its powers and duties in a way that violates constitutional rights, the court confirmed that the current provisions do not infringe taxpayers’ constitutional rights.

Commissioner Kieswetter said that “this precedent setting decision reaffirms SARS’ legal authority to discharge its work of collecting all revenue due to the state in an efficient and effective manner. Importantly, was the court’s reiteration that the provisions that allow SARS to determine third-party liability, repatriation of foreign assets and restrictions of travel are lawful and constitutional. SARS will continue to provide certainty and clarity to taxpayers while making it easy and simple to transact with the organisation. However, SARS will vehemently oppose any action by the taxpayer intended to undermine its mandate”.

For further information please contact SARS at [email protected]

14 February 2025 – There is currently no requirement to validate the Payment Reference Number (PRN) when a Comma Separated Values (CSV) file is submitted. A new rule has been added to address invalid PRNs that are submitted for Admin Penalties via the Bulk and Additional Payments on eFiling. This rule aims to prevent transactions from being posted to the SAP Clarification account.

To prevent taxpayers from submitting files where the PRNs is filled with zeros (000…) or nines (999…) for Admin Penalties, the following validation rule has been introduced:

• • When a taxpayer selects the Tax Type “ITPEN” (Payments towards Third Party Appointments for Admin penalties, such as AA88 notices issued by employers), the 12th character of the PRN must always be a “I”.
  • The characters between positions 13 and 19 must be numeric and cannot consist entirely of zeros or nines. The 19-digit modules must apply.
  • If any of the above conditions are not met, as per the specifications, then the file must be rejected.

For more information see the updated Guide to Bulk and Additional Payments on eFiling.

14 February 2025 – Income Tax Act, 1962

Multilateral Instrument (MLI) synthesised texts:

• Belgium
• China (People’s Republic of)
• Egypt
• Russia
• Spain
• United Kingdom

14 February 2025 – The latest Monthly Tax Digest newsletter for February 2025 is now available.

14 February 2025 – Customs and Excise Act, 1964: Publication details for tariff amendments notice R.5854, as published in Government Gazette 52084 of 14 February 2025, are now available.

13 February 2025 – Customs and Excise Act, 1964: The tariff amendments notice, scheduled for publication in the Government Gazette, relates to the amendments to –

• Part 1 of Schedule No. 1, by the insertion of Additional Notes 2 and 3 to Chapter 30 as well as the insertion of tariff subheadings 3004.90.20 and 3004.90.30 in order to provide clarity on where supplements, herbal or homeopathic preparations should be classified.

Publication details will be made available later

12 February 2025 – Achieving our Vision 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 maintenance is scheduled for:

Friday, 14 February 2025 from 18h00 to 20h00,

Saturday, 15 February 2025 from 03h00 to 05h00.

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

11 February 2025 – The Vereeniging branch will be moving from its current temporary location at Shop number 12A, Bedworth Centre, Ascot on Vaal Road and reopening at its permanent location at Shop 36 on 17 February 2025. The branch will be closed on Friday 14 February to enable the move. All appointments for Friday 14 February will be rescheduled.

10 February 2025 – The state provides state warehouses for the safekeeping of goods. These are managed by Customs. The purpose of this list of unentered goods is to notify the importer, exporter and any other person that has interest in the goods that the goods have been taken up into the State warehouse and if they remain unentered they will be disposed in accordance with the provisions of the Customs & Excise Act.

See the latest Customs Weekly List of Unentered Goods here.

Tshwane, 7 February 2025 – On the 9 May 2024, the Pietermaritzburg division of the KZN High Court granted a preservation order to SARS in respect of the assets of the Shandi Trust. In November 2024, a separate preservation order was granted by the Durban High Court in favour of SARS over the assets of 23 respondents, one of whom is Royal AM Football Club (“The Club”).  The Shandi Trust and the Club are related parties, under the control of Ms Mkhize.

This week two judgments relating to these preservation orders were issued by the North Gauteng and Kwa-Zulu Natal Division, Pietermaritzburg high courts, both in SARS favour.

In December 2024, the curator and the management of the Club engaged on the Club’s financial position to determine if the Club could meet its future obligations for the 2024/25 fixtures. After extensive engagements, the Club’s financial position was escalated to the National Soccer League (“NSL”).

As a result of the Club’s financial challenges, on the 22 January 2025 the NSL suspended all Royal AM Football Club’s future fixtures.

On 29 January 2025, the Club instituted action against the curator, SARS and the NSL by way of an urgent application. The application sought the court to direct the Curator to issue a letter of comfort to the NSL, guaranteeing the Club’s financial ability to fulfil its league fixtures. The application also sought to review the Curator’s decision not to issue the letter of comfort as irrational, unreasonable and unlawful.  In the alternative, the Club requested the court to compel the NSL to allow the club to play the remainder of the football season’s league and Nedbank Cup games.

SARS, the curator and NSL opposed the urgent application. The matter was heard on 5 February 2025 and struck from the roll for lack of urgency, with costs.

The court was satisfied that the Club had failed to meet the test for urgency as set out in the court’s practise note. The court stated that procedures and practice notes are not there for the taking; an applicant needs to set out facts showing why the matter is urgent. The urgency was self-created as the Club was aware of its precarious position vis a vis the Curator’s inability to provide a letter of comfort to the NSL, way before it elected to launch the urgent application The court did not deal with the merits, and because of the court’s ruling, the Club remains suspended from the NSL.

The judgment of the Pietermaritzburg High Court in respect of the Shandi Trust, dismissed the leave to appeal the Court’s judgment, with costs. In July 2024, the Trustees brought an urgent application to stay the preservation order, effectively seeking to interdict the Curator from executing on the order. The Court struck the matter from the roll with costs. The Trustees appealed the Court’s decision. The leave to appeal was dismissed on 6 February 2025 with costs as no case had been made out by the Trustees for leave to appeal.

SARS’ key strategic intent is to foster a culture of voluntary compliance. To achieve that objective, SARS provides clarity and certainty to taxpayers to fulfil their legal obligations. Where taxpayers intentionally seek to engage in non-compliant behaviour, SARS responds by making such non-compliance hard and costly.

SARS Commissioner Edward Kieswetter reacted to this development by noting that “SARS is pleased with the court’s decision to strike the matter from the court’s roll for lack of urgency. Taxpayers have a legal obligation to all at times fulfil this without fail and remain compliant with their tax affairs. It boggles the mind that taxpayers will turn to courts with ease yet derelict in their responsibility to meet with their obligations with similar enthusiasm. SARS is enjoined by the law to administer the law without fear or favour and to ensure that all taxpayers who are expected to register, file and pay their taxes do so with ease. In executing our mandate, SARS will remain committed to dealing lawfully with taxpayers who are acting with wilful intent to neglect their tax obligations. The role of tax in addressing the country’s pressing challenges of paying for pensions, grants, financing schooling, health cannot be over-emphasized.”

SARS will not comment further about this subject.

For further information, please contact [email protected]

7 February 2025 – The Mpumalanga mobile tax unit schedules for February and March 2025 are now available.

6 February 2025 – Prohibited and Restricted Imports and Exports list

• The following tariff headings are subjected to export ITAC permits:
  72.04 (excluding 7204.21), 7404.00, 72.05, 72.06, 72.07, 72.18, 72.24, 74.02, 74.03, 74.05, 74.06, 76.01, 76.03, 76.04, 78.01, 79.01 and 80.01.
• The following tariff headings no longer require export permits:
  7403.12, 7403.13, 7403.19, 7403.21, 7403.22 and 7403.29.
• The following tariff headings are subjected to import ITAC permits:
  8417.10, 8417.80, 8462.32.10, 8462.32.90, 8462.33, 8462.39, 8462.4, 8462.51.20, 8462.51.90, 8462.59.20, 8462.59.90, 8462.61.40, 8462.61.90, 8462.62.20, 8462.62.90, 8462.63.20, 8462.63.90, 8462.69.20, 8462.69.90, 8462.90.30, 8462.90.90 and 8479.89.90

6 February 2025 – Achieving our Vision 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 maintenance is scheduled for:

Saturday, 08 February from 05h00 to 08h00,

Sunday, 09 February from 06h00 to 08h00,

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

6 February 2025 – Customs and Excise Act, 1964

• Form DA 5 – Declaration of sealable goods on board ship

Due date for comment: 14 February 2025

6 February 2025 – SARS is preparing to implement enhancements to the Tax Directives process as indicated in the IBIR-006 Tax Directives Interface Specification Version 6.802.  We strongly recommend that you review IBIR-006 before proceeding with testing.

The trade testing dates are still to be confirmed, but the software is scheduled for implementation in April 2025.

SARS will send you the exact dates for trade testing and the implementation date closer to the time.

3 February 2025 – The Limpopo and Free State tax workshop schedules for February 2025 are now available.

31 January 2025 – Customs and Excise Act, 1964: Extract from the Taxation Laws Amendment Act 42, 2024, in which the following amendments, relating to the Customs and Excise Act, 1964 are published:

• Amendment to Parts 1, 2A, 5A and 5B of Schedule No. 1 – see clauses 41.(1) – 41.5(b)
• Amendment to Part 4 of Schedule No. 4 – see clauses 42.(1) – (3)
• Amendment to Part 4 of Schedule No. 5 – see clauses 42.(1) – (3)
• Amendment to Part 1F of Schedule No. 6 – see clauses 44.(1) – (3)

The effective dates are specified in clauses 41–44

31 January 2025 – The South African Revenue Service (SARS) wishes to announce that to date it has received 2,664 279 applications for tax directives for withdrawals from the Savings Withdrawal Benefit of the two-pot system. Of the total number of applications, 2 403 379 tax directives were approved for funds to be released. The remainder were declined for a variety of reasons, including incorrect Identity Numbers, incorrect tax numbers, amongst others.

A total gross lumpsum of R 43.42 billion has been paid out to date.

In line with SARS’ intent for taxpayers to use digital channels, SARS is happy to announce that the simulated WhatsApp calculator was used 90 283 times since implementation of the process. The simulated calculator on the SARS website, which forms part of the SARS Online Query System, has been used 952 403 times. SARS has also received 128 802 and queries through the voice channel, and 24 278 at branches.

Taxpayers are encouraged to continue to use the digital channels, which are simple, easy and user-friendly. Using these channels means taxpayers do not have to leave their homes or places of employment to stand on undignified queues.

SARS would like to thank retirement fund management entities for their friendly and professional co-operation that has allowed SARS to play its part effectively and efficiently by speedily issuing the volumes of tax directives needed to date.

SARS reminds taxpayers who want to apply for a withdrawal to make sure that they verify their tax numbers, have supplied the correct Identity Numbers and that they do not have any outstanding debt with SARS.

After a registered taxpayer has applied, a successful tax directive informs the fund management how much tax to deduct from a withdrawal. Directive applications are accepted by SARS 24/7 and processed within an hour 365 days a year from 8:00 to 19:00. Unless a directive application is submitted outside of these hours, the response if the taxpayer is compliant be sent to the fund within an hour.

Before a final amount is paid to the applicant, the pension fund will be informed to also deduct any outstanding debt on behalf of SARS before any payout is made to the member. If a person has a debt arrangement with SARS, the withdrawal will not be affected. If there is a debt owed to SARS, it will be deducted in terms of such arrangement.

Taxpayers are reminded that tax will be imposed on a withdrawal at a marginal tax rate ranging between 18%-45% depending on their scales.  Despite this public information, there are taxpayers who are wilfully understating their incomes.

SARS Commissioner Mr Edward Kieswetter said that “SARS is deeply concerned that 213 654 taxpayers have been identified where they have declared incorrect taxable income with the view to have a more favourable tax rate. If a taxpayer understates their income, they are intentionally involved in evading their tax obligation. A penalty will be imposed on taxpayers who have understated income. I wish to caution taxpayers to refrain from this unbecoming conduct that borders on criminality. There are real consequences for this behaviour”.

For more information, please contact SARS at [email protected]