Legal and Policy
2022 Legal and Policy

Legal and Policy - 24 February 2022



  • 23 February 2022 – Media Release – SARS making illicit tobacco trade hard and costly

The South African Revenue Service (SARS) through its Criminal and Illicit Economic Activities and Customs Divisions carried out inspections as well as search and seizure operations on cigarette companies and manufacturers in KwaZulu-Natal, Western Cape and Gauteng. The premises inspected and searched include the residences of certain individual taxpayers. The intervention and operations are related to wider investigations and audits into the tax affairs of cigarette manufacturers, their directors, related entities and individuals for purposes of verifying their tax compliance and identifying information that may support such audits.

See the full media statement here.

  • 23 February 2022 – National Legislation

2022 Draft Rates and Monetary Amounts and Amendment of Revenue Laws Bill

  • 23 February 2022 – National Legislation: The income tax notices, scheduled for publication in the Government Gazette, relate to the –
  • determination of the daily amount in respect of meals and incidental costs for purposes of section 8(1)(c)(ii) (overnight allowance)
  • determination of the daily amount in respect of meals and incidental costs for purposes of section 8(1)(a)(ii) (daily allowance)

Publication details will be made available later

Taxation Proposals as tabled by the Minister of Finance in his Budget Review 2022 at 14:42

  • 23 February 2022 – SARS welcomes the upwardly revised revenue collection estimate announced by Minister of Finance, Mr Enoch Godongwana. In his 2022 Budget Review speech, Minister increased the revenue estimate to R1 547.07 billion from the February 2021 budget estimate of R1 365.1billion. The 2021/22 revenue yield is expected to result in the tax-to-GDP ratio reaching 24.7%, which is higher than pre-COVID level and that indicates that the extraction rate is on a positive trajectory.

See the full media statement here.

  • 23 February 2022 – The Minister of Finance’s National Budget speech and impact on SARS tax rates are live – see our SARS Budget webpage for more information.
  • 22 February 2022 – Income Tax Act, 1962

Frequently Asked Questions: Insolvent Estates of Individuals

Draft Interpretation Note – Mining Rehabilitation Company or Trust: Deductibility of Amounts Paid and Compliance with Section 37A

Due date for public comment: 29 July 2022

  • 22 February 2022 – Income Tax Act, 1962

Draft Interpretation Note – Recoupment of Amounts Deducted or Set Off when an Asset Commences to be Held as Trading Stock which was Previously not so Held

Due date for public comment: 24 June 2022

  • 22 February 2022 – Tax Administration Act, 2011

Draft Interpretation Note – Understatement Penalty: Meaning of “Maximum Tax Rate applicable to the Taxpayer” under Section 222(5) of the Tax Administration Act

Due date for public comment: 3 June 2022

  • 22 February 2022 – Income Tax Act, 1962

Draft Binding General Ruling – Disqualification as a Qualifying Company under Section 12R(4)(b)

Due date for public comment: 27 May 2022

Draft Interpretation Note – Public Benefit Organisations: Provision of Residential Care for Retired Persons

Draft Interpretation Note – Public Benefit Activity: Bid to Host or Hosting any International Event

Due date for public comment: 13 May 2022

  • 21 February 2022 – The SARS Supply Chain Management Policy has been updated to incorporate regulatory changes from National Treasury, provisions of POPIA and specific measures to strengthen operational efficiency of the procurement and supply chain function.
  • 21 February 2022 – The Guide to the Individual ITR12 Return for Deceased and Insolvent Estates was updated to indicate that the Public Benefit Organisation (PBO) number declared on the ITR12 return will be validated to determine if it was active and applicable for that particular year of assessment. If the PBO number does not pass the validation, the deduction will be disallowed, and the applicable reason will display on the notice of assessment (ITA34).
  • 21 February 2022 – The Guide on how to submit your Individual tax return via eFiling was updated to indicate that SARS may raise an additional or reduced estimated assessment where the taxpayer fails to submit relevant material after more than one request for such relevant material. The taxpayer will be allowed to upload the supporting documents via eFiling.
  • 21 February 2022 – An additional channel was added on eFiling to assist clients who want to inform SARS when they ceased to be a tax resident of South Africa.

The taxpayer must inform SARS by way of one of the following two channels:

If a taxpayer ceased to be a tax resident of South Africa, the taxpayer can now inform SARS through the Registration, Amendments And Verification Form (RAV01) on eFiling by capturing the date on which the taxpayer ceased to be a tax resident. The form can be obtained on eFiling or SARS branch by making appointment. A case will be created whereby the taxpayer will receive a letter from SARS to submit supporting documents.

Alternatively, the taxpayer can inform SARS by capturing the date on the ITR12 tax return.

How will supporting documents work:

If the declaration is made on the income tax return (ITR12), you will receive a request for supporting documents to substantiate the declaration you have made. The relevant information that must be supplied to SARS will depend on the basis on which you have ceased to be a tax resident.

If the declaration is made via the RAV01 form on eFiling, the Declaration form must be completed and be submitted with the relevant supporting documentation through eFiling or SOQS.

For more information, see our Cease to be a Resident webpage.

  • 21 February 2022 – A new guide on how to submit the Income Tax return via the SARS MobiApp has been published. This guide details amongst others how to apply to respond to an auto assessment, how to respond to an estimation assessment submitted for your by SARS. You will now receive correspondence on your application to change your residency status via SARS MobiApp. Additionally you can submit your previous year of assessment (ITR12) return via the SARS MobiApp.
  • 21 February 2022 – A once-off admin penalty will be imposed on the following two populations of taxpayers:
  • Taxpayers that were selected for auto assessment and failed to accept, decline, or edit and then file their return after SARS issued an original based on estimated return (auto).
  • All provisional and non-provisional taxpayers that were not auto assessed and submitted a return post filing season and pre-imposition of the recurring admin penalty.

Just like the PIT outstanding return recurring admin penalty, the PIT once-off admin penalty can be adjusted or cancelled.

Admin Penalty Amount Adjustment:

As part of the admin penalty process, SARS will adjust the admin penalty amount if there’s any change to the taxable income where an Once-Off Admin Penalty was already imposed.

The change in the taxable income may be because of a revised declaration, a dispute (NOO/NOA) against the rejected or edited return and is allowed or partially allowed leading to the taxable income being different to the initial taxable income utilised to determine the once-off admin penalty amount.

A penalty adjustment letter will be issued to the taxpayer to inform the Taxpayer of the admin penalty adjustment.


If it has been determined that SARS has erroneously imposed the once-off Admin Penalty on Taxpayers, SARS will cancel the Admin Penalty transactions and related debt and update Taxpayer’s admin penalty account.

  • Transit Shed facility in:
    • Cape Town International Airport: V3 – Morgan Cargo (Pty) Ltd
  • Container depot facility in:
    • Durban – V2 – Mega Container Park (Pty) Ltd.; and
    • Johannesburg – V1 MSC Logistics (Pty)
  • 18 February 2022 – Income Tax Act, 1962: Draft Interpretation Notes
  • Draft IN on sale and leaseback arrangements and related simulated transactions
  • Draft IN on effect on the date of issue of a share arising from a change in the redemption features

Due date for public comment: 31 March 2022

  • 18 February 2022 – Customs & Excise Act, 1964: The draft amendments are proposed in Parts 1, 2B and 3E of Schedule No. 1, Schedule Nos., 3, 5 and 6 to the Customs and Excise Act as follows:
  • Part 1 of Schedule No. 1 – Insertions of new 8-digit tariff subheadings under several Chapters
  • Part 2B of Schedule No. 1 – Substitution of the descriptions of item numbers 124.05/8415.10, 04.51/8704.51.50, 126.04.55/8704.51.75 and 126.04.61/8704.51.83
  • Part 3E of Schedule No. 1 – By the deletion of environmental levy item 153.01.09/8701.30 and substitution of several items
  • Schedule No. 3 – Insertion and deletion of rebate item 320.04/5512.19.90/010.08 and 320.04/5512.19/01.06, respectively
  • Schedule No. 5 –Substitution of Note 12
  • Schedule No. 6 – Substitution of Notes

Due date for public comment: 4 March 2022

  • substitute the title of Part 2 of Schedule No. 5 to include the reference to “and imported goods abandoned or destroyed”;
  • substitute the header of refund item 522.00 to include the reference “and imported goods abandoned or destroyed; and
  • insert Note No. 7 and rebate item 522.02/22.02/01.02 to provide for alcoholic beverages which, after entry for home consumption and payment of duty, have undergone post manufacturing deterioration (expired stock) and are returned to the original importer of the goods for destruction.

Due date for public comment: 10 March 2022

  • 17 February 2022 – General



Date24 February 2022