Legal and Policy - 27 July 2023

SARS:

• 26 July 2023 – SMME Traders Rights webinar

The South African Revenue Service (SARS) invites you to a webinar on Traders Rights in collaboration with the Office of the Tax Ombudsman and the Border Management Agency.

SARS recognises the importance of the Small Medium and Micro Enterprise (SMME) traders and their significant contribution to the South African economy. Our strategic objectives include providing taxpayers and traders with clarity and certainty, as well as making it simple for them to meet their tax obligations. The aim of the webinar is to educate customs cross-border traders about their rights, and the channels to follow when their rights have not been upheld.

Examples of challenges that may infringe SMME traders’ rights can be unfair penalties, being asked for bribes and the lack of adherence to the SARS Service Charter turnaround times by SARS Customs officials, etc.

Other challenges may include the inability of female traders to conduct their business without sexual harassment and victimisation.

As an important stakeholder, we invite you to join this webinar, and to extend this invitation to other interested parties.

The details of the event are as follows:

Theme: Traders Rights Webinar

Date: Thursday, 27 July 2023
Time: 10:00-12:00
Platforms: Zoom and YouTube

Register in advance for this webinar on the following link:

https://sars-gov-za.zoom.us/s/97607806001?pwd=dE0rOVBac1dPbVdCQjlpb0NzTjhSdz09

• Meeting ID: 976 0780 6001

• Passcode: 947755

After registering, you will receive a confirmation email with information on how to log on to the webinar. The webinar will be recorded and posted on the SARSTV YouTube channel after the event.

YouTube:

https://youtube.com/live/L53nLSlviac?feature=share

• 25 July 2023 – Transfer Duty Act, 1949

Transfer Duty Guide (Issue 6)

• 25 July 2023 – Kariega Branch will be relocating to Shop 57, Corkwood Square Mall, Uitenhage from the 1 August 2023.

Please note that the SARS Kariega Branch located on:

1 Young St, Cannon Hill

Kariega Uitenhage

Eastern Cape

Is relocating as of the 1st of August 2023 to:

Shop 57, Corkwood Square Shopping Mall

42 Union Ave, Alexander Park

Kariega Uitenhage

Eastern Cape

• 25 July 2023 – The Commissioner of the South African Revenue Service (SARS) has welcomed the Supreme Court of Appeal judgment, which dismissed with costs, two appeals against orders of the Gauteng Division of the High Court, Pretoria (case no 543/2021); and the KwaZulu-Natal Division of the High Court, Pietermaritzburg (case no 409/2022).

The first was an appeal against a winding-up order granted against the appellant, PFC Properties (Pty) Ltd (PFC), in favour of SARS, by the Pretoria High Court. The second appeal was against an order by the Pietermaritzburg High Court, in terms of which it dismissed an application to place PFC in business rescue.

The issue before the SCA was whether the conduct on the part of PFC and the De Robillard Family Trust’s trustees in launching the business rescue application, constituted an abuse of court process. The SCA held that that application should not have been considered by reason of its use in a scheme of abuse. The Court held that the business rescue application was a stratagem.

See the full media statement here.

• 24 July 2023 – e@syFile version 7.3.9 was released.
• 24 July 2023 – Tax Administration Act, 2011

CSARS v M (A5036/2023) [2023] ZAGPJHC 769 (6 July 2023)

Appeal from the Tax Court – whether undeclared receipts and deposits into taxpayer’s personal bank accounts and other accruals were income or the repayment of loans – a factual issue.

• 24 July 2023 – Tax Administration Act, 2011

SARSTC IT 24870; IT 25162; IT 25166 (ADM) [2023] ZATC JHB (6 July 2023)

Prescription objection: Objection to a whole assessment is not permissible – capital gains tax.

• 24 July 2023 – SARS clients are encouraged to make payments via EFT (Electronic Fund Transfer) into the SARS public beneficiaries listed on the banking platform or eFiling.

Cash deposits to a SARS Customs and Excise bank account at any bank branch is no longer available as a payment option to SARS clients.

GEN-PAYM-01-G01 – SARS Payment Rules – External Guide

• 24 July 2023 – SARS will introduce enhancements to the Tax Directives process as indicated in the IBIR‐006 Tax Directives Interface Specification Version 6.503. Trade testing is planned to start on Wednesday, 16 August 2023 to prepare for the implementation of the software during the second quarter of this financial year. If the dates need to change, SARS will communicate accordingly.

Keep an eye on the I want a Tax Directive and Independent Software Vendors webpages.

Please follow these steps to submit test files:

Step 1:
Before testing can commence, you will need to email 10 taxpayer reference numbers to ncts@sars.gov.za to ensure the numbers are active. In the email subject line, use “Tax reference numbers for Trade Testing”. A maximum of 10 taxpayer reference numbers will be allowed.

Step 2:
You will be notified via the same email address to confirm when testing may commence.

For trade testing queries please email ncts@sars.gov.za.

• 21 July 2023 – Accreditation requires traders to demonstrate sufficient knowledge of Customs Law and procedures, as per Section 64E(1)(b)(iv) of the Customs and Excise Act.

An external guide has been published to assist traders with the application and completion of the AEO sufficient knowledge competency assessment.

SC-CF-37 – Sufficient Knowledge Competency Assessment for AEO – External Guide

• 21 July 2023 – Income Tax Act, 1962

Draft Interpretation Note 78 (Issue 2) – Allowance for future expenditure on contracts.

Due date for comment: 15 September 2023

• 21 July 2020 – The supplementary Mobile Tax Unit schedule for Mkhondo Local Municipality during September 2023 is now available.
• 21 July 2023 – Beware of a scam trying to enforce non-existent taxation charges on fund transfer.

Keep an eye on our Scams examples webpage.

• 21 July 2023 – Customs and Excise Act, 1964: Publication details for tariff amendment notices R3696, R3697, R3698, as published in Government Gazette 49013 of 21 July 2023, are now available.
• 20 July 2023 – Until the 31 December 2020, goods exported from the Southern African Customs Union (SACU) member states and from Mozambique to the United Kingdom (UK) were covered by the Southern African Development Community-European Union Economic Partnership Agreement (the SADC-EU EPA).

As from the 01 January 2021 such goods were traded under the SACUM-UK EPA. The SACUM-UK EPA was negotiated and concluded while the UK was a member of the European Union (EU).

For more information, see the letter to Trade.

• 20 July 2023 – The Alberton tax and Customs branches will be closing on 21 July 2023 at their current locations.

The Customs branch will be reopening temporarily as a Pop-up Branch in the training centre at the Alberton campus, 28 St Austell St, New Redruth, Alberton, on 24 July 2023. Operating hours: 08h00 – 16h00 Monday to Friday

The tax branch will be reopening at Alberton City Mall, shop 21 and 22, level 1(entrance number 10), cnr Voortrekker Rd and Du Plessis Rd, New Redruth, Alberton on 24 July 2023. Take note: From 24 to 28 July, a Mobile Tax Unit will be stationed at the old branch to serve the scheduled walk-in appointments. Operating hours: 08h00 – 16h00 Monday, Tuesday, Thursday and Friday; 09h00 – 16h00 Wednesday. All current services will be offered at the new location via appointment.

• 20 July 2023 – Customs and Excise Act, 1964: The tariff amendment notices, scheduled for publication in the Government Gazette, relate to the amendments to –

• Part 3 of Schedule No. 2, by the substitution of safeguard items 260.03/7318.15.41/01.08; 260.03/7318.15.42/01.08 and 260.03/7318.16.30/01.08, to extend the safeguard duties with a rate of 48,04% on threaded fasteners of iron or steel (excluding those of stainless steel and those identifiable for aircraft) – ITAC Report 715 (24 July 2023 up to and including 23 July 2024);
• Part 3 of Schedule No. 2, by the substitution of safeguard items 260.03/7318.15.41/01.08; 260.03/7318.15.42/01.08 and 260.03/7318.16.30/01.08, to amend the safeguard duties to a rate of 46,04% on threaded fasteners of iron or steel (excluding those of stainless steel and those identifiable for aircraft) – ITAC Report 715 (24 July 2024 up to and including 23 July 2025); and
• Part 3 of Schedule No. 2, by the substitution of safeguard items 260.03/7318.15.41/01.08; 260.03/7318.15.42/01.08 and 260.03/7318.16.30/01.08, to amend the safeguard duties to a rate of 44,04% on threaded fasteners of iron or steel (excluding those of stainless steel and those identifiable for aircraft) – ITAC Report 715 (24 July 2025 up to and including 23 July 2026).

Publication details will be made available later.

OECD:

• OECD and IGF received public comments on draft toolkits to support developing countries in addressing base erosion and profit shifting risks when pricing minerals - 26 July 2023
• The OECD and Global Forum support ECOWAS in strengthening the fight against BEPS and improving tax transparency in West Africa - 26 July 2023

• Modest recovery in Asia-Pacific tax revenues as the after-effects of COVID-19 weigh on tourism - 25 July 2023

• Revenue Statistics in Asia and the Pacific 2023 to be released on Tuesday 25 July at 11:00 AM CEST - 20 July 2023

SAFLII:

• Trustees of the CC Share Trust and Others v Commissioner for the South African Revenue Service (38211/21) [2023] ZAGPPHC 597 (24 July 2023)

PFC Properties (Pty) Ltd v Commissioner for the South African Revenue Services and Others (543/21; 409/22) [2023] ZASCA 111 (21 July 2023)