SARS:

10 August 2021 – The assets of GladAfrica Management Services will be attached by the sheriff after the South African Revenue Service (SARS) obtained a civil judgment and writ of execution against the company after it submitted PAYE and VAT returns without making payment.

The failure to make the payments resulted in a debt of R88-million and was escalated to the SARS PAYE Rapid Response Team which had a series of engagements with the taxpayer between May and August of 2021.

However, a writ of execution was issued today 10 August, which will be followed by the attachment of assets by the sheriff.

SARS Commissioner Edward Kieswetter said one of the organisation’s strategic objectives was to make it hard and costly for taxpayers who do not comply with their tax obligations, no matter who the taxpayer is.

“SARS is becoming increasingly aware of the tendency by companies to submit returns without making the corresponding payments. Such non-compliance will not be tolerated as it is a serious threat to the revenue collection mandate of SARS.

“Companies and their directors must note that SARS will take all action legally possible to ensure compliance and ensure that VAT and PAYE payments are made. As per third party agreement, PAYE is collected from employees on behalf of SARS and is not for the benefit of the company. To then utilize collected tax for other purposes than pay it over to SARS, is a criminal offence.” Mr Kieswetter said.

For more information, contact SarsMedia@sars.gov.za

10 August 2021 – Release Notes were published for e@syFile™ Employer version 7.1.5. The changes include an adjustment to the EMP501 submission process when “Own Values” is selected to accurately reflect certificate totals for liabilities, additional validation added to the EMP501 submission process to correct misaligned information submitted previously that resulted in rejection and an update to the e@syFile Forms Viewer component (V1.2.7) in conjunction with the additional validation on EMP501 submission data. See the full Release notes here – e@syFile version 7.1.5.
10 August 2021 – Updated list of approved venture capital companies.

Nova VC1 (Pty) Ltd changed its name to Groundstone Capital Ltd; and
Sparrowhawk VCC (Pty) Ltd changed its name to Station House VCC (Pty) Ltd.

6 August 2021 – The latest Tax Practitioner Connect Newsletter issue 23 deals with a few topics including Registered Representatives, the enhanced Tax Compliance Status system, Administrative penalties for PAYE non-compliance, SARS concerns about the increase in complaints against tax practitioners and Tax Practitioners using the SARS Call Centre. For this and more, see the Tax Practitioner Connect Newsletter issue 23.
6 August 2021 – Income Tax Act,1962: The following Interpretation Notes were published:

Interpretation Note 79 (Issue 3) – Produce Held by Nursery Operators
Interpretation Note 69 (Issue 3) – Game Farming

6 August 2021 – Income Tax Act, 1962:

The following Interpretation Notes have been archived:

Interpretation Note 79 (Issue 2) – Produce Held by Nursery Operators
Interpretation Note 69 (Issue 2) – Game Farming

6 August 2021 – Income Tax Act, 1962: Basic Guide to Tax Exemption for Public Benefit Organisations (Issue 3)
6 August 2021 – Income Tax Act, 1962: Draft documents for comment:

Draft Interpretation Note on Disposal of Assets by Deceased Person, Deceased Estate and Transfer of Assets between Spouses

Draft Tax Exemption Guide for Institutions, Boards or Bodies

Draft Tax Exemption Guide for Companies Wholly Owned by Institutions, Boards or Bodies

Due date for public comment: 10 September 2021 (draft Interpretation Note) and 8 October 2021 (draft Guides)

6 August 2021 – The SARS MobiApp has been enhanced. You can now request your Tax Compliance Status on the MobiApp, and request an eBooking appointment with SARS without having to login first. For the detail see the updated Guide to the SARS MobiApp.
5 August 2021 – Customs officials of the South African Revenue Service (SARS) seized illicit cigarettes declared as tissue paper to the value of R 10-million at the Durban harbour this past weekend. See the media release: R10-million of illicit cigarettes declared as tissue paper.
5 August 2021 – The South African Revenue Service (SARS) wishes to remind non-provisional taxpayers to file their returns by using the safe and convenient digital channels that are available to meet the deadline of 23 November 2021.

The digital channels available for various services include eFiling, the SARS MobiApp, the website and the newly introduced SMS service. They are safe to use and will help to prevent infection from Covid-19 as taxpayers can use them from the comfort of their home.

The SMS service allows taxpayers with limited data and access to computers or smart phones to send an SMS to SARS by using the number 47277 to check if they need to submit a return (as all taxpayers are not required to submit a return).

Taxpayers can also send an SMS to 47277 to request a tax reference number and a statement of account or balance statement. It can also be used to book an appointment to speak to a SARS agent or visit a branch. Details on how to use the SMS service are available on the SARS website www.sars.gov.za

Other digital channels such as eFiling and the SARS MobiApp can be used to reset a username and password, to file a return, obtain a tax compliance status, make a payment and many more.

SARS sent out 3.4 million auto assessments from 1 July. Nearly 1 million taxpayers to date have accepted the auto assessment, with about 800 000 of them accepting without any changes. This represents an 82% acceptance rate.

All of these interactions with SARS have been performed using eFiling and the MobiApp, with the MobiApp seeing a 60% increase in usage from last year.

SARS has paid out R 8 billion in refunds, which constitutes 87% of those taxpayers who were due to receive it. The refunds were paid to the taxpayer within 72 hours, which is further evidence that digital channels have been working to the benefit of taxpayers.

Taxpayers who are not able to use any of these services may book an appointment to visit any of the SARS branches which will re-open on 16 August. The request for an appointment will be confirmed by SARS and only taxpayers with confirmed appointments will be prioritised, and other taxpayers will be attended thereafter.

In addition, SARS will use other External Service Nodes such as mobile tax units and pop-up kiosks in various high-density areas to broaden even further our services to taxpayers. Details about dates and locations will be posted on the SARS website www.sars.gov.za

Commissioner Edward Kieswetter said, “I wish to call on taxpayers to carefully consider whether it is absolutely necessary to visit a branch or rather use our upgraded and convenient digital channels.”

For more information, contact SarsMedia@sars.gov.za

TREASURY: