Minutes: Limpopo Practitioner Regional Meeting Held At Pietersburg
26 June 2013
Posted by: Author: SAIT Technical
Author: SAIT Technical
Chairperson welcomed everyone in the meeting.
2. Correction of previous Minutes/Additions to Agenda
No corrections were made and minutes were adopted.
2.2 Matters Arising from Previous Minutes
Case numbers of TCC that were declined with nothing outstanding, will be forwarded to Portia. These cases will be escalated to Sylvia Rambwa.
Tax practitioners are unable to draw statements of accounts and Call Centre is also unable to draw from their side. Sbu will give more clarity on this issue.
Tax Practitioners appointments in Polokwane office
Appointments during filing season will be communicated to tax practitioners before filing season kicks in.
Regulation of Tax Practitioners
Tax practitioners who are in the process of registering with SARS as tax practitioners or who want to update and verify their details, must do so on efiling. SARS will no longer accept any manual registrations.
3. Matters for current discussion
3.1 Tax Practitioners recognized bodies
Amendment 240 A of the TAAct calls for a dual registration process for individual tax practitioners. Rather than registering solely with SARS, tax practitioners are now required to register with a recognised controlling body and with SARS before being able to practice as tax practitioners.
Section 240 of the Tax Administration Act (TAAct), 2011, requires tax practitioners to register as members of a recognised controlling body from 1 July 2013. The Tax Administration Act, 2011, defines certain bodies to be recognised controlling bodies i.e. Independent Regulatory Board for Auditors (IRBA), the South African Legal Practice Council, the South African Institute of Tribology (SAIT), the South African Institute of Chartered Accountants (SAICA) and the South African Institute of Professional Accountants (SAIPA).
3.2 Assessed Tax - Assessments
Tax practitioners raised concerns with regards to outstanding assessments where no feedback is given from SARS side.
It was indicated that all outstanding cases should be forwarded to Portia for further escalation. Portia will engage the relevant section on outstanding IT refunds and IT 34s.
3.3 VAT Reviews
Tax practitioners shared their dissatisfaction with regards to input VAT disallowed with no notice issued, where VAT 217 is issued it does not state the reasons or grounds of rejection.
Tax practitioners have suggested that Auditors should include a detailed specification on what has been disallowed and also indicate the contact details of auditors handling the specific cases.
Issues raised will be escalated to the Compliance Executive (Jayabalan Devan).
Tax practitioners wanted clarity on who should put the VAT number on tax invoices.
SARS responded by saying that Sec 20 requires the supplier to put details on the tax invoice.
3.4 Payroll tax accounts
Tax practitioners indicated that SARS made adjustments to the payroll tax accounts after the bi annual submissions in Sept 2012 without any notification or reason for the adjustments made; these are on cases where the EMP 501 reflected a NIL amount due. Payroll tax accounts now reflect amounts due and TCC’s are denied.
Specific cases where EMP217 were not issued should be forwarded to Portia, for further escalation to Busi or Yolanda.
Tax Practitioners requested that before adjustments are made tax practitioners should be contacted to address such queries to avoid the long and time consuming process of ADR’s?
3.5 Independent Contractors & Estate Agents
Tax Practitioners needed clarity on the issue of whether independent contractors were allowed to issue ITa3 – previously they were required to issue but the TAA is quite about the whole issue.
SARS responded by referring the tax practitioners to a step-by-step guide to the Employer reconciliation process where code 3616(page 32) & reason for non-tax deduction code 03 (see page 38) are still applicable to Independent Contractors. Guide will be attached to the minutes.
Estate agents – this usually happens when they keep the tenant’s rental deposit and earning interest on that deposit. It is the estate agent’s responsibility to notify the tenants of the interest earned on their deposit.
Estate agents should account for the interest earned on rental deposit and declare them on their financial statements.
Administrative Penalties (ITA88)
Tax practitioners indicated that Statements of Accounts on Administrative Penalties (AP34) are not available on efiling.
Examples of such cases should be forwarded to Yolanda for investigation
Taxpayers who are not required to submit returns and administrative penalties are charged due to non-submission of the returns.
These queries can only be corrected by lodging a Request for Remission (RFR).
SARS also stated that it is the taxpayer’s responsibility to contact SARS and inquire if they are liable to submit returns or not.
Tax practitioners wanted to know if the "pay first argue later” rule still applies;
SARS agreed and further indicated that where there are deferred arrangements, TCC are only issued when the taxpayer has honoured the payments.
Modernisation of Corporate Income Tax (ITR14)
Practitioners indicated that ITR14 printing options did not allow them to print forms for filing purposes,
SARS responded by saying that the issue regarding the printing option for ITR14 has been submitted to the engineer. The feedback was that this was corrected and tested in the lab and is now up and running.
3.8 Tax Season Update
Employer Filing season due date – 31 May 2013
Individual Tax season start date – 01 July 2013 – 22 November 2013
Date of next meeting – 13th August 2013. Meeting adjourned at 12h45,