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Minutes: SARS Stakeholders' meeting Pretoria 13 June 2013

16 August 2013   (0 Comments)
Posted by: Author: SAIT Technical
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Author: SAIT Technical

1. WELCOME & APOLOGIES

The chairperson opened the meeting, requested all attendees to introduce themselves and welcomed everyone present.

2. CONFIRMATION OF AGENDA

The agenda was confirmed with no additions.

3. AGENDA ITEMS

MATTERS ARISING FROM PREVIOUS MINUTES

Admin penalty statement still not available on E-filing: 

Matter will be escalated to business system development and feedback will be given to the practitioners on or before the next meeting.

Medical deductions: SARS disallows medical aid claims and add back all expenses: 

  • Concern was raised by tax practitioners regarding medical expenses that are disallowed by SARS and added back
  • Clarity was given that if Tax payers / practitioner do not provide SARS with proof of medical expenses or supporting documents at the required time, SARS will automatically disallow the expenses due to non-compliance. Tax practitioners also requested an updated policy on how medical aid is calculated and what is allowed and not allowed, they requested that the information to also be made available on SARS website.

 SARS correspondence:

  • Phoning project: team members who are working on the project that phones taxpayers regarding their outstanding tax affairs / documents refuse to send e-mails or original letter to the tax practitioners, regarding the cases they are calling them for, and the tax practitioners don’t feel comfortable to discuss their client’s financial and tax related matters telephonically due to the scams that are on. 
  • The matter was not discussed and the way forward will be given on the next meeting because the representative from Audit was not available to respond

SARS unlawfully added back director’s remuneration expenditure on company assessment and the reason given was: Non-compliance by a director with hispersonal tax. – 

  • The issues was not discussed because the representative from audit was not available it will be discussed on the next meeting.

 Long delay with SDL activations when PAYE & UIF are already active, and Procedure to be followed to activate SDL registration:

  • Tax practitioners were advised to make their request in writing when they want to re-activate / register for SDL only (not necessary to completed EMP 101),
  • SARS also explained to the practitioners that when activating/ registering for SDL the delay is caused by department of labour because once a letter is received from the tax practitioners SARS sends it to department of labour so that they can approve SETA codes first. 

 NEW MATTERS

Appointments at pavilion:

  • Tax practitioners were concerned that it is still taking long to be allocated with appointment in Pavilion. And they also raise concern regarding the quality of service provided by Doringkloof branch office. Amongst the things tax practitioners were not happy about in Doringkloof is the issue of Certified I.D copies, tax practitioners are always sent back and denied assistance by Doringkloof stall members because the I.D copies presented by the tax are poor quality.  Whenever tax practitioners request to speak to the branch manager regarding the issue she is forever not available to come and assist / look or advice on the matter, and the team leaders are unable assist as well.
  • It was however explained to the tax practitioners that due to audit findings there were some discrepancies regarding authentication and quality of I.D copies that branch offices should accept, and therefore the staff members of the mentioned branch office were trying to be extra cautious, however the matter will be escalated to the branch manager
  • The taxpayer is authorised to handle the taxpayer affairs. Engagements will be made to ensure that taxpayers are not unnecessary / inconveniently sent back.
  • Tax practitioners also mentioned dissatisfaction about the level of skills in Pretoria North Branch office. And it was also explained to them that branch office is still new, however skills development projects are underway so as to ensure that the level of service provided is up to required standard and uniform with all other branch offices.
  • Tax practitioner were also concerned about validity of stamp on the certified I.D (which is currently 3 months): SARS explained to the tax practitioner that sometimes tax payers change practitioners and therefore by have recent certified I.D copy will give indication that we are servicing authorised person.
  • There was a concern raise by tax practitioners regarding capacity in Pavilion: SARS acknowledged the concern and indicated that there are plans in pipeline to resolve the capacity issue, however practitioners in the meantime were encouraged to also go to Pretoria North and Doringkloof branch office for simple queries.
  • Tax practitioners were also concerned about scanning of POA & I.D copies for each query by Pavilion staff: and they also requested that when SARS is implementing those kind of changes there must be communication on the WEBSITE under " what’s new” so that they can also be aware.

· Allocation of case numbers: Some other staff members are still refusing to give case numbers to practitioner. SARS emphasised to the practitioner that case numbers by staff members shouldn’t be negotiable, engagements will be made to staff member regarding issuing of case numbers. 

· PAYE JOURNALS: sometimes they look chaotic in the account, on one period you will find 2 pages full of journals money taken in and out of the account. It was explained to tax practitioners that when payments are without using correct PRN the system will randomly allocate payments from the oldest case, and if the payments are late monies will first be allocated to penalty, then interest and tax. One of the factors considered before Journals are posted on the account is the net effect of the account. There was also a concern regarding EMP 501 payments that do not reflect on the system, tax practitioners were advised to send e-mail to Ms Sibongile Mtshali Jack for any accounts related matters that they are unable to resolve them on e-filing or branch office.

One of the concerns raised regarding journals is that they account gets fixed and the practitioners even obtain TCC but when they apply on the following year same problem arise. Sometimes even if there is nil declarations there will be journals on the account which are creating a debit. Matter will be escalated to account s maintenance for further investigation.

·  Communication problem: Tax practitioner requested liaison officer dealing with ADR1 & ADR2 for LBC cases. Feedback will be provided.

·  SARS CORRESPONDENCE: taxpayer are requested to submit supporting documents for audit purposes and in most cases they submit the documents via e-filing and the documents don’t upload into SARS system which results into input to be added back and create debit on the account, and that leads to ADR1 which takes 90 working days to be finalised and even after 90 days most of them don’t even get resolved.The issue about supporting documents not uploading will be escalated to business developers to investigate the reason for documents scanned mainly from e-filling why they do not upload to SARS system; there is a possibility of a technical related problem.

Cases older than 5 years: SARS cannot revise assessments for cases older than 5 years, but there are cases where taxpayer has proof that the case / return was submitted within 5 year period:

SARS emphasised that it shouldn’t be a problem where there is proof, however if such cases don’t get resolved they need to be escalated by consultants to the team leader, team leader to the branch manager.  

IT12EI are submitted but assessments don’t get finalised, tax practitioner were requested to give examples to e-filing team for further investigation.

E-filing : request was made by practitioners to increase capacity from 2MB because of the of documents they submit on e-filing, if it exceeds 2 MB they are forced to submit other documents manually and it sometimes causes a delay in finalising assessments sometimes they get missing, the issue will be discussed with the system developers.

PCC- North e-mail: when the practitioners send queries via the PCC North e-mail they get messages that the mailbox is full: it was confirmed that the mailbox is consistently monitored. And tax practitioners were advised not to submit ADR1 via the e-mail due to security reasons. , the e-mails meant for correspondence not legal documents such as ADR1.

Societies which are not companies: Procedure to be followed to register them: tax practitioners want to know procedure to be followed when registering an association because when they submit IT77C SARS posts back to them and advise them to complete IE but the form requires taxnumber. Tax practitioners were advised that Tax Exempt Unit should facilitate the registration. Few examples were given.

NOO:they are disallowed and the tax practitioners are advised to submit NOA or resubmit again and the second submission also gets rejected and advice is given to re-submit and the reason for rejection is always not clear (few of those reasons are: sequence incorrect of invalid objection and the system doesn’t give further clarity as to how is the sequence incorrect or how is it invalid.. case will be escalated to business systems. Tax practitioner were also advised that if they want to correct the assessment they can make a request for correction instead of NOO however if there was audit on the assessment system will not allow RFC. Tax practitioner were requested to communicate with Anise Botha should they experience problem with NOO.

New IT4 & TRUST returns:No space for accumulated loss and other items that are on the company balance sheet, Foreign companies don’t have share capital: the issue will be escalated to business systems but there were examples given.

IRP 6 once it’s captured the basic amount changes:SARS requested few examples so that they can be escalated for further investigation. 

E-mails and SMS sent by SARS when returns/statement of accounts is requested:E-mail or SMS is sent by SARS to notify the tax practitioners what was requested.  It was explained to the practitioner that for security purposes it is important to send confirmation to the taxpayer.

IT77 and other forms:must be made available on PDF format to enable the practitioners to type on them so as to prevent capturing errors. Also for security reasons registration process will remain the same, however examples of capturing errors were requested for further investigation.

The link to automatically register new companies is no longer available due to changes if CIPC system.

Dividends tax: Deadline of March 2013 for submission of supporting data: Tax practitioners confirmed the issue was dealt with.

SARS withdrawals out of taxpayer’s bank accounts: Tax practitioner also confirmed that the issued was handled and dealt with.

4. CLOSURE  

The chairperson thanked all the attendees and declared the meeting officially closed.


WHY REGISTER WITH SAIT?

Section 240A of the Tax Administration Act, 2011 (as amended) requires that all tax practitioners register with a recognized controlling body before 1 July 2013. It is a criminal offense to not register with both a recognized controlling body and SARS.

MINIMUM REQUIREMENTS TO REGISTER

The Act requires that a minimum academic and practical requirments be set to register with a controlling body. Click here for the minimum requirements of SAIT.

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