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SARS Snippets

25 June 2014   (0 Comments)
Posted by: Author: Emmerentia Fischer
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Author: Emmerentia Fischer (SAIT Technical)

Any refund due?  Expect Bank detail verification at SARS.

Do you as taxpayer have any refund due from SARS?  If the answer is "YES”, then you can expect to receive a request from SARS to verify your banking detail.  This will always be relevant due to the biggest risk that the South African Revenue Service (SARS) has to deal with:  "The fraudulent changes to taxpayers’ banking details”.Any changes to banking details (registering or changing of) are verified before your banking profile with SARS is updated.  This is to protect you as taxpayer against fraud.  Any refunds due to you (if applicable) are processed only after your banking details are received and verified. If it is necessary for you to come into a SARS branch to present relevant material (supporting documents), SARS will notify you of this through the issuing of a letter.

Banking details can be registered or changed via the following channels: 

  • "In person” at a SARS branch
  • Via SARS eFiling 
    • When completing an Income Tax Return for Individuals (ITR12) or an Income Tax Return for Company (ITR14);
    • By completing the Registration and Amendments form (REG01) [only applicable to Corporate Income Tax (CIT)].
  • By placing the required application form and relevant material in a SARS drop-box (only applicable to Customs and Excise).

Bank verification remains a thorn in many tax practitioners and taxpayers’ side.  Please ensure that the relevant material requirements in the guides are adhered to in every sense of the word.  "Registering or Changing of your banking detail” are one of the guides available in this regard.  In the event of a SARS official requesting information that are not included in the guides, please contact the team leader and/or branch manager of the SARS branch.

Tax Season 2014 opens 1 July

Are you an early bird and want to instruct your tax practitioner to submit your tax returns before the rush on 1 July?  Unfortunately your tax practitioner will not be able to live up to your expectations in this regard.  This is due to the fact that the SARS system won’t be able to accept the filing of the return prior to 1 July 2014. All taxpayers (and tax practitioners) are reminded to only start submitting tax returns for the 2014 tax season from 1 July 2014.

Enhancements to tax practitioner functionalities

On 12 May 2014 the Single Registration became reality (or nightmare) for tax practitioners and taxpayers across South Africa.  Due to the fact that there are always a lot of teething problems when implementing a new system, it came as no surprise that this is also applicable with regard to the implementation of the Single Registration.  The teething problems commences with the registration, amendments and verification form (RAV01) and none of us know yet where and/or when the teething problems will end.

In order to get rid of the teething problems SARS subsequently made additional functionalities available to registered tax practitioners and company representatives.  Some of them includes the following:

  • Complete and submit all applicable returns (including income tax returns) on behalf of their clients;
  • Update and maintain their client’s registration details on the "Registration, Amendment and Verification (RAV01) form on e-filing;
  • Submit new tax type registration applications and update a company’s public officer/registered representative’s details on e-Filing (which means the public officer/registered representative will no longer need to go into a SARS branch to confirm their relationship with their company/update their details as this can be done by the company’s registered tax practitioner.);

Additional measures will be introduced shortly that will limit functionality available to practitioners who are not registered as tax practitioners.  It is therefore imperative that you as taxpayer insists confirmation from your tax consultant to ensure that he/she is a registered tax practitioner as required by law. Functionalities available for Registered RepresentativesYou have probably asked the question how Single Registration will impact on you as the Registered representatives (e.g. public officers) of the company.  You will now be able to perform the following functionalities:

  • Log onto e-filing to complete and submit all applicable returns (including income tax returns) on behalf of your company/entityLog onto e-filing to complete and submit all applicable returns (including income tax returns) on behalf of your company/entity.
  • .Activate yourself as Registered representative on e-filing if your details have previously been correctly recorded on the SARS system.  This you will be able to do by going to "Organisations”, then "SARS Registered Details” then "Activate Registered User”.  If your details have not yet been recorded on the SARS system, they will need to visit a SARS branch to update your details or utilise a Registered Tax Practitioner who will capture the company’s official representative details on their behalf.  After that is done you will still need to activate yourself on e-filing if you wish to use "registered user” functionality.
  • You will be able to allocate representative rights to additional users on the company e-filing profile.

As a designated representative of an entity, or a registered tax practitioner, you can activate a "registered user” role which enables you to view and maintain all registered details for the tax payer.  The registered user will be able to maintain product level registered details and entity details, they will be able to submit new tax type registration application and will also be able to maintain representative details of the entity.

The functionalities that are now also available to the registered representatives are in line with SARS re-establishing the chain of trust from the boardroom to the public officer and from the public officer to the tax practitioner.  The ultimate aim of SARS is to be able to pinpoint the accountability with regard to tax returns.Even though the tax practitioner is handling the legal entity’s tax affairs in terms of the engagement letter entered into, the accountability of the accuracy and completeness of the information submitted to SARS will be fair and square on the shoulder of the public officer.



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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