The answer to this query is based on legislation as at2014/04/10.
Q: We have heard from a fellow accounting firm (hoping its a
rumor) that in the near future SARS will put an end to us generating additional
IRP5's / IT3's for the members of the Close Corporation , after the submission
of the EMP501. This will end in us needing to complete the business's
financials in just a month or two due to the reconciliations that needs to be
submitted by the end of May each year.
accept that the "additional IRP5” is required because the remuneration of the
director (member of the CC), whilst it accrued before year end is only
quantified (determined) after year end. What we are basically saying is
that this is not due to the member being entitled to variable remuneration
(most likely a bonus). There
is no indication that SARS will change this in the short term.
11C of the Fourth Schedule that deals with the employees’ tax consequences
where the remuneration of a director of a private company is determined after
year end and there is also no indication that this will change. We
believe this to be significant as no changes were made to this paragraph when
the concept of variable remuneration was introduced (from 1 March 2013).
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.