Whether EMP501s reconciliations needed to be submitted before the year 2010
29 October 2014
Posted by: Author: SAIT Technical
Author: SAIT Technical
Q: I have been
trying to apply for a tax clearance certificate from SARS and have been
declined based on the fact that there are outstanding EMP501s according to the
SARS system. The period being queried is from 2003 to 2007. I am not sure if
the EMP501 returns were even required at that point in time.
If I go back and check my records I am sure that SARS put in
place the EMP501 recons in 2010 only, could you please advise on this and let
me know if I am right or wrong. Secondly, I do not have the payroll information
for the period in question any suggestions on what I can do to get past this.
A: From what we
can determine (see link below) the EMP501 replaced the IRP501 from the 2008 tax
year, we therefore agree that this document was not required in those periods.
On this basis we are
of the view that you should submit an administrative complaint to the Call
Centre and SMMO on the basis that this document was not required in those
periods, an IRP501 return was rendered for those periods and that in terms of
section 73A ITA the records were kept for only 5 years after the returns were
submitted as required and therefore no information was retained for those
Disclaimer: Nothing in this query and answer should be construed as
constituting tax advice or a tax opinion. An expert should be consulted for
advice based on the facts and circumstances of each transaction/case. Even
though great care has been taken to ensure the accuracy of the answer, SAIT do
not accept any responsibility for consequences of decisions taken based on this
query and answer. It remains your own responsibility to consult the relevant
primary resources when taking a decision.