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FAQ - 7 February 2018

Wednesday, 07 February 2018   (1 Comments)
Posted by: Author: SAIT Technical
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Author: SAIT Technical

1. What are the implications if we do not receive a letter sent by SARS?

Q: When we submit a dispute and SARS decides it is invalid with one or another reason we do not receive any e mail or notification although a letter is issued and if we do not go and check will never know. Then it is sometimes late to submit another dispute with the corrected reasons according to SARS. What steps can we take to correct missing the notification?

A: In terms of rule 7(4), where a taxpayer delivers an objection that does not comply with the requirements of subrule (2), SARS may regard the objection as invalid and must notify the taxpayer accordingly and state the ground for invalidity in the notice within 30 days of delivery of the invalid objection, if-

(a) the taxpayer used a SARS electronic filing service for the objection and has an electronic filing page;

(b) the taxpayer has specified an address required under subrule (2)(c); or

(c) SARS is in possession of the current address of the taxpayer.

Under rule 7(5), a taxpayer who receives a notice of invalidity may within 20 days of delivery of the notice submit a new objection without having to apply to SARS for an extension under section 104(4). 

We understood that taxpayer is actually notified when the rule 7(4) notice is issued, but in your experience, it doesn’t happen.  We agree that that is a problem as subrule (c) states that “if a SARS electronic filing service is not used, specify an address at which the taxpayer will accept delivery of SARS's decision in respect of the objection as well as all other documents that may be delivered under these rules”.  In other words, notifying the taxpayer on the electronic filing page would constitute delivery of the invalid notice and the 20 days would run from that date. 

The taxpayer could try for condonation of the late filing due to not being aware that the invalid notice was delivered. 

SAIT will take this issue up with SARS, but in the meantime, it is suggested that the taxpayer regularly checks on the electronic filing page when a dispute is in process.  

2. Once an employee is over 65 years, are they still liable for UIF?

Q: This query relates to UIF tax, if an employee retires and then go back to work and they are over 65 do they have to pay UIF? Does a learner who gets paid a minimum stipend of R960 have to pay UIF? Also what if someone takes early retirement after 60 and then comes back to work do they have to pay UIF?

A: In terms of section 1 of the Unemployment Insurance Contributions Act, 2002, “employee” means any natural person who receives any remuneration or to whom any remuneration accrues in respect of services rendered or to be rendered by that person, but excludes an independent contractor. 

Section 4 provides that this Act applies to all employers and employees, other than -

(a)    an employee and his or her employer, where such employee is employed by that employer for less than 24 hours a month;

(b)    employees under a contract of employment contemplated in section 18(2) of the Skills Development Act, 1998 (Act No. 97 of 1998), and their employers;

(c)     …

(d)    an employee and his or her employer, where that employee has entered the Republic for the purpose of carrying out a contract of service, apprenticeship or learnership within the Republic if upon the termination thereof the employer is required by law or by the contract of service, apprenticeship or learnership, as the case may be, or by any other agreement or undertaking, to repatriate that person, or if that person is so required to leave the Republic”. 

There is no exemption on the basis of age, and the exception for a learner only applies to non-residents. 

The following is mentioned on http://www.labour.gov.za/DOL/legislation/acts/basic-guides/basic-guide-to-uif-unemployment-benefits

Employees in receipt of an old age pension are; since 07/02/2007, no longer excluded from contributing towards UIF

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.

Comments...

Pierino S. Pitacco says...
Posted Monday, 19 February 2018
I have had a number of occasions where SARS did not sms or email me that correspondence was sent. Only after checking efiling did I find correspondence which was overdue for reply !! Had to re-submit NOO plus condonation reasons. What a waste of time.

 

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