What’s New at SARS

24 April 2023 – Dispute Resolution Enhancements

Over the past weekend SARS released system enhancements to improve its efficiency and effectiveness in resolving tax disputes. These enhancements will also ensure that only the tax in dispute is considered for suspension of payment.

The most significant system changes to be implemented include:

• Calculation of disputed amount: On submission of an appeal the calculation of the value of the amount disputed will be automated. This will reduce the time taken in internal allocations, improve the accuracy of suspensions of payment and assist internal reporting on disputed debt.

• Updating taxpayer contacts: Taxpayers will now be able to amend their contact details for purposes of their tax dispute on eFiling. This will facilitate earlier engagement by SARS and allow taxpayer to include the contact details of their representative chosen for purposes of resolving the tax dispute. 

• Request for Remission: The request for remission functionality has been extended to include remission requests for provisional underestimation penalties levied in terms of paragraph 20(1) of the Fourth Schedule to the Income Tax Act No. 58 of 1962. This functionality is now aligned to the applicable legislation.

• Request for Reasons: New automated Request for Reasons outcome letters have been implemented. Previously if SARS agreed that reasons for the assessment had to be supplied, manual letters were issued.

• Objections: Where SARS requires additional substantiating documents to enable it to consider an objection, it is now able to issue up to three (3) requests to the taxpayer for the supply of the requested documents. This will ensure that most of the dispute related information gathering is done during the objections phase of a tax dispute.

• Appeals: Automated letters have been introduced for appeals administration for Alternative Dispute Resolution (ADR) have been implemented as follows:
  • Notice confirming that an appeal is suitable for ADR;
  • Notice extending the period of ADR proceedings;
  • Notice terminating the ADR proceedings; and
  • Notice confirming the outcome of an appeal.

In addition to the above various internal processes have been streamlined to reduce resolution times of especially appeals in ADR proceedings. The enhancements to taxpayer contact details and automated notices will greatly improve communication with taxpayers.

Pivotal to the delivery of SARS’ Vision 2024 are our digital platforms & technology infrastructure. These enhancements will aid in providing clarity & certainty and make it easy for taxpayers & traders to comply with their obligations.

Enhancements to the current Tax Compliance Status (TCS) system due to new opportunities and legislative changes include, but are not limited to:

• The definition of what it means to be tax compliant, the business process and usability of the existing TCS system to drive continuous compliance, strengthen the compliance result and provide a superior customer experience.
• The discontinuation of “Tender” as an option for Tax Compliance Status request.
• Strengthening legislative alignment with the SARB exchange control changes as it pertains to Emigration, with the introduction of a new dynamic application called “Approval International Transfer (AIT)”, to replace the existing “Emigration” and “Foreign Investment Allowance (FIA)” application types.

The Tax Compliance Request form (TCR01) has been amended to align to the required changes.

Updated guides:

• GEN-ELEC-08-G01 – Guide to the Tax Compliance Status functionality on eFiling – External Guide
• IT-AE-49-G01 – Services offered by SARS via the SARS MobiApp – External Guide

21 April 2023 – National Legislation: National Treasury and SARS today publish, for public comment, the draft legislative amendments to give effect to the two renewable energy tax incentives, announced in the 2023 Budget. The documents published include the following:

• 2023 draft Taxation Laws Amendment Bill (TLAB)
• Draft explanatory memorandum on the initial batch of the 2023 Draft TLAB

Due date for comment: 15 May 2023

21 April 2023 – RFP40/2022: Supply, maintenance of sanitary, and health care services for the SARS offices, countrywide for a period of 36 months

The questions and answers from the briefing session held on 12 April 2023 is now available.

21 April 2023 – RFP/37-2022: Appointment of a service provider to conduct a public opinion survey on tax compliance and to develop the attitude to tax compliance index

The questions and answers from the briefing session held on 14 April 2023 is now available.

21 April 2023 – Tax Court Judgments

• SARSTC VAT 1518 (VAT) [2023] ZATC JHB (23 March 2023)
• SARSTC 35476 (IT) [2023] ZATC JHB (15 March 2023)

Summaries are available on the tax court judgments page.

21 April 2023 – Achieving our Vision 2024 of a smart, modern SARS with unquestionable integrity that is trusted and admired is of paramount importance. Pivotal to the delivery of our vision are our digital platforms & technology infrastructure. In order to provide clarity & certainty, make it easy for taxpayers & traders to comply with their obligations and building public trust and confidence, our technology assets have to demonstrate the highest levels of availability, robustness and security.

Pursuant to our Vision and Strategic Objectives, which include modernising our systems to provide Digital and Streamlined online services, we are hard at work ensuring that our digital platforms & technology infrastructure are available, robust & secure, by performing regular upgrades, enhancements and maintenance.

In the light of the above, system upgrades are scheduled for Friday, 21 April from 18:00 until 23:00,  Saturday, 22 April from 20:00 to 23:00 and Sunday, 23 April 2023 from 08:00 to 14:00. During this time various services on eFiling may not be available.

20 April 2023 – The Tax Practitioner Connect Issue 41 newsletter is now available.

20 April 2023 – The Government Connect Issue 9 newsletter is now available.

19 April 2023 – Employment Tax Incentive Act, 2013: Binding General Rulings

• Binding General Ruling 47 (Issue 2) – Meaning of “month” in the definition of “monthly remuneration” and section 6(g) for employers remunerating employees on a weekly or fortnightly basis
• Binding General Ruling 44 (Issue 2) – Meaning of 160 hours for purposes of section 4(1)(b)

19 April 2023 – Employment Tax Incentive Act, 2013: Binding General Rulings

• Binding General Ruling 47 – Meaning of “month” in the definition of “monthly remuneration” and section 6(g) for employers remunerating employees on a weekly or fortnightly
• Binding General Ruling 44 – Meaning of 160 hours for purposes of section 4(1)(b)

19 April 2023 – Income Tax Act, 1962, and Estate Duty Act, 1955

• Frequently Asked Questions: Estate Duty

19 April 2023 – Notification of a new tender has been published.

RFP32/2022: Appointment of Consulting Engineering Firm in the field of Technical Security

19 April 2023 – Customs & Excise Act, 1964: Draft amendments

• Rules under sections 46, 49 and 120 – Trade agreements
• Part 3 of Schedule No. 6 – Insertion of Note 14 and refund item 670.05/00.00/01.00
  • DA 185 – Application forms: Registration / Licensing of Customs and Excise clients
  • DA 185.4A3 – Registration client type 4A3 – Rebate/refund user (Schedule No’s 3, 4 and 6)

Due date for comment: 3 May 2023

19 April 2023 – Customs and Excise Act, 1964: Tariff amendment notice R3314, as published in Government Gazette 48439 of 19 April 2023, relates to the amendments to –

• Part 1 of Schedule No. 2, by the insertion of items 215.11/8201.10.05/01.08; 215.11/8201.10.10/02.08; 215.11/8201.30.03/02.08; 215.11/8201.30.03/03.08; 215.11/8201.30.90/02.08 and 215.11/8201.90.20/02.08, in order to implement anti-dumping duty on spades and shovels of a maximum blade width of more than 150mm but not exceeding 200mm originating in or imported from the Peoples Republic of China, and spades and shovels of a maximum blade width of more that 200mm but not exceeding 320mm as well as pics, rakes and forks originating in or imported from India – ITAC Report 704

18 April 2023 – Customs Weekly List of Unentered Goods

18 April 2023 – RFP/37-2022: Appointment of a service provider to conduct a public opinion survey on tax compliance and to develop the attitude to tax compliance index

The presentation for the briefing session held on 12 April 2023 is now available.

18 April 2023 – RFP40/2022: Supply, maintenance of sanitary, and health care services for the SARS offices, countrywide for a period of 36 months

The presentation for the briefing session held on 12 April 2023 is now available.

18 April 2023 – Awarded Tender Bids

To view the latest tender bids awarded document click here.

17 April 2023 – RFP36/2022: Provision of medical surveillance, immunizations and related services.

• Questions and answers have been published.