Tax News

Tax bargaining

Revolutionizing Tax Compliance: The Power of Collaborative Bargaining

  • Exceeding Revenue Targets: The South African Revenue Service (SARS) has surpassed its revenue collection target for the fiscal year 2023-2024, amassing over R 1.74 trillion, indicating a significant increase from the previous year’s collection.
  • Governance Disparity: Dr. Sansia Blackmore highlights a concerning disparity in tax governance, emphasizing high taxes relative to African peers and deficiencies in governance and accountability metrics compared to OECD countries.
  • Advocating for Tax Bargaining: Dr. Blackmore advocates for the implementation of tax bargaining as a means to enhance tax compliance, proposing a shift towards an institutional environment that fosters dialogue, contestation, and cooperation between taxpayers and tax authorities.

Revolutionizing Tax Compliance: The Power of Collaborative Bargaining Read More »

Tax Revenue Milestone

SARS Achieves Historic Tax Revenue Milestone

  • Revenue Achievement: Despite economic challenges, South Africa’s tax revenue reached a significant milestone of R2.155 trillion for the 2023/24 fiscal year, showcasing a 4.2% year-on-year growth.
  • Refunds and Compliance: SARS refunded taxpayers with R414 billion, the highest ever, with a portion directed to support small businesses and individuals. Despite this, concerns remain about potential fraud and abuse in the refund system. SARS also emphasized efforts to enhance compliance, with a notable increase in voluntary compliance index.
  • Tax Product Performance: Personal income taxes and domestic VAT demonstrated substantial growth, while corporate income tax contracted. SARS’s compliance program significantly contributed to revenue, reflecting the agency’s commitment to enforcing tax obligations.

SARS Achieves Historic Tax Revenue Milestone Read More »

SARS Boosts Tax Process: Smoother 2023 Changes Ahead

  • SARS announces enhancements to Tax Directives process for 2023/2024 financial year, aiming for improved efficiency and accuracy.
  • Changes include Form C adjustments and full benefit transfers for amounts under R371,250, reflected in Version 6.504 specification.
  • Stakeholders must follow SARS’ trade testing steps, submit 10 taxpayer reference numbers for verification, and access Interface Specification on www.sars.gov.za.

SARS Boosts Tax Process: Smoother 2023 Changes Ahead Read More »

SARS

Mobile Tax Unit Rolls into Limpopo: Get Hassle-Free Tax Services at Your Doorstep!”

  • Convenience at your doorstep: The Mobile Tax Unit brings tax services closer to residents in Limpopo, eliminating the need for long-distance travel to access tax assistance. By visiting various locations, it ensures convenience and accessibility for individuals and businesses.
  • Wide range of services: The Mobile Tax Unit offers comprehensive tax services, including tax return filing, issuing tax certificates, and providing personalized tax advice and consultations. It aims to assist taxpayers in managing their tax affairs effectively and ensuring compliance with tax regulations.
  • Benefits for residents: The Mobile Tax Unit brings numerous advantages, such as saving time and transportation costs, providing expert assistance from qualified tax professionals, and allowing individuals to plan their tax-related tasks without disrupting their daily routines. It offers a convenient and accessible solution for Limpopo residents to fulfill their tax obligations efficiently.

Mobile Tax Unit Rolls into Limpopo: Get Hassle-Free Tax Services at Your Doorstep!” Read More »

Taxes

SARS Admin Penalties: Navigating the Tax Maze for South African Residents and Expats

  • Understanding Admin Penalties: The South African Revenue Service (SARS) has been imposing administrative penalties on taxpayers’ accounts, even if they are exempt from filing returns. In 2023, penalties totalling R381 million were imposed on 690,000 taxpayers for late returns.
  • Requesting a Penalty Waiver: Taxpayers have the right to request a waiver on reasonable grounds within 30 working days of the notice being issued. A Request for Remission (RFR) can be submitted when a taxpayer disputes any penalty levied due to non-compliance.
  • Tax Emigration and Deactivation of Tax Number: For taxpayers who have moved out of South Africa, it’s advisable to formalise tax emigration with SARS and deactivate their South African tax number. This ensures they are not automatically classified as a South African tax resident and helps avoid future complications.

SARS Admin Penalties: Navigating the Tax Maze for South African Residents and Expats Read More »

Taxes

Revolutionizing Tax Returns: SARS Unveils Major Updates to Corporate Income Tax System

  • The South African Revenue Service (SARS) is introducing significant changes to the Income Tax Return for Companies (ITR14) and Notice of Assessment for Companies (ITA34C) from 23 June 2023. These changes also include updates to some source code descriptions.
  • Key changes include updates to core systems for assessed loss calculations, identification of specific deductions in ITR14, removal of the Solidarity Fund Donations container, validation of Public Benefit Organisations (PBO) numbers, addition of a Share Register to the ITR14 return, and enhancements to the “Taxable Distribution(s) from all Trusts(s)” container.
  • SARS has expressed gratitude to compliant taxpayers and tax practitioners, emphasizing the importance of staying updated with evolving legislation, regulations, and tax laws to ensure companies continue to meet their tax obligations.

Revolutionizing Tax Returns: SARS Unveils Major Updates to Corporate Income Tax System Read More »

Sars eFiling

SARS Advocates for eFiling: A New Era of Efficiency for Tax Practitioners

  • Utilization of Tax Practitioner’s Profile: SARS is encouraging tax practitioners to use the Tax Practitioner’s Profile when assisting clients. This tool allows practitioners to manage multiple taxpayers efficiently under a single portfolio type.
  • Importance of Accurate Representation: Tax practitioners are reminded to use their own eFiling profiles when assisting clients, as using a client’s login details is considered misrepresentation. Shared access with clients is encouraged to ensure accuracy and shared responsibility.
  • Updates and Compliance: The press release provides updates on the PAYE Employer Reconciliation for 2023/2024 and emphasizes the importance of compliance. Non-submission of returns due to failure to de-register for tax types that are no longer applicable could lead to the de-registration of the tax practitioner.

SARS Advocates for eFiling: A New Era of Efficiency for Tax Practitioners Read More »

Sars eFiling

SARS Elevates User Experience: Major eFiling Upgrade Scheduled for Enhanced Security and Efficiency

  • SARS’s Vision 2024: The South African Revenue Service (SARS) is working towards its Vision 2024, aiming to become a smart, modern organization with unquestionable integrity. Central to this vision is the enhancement of its digital platforms and technology infrastructure.
  • eFiling System Upgrade: As part of its strategic objectives, SARS has announced a significant upgrade to its eFiling system scheduled for Friday, 23 June 2023. This upgrade is designed to improve the system’s availability, robustness, and security, providing a seamless and secure online experience for users.
  • Commitment to Excellence: The upgrade is a clear indication of SARS’s commitment to its vision and its users. Despite potential temporary disruptions during the upgrade, SARS’s efforts are focused on enhancing user experience and security, marking a significant step towards becoming a modern, efficient, and trustworthy organization.

SARS Elevates User Experience: Major eFiling Upgrade Scheduled for Enhanced Security and Efficiency Read More »

tax deadline

Revolutionary Tax Changes: How SARS’s New Rules Could Impact Your Wallet in 2023

  • Extension of the 40 Business Days Rule: The South African Revenue Service (SARS) has extended the 40 Business Days Rule to coincide with the normal filing due date for non-provisional taxpayers, which is 23 October 2023. This gives taxpayers more time to file a return if they wish to edit their auto-assessments.
  • Adjustments to Payment Due Dates: SARS has adjusted the payment due dates for non-provisional eFilers. For those not in the auto-assessment population, the payment due date will now be 30 days after a notice of assessment has been issued. For those who are auto-assessed, the payment due date will be 30 days post Filing Season 2023 closing date.
  • New Fields for Foreign Income Disclosure: SARS has introduced three new fields for taxpayers who must declare worldwide foreign income. These fields are designed to accommodate income sourced from a foreign employer while working in South Africa and/or abroad, which previously did not have an appropriate source code for declaration.

Revolutionary Tax Changes: How SARS’s New Rules Could Impact Your Wallet in 2023 Read More »