Industry updates | August 2022
Please take note of the following industry updates that may be relevant to you and your business.
COMPLIANCE AND ADMINISTRATION
Due dates for reporting and payments- August 2022:
TAX ADMINISTRATION
1. SARS Strikes:
The industrial action strike that started on 12 July 2022 at SARS is still ongoing as of 31 July 2022.
SARS has indicated that they had put business continuity and other contingency plans in place in order to continue to deliver essential services to taxpayers. At this point, it does not appear that Filing Season services are significantly impacted:
Despite the Tax Practitioner contact centre being closed, most services are accessible via eFiling; and
Virtual appointments are rescheduled when impacted. SAIT does not at present have specific Filing Season escalations as a result of the SARS Labour Strike; and
SARS Audits are impacted, and delays are being experienced across the various tax types.
2. Filing Season refunds and reversals:
From 1 – 14 July 2022, SARS issued approximately 2.5 million estimated-assessments to individual taxpayers, as part of their enhanced ‘auto-assessment’ process. As a result, several taxpayers were entitled to receive income tax refunds. Prior to the commence of the filing season, SARS committed to paying income tax refunds within 72-hours from the date the assessment was issued.
During the past week, SAIT received several queries indicating that the refunds were not being paid out within the stipulated time. Upon further investigation, it was determined that the refund would typically be delayed under the following 2 circumstances.
1. Refund limitations by SARS
SARS has a set number of refunds, which can be processed on a daily basis. Once this limit has been reached, all additional refunds will need to be processed in the subsequent days. Due to the number of refunds, which needed to be processed and the limitations on the system, SARS experienced a delay in the processing of some refunds. As of 14 July 2022, SARS indicated that all refunds payments were up to date.
2. Special stopper placed on the assessed account
The main reason for the reversal of an income tax refund is the placing of a ‘special stopper’ on the assessed account. When a special stopper is placed on the assessed account, the taxpayer must verify or update their banking details. This is purely for security reasons and not necessarily because the banking details changed.
To update the banking details, the taxpayer would need to book a virtual appointment and have the special stopper removed. The taxpayer can book the appointment via the SARS Booking system.
The taxpayer must submit the following documents on the SARS Online Query System at least 2 hours before the meeting:
• ID copy;
• Proof of address (not older than 3 months);
• Bank Statement (1 month but not older than 3 months); and
• A selfie of the taxpayer holding their ID and a note containing the case number and the appointment date
3. Provisional Taxes:
The first provisional tax return for the 2023 tax year is almost due, this applies to all individuals and companies with a February year end.
The 2023/01 IRP6 returns were made available on eFiling on 1 July 2022. New IRP6 returns now contain all the latest taxpayer data and rebates applicable for the taxpayer. Members are reminded that the due date for the submission and payment of the 2023/01 IRP6 returns is 31 August 2022.
Please ensure that you meet the deadline, SARS will impose penalties for late submission, as well penalties for the underestimation or overestimation of your tax liability.
4. Reprieve in the petrol price increase (Reminder):
On 31 May 2022, following discussions held between National Treasury and the Department of Mineral Resources and Energy, both departments released a joint media statement regarding the extension of the temporary reduction in the general fuel levy.
Considering the impact that the withdrawal of the temporary reduction in the general fuel levy would have on taxpayers and the general economy, National Treasury tabled a two-month proposal for the extension of the reduction in the general fuel levy.
* Therefore, despite the increase in the petrol price, taxpayers were granted a continuation of the relief of R1.50 per litre from 1 June 2022 to 6 July 2022. However, National Treasury indicated that there would be a downward adjustment to the relief for the second month to 75c per litre from 7 July 2022 to 2 August 2022. The temporary relief will be completely withdrawn from 3 August 2022.
- Domonique Ramos | 01 August 2022