Industry updates | October 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- October 2022:
TAX ADMINISTRATION
Employer bi-annual reconciliation opens
The filing of the 2022/2023 employer interim EMP501 reconciliations opened on the 19th of September and closes on the 31st of October 2022. The 2022/2023 interim reconciliation is a summary of the EMP201 submissions and payments made in respect of the month’s of March to August 2022.
2. Third-party data reporting period commences
The SARS Third Party Data Bi-Annual Submissions process opened on 1 September 2022.
The bi-annual reporting period covers the reportable period from 1 March 2022 – 31 August 2022. The reporting period will close on 31 October 2022.
Third-Party Data providers who need to make these submissions include but are not limited to: Banks; Medical aids; JSE-listed companies that issue bonds, debentures, or financial products; financial institutions (e.g., long-term insurers, pension funds, and collective investment schemes); and state-owned companies that issue bonds, debentures, or financial products.
3. SARS not meeting turnaround times (*latest)
We have noted an uptick in cases being escalated where SARS has not kept to the agreed turnaround times.
The delays primarily relate to the following matters:
• Verifications and refunds (Income tax and VAT)
• Disputes (objections and appeals)
• Updating of registered representative details
• Tax Compliance Status: Foreign investment allowance
• Deceased estate compliance letters
• Bank detail verifications and stoppers
• Payment arrangements
• Financial year-end changes Members are reminded that they can escalate SARS service delays to SAIT.
From communication with some of the SARS regional representatives, it appears that due to backlogs and despite the timeframes stipulated in the SARS Service Charter, SARS is not dealing with matters that have been escalated unless it exceeds 30 business days. Regardless, we will continue to escalate matters that exceed the SARS Service Charter turnaround times.
4. Correcting an underclaim of input tax (VAT)
The VAT201 return does not allow for the correction of input tax:
• A VAT vendor on occasion, after submitting the return, realises that they made a mistake when completing the VAT201 return. However, the return currently does not allow a VAT vendor to amend the input tax captured after the return has been submitted despite the fact that there is currently no legislative reason to prohibit the vendor from fixing the error.
• The current SARS policy stipulates that the mistake must be rectified when the return for the next VAT period is submitted. However, this policy has unwarranted interest, penalties, and cash flow implications.
• The SARS Gauteng North region have considered applications in terms of section 93(1)(d) of the Tax Administration Act, No. 28 of 2011 (the TAA) for a SARS committee to authorise a VAT auditor to amend the VAT 201 return.
• However, SARS Legal is of the opinion that such an error cannot be considered a ‘readily apparent error’ and therefore does not fall within section 93(1)(d) of the TAA. SARS
• Legal recommended that the return must allow a VAT vendor to correct mistakes identified.
During the RCB Forum meeting held on 13 September 2022, it was agreed that all RCB forum members would provide comments to a joint submission addressed to the SARS Stakeholder Engagement team.
Amongst others, issues to be discussed in the submission include adjustments to Input VAT, correction of amounts ‘overpaid’ in prior periods, the process to correct an error in the VAT201 form, and the removal of the diesel rebate from the VAT201 form. It is anticipated that the submission will be sent to SARS in the coming week and access to the submission will be granted to members when it has been submitted to SARS
- Domonique Ramos | 30 September 2022