September 18, Pretoria – Despite facing severe economic challenges, the South African Revenue Service (SARS) has committed itself to make a difference in providing employment opportunities for young people,  albeit in its own small way. We are pleased that this year we are able, despite resource constraints, to employ 184 interns who have come to the end of their training during September 2020. Without this many would end up as unemployed in an environment where youth unemployment is a huge societal challenge for South Africa.

Annually SARS invests in graduate training for a number of newly graduated professionals.  In this regard, trainees undergo intensive learning and development interventions and practical work exposure over a period of 24-36 months. This is complemented by rigorous assessments of their learning outcomes, as well as on-the-job training.

This step dovetails with the overall government strategy of addressing the socio-economic challenges, which have been exacerbated by COVID 19 with concomitant unemployment. Taking into account the recent GDP contraction, our country is indeed facing a major challenge. This opportunity must surely bring a glimmer of hope and brighter future prospects for the now permanently employed staff. 

This decision was part of SARS’ commitment to empower an ever-growing population of young professionals entering the workforce. However, it also partly addresses a severe shortage in critical areas within SARS. This is integral to our overall  Workforce Capacity Plan.

Additionally, SARS has been running various development programmes to build emerging talent capabilities in order to support its Vision 2024. The organisation has for many years contributed to various sectors by capacitating young professionals in the areas of Accounting, Audit, Taxation, Information Technology, Economics, Legal, and Customs and Excise.

“All these graduate trainees expressed the concern that they end up as part of the youth unemployment statistics,” explained Commissioner Kieswetter. “I am excited that our decision now brings certainty and peace of mind to the 184 individuals and provide them with a career opportunity as public servants, whilst we build our much needed skills capability. On 1 October 2020, those trainees who have completed their trainee development programmes will be appointed into permanent roles. I welcome them into our ranks, and enjoin them to our Higher Purpose of enabling government to transform the lives of millions of South Africans. I had the pleasure of meeting some of them personally and the excitement that they displayed in our engagement to be part of the “Re-imagining of SARS”, made this an easy decision.”

SARS will continue to increase the strength of its emerging talent through the development of young professionals and enlarging its pool, thus enabling a skilled workforce that is equipped to adapt to future ways of working. In the final quarter of this calendar year SARS will launch a SARS Junior Board, an initiative to develop next generation leaders.

Pretoria, 14 September 2020 –  As part of ensuring that the South African Revenue Service (SARS) provides certainty and clarity of the legal obligations of the employers and third parties, SARS wishes to announce that the interim employer reconciliation and third party declaration period is now open and closes on 31 October 2020.

In the case of employers – large and small, a reconciliation of the first six months of declarations of employment taxes, monthly payments of these taxes and employee tax certificates (IRP5 and IT3(a) certificates) generated between 01 March and 31 August, is due.

The elements that must reconcile in the employer declaration on staff earnings for the first half of the year, include the monthly employer declarations submitted for Pay As You Earn (PAYE), Skills Development levy (SDL), Unemployment Insurance Fund (UIF), and Employment Tax Incentive (ETI) as well as the monthly payments of these amounts and the employee tax certificates generated depicting the values for PAYE, SDL, UIF, and ETI where applicable.

Failure to fulfil these obligations may attract penalties and potentially criminal charges.

The focus of SARS will be on the accuracy and completeness of what is submitted by employers and third parties, to avoid the many errors and corrections still experienced.  These errors and corrections have a negative effect on the individual taxpayers that they relate to. SARS is refining its risk mitigation and detection measures, and sharpening its existing audit and investigation capacity to identify and collect the tax due and address non-compliance. Employer and third party compliance, importantly, enables SARS to provide a seamless experience for individual taxpayers when fulfilling their tax obligations.

Legislative and system changes

The Covid-19 Tax Relief Measures announced by the Minister of Finance earlier this year, provided employers with deferral relief for Pay As You Earn, a four-month skills development levy holiday, and an enhanced employment tax incentive, as per the amended Disaster Management Tax Relief Administration Bill (DMTRAB).  The DMTRAB requires deferred amounts to be paid in six equal monthly instalments, commencing on 7 October 2020, till 5 March 2021. SARS has implemented these measures, but has not relaxed its deadlines for the submission of declarations and payment where relief has not been sought and thus penalties apply for late or non-submission.

SARS is directly communicating with third parties and payroll administrators to assist with filing and training where required. Similarly, on the enforcement side, SARS is engaging third parties, in particular, employers who have outstanding monthly returns and payments.

Voluntary Disclosure for prior years

SARS invites employers to regularise any tax defaults from prior years through the Voluntary Disclosure Programme (VDP).  A successful application through the VDP process waives penalties pertaining to the default disclosed, which otherwise could range up to 200%.  VDP applications can be made on eFiling.

Taxpayer Queries

4 September 2020, Pretoria – The South African Revenue Service (SARS) has noted the judgement handed by the Full Court of the High Court Division Free State, Bloemfontein, which dismissed SARS’ appeal on 27 July 2020. This appeal was against the judgment and orders of the Bloemfontein High Court.

This Court concluded that the appeal was moot because subsequent to the detention, which was the issue in the first court, SARS seized the vehicle. In the result the Full Court concluded that it would be unnecessary to determine whether the first court was correct or not. The vehicle is now held by SARS on the basis that it was seized.

After much deliberation, SARS has opted to approach the Supreme Court of Appeal to note the leave to appeal this judgement.

SARS wishes to remedy any misconception of the legal requirements when a second hand vehicle is imported into South Africa. The South African law is absolutely clear, and for the importation of a second-hand vehicle into South Africa to be legal, SARS requires the following documents:

• Customs clearance documents,
• Letter of authority from National Regulatory for Compulsory Specifications (“NRCS”);
• Import permit from International Trade Administration Commission (“ITAC”), a Division of the Department of Trade and Industry, and
• Interpol Clearance Certificate.

Pretoria, 27 August 2020 – The South African Revenue Service (SARS) is continuing on its journey to make this year’s filing season a seamless and easy process to help taxpayers fulfil their legal obligations. We have also enhanced our capability to detect and make it costly for non-compliant taxpayers. In this respect, SARS will be introducing a number of new service offerings to assist taxpayers in this next phase of individual filing season.

We wish to emphasize that as far as possible, taxpayers are discouraged to come to our offices, but should continue to use our online electronic filing platform. Those needing assistance may also book with one of our agents via a virtual appointment for a guided filing experience to complete their submission. While we are determined to minimise the numbers of walk-in taxpayers at our branches, we are also prepared, as an absolute exception, to address the concerns of taxpayers who don’t have access to any technology, or who struggle with data issues.

From 1 September to 22 October 2020, taxpayers can visit our SARS branches for assistance with completing and submitting their tax returns. However, they can only do so by making an appointment, due to social distancing requirements under lockdown regulations.

To help, we are introducing the following:

• A toll-free number for taxpayers to call and make branch appointments. The number to call is 0800 11 7277. Operating hours are Mon, Tues, Thurs, Fri : 08:00 – 16:00 and Wed: 09:00 – 16:00
• Enhancements to the current eBooking system on the SARS website. From 1 September, the eBooking system will give the taxpayer confirmation in real-time of their booking slot with their case number and also advise them of supporting documents that they may need to take along with them for their appointment. Since 24 July 2020, there have already been 14 201 eBookings made via the SARS website.
• With both the toll-free number and the online eBooking system, taxpayers will have the option of booking a virtual session with a SARS agent – via video or voice call. This would especially be helpful for the elderly, disabled or those who live far from a tax office. If they choose the video option, taxpayers will be sent a link to the video call which they can access on the day of the appointment. For video calls, taxpayers will need to have either a smartphone with a camera or a Personal Computer (PC) with a camera to start and conclude a video appointment. No special software is needed for this virtual engagement. This “virtual agent” project was recently piloted at our Mitchell’s Plain office in the Western Cape to great success. During the pilot, a taxpayer who now lives in New Zealand was assisted.  The interaction was via video and took 15 minutes.  The taxpayer was thrilled with our service as they said that their past experience of trying to get help from SARS from New Zealand was very challenging.  The taxpayer commented that even though he now lives in New Zealand, he is proud to be South African, given the ground-breaking initiatives we have implemented.
• SARS will be calling certain taxpayers who have been sent auto-assessment SMSes and have not responded. The call will be to ascertain why they have not accepted their auto assessments and to help them either to accept or edit their return and submit it on their behalf. These taxpayers:
• Have all been auto-assessed
• Have a refund due to them
• Submitted their returns at a branch last year
• Have not responded to an auto-assessment SMS 

Progress so far: Since the first phase of individual filing season was introduced on 1 August 2020, SARS has been actively encouraging taxpayers to use our newly-revamped digital channels to file their returns. Over the past month we have focused on auto-assessments, in which we pre-populated taxpayers’ returns by using third party data, artificial intelligence and a taxpayer’s prior compliance history. This was implemented to make it easier for taxpayers to submit their returns electronically – particularly those with standard tax returns – as they simply had to log into eFiling and accept the assessment if all their details were correct. By 31 July 2020, we had sent over 3 million auto-assessment SMS’s to taxpayers. As of 27 August, 500 322 taxpayers had accepted the auto-assessment outcome thus far.  This means that 51% of those who had been selected for auto-assessment, and have already filed, accepted the outcome, while 49% elected to edit and submit their return.  SARS will continue to make follow-up calls to encourage uptake, and prevent people from having to come into our offices to file.

Over the past month, we have also been encouraged to see that of the just over 1.16 million taxpayers who have already filed their returns electronically, 281 160 were taxpayers who used to submit at branches in the past and are now using one of our digital channels (eFiling and/or MobiApp).

We are encouraged by the large number of people being  converted from filing at our branches into our digital channels. We also targeted Government employees (national, provincial and local government) to educate and enable them to file their returns using our enhanced MobiApp and eFiling. SARS’ digital offering is definitely limiting the need for taxpayers to visit a branch.

As part of our commitment to make things as easy as possible for compliant taxpayers, we have been monitoring our social media channels and have noticed the following:

• We are aware that some taxpayers have complained about the lengthy waiting times when they call our Contact Centre, which is often the case during this early phase of filing season. However, taxpayers can use other query channels instead of calling the Contact Centre, namely: go to the SARS website (www.sars.gov.za), click on Contact Us > Contact SARS by email/fax or post
•  Refund timeframes: Taxpayers are reminded that if their assessment was not selected for audit or verification, they can expect a refund (if it is due) within three business days. If selected for audit or verification, the process should be concluded within 21 business days from the date all required supporting documents are received. Once they have received a completion notification from SARS, they can expect the refund within three business days.
• We are getting a lot of queries about people being rejected for SASSA grants as it states they are registered with SARS for PAYE or are receiving an income. According to SASSA, to qualify for the grant, you need to be unemployed (not having any source of income) and not receive any other grants. Should this not be correct, those affected should email SASSA on [email protected].

We trust that some of the service offerings and campaigns mentioned above will assist you in this next phase of individual filing season. For those who are still experiencing challenges, please bear with us as we seek to balance the fulfilment of the SARS mandate and your tax obligations with the need to manage health risks and limit the risk of transmission of the coronavirus.

Please try to file from the comfort of your home – if you need help, kindly visit our website www.sars.gov.za, call our contact centre on 0800 00 7277 or the new toll-free number 0800 11 7277 to make branch bookings.

Keep your social distance.

Stay safe.

And comply with your tax obligations, so we can build South Africa together.

#YourTaxMatters.

Pretoria, 7 August 2020 – Last week, Thursday 30 July, we launched the next phase of Filing Season 2020, namely the filing of individual tax returns. In keeping with the core principles of our Strategic Intent, we follow the approach of Voluntary Compliance. This means that we make the assumption that most taxpayers are honest, and want to comply. #YourTaxMatters.

For these taxpayers who honestly seek to comply, we work to help them understand their obligations and make it easy to comply. For millions, we aim to make the process almost seamless to fulfil their obligations. At the same time, we need to present a more credible threat of detection and act against taxpayers who are either negligent or those who wilfully or even criminally choose not to comply. Against this background, we:

A. Communicated our intent for the next phase of filing season:
1. To keep everyone safe during the time of COVID-19.
2. To remove the burden of compliance by introducing auto-assessment for more than 3 million taxpayers.
3. To facilitate and coach those who are required to file to move from physical filing at our SARS offices to convert to online filing through our enhanced e-Filing website or MobiApp.
4. To demonstrate care and concern for those who are truly unable to adopt one of our self-help channels.

B. Shared what we have done and will do to achieve our intent:
1. We will communicate continuously to provide you with clarity of your tax obligations through social media, direct messaging, SARS website and educational videos and webinars.
2. We have added more than 30 additional digital functions during the past 133 days of lockdown to expand our digital offering to all taxpayers and intermediaries to completely remove the need to visit a SARS office, but do everything online.
3. We have used a broad variety of data as well as algorithms to inform the design of our filing season and as well as optimise the experience for compliant taxpayers and detect any form of non-compliance. 
4. The facility to phone a SARS Contact Centre and make use of SARS Help-You-eFile (HYeF) to compete your return online. We have enabled almost 1000 agents with a virtual platform to conduct interviews and assist taxpayers. 
5. To provide for those who absolutely insist to visit a SARS office by appointment only in order to avoid long and undignified queues and practice social distancing.
6. In our SARS offices we will first try to assist you to file online, and only in the absolute last resort, we will file your return with one of our frontline staff.
7. At all times we will strive to honour our Service Charter commitments.
8. We will step up our efforts to detect and communicate to remind you when you have failed to comply and give you an opportunity to correct this.
9. We will act more decisively against taxpayers who remain non-complaint for any reason.

C. Most importantly, we made specific commitments as to what you could expect from us and now report how we are achieving against these, since the start of individual filing season:   
1. Commitment: To invite more than 3 million taxpayers to participate in the expanded use of our auto assessment feature and trust the majority will find it easy to use.

Achievement: We sent just over 3.1 million SMS’s by Friday, 31 July 2020. The initial feedback from taxpayers was extremely helpful and appreciated.  Many taxpayers informed us that our SMS could have been clearer and we acknowledge it would have been clearer to have directed taxpayers to log on immediately to view the updated assessment information on the eFiling website or MobiApp. Valued, and constructive feedback from taxpayers helps us to continuously improve our service.

We are truly grateful for those taxpayers who alerted us to some issues and especially for the mostly positive spirit in which you worked with us to resolve matters. We are encouraged that more than 330 000 taxpayers accepted their auto-assessments to date. In total, we have received in excess of 680 000 submissions of which 560 000 or 82% are via the eFiling website and 118 000 or 17% are via the MobiApp.

We also confirm that we continue to receive updates to third party data and alert taxpayers who haven’t filed yet, that the amount of the SMS they have initially received may differ from the actual assessment issued when logging on to the eFiling website or MobiApp. This is mainly due to late or corrected data submissions of employee information by many Employers as well as third party data providers (e.g. Banks, Medical Scheme, and Retirement Funds).  We confirm that once logged on, the assessment outcome is based on the latest updated information per our records.  
 
We encourage taxpayers to take care and confirm the correctness of the auto-assessment and elect to accept and confirm, or should they need to, to edit their returns. To expedite the assessment, any additional information should be accompanied by supporting documents if you are requested to provide such through our specific information requests.

2. Commitment: To provide at least 8 out of every 10 taxpayers with an assessment outcome in under 3 seconds. This will largely be dependent on the infrastructure used by taxpayers e.g. speed of the internet connection used to connect to SARS. 

Achievement:  We remain focused and are confident that over the filing season we will achieve this aspiration. As of 10:00 this morning, 35% of taxpayers received an assessment outcome under 3 seconds, 60% in under 5 seconds. Importantly though, even with the initial positive response, and despite any connectivity constraints taxpayers themselves may have, we are encouraged that more than 80% of taxpayers would have received an assessment outcome in under 30 seconds.   
  
The overwhelming initial response, combined with the fact that personal income tax filing overlapped with VAT filing, placed our systems under significant constraints and caused frustration especially for those submitting their VAT returns. We also apologize to our VAT taxpayers, who experienced slower than normal response times on Friday 31 July. We have increased our own computing capacity, and continue to work hard to live up to the high expectations we set for ourselves. 

3. Commitment: Pay at least 7 out of every 10 taxpayers their refund if it’s due, within 72 hours if nothing else is required to be rectified such as a data mismatch, invalid or outstanding banking details, outstanding returns, other outstanding compliance aspects, etc.
Achievement: To date, we have paid 89.5% of refunds within 72 hours. 340 000 taxpayers received refunds to the value of R3.4bn. We are pleased that for so many taxpayers, their refund brings much-needed relief.

4. Commitment: Be specific when we request any outstanding information that is holding up your assessment.
Achievement:  SARS alerted 50% fewer taxpayers compared to the same period last year. This was made possible by the significant enhancement of our risk methodology and increased used of data and technology.  We are encouraged by those taxpayers who promptly responded to our verification notifications. Our figures indicate that 59% of taxpayers voluntarily adjusted their returns via the Request for Correction functionality after receiving our verification notifications.  

5. Commitment: Conclude 7 out of every 10 audits, when an audit is required within 30 days; alternatively improve our communication with you to manage expectations. This will be dependent on taxpayer participation and we urge you to be responsive when requested to submit additional information in time.
Achievement: To date, SARS concluded more than 5600 verifications. We remain focused on our Service Charter commitments and more updates will follow as the first 30 days elapse. We specifically acknowledge those taxpayers who promptly responded when requested to participate in verifications and are encouraged by the positive feedback received.

6. Commitment: Issue letters for late and outstanding returns and impose penalties as prescribed in law immediately after the closing dates. We also draw your attention to Government’s approach to the design of incentives and relief measures, which is premised on those who are tax compliant.
Achievement: This will follow after the respective due dates. 

7. Commitment: Enforce the administrative steps in terms of the Tax Administration Act including the prosecution of those who fail to respond appropriately.
Achievement: This will follow as a result of our interventions and we encourage taxpayers to take utmost care not to file incorrect declarations.

8. Commitment: Name and shame those convicted of criminal offences. Whilst we are passionate to make it easy for taxpayers to comply, we are equally focused on stepping up our ability to detect non-compliance on all fronts.
Achievement: We will follow through with this, in line with and in addition to point 7 above.

For clarity, we confirm the following dates:

1 AUGUST – 31 AUGUST
Filing of returns commence through any of the SARS eChannels, namely eFiling website and MobiApp.

1 SEPTEMBER 2020 – 16 NOVEMBER 2020
Taxpayers who require assistance may call for assistance from our Contact Centres for completing their tax returns with the assistance of an agent.
As an absolute last resort, taxpayers may make an appointment over the phone or on our appointment facility via our website, and will be assigned a slot to visit a SARS office. In the interest of social distancing, we want to discourage unscheduled visits to our offices. An unscheduled visit may lead you to end up in undesirable long queues, which we want to avoid as far as possible.

22 OCTOBER 2020
This is the closing date for taxpayers who elect to file at a SARS office – we remind you to please make an appointment should you need assistance.

16 NOVEMBER 2020
This is the closing date for taxpayers who file online using theeFiling website and MobiApp.

29 JANUARY 2021
This is the final date for Provisional Taxpayers to fulfil all their outstanding filing obligations.

2020 is a huge step towards a Re-Imagined SARS.

We have developed a comprehensive Change Management Programme with regular communication, educational material and other support during the entire filing season.  

Please bear with us as we seek to balance the fulfilment of the SARS mandate and your tax obligation with the need for managing the health risks and limit the risk of transmission of the corona virus.

Please try to file from the comfort of your home, If you need help use our help by calling our contact centre on 0800 00 7277.

And if you absolutely must, make an appointment.

Keep your social distance

Stay safe

And comply! 

#YourTaxMatters.