Tax Exempt Institutions Connects Issue 55 (August 2024)

On 15 July 2024, Filing Season 2024 officially opened for individual taxpayers not selected for Auto Assessment. Non-Provisional Taxpayers can file using SARS eFiling or the SARS MobiApp by 21 October 2024. Provisional Taxpayers must do so by 20 January 2025. Trusts Income tax return submissions commence from 16 September 2024 to 20 January 2025. This month we highlight the benefits of eFiling and SARS’ self-help services available on mobile devices. Chapter 11, Part D of the Tax Administration Act (TAA) reminds taxpayers, tax practitioners and representative taxpayers to be aware of the pitfalls of assisting taxpayers to evade tax obligations.

The benefits of eFiling and SARS’ self-help services available on mobile devices View
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo View
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo View

Benefits of eFiling

Did you know that eFiling offers taxpayers the following benefits?

Save and submit later: eFilers can save their Income Tax Return to submit it later. This gives more time to review the information before submitting it.
Comprehensive history: eFilers have a full history of all submissions, payments, and electronic correspondence available at the click of a button. The system allows taxpayers and tax practitioners to view the history of their Income Tax Return submissions at their convenience.
Correspondence inbox: eFilers have a dedicated inbox to check the latest notifications from SARS. SMS and email notifications assist in the submission process to ensure that returns are submitted before the due date.
Reduced errors and faster processing — The simplicity of the eFiling process results in fewer errors and quicker processing cycles for individuals and businesses. Embedded functions within the Personal Income Tax Return (ITR12), such as pre-populating fields and pop-up warning messages, help guide eFilers through the process and prevent mistakes.
Opportunity to revise — eFilers can revise their initial tax return declaration. This function allows taxpayers and tax practitioners to resubmit corrected information to ensure an accurate assessment.

Remember to visit the 2024 Filing Season campaign page to see all our promotional materials and the latest Filing Season news.

Seasonal Messaging Here

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.

Self-help services via your mobile device

Prioritise your tax matters by using any of the available digital self-help service channels, to ask questions and request various services without having to visit a SARS branch or call the Contact Centre:

SMS Service: 47277
SARS Online Query System (SOQS):this easy-to-use online platform has a feature called the My Tax Status Dashboard. It provides taxpayers, registered representatives, and tax practitioners with a visual status update on Personal Income Tax returns for submission, verification/audit, and refund processing.
USSD Service: taxpayers can simply dial *134*7277# free of charge on their SARS-registered cell phone and select the service option they need.
SARS WhatsApp: they can send “Hi” or “Hello” to the SARS WhatsApp number (0800 11 7277) and choose the option that they need from the tax service menu. Taxpayers can use WhatsApp to interact with SARS to ask questions about tax or request specific Personal Income Tax services. By using WhatsApp, taxpayers do not have to contact a Service Consultant. To use this new service platform, taxpayers should save the SARS WhatsApp number, 0800 11 7277 (0800 11 SARS), on their contact list.

For more information, go to: SARS Mobile Tax Services | South African Revenue Service.

Collection of Tax Debt from Third Parties

The case of Christoffel Wiese and Others v CSARS (1307/2022) [2024] ZASCA 111 (12 July 2024), which dealt with section 183 of the Tax Administration Act (TAA), 2011 (Act 28 of 2011), provides an opportunity to remind taxpayers of Chapter 11, Part D of the TAA. The case demonstrated the pitfalls of assisting taxpayers to evade tax obligations with emphasis on the practice of dissipating a taxpayer’s assets when a debt is due to SARS. Taxpayers, tax practitioners and representative taxpayers are reminded to familiarise themselves with the full provisions of the sections below extracted from the TAA.

Liability of third party appointed to satisfy tax debts— (1) A senior SARS official may authorise the issue of a notice to a person who holds or owes or will hold or owe any money, including a pension, salary, wage or other remuneration, for or to a taxpayer, requiring the person to pay the money to SARS in satisfaction of the taxpayer’s outstanding tax debt.
Liability of financial management for tax debts— A person is personally liable for any outstanding tax debt of the taxpayer to the extent that the person’s negligence or fraud resulted in failure to pay the tax debt.
Liability of shareholders for tax debts— (1) This section applies where a company is wound up other than by means of an involuntary liquidation without having satisfied its outstanding tax debt, including its liability as a responsible third party, withholding agent, or a representative taxpayer, employer or vendor.
Liability of transferee for tax debts— (1) A person (referred to as a transferee) who receives an asset from a taxpayer who is a connected person in relation to the transferee without consideration or for consideration below the fair market value of the asset is liable for the outstanding tax debt of the taxpayer.
Liability of person assisting in dissipation of assets— If a person knowingly assists in dissipating a taxpayer’s assets to obstruct the collection of a tax debt of the taxpayer, the person is jointly and severally liable with the taxpayer for the tax debt to the extent that the person’s assistance reduces the assets available to pay the taxpayer’s tax debt.
Recovery of tax debts from other persons— (1) SARS has the same powers of recovery against the assets of a person who is personally liable under sections 155 and 157or this Part as SARS has against the assets of the taxpayer and the person has the same rights and remedies as the taxpayer has against such powers of recovery.

Interpretation Note 132: Persons not eligible to register as a tax practitioner and deregistration of registered tax practitioners for tax non-compliance

IN 132 is an important document for registered tax practitioners and for those wanting to register as tax practitioners. The interpretation note specifically deals with the consequences of continuous tax non-compliance. It reminds tax practitioners that they need to ensure their own tax matters are up to date.