Glossary

Estate

Brought forward

Bid adjudication committee – a committee constituted to assist the Commissioner in executing his/her PFMA responsibility of ensuring that SARS has and maintains an appropriate procurement and provisioning system which is fair, equitable, transparent, competitive and cost effective. This committee was previously known as the procurement committee.

Copies of forms that have already been processed via an electronic channel but need to be digitally stored in Documentum for compliance reasons.

Salary, wage or similar remuneration payable by the employer to an employee retrospectively, but does not include any bonus.

 

The balance of payments of a country is the record of all economic transactions between the residents (individuals, firms and government bodies) of the country and the rest of the world in a particular period (over a quarter of a year or more commonly over a year).

Any amount of remuneration after deducting the allowable deductions for employees’ tax purposes.

Business Area Manager

The initial allocations used during the budget process, derived from the previous year’s forward estimates.

The basic amount is the latest assessed taxable income and excludes any taxable capital gain and the taxable portion of any lump sum, and also includes an 8% increase for each year from year last assessed.

A government initiative aimed at “putting people first”

Border Control Operational Coordinating Committee

Banking Council South Africa

Bulk Data Capture

Bulk Data Capture System

The Bid Evaluation Committee, also known as the Tender Evaluation Committee is a committee of representatives from Procurement, BEE, Finance and Business which is responsible for the evaluation of tenders.

Black Economic Empowerment

A person who is entitled to the benefit of the dividend attaching to a share.

The treatment of raw material (such as iron ore) to improve physical or chemical properties especially in preparation for smelting.

 

Branch Front End – the customer-facing part of a SARS branch that directly engages with taxpayers/traders.

A contract between shipper and shipping company for the conveyance of certain goods from a specified port to another specified port.

Business Intelligence Unit

Botswana, Lesotho, Namibia and Swaziland

Branch managers

Branch Office

The operations under which means of transport are visited by Customs for: (a) collection of information from the person responsible for the means of transport and examination of commercial, transport or other documents concerning the means of transport, the cargo, stores, crew and passengers; and (b) inspection, examination and search of the means of transport.

Branch Operations and Engagements

A bona fide donation is a voluntary, gratuitous gift disposed of by the donor out of liberality or generosity, where the donee is enriched and the donor impoverished. There may be no quid pro quo, no reciprocal obligations and no personal benefit for the donor. If the donee gives any consideration at all it is not a donation. The donor may not impose conditions which could enable him or any connected person in relation to himself to derive some direct or indirect benefit from the application of the donation.

An undertaking in due legal form by which a person binds himself to the Customs to do or not to do some specified act.

A building or other secured area licensed in terms of the Customs and Excise Act where goods can be stored while the duty and tax on it is suspended.

Business Process Management Solution

Business Resolution Agent

Goods packed loose and individually into containers and transported as such. May be allowed to be stored in empty containers while at sea for convenience purposes only, but must be removed from the containers before being landed at the port of discharge.

The world’s top emerging economies – Brazil, Russia, India, China and South Africa

A labour broker is a person who, for reward, provides and remunerates workers for a client and is either in or not in possession of an exemption certificate (IRP 30). The labour broker either makes available his / her own employees to perform work for a client or he / she procures workers for a client. The labour broker pays the workers.

Business Requirement Specification

File back scanning coversheet

The difference between expenditure and revenue. If expenditure exceeds revenue, the budget is in deficit – or, if the reverse is true, it is in surplus.

Request for more than one of exactly the same asset (multiple assets purchase request).

Male cattle

Supplying bunker fuel to a ship for propulsion of the vessel or for the operation of any equipment on the vessel.

Any day that is not a Saturday, Sunday or public holiday. For the purposes of determining the days or a period allowed for complying with the provisions of Chapter 9 of the Tax Administration Act No.28 of 2011 (Dispute Resolution), excludes the days between 16 December of each year and 15 January of the following year, both days inclusive.

The owner of the application or system to be released, changed or enhanced.

A natural or legal person or a group of natural or legal persons, not part of the business organisation but with whom a business interest exists.

Services as defined in the service catalogue.

An appointed person responsible for procuring goods (IT and non-IT) or services requested through the purchase requisition process.

Contract Account

Change advisory board consists of managers and senior managers of SARS’ IT and Business System divisions.

Grants permission to means of transport registered in another country to operate in South Africa (domestic transport).

Immature bull or cow still feeding off its mother

Customs Authorised Processing of Entries

A flow of investments in and out of the country.

Tax levied on the profits realised from the disposal of capital assets or investments by a taxpayer. A capital gain is the excess of the proceeds over the base cost.

Information submitted prior to or on arrival or departure of a means of transport for commercial use that provides the particulars required by the Customs relating to cargo brought to or removed from the Customs territory. Notes: 1. The nature and contents of Cargo declarations may vary from country to country according to the commercial means of transport used. The particulars of the cargo (freight) may include kind, number, marks and numbers of packages, brief description of the goods, gross weight, etc. In some countries, these particulars may be submitted by electronic means. 2. Cargo declarations are often referred to as “manifests”; in some countries Aircraft cargo manifests, Ship’s manifests or Goods manifests are accepted in place of the Cargo declarations. Cargo declarations are also sometimes referred to as freight declarations. 3. The Annex to the Convention on Facilitation of International Maritime Traffic, London, 1965, provides for a Cargo declaration (Model Form IMO FAL Form 2). With regard to air transport, the corresponding declaration is called Cargo manifest (Model Form as on International Civil Aviation, Chicago, 1944). 4. Goods declarations may subsequently be presented in respect of the individual consignments covered by the Cargo declarations. 5. Cargo declaration is defined in Specific Annex A, Chapters 1 and 2 of the revised Kyoto Convention.

A listing of the goods comprising the cargo (freight) carried in a means of transport or in a transport-unit. The Cargo manifest which gives the commercial particulars of the goods, such as transport document numbers, consignors, consignees, marks and numbers, number and kind of packages, descriptions and quantities of the goods, may be used in place of the Cargo declaration. Note: Examples of Cargo manifests are Aircraft cargo manifests, Ship’s manifests, Goods manifests and “bordereaux” (road traffic).

The person actually transporting goods or in charge of or responsible for the operation of the means of transport(*). (*) Annex A.1. to the Kyoto Convention of 1974 and Specific Annex A, Chapter 1 and Specific Annex J, Chapter 4 of the revised Kyoto Convention.

For taxable benefit purposes, a cash equivalent shall be the value of the taxable benefit less any consideration (if applicable) given by the employee.

Cashier at branch office level (including back-up cashier which is a team member).

Customs Border Control Unit

 

 

Central Business District (usually the business hub of a city, or the inner city).

Collaborative Border Management

Cross-Border Road Transport Agency

Close Corporation

 

 

Close Corporation/identification of registrar of company number.

Customs Controlled Area

Customs Controlled Area Enterprise

Cost Centre Manager

Commission for Conciliation, Mediation and Arbitration.

A specific form identifying the goods, in which the authority or body empowered to issue it, certifies expressly that the goods to which the certificate relates originate in a specific country. This certificate may also include a declaration by the manufacturer, producer, supplier, exporter or other competent person. Notes: 1. In this definition the word “country” may include a group of countries, a region or a part of a country. 2. Specific forms for certificates of origin have been laid down in Annex D.2. to the Kyoto Convention of 1974 and Specific Annex K, Chapters 2 and 3 of the revised Kyoto Convention and in the framework of preferential arrangements such as the Generalized System of Preferences.

Type of certificates for which tax is to be levied. Types of certificates include: IRP5; IT3(a); ITREG (to be used when registering an employee for income tax). Note: Additional certificate types may be added at a later stage.

A declaration of origin certified by an authority or body empowered to do so (*).

Capital Gains Tax, namely, the normal tax attributable to the inclusion of a taxable capital gain in taxable income under s 26A of the Income Tax Act.

Cash Halls

A person whom a change has been assigned to in their respective group. A change assignee is responsible for building the change record; assigning the change implementer and ensuring that the change is carried out according to the documented plans within the change record.

A person whom a change has been assigned to for implementation. He/she must implement the change according to the agreed documented plans within the change record.

The change management team reside in the IT service management departments within the service support division.

The resource that logs the production change/s and drives the release through the release process.

A user permitted to open, query and submitting a change that he/she needs implemented.

A type of rodent farmed as a pet, but especially for its fur

Configuration item

Companies and Intellectual Property Commission

Companies and Intellectual Property Registration Office

Change Initiation Review Committee

Corporate Income Tax

Convention on International Trade in Endangered Species

When a payment that has been received from a client cannot be allocated to the client’s account due to a number of reasons. A clarification case is created in SAP to ensure that all unallocated transactions due to unknown or incorrect client details are followed up in the prescribed manner and posted correctly to a valid client’s account on a timely basis.

The accomplishment of Customs formalities necessary to allow goods to enter home use, be exported or to be replaced under another Customs procedure. The term “Due Entry” in relation to imported goods may be for many purposes, e.g. transit removal, warehousing or home consumption which includes entry under rebate and the declaration sight. The latter being for liability purposes – Section 44(9). Goods duly entered in most instances would be the first declaration made to Customs advising of the intended action to be taken for imported goods. (the purpose). A clear distinction must however be made between goods “cleared for home consumption” and goods “duly entered,” for the purposes of establishing the rate of duty applicable. Goods duly entered for warehousing or for transit (in bond) are liable to the rate of duty applicable at the time of entry for home consumption. (Section 45).

The Customs procedure which provides that imported goods enter into free circulation in the Customs territory upon the payment of any import duties and taxes chargeable and the accomplishment of all the necessary Customs formalities.

Any person or enterprise conducting business with SARS.

Change Management

Configuration Management Database

Current Mode Operations

Customs Modernisation Programme

Customs Management System

Case Management & Tracking

Continuous Non-Compliance

Company

Document utilised to review taxpayers’ financial status.

Young male horse

Any offence against statutory or regulatory provisions which Customs is responsible for enforcing, committed in order to: – evade, or attempt to evade, payment of duties/levies/taxes on movements of commercial goods; and/or- evade, or attempt to evade, any prohibition or restrictions applicable to commercial goods; and/or – receive, or attempt to receive, any repayments, subsidies or other disbursements to which there is no proper entitlement; and/or – obtain, or attempt to obtain, illicit commercial advantage injurious to the principle and practice of legitimate business competition.

The Commissioner for the South African Revenue Service (SARS).

The combined area of the Member States of the South African Customs Union (SACU).

Company means any corporation, or company incorporated, established or formed by or under any law.

Products obtained within the country or abroad, during or as a result of the manufacturing, processing or repair of goods temporarily admitted for inward processing (temporary Importation), or of goods temporarily exported for outward processing. (Temporary Exportation / Setting-off with equivalent goods).

Division in SARS tasked with interacting with any foreign tax administration.

A combination of both a specific rate of duty and an ad valorem rate of duty. Whereas specific duties are based on factors such as weight or quantity, ad valorem duties are based on the value of the goods.

An agreement under which the Customs, being so empowered, consent to waive proceedings in respect of a Customs offence subject to compliance with certain conditions by the person(s) implicated in that offence.

Where a creditor or creditors (or his or their agent) may apply to court for the sequestration of the debtor’s estate.

Where the value is derived from the built- up cost of the imported goods.

Processing. (Temporary Exportation / Setting-off with equivalent goods), which performs logical, arithmetic and memory functions by manipulation of electronic, magnetic or optical impulses and includes all input, output, processing, storage computer software or communication facilities which are connected or related to the computer in a computer or a computer network.

The interconnection of one (1) or more computers through the use of satellite, microwave, terrestrial line or other communication media and terminals or a complex consisting of two (2) or more interconnected computers whether or not the interconnection is continuously maintained. The exchange of information between various computers is known as EDI – Electronic Data Interchange.

Fields that must be completed subject to defined conditions, e.g. mandatory if related fields have been completed.

Allocations of money from one sphere of government to another, conditional on certain services being delivered or on compliance with specified requirements.

Consolidated enquiry screen for VAT and PAYE.

A connected person or relative means your spouse or anybody related to you or your spouse by blood in the third degree (e.g. great great grandfather etc.), and any spouse of these persons.

For taxable benefit purposes means any consideration given by an employee but does not include any consideration in the form of services rendered by the employee.

In relation to a supply of goods or services, includes any payment made, whether in money or otherwise, but does not include a donation, a deposit (except a deposit on a returnable container) or any grant. Where, however, a supply is for no consideration the value of that supply is nil, except where the supply is between connected persons.

This is the total amount of money (including VAT) received for a sale. For barter transactions where the consideration is not in money, the consideration will be the open market value of goods or services (including VAT) received for making the taxable supply. Section 10 determines the value of supply or consideration for VAT purposes for different types of supplies.

Total expenditure by national and provincial government, social security funds and selected public entities, including transfers and subsidies to municipalities, businesses or other entities.

An individual with appropriate experience and recognised level of expertise in a specific field of activity, with ability to perform a particular service and give comprehensive and independent advice without influence from external interests. A consultant can be appointed through a private consulting firm or in his/her personal capacity.

The main measure of inflation, charting the price movements of a basket of consumer goods and services.

Expenditure on goods and services, including salaries, which are used up within a short period of time – usually a year.

With respect to transport equipment: a) having an internal volume of not less than one (1) cubic meter; and b) designed for the transport of goods by any means of carriage, without intermediate reloading.

With respect to an income tax return, refers to the various portions of the return that are created systematically in line with a taxpayer’s specific tax return requirements (e.g. IRP5 container, other income container, travel deduction container, capital receipts container, etc.).

The expression commonly used to refer to the Customs Convention on Containers, concluded in Geneva in 1972 under the auspices of the United Nations and administered by the Customs Co-operation Council.

Container depots, usually outside the harbour area, are approved for the purposes of creating additional container capacity as well as for the purposes of unpacking cargo for individual delivery or packaging of goods for export. The Depot Operator must meet the standards and conditions required by Customs and this includes the lodging of security in the prescribed form prior to a license being issued.

Container terminals can store containers with uncleared goods that are approved by Customs subject to certain specified conditions. No security is required if the terminals are within the harbour (control area) and if Customs are satisfied with the control measures.

An amount set aside, but not allocated in advance, to accommodate changes to the economic environment and to meet unforeseen spending requirements.

An agreement between parties, including a formal written contract, a properly authorised purchase order (with attached terms and conditions relating to that purchase) and any other agreement in writing between SARS and a supplier of goods and/or services.

• Loan
• Donation
• Distribution from another trust or foundation.

 

In relation to any area or any matter, means the officer designated by the Commissioner to be the Controller of Customs and Excise in respect of that area or matter and includes an officer acting under the control or direction of any officer so designated by the Commissioner.

In relation to any area or any matter, means the officer designated by the Commissioner to be the Controller of Customs and Excise in respect of that area or matter and includes an officer acting under the control or direction of any officer so designated by the Commissioner. In certain instances the Controllers are referred to as “Branch Managers”.

A body established, whether voluntary or under a law, with power to take disciplinary action against a person who, in carrying on a profession, contravenes the applicable rules or code of conduct for the profession.

An attorney who has specialised in the preparation of deeds and documents which by law or custom are registerable in a Deeds Office and who is permitted to do so after practical examination and admission by the Supreme Court of South Africa.

Chief Operating Officer

A copy tax invoice is issued by a supplying vendor where the original tax invoice is lost, and the words ‘copy tax invoice’ appears on the document.

Core Tax Systems including ITS, Sessions and Service Manager.

The income tax paid by a company.

The rate (%) at which companies pay income tax.

An issuing association established in another Contracting Party and affiliated to the same guaranteeing chain. Note: This term is defined in Annex A to the Istanbul Convention.

An accounting term that refers to a unit or organization for which costs are accumulated or computed. In the State this may take several forms: (1) a significant activity within a department for which administrative control is desirable and/or necessary, (2) a designated area within a department with costs that have significance in terms of financing and budgeting of the department, (3) an area or activity under a single supervisor with costs that can be controlled by direct budgeting to such supervisor.

Policy that has the opposite effect on economic activity to that caused by the business cycle, such as slowing spending growth in a boom period and accelerating spending in a recession.

Country in which the goods have been produced or manufactured, according to the criteria laid down for the purposes of application of the Customs tariff, of quantitative restrictions or of any other measure related to trade (*). Note: In this definition the word “country” may include a group of countries, a region or a part of a country. (*) Annex. D.1. to the Kyoto Convention of 1974 and Specific Annex K, Chapter 1 of the revised Kyoto Convention.

Female cattle

Customs Procedure Code

An international Customs document which incorporates an internationally valid guarantee and may be used, in lieu of national Customs documents and as security for import duties and taxes, to cover the temporary admission of means of transport and, where appropriate, the transit of means of transport. It may be accepted for controlling the temporary exportation and re-importation of means of transport but, in this case, the international guarantee does not apply. Note: The CPD (Carnet de Passage en Douane) carnet is issued under the terms of the Istanbul Convention, the Customs Convention on the temporary importation of private road vehicles, the Customs Convention on the temporary importation of commercial road vehicles and the Customs Convention on the temporary importation for private use of aircraft and pleasure boats.

Chief Procurement Officer

Credit journal

Canada Revenue Agency, the Revenue Authority of Canada.

Confirmation of Entity Residential/Business Address.

Customs Risk Engine

A note from a seller to a buyer which states how much will be credited to the buyers account by the seller.

A credit push transaction is a payment transaction that is captured on external sources (eFiling) and the requested payment instruction is deducted from the specified bank account.

Includes every person (except the master or pilot) employed in any capacity on board any ship or aircraft.

Items in everyday use and any other articles belonging to the crew, carried on board a means of transport, and which may be required to be declared to Customs.

Criminal investigation can be defined as the discovery of relevant facts, the making of inferences from these facts, the reconstruction of the crime scene, the identification and apprehension of the offender, and the preparation of the case for prosecution and trial of the suspect (s) (Van der Westhuizen. J. 1996:354).

Customer relationship management

Centre for Small Business Development

Corporate social investment

Corporate Social Responsibility

Refers to a Comma Separated Value file which is a text file which has a certain format that allows for the saving of text or data in a more readable and organised manner (e.g. employee and remuneration data for IRP5 certificate purposes).

Community Tax Helpers

Core Tax Systems

Control Unit

The unique identification number with your diesel/bio diesel supplier, being your account number.

The Government Service which is responsible for the administration of Customs law and the collection of duties and taxes and which also has the responsibility for the application of other laws and regulations relating to the importation, exportation, movement or storage of goods(*). Notes: 1. This term is also used when referring to any part of the Customs Service or its main or subsidiary offices. 2. This term is also used adjectivally in connection with officials of the Customs, duties and taxes or control on goods, or any other matter within the purview of the Customs (Customs officer, Customs duties, Customs office, Customs declaration). (*) General Annex, Chapter 2 of the revised Kyoto Convention.

Any road, railway, waterway, airway and any other route (pipeline, etc.), which must be used for the importation, Customs transit and exportation of goods.

A person who carries on the business of arranging for the Customs clearance of goods and who deals directly with the Customs for and on behalf of another person (*). Notes: 1. Examples of Customs clearing agents are Customs agents, Customs brokers and freight forwarders 2. Some countries require that Customs clearing agents or Customs brokers be approved or licensed by the Customs. 3. See also the term “Third party” (*) Annex G.2. to the Kyoto Convention of 1974.

Measures applied by the Customs to ensure compliance with Customs law(*). Note: The measures may be general, e.g., in relation to all goods entering the Customs territory, or may be specifically related to, e.g.: (a) the location of the goods; (b) the nature of the goods (liable to a high rate of duty, etc.); (c) the Customs procedure applied to the goods (Customs transit, etc.). (*) General Annex, Chapters 2 and 6 of the revised Kyoto Convention.

Any statement or action, in any form prescribed or accepted by the Customs, giving information or particulars required by the Customs.

Subject to the provisions of sub-section (3), any duty leviable under Schedule 1 (except parts 3, 4 and 5 thereof) or Schedule 2, on goods imported into South Africa.

All the operations which must be carried out by the person concerned and by Customs in order to comply with the statutory or regulatory provisions which Customs are responsible for enforcing in connection with the control of persons at Customs places of entry and exit and the clearance of baggage, goods and means of transport at importation, exportation and / or in transit, (removal in bond) at such places.

Any act by which a person deceives or attempts to deceive Customs and thus evades or attempts to evade, wholly or partly, the payment of import or export duties and taxes or the application of prohibitions or restrictions laid down by the statutory or regulatory provisions enforced or administered by Customs administrations or obtains or attempts to obtain, advantage contrary to such provisions, thereby committing a Customs offence.

The boundary of a Customs territory.

The statutory and regulatory provisions concerning the importation and exportation of goods, the administration and enforcement of which are specifically charged to Customs and any Regulations or Rules made by Customs under their statutory powers.

The sea area under the control of the Customs in accordance with their domestic legislation. In this regard refer also to definition “surveillance zone or under the control of Customs” which must be read with Section 10 of the Customs and Excise Act.

Any breach, or attempted breach, of Customs law (*).

The Customs administrative unit competent for the performance of Customs formalities, and the premises or other areas approved for that purpose by the competent authorities (*).

Any Customs office at which a Customs transit operation commences (*).

Any Customs office at which a Customs transit operation is terminated (*).

A Union constituted by and composed of Members of the CCC (WCO), of the United Nations or its specialized agencies, which has competence to adopt its own legislation that its binding on its Members, in respect of matters governed by the Convention to which it wishes to accede, and has competence to decide, in accordance with its internal procedures, to sign, ratify or accede to that international instrument.

Treatment applied by Customs to goods which are subject to Customs control: a) Clearance for home use; b) Customs Warehousing; c) Temporary admission for inward processing or temporary admission subject to re-exportation in the same state; and d) Customs Transit, etc.

An assembly consisting of a seal and a fastening which are joined together in a secure manner. Customs seals are affixed in connection with certain Customs procedures (Customs transit, in particular) generally to prevent or to draw attention to any unauthorized interference with the sealed items. Customs seals are generally affixed to packages, containers, load compartments of means of transport, etc. They may also be used as means of identification of the goods themselves. Customs seals can also be seals affixed by the transporter, importer or exporter provided this is done in the presence of a Customs Officer or by a competent authority handling goods prior to due entry or entry for home consumption.

Schedule No: 1 Part 1 in relation to imported goods.

The territory in which Customs laws of a specific state / country applies in full. As a rule, the Customs territory of a State / Country corresponds to its national territory including land, sea and air space. However, certain portions of the national territory may be excluded, e.g., free zones or the waters between the coastline and the State’s territorial boundary at sea. The excluded portions of the national territory are called “Customs Exclaves”. By international agreement Customs territory of a State may include a Customs Exclave of another State. The area so included is called a “Customs Enclave”.

Customs procedures under which goods are transported under Customs control from one Customs office to another. Notes: 1. The Customs normally allow goods to be transported under Customs transit in their territory: (a) from an office of entry into the Customs territory to an office of exit from the Customs territory (through transit); (b) from an office of entry into the Customs territory to an inland Customs office (inward transit); (c) from an inland Customs office to an office of exit from the Customs territory (outward transit); (d) from one inland Customs office to another inland Customs office (interior transit). Customs transit movements as described in (a) – (c) above are termed “international Customs transit” when they take place as part of a single Customs transit operation during which one or more frontiers are crossed in accordance with a bilateral or multilateral agreement.

Transport of goods from an office of departure to an office of destination under Customs transit (*). (*) Annex E.1. to the Kyoto Convention of 1974 and Specific Annex E, Chapter 1 of the revised Kyoto Convention.

Entity forming a Customs territory replacing two or more territories and having in its ultimate state the following characteristics : – a common Customs tariff and a common or harmonized Customs legislation for the application of that tariff; – the absence of any Customs duties and charges having equivalent effect in trade between the countries forming the Customs Union in products originating entirely in those countries or in products of other countries in respect of which import formalities have been complied with and Customs duties and charges having equivalent effect have been levied or guaranteed and if they have not benefited from a total or partial drawback of such duties and charges. – the elimination of restrictive regulations of commerce within the Customs Union.

The agreement concluded between the governments of South Africa, the Republic of Botswana, the Kingdom of Lesotho, the Kingdom of Swaziland and the Republic of Namibia to form a “Common Customs Area.”

Customs procedure under which imported goods are stored under Customs control in a designated place (a Customs warehouse) without payment of import duties and taxes. Notes: 1. Customs warehouses may be for general use (public Customs warehouses) or for the use of specified persons only (private Customs warehouses). 2. The Customs warehousing procedure is dealt with in Annex E 3. to the Kyoto Convention of 1974 and Specific Annex D, Chapter 1 of the revised Kyoto Convention.

The day that the dividend declared by a company, accrued to the shareholders for STC purposes.

The day immediately after the date that the previous dividend cycle of a company ended.