tax practitioners and tax compliance for individuals...how to know your tax compliance the tcs...
TRANSCRIPT
Tax Practitioners and Tax Compliance for Individuals
Welcome to the SARS Tax Workshop
The purpose of this presentation is merely to provide information in an easily
understandable format and is intended to make the provisions of the legislation
more accessible. The information therefore has no binding legal effect and the
relevant legislation must be consulted in the event of any doubt as to the meaning
or application of any provision.
The Tax Practitioner and
Compliance For
Individuals
Points for Discussion
Background
Requests for Tax Season 2018
Service Channels Offerings
Taxpayers and Tax Practitioners
Shared Access
Tax Compliance & Suspension of Payments
Complaints to Controlling Bodies
Estate Duty on eFiling
Background
SARS places great value on a healthy professional
relationship with Tax Practitioners who are key in providing a
service to our clients the taxpayers.
SARS is therefore committed to:
o Engaging with practitioners continuously and constructively
o Providing access and channels to practitioners
o Specific Service offerings to registered practitioners
o Providing specific communications for Practitioners
Requests for Tax Season 2018
In preparation for the 2018/2019 Tax Season, we have been
working closely with the Recognised Controlling Bodies (RCBs)
to improve our service delivery to tax practitioners.
For this Tax Season we urge you strongly to utilise the eFiling
platform as it has been designed to make it easy for tax
practitioners to submit returns.
By using eFiling you will avoid the long queues at our branches
during Tax Season, saving you valuable time.
Please note that our branches will no longer accept Income Tax
Return (ITR12) submissions from tax practitioners which are
submitted during tax season at a SARS branch.
Service Channel Offerings
In consultation with the RCB`s the following comprehensive list of
Service Channel Offerings have been compiled.
For this presentation we have populated the PIT related services
Services
Tax Practitioner Unit*
Practitioner Contact Centre email
Contact Centre**
Branch
eFiling
Software /Systems Related
All eFiling enquiries
All e@syFile™ enquiries
Resetting of eFiling passwords
Service Channel Offerings Services
Tax Practitioner Unit*
Practitioner Contact Centre email
Contact Centre**
Branch
eFiling
Registration Maintenance
1st time registration (Income tax) * See exceptions below
Only if the taxpayer accompanies the tax practitioner
Only if the taxpayer accompanies the tax practitioner
Update of ID number / CC registration number
Only if the taxpayer accompanies the tax practitioner
Only if the taxpayer accompanies the tax practitioner
Update of registered particulars
Possible but not the preferred channel
De-registration
Service Channel Offerings
Services
Tax Practitioner Unit*
Practitioner Contact Centre email
Contact Centre**
Branch
eFiling
Registration Maintenance
Banking detail changes
Banking detail verification
Trustee / Director verification
Merging of profiles for Single Registration
Reprint of registration confirmation
Service Channel Offerings Services
Tax Practitioner Unit*
Practitioner Contact Centre email
Contact Centre**
Branch
eFiling
Return Completion
Personal Income Tax Returns (ITR12)
Advisory
Company Income Tax Returns (ITR14)
Advisory
Income Tax Returns (ITR12T)
Advisory
IRP 6 Advisory
Tax Compliance Status (TCS) application
Advisory
TCS collection Advisory
Service Channel Offerings Services
Tax Practitioner Unit*
Practitioner Contact Centre email
Contact Centre**
Branch
eFiling
Return Completion
Request for Remission (PIT, CIT,VAT & PAYE)
Advisory
Notice of Objection (PIT,CIT, VAT & PAYE)
Advisory
Request for Correction
Advisory
Notice of Appeal (PIT,CIT, VAT & PAYE)
Advisory
Request for returns
Advisory
Voluntary Disclosure Programme (VDP) - requests
Advisory
Service Channel Offerings Services
Tax Practitioner Unit*
Practitioner Contact Centre email
Contact Centre**
Branch
eFiling
Accounts
Request for Statements
From 1999 to 2008 only
From 1999 to 2008 only
From 1999 to 2008 only
From 1999 to 2008 only
After 2008 only
Re-allocations
Limited extent
Request for waiving of penalties and interest
Queries relating to refunds
Offset of credits
Limited extent
Service Channel Offerings
Services
Tax Practitioner Unit*
Practitioner Contact Centre email
Contact Centre**
Branch
eFiling
Debt Management
Under R50 000 debt arrangements
Request for Suspension of Obligation to Pay
Advisory
Over R50 000 debt arrangements
Request for debt equalisation
Service Channel Offerings Services
Tax Practitioner Unit*
Practitioner Contact Centre email
Contact Centre**
Branch
eFiling
Other
Tax Practitioner verification
Advisory
Supporting documentation upload
Advisory
Reprint of Notice assessment
Advisory
Payments Only via eFiling, EFT
or at a bank Advisory Only via eFiling,
EFT or at a bank
Tax Practitioner registration and verification
Advisory
Audit
Submitting documents for Audit
Enquiry as to the audit status
Taxpayer and Tax Practitioner
All Tax Practitioners providing services at a fee to taxpayers are
required to be registered with a recognised controlling body
(RCB) from 1 July 2013. If a Tax Practitioner submits a return on
behalf of a client the details must be completed:
When completing the “Tax Practitioner Registration No”, fill in on
the numbers and leaving out the “PR”.
Make sure the postal address details are completed. This will
enable SARS to send the assessment result to you and your
client.
Taxpayer and Tax Practitioner
Non-registered Tax Practitioner
A person who isn't registered with a RCB and who prepares tax returns on
taxpayers behalf will only be able to perform limited functions.
An unregistered Tax Practitioner may not charge you and they may not submit
the return on your behalf.
An unregistered Tax Practitioner will be able to complete the ITR12, on behalf
of the taxpayer, and will have the following options available on eFiling:
o Save – this option will allow the incomplete return to be saved on eFiling to be
completed at a later stage.
o Save for Filing – this option will allow the ITR12 to be saved on eFiling. The
return will be available for the SARS agent at the SARS branch to submit. Only
the taxpayer will be able to inform the agent that the return has been prepared
on eFiling. The agent will locate the completed return and submit this on the
SARS systems
Shared Access with Tax Practitioner
Shared access is a function available on eFiling, which makes
sure that an individual has full control/knowledge of their tax
affairs, regardless of whether a Tax Practitioner completes
and/or submits tax returns on their behalf.
Shared Access is currently available for the following forms:
o Income Tax (ITR12)
o Provisional Tax (IRP6)
o Income Tax Administrative Penalties
o Voluntary Disclosure Programme (VDP).
Different shared access functions
Obtain Full Shared Access
This function means that the taxpayer, as well as the Tax
Practitioner, will have full and equal access to all the information
relating to the associated tax type(s).
Once this type of access is asked for, immediate authorisation is
given to the taxpayer.
Both the taxpayer and the Tax Practitioner will be able to view, fill in
and send SARS your tax return(s), update you personal details, etc.
Different shared access functions
Remove My Access
With this function the taxpayer won’t be able to manage or view
their tax returns, and full access will be given to the Tax Practitioner
with whom the taxpayer shared their last “Shared Access”.
To do No Action
With this function the taxpayer won’t be able to manage or view your
tax returns and full access will stay with the Tax Practitioner with whom
your profile exists.
This option can only be used with the quick registration process.
Should a taxpayer, during the quick registration, select this option and
then have a change of heart, the taxpayer can login and change the
function setup.
How to know your Tax Compliance
In our continued effort to improve compliance and to make it even
easier for taxpayers to manage their tax affairs, SARS has
introduced an enhanced Tax Compliance Status System.
Being tax compliant and ‘paying your fair share’ is not just good for
taxpayers, but also contributes to the positive growth of our
country’s economy which in turn benefits all South Africans.
The TCS system is available for the following applications:
o Good standing
o Tender
o Foreign Investment Allowance
o Emigration
How to know your Tax Compliance
The TCS system has at its heart the “My Compliance Profile
(MCP)” functionality.
The MCP affords taxpayers the opportunity to view their tax
compliance status online as determined by SARS in order to
remedy any non-compliance identified.
The MCP empowers taxpayers with more information about their
tax compliance and forms the basis for the overall compliance
status issued with regards to TCS applications (for example for
Tender or Good standing and others).
Tax Practitioners who have shared access with taxpayers should
activate the MCP to allow taxpayers to view their Compliance
profile.
How to maintain Tax Compliance
To be tax compliant, taxpayers should make sure that:
o They do not have any outstanding tax returns
o They do not owe any money to SARS unless a payment
arrangement or suspension of debt has been agreed to
o They are registered for all the tax products that you are liable for
o Their registered particulars are updated.
o They have either merged (via the Merge tool on eFiling) or
declared (on the ERC01 form available as part of the TCS
process on eFiling), all your registered tax reference numbers
eFiling and Tax Compliance
eFilers are given more time to make their submissions.
Taxpayers/Tax representatives can save the ITR12 form and
submit it later, which will give them more time to review the
information to be submitted to SARS.
eFilers have a full history of all submissions, payments and
electronic correspondence available at a click of a button.
The system allows a taxpayer/tax representative to view the history
of submissions made of the ITR12 form on the system for their
convenience.
eFilers can receive SMS and email notifications to remind them
when submissions are due.
eFiling and Tax Compliance
SMS and email notifications assist the taxpayers/tax
representatives in the submission process by ensuring that the
returns are submitted before the due date.
The simplicity of the process results in fewer errors and creates a
quicker processing cycle for individuals and business.
There are embedded functions within the ITR12 form such as pre-
populating fields, pop up warning messages when incorrect
information is completed and the simplified navigation.
These functions are there to assist you whilst editing the ITR12
form which results in few errors made during your return process.
eFiling and Tax Compliance
eFilers can revise the return declaration of their initial ITR12
Income tax return via eFiling.
This function allows the taxpayer/ tax representative to correct
and resubmit incorrect information (ITR12 Income tax return)
submitted to SARS resulting in an accurate assessment.
All of the above points will assist the tax practitioner to ensure the
taxpayers returns are submitted on time and improve the
taxpayers compliance by submitting all other outstanding returns
if applicable.
Suspension of Payment
The suspension of payment function allows you to request SARS
to suspend the payment of the outstanding amount until the
dispute has been resolved.
To access the Suspension of Payment function follow the below
procedure. o Click on the “Dispute” tab and select the “New” button to request a
new dispute.
o The new “Request to File Dispute” Page will be displayed. This
page will be accessible from the different work pages or assessment
notices issued for the tax types that the taxpayer is registered for by
clicking the “Disputes” button.
Ensure that the correct Tax Type and period to dispute is selected.
Suspension of Payment
The suspension of payment option will be available on the Selection screen
in the Accounts container to complete.
Select the applicable period or in the “Apply Across” section, select “All
Periods” and complete reasons for the suspension of payment in the
“Reason/Grounds” block provided. If the “All periods” option is selected, the
reason(s) entered will be applied to all periods that was selected.
Suspension of Payment Click “Next” to continue.
If no reason has been completed and you click the “Next” button, the
following warning message will be displayed to complete a reason. Click
“OK” to complete a reason.
Click the “Back” button to be directed to the “Request to File Dispute” landing
page.
Click the “Next” button to continue with the Suspension of Payment process
and the “Summary” page will be displayed.
If no periods were selected for the suspension of payment to apply, the
following message will be displayed. Click “OK” to proceed and the Summary
page will be displayed.
Suspension of Payment
The Summary page will display the reason/grounds for the
suspension of payment as previously completed.
Suspension of Payment
Supporting documents must be submitted before the Suspension
of Payment request will be submitted to SARS.
Complaint to controlling body
SARS respects the right of taxpayers to obtain professional
advice.
This often facilitates more accurate reporting and is an efficient
method of engaging with a taxpayer.
Tax is often not a taxpayer’s area of expertise, and by appointing
a professional to assist, a taxpayer is able to maintain focus on
core operations while obtaining the best professional advice.
It is unfortunately the experience that in some instances a
taxpayer’s actions are informed by advice and suggestions
provided by a tax practitioner that contravene the code of conduct
established by the recognised controlling body for tax
practitioners or persons who carry on a profession .
Complaint to controlling body
In such instances this misconduct negatively impacts on a
taxpayer’s affairs.
Such misconduct also impacts upon the relationship between
SARS and the taxpayer.
In an effort to uphold the integrity of South Africa’s tax system, to
promote a healthy relationship of mutual respect and trust
between SARS and both the professional sector and taxpayers, it
is necessary that SARS officials be authorised to report specific
instances of misconduct to a controlling body for tax practitioners
or persons who carry on a profession.
Complaint to controlling body
A senior SARS official may lodge a complaint with a ‘controlling body’ if a
person who carries on a profession governed by the ‘controlling body’, did
or omitted to do anything with respect to the affairs of a taxpayer, including
that person’s affairs, that in the opinion of the official—
o was intended to assist the taxpayer to avoid or unduly postpone the
performance of an obligation imposed on the taxpayer under a tax Act;
o by reason of negligence on the part of the person resulted in the
avoidance or undue postponement of the performance of an obligation
imposed on the taxpayer under a tax Act; or
o constitutes a contravention of a rule or code of conduct for the profession
which may result in disciplinary action being taken against the person by
the body; or
o constitutes conduct under subsection (2) by a registered tax practitioner
Complaint to controlling body
A senior SARS official may lodge a complaint with a ‘recognised
controlling body’ if a registered tax practitioner has, in the opinion of the
official—
o without exercising due diligence prepared or assisted in the preparation,
approval or submission of any return, affidavit or other document relating
to matters affecting the application of a tax Act;
o unreasonably delayed the finalisation of any matter before SARS;
o given an opinion contrary to clear law, recklessly or through gross
incompetence, with regard to any matter relating to a tax Act;
o been grossly negligent with regard to any work performed as a registered
tax practitioner;
Complaint to controlling body
A senior SARS official may lodge a complaint with a ‘recognised
controlling body’ if a registered tax practitioner has, in the opinion of the
official—
o knowingly given false or misleading information in connection with
matters affecting the application of a tax Act or participated in such
activity; or
o directly or indirectly attempted to influence a SARS official with regard
to any matter relating to a tax Act by the use of:
threats, false accusations, duress, or coercion, or by offering
gratification
o as defined in the Prevention and Combating of Corrupt Activities Act,
2004 (Act No. 12 of 2004).
Complaint to controlling body
SARS must deliver by mail or via email to the taxpayer and the
tax practitioner against whom the complaint is to be made
notification of the intended complaint and
information to be disclosed before the complaint is lodged or the
information is disclosed to the controlling body.
The taxpayer or tax practitioner has 21 business days in which
to object.
Remedies available to a taxpayer or tax practitioner
The taxpayer or tax practitioner may, within 21 business days after
the date of notification, object to the lodging of the complaint or the
disclosure of the information.
If on the expiry of the period of 21 business days no objection has
been lodged or,
if the objection has been lodged and SARS is not satisfied that the
objection should be sustained,
a senior SARS official may lodge the complaint with the controlling
body of a registered tax practitioner or a person who carries on a
profession or a person governed by the professional body.
Complaint considered by controlling body
The controlling body is to consider the complaint according to its
rules.
A hearing of the matter where the details of the taxpayer’s tax affairs
will be disclosed may be attended only by persons whose
attendance, in the opinion of the controlling body, is necessary for the
proper consideration of the complaint.
The controlling body and its members must preserve the
confidentiality of the taxpayer’s affairs that are disclosed by SARS or
are determined through an investigation into the complaint.
Complaint considered by controlling body
The controlling body must not communicate the information
concerning a taxpayer’s tax affairs to any person other than the
person concerned, or the person against whom the complaint is
lodged.
The only exception is if the disclosure of such information is ordered
by a competent court of law.
A Senior SARS Official may attend the hearing of the matter by the
controlling body where the details of the person’s tax affairs will be
disclosed, if required.
A Senior SARS Official may request feedback from the controlling
body on the progress or outcome of the hearing or investigation of
the reported case.
Estate Duty on eFiling
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Agenda Points
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RAV 01 Process
eFiling Profile types
Converting an existing individual profile
Additional Estate duty Process Saving Banking Details Creating the Payment
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www.sars.gov.za
SARS Contact Centre 0800 00 SARS (7277)
Visit your nearest SARS branch (to locate a branch visit www.sars.gov.za)
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