strategy, enablement and risk enablement reporting framework · 2018-04-14 · tcs overview… 5...

Education Plan

Q4 2012/13

New Tax Clearance System

Points Of Discussion

• Overview • Comparison: TCC vs TCS • Applying for a TCS • E-filing activation • Entity Reference Number – ERC01 • E-Filing Tax Compliance Status Overview • Applying for a TCS Pin • My Compliance Profile • Pin Management • 3rd Party Verification

2

Tax Compliance Status (TCS)

What is it for?

• TCS is used by SARS to certify that SARS has, after checking its records, found

that the taxpayer named on the TCS has filed all required tax returns and has paid all taxes, penalties, and interest due as of the date the TCS is issued.

• This certificate allows a third party and the applicant e.g. application for tender /

bids, to confirm the tax status of the applicant.

Tax Compliance Status (TCS)

You can apply for a Tax Compliance Status(TCS) to validate your status of a taxpayer. A TCS is issued free of charge and may be required for: • Tenders – when applying for a tender or bid advertised • Good standing - to confirm that the applicant is tax compliant (his/her

affairs are in order with SARS) • Foreign investment allowance (FIA)- Investing Overseas • Emigration- Immigrating

TCS Overview…

5

Tax compliance status (TCS) based on consolidated entity registered profile Online view of current compliance profile (MCP) with “robot” indicators Electronic application for TCS/ TCC (Good Standing, Tender, FIA and Emigration) No validity period for the TCS issued – based on compliance behaviour & realtime Access PIN to authorise 3rd parties to view TCS Online ability to print TCC with systematic withdrawal – for transition period Electronic TCS/ TCC verification for authorised 3rd party Full audit trail stored for requests and verification NT interface from CSD to TCC/ TCS to enable automatic compliance verification without human

intervention

Why change to TCS?

• Eliminate point in time compliance and move to continuous compliance • Introduce entity compliance view • Increase compliance visibility prior to application. • Reduce the risk of fraud in obtaining tax clearance/ compliance as well as fraudulent usage

of tax clearance/ compliance in the market place • Phase out the manual, paper-based tax clearance process • Improve track and trace (audit trail) and increase reporting ability • Totally online - Reduce branch office visits (more than 2million visits). Option Online or

branch • Reduce printing volumes (more than 10million certificates) • Ability to check if printed PIN is valid (Contact centre & Online)

Tax Clearance Certificate vs Tax Compliance Status

• Apply via post, e-filing, and at a SARS Branch Office.

• Receives a print out on water marked paper

• Valid for 12 months • 48 hour waiting period via e-

filing, • 21working days via manual

submission

• Apply via E-filing and at a SARS Branch Office

• Receives a Compliance Clearance Pin (CCP)

• Dependant on duration of contract (min 1 month max 12months)

• Real-time compliance indicators

7

Tax Clearance Certificate Tax Compliance Status

Applying for a TCS

When applying for a TCS for tenders and / or good standing a TCS could be declined for any of the following reasons:

• There is outstanding money more than R1000 where no arrangements have

been made (including STC, administrative penalties and Employees Tax),

• There is outstanding money where deferred arrangements not adhered to (Income Tax / VAT, PAYE, SDL and UIF).

Validity of a Tax Compliance Status (TCS)

• There are outstanding returns where no arrangement acceptable to SARS has been made for the submission of the return.

• Taxpayer not registered for Income Tax reference number.

• Taxpayer status inactive / deregistered

• TCS Application not signed by taxpayer / representative

• If established that the company is registered for income tax but deregistered at CIPC (The TCS application will be rejected).

Manage TCS Request

Types: Good standing, Tender, FIA or Emigration Capture and submit the information to support the request –

dynamic flex form Each submission will be logged and tracked on the TCS

dashboard Risk based evaluation – approve or select for review An overall TCS and access PIN will be issued for each

approved request The overall TCS is not static and will change as and when the

taxpayers compliance behaviour changes Case management to evaluate and approve TCS requests

selected for review

REQUEST TCS

Challenge Status

Where the taxpayer disagree with the compliance status displayed the status can be challenged

The taxpayer must provide reasons why SARS must re-evaluate the status and submit

Case management to evaluate and approve the request with one of the following possible outcomes: • There are non-compliance matters that must be

resolved by the taxpayer – no change to status • SARS fixed all non-compliance on behalf of the

taxpayer – systematic change to compliant status • The non-compliance cannot be fixed immediately and

a limited time override is approved – manual change of status to compliant

An override impacts all TCS requests past and going forward.

During the override period, the taxpayer is regarded as compliant

CHALLANGE STATUS

Manage PIN/ TCC

PIN issuing – SMS, print, email (SARS branch or CC) PIN maintenance – cancel, request new The PIN is the access mechanism for 3rd parties, to

whom the PIN was shared by the taxpayer, to verify the taxpayer’s current TCS status

TCC issuing – print (online or SARS branch) TCC availability – only when the taxpayer’s overall TCS

reflects as compliant The TCC looks and feels like existing TCC and

communicates point-in-time compliance – validity must be checked

PIN MANAGEMENT

PRINT T C C

Verification – TCC

Manual distribution of paper TCC to receiving entity TCC reflects that the validity is dependent on taxpayers

compliance – must be checked by receiving entity The TCS validity can be checked online, at the SARS branch

or call centre Verification result reflects current TCC status and can be

issued in written format to verifying entity

VERIFY CERTIFICATE

Verification – TCS via PIN

eFiling specific: • Activate the TCS verification service • Once-off activation process • View history of verifications performed

Branch specific: • Case management – standard SARS processes

General: • Access with PIN and tax number • Taxpayer details confirmation • View verification result • The TCS displayed is the current tax status of the

taxpayer as at the date and time of the verification • A colour indicator will be displayed (RED = Non-

compliant, GREEN = Compliant) • Additional information relating to the specific request will

be displayed (e.g. Trading name, VAT number, investment amount, asset list etc.)

• Result available to print

ELECTRONIC VERIFICATION

Verification – Interface

Standardised real-time interface requirement 3rd Party submits a single request containing taxpayer

registered particulars and SARS issues response containing the compliance status of the corresponding taxpayer

No human intervention *(Only National Treasury (NT) currently – between CSD and TCC/ TCS)

VERIFICATION INTERFACE

Access – Selected taxpayers (eFilers only) Full scope TCS solution “testing”

• Online • Branch • Call Centre

Apply for TCC on legacy system NT verification interface between CSD and SARS

Phase1: Pilot Dec – 2015

TCS Phased Implementation

Phase2: MCP Jan – 2016

Access – Any taxpayer My Compliance Profile (MCP) only


Apply for TCC on legacy system NT verification interface between CSD and SARS

Phase3: Full Apr – 2016

Access – Any taxpayer Full scope TCS solution operational


Switch-off TCC application on legacy system NT verification interface between CSD and SARS

E-filing: Activation

Activate Tax Compliance Status Rights

18

Organization – Rights Groups – Manage Groups – Group details - Open

Activation of Tax Compliance process

20


21


22

Entity Reference Number – ERC01

Entity Reference Number – ERC01

24

My Compliance Profile

25

The following compliance requirements will be displayed on the MCP dashboard: • Registration status – you have to be registered and active for the tax products that you are liable for • Submission of Return – make sure that no returns that you are liable for are outstanding after the stipulated filing due dates • Debt - make sure that you do not have any outstanding tax debt with SARS for which payment arrangements have not been made • Relevant Supporting Documents – make sure that you do not fail to submit information requested from you by SARS



28


29

ANY Form of NON-Compliance status

30

Challenge the Status

31

Challenge Status

32

Tax Compliance Status Request

33


34


35


36

PIN Management

QUESTIONS

39