tax practitioners and tax compliance for individuals...how to know your tax compliance the tcs...

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



Contact Centre**

Branch

eFiling

Registration Maintenance

1st time registration (Income tax) * See exceptions below

Only if the taxpayer accompanies the tax practitioner


Update of ID number / CC registration number



Update of registered particulars

Possible but not the preferred channel

De-registration


Services



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




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




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




Contact Centre**

Branch

eFiling

Accounts

Request for Statements

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


Services



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




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.


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.


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.


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.


The Summary page will display the reason/grounds for the

suspension of payment as previously completed.


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 .


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.


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


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;


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).


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

39

Agenda Points

40

RAV 01 Process

eFiling Profile types

Converting an existing individual profile

Additional Estate duty Process Saving Banking Details Creating the Payment

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)

Open: Monday, Tuesday, Thursday & Friday 08:00 to 16:00; Wednesday 09:00 to 16:00

Contact Us

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