Archive for April, 2010

PAYE employers will have to register all staff for tax

PAYE employers will have to register all staff for tax

For the 2010/11 tax year, all employers registered for Pay As You Earn will have to ensure that their employees have tax numbers, even if these employees do not qualify to pay tax.

By Laura du Preez

The South African Revenue Service (SARS) plans to make it compulsory for anyone who is paid by an employer that is registered for Pay As You Earn (PAYE) to register as a taxpayer, even if they earn below the tax threshold or are employed part time.

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More tax revenue than expected

Government collected more tax revenue than expected for the last fiscal year, but it was tighter controls by the taxman on individuals that contributed to the increase.

Minister of Finance Pravin Gordhan announced at the start of the Easter weekend that some R8bn more had been collected in the 2009 tax year than reflected in the adjusted February revenue target of R590.4bn. This was despite periods of economic contraction in the year.

From February 2009 to February this year there was a budget deficit of R69bn.

Oupa Magashula, commissioner of the South African Revenue Service (Sars) observed that in July last year measures were introduced to increase levels of collection. These measures included an increase in administrative fines which helped raise compliancy among taxpayers.

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