Archive for the ‘TAX’ Category

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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SARS Alerts Taxpayers about Fake ‘Refund E-mails’

SARS (South African Revenue Service) has issued an alert to the South African taxpayers that new phishing e-mails are presently circulating online. These e-mails appear genuine since they carry the authorized logo of SARS.

These scam e-mails state that there’s a tax re-imbursement that the recipient can now claim.

Specifically, according to any of these e-mails, after SARS made the latest yearly computations of the fiscal operations the e-mail recipient incurred, it has been found that he/she is entitled to get 8,582.50 ZAR as tax refund.

The message continues to inform that the recipient must file a request for the tax refund fast and give a 2-3-day time-period for SARS to complete the claim’s processing.

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SARS investigated 1740 individual taxpayers last year

CAPE TOWN — The South African Revenue Service (SARS) conducted 1740 in-depth investigations of individual taxpayers in the 2008-09 tax year out of a total of 72926 audits across all tax types and on all categories of taxpayers, Finance Minister Pravin Gordhan said in a written reply to a parliamentary question about lifestyle audits.

Lifestyle audits have become a hot potato after calls were made by Congress of South African Trade Unions general secretary Zwelinzima Vavi that politicians with flashy lifestyles be subjected to them.

This was followed by calls by opposition politicians that African National Congress Youth League president Julius Malema undergo a lifestyle audit to determine how he earned all the money that allowed him to buy luxury cars, mansions and clothing. Replying to a question by Congress of the People MP Nic Koornhof, Gordhan said SARS used a risk-based approach to identify and investigate noncompliance with tax and customs laws.

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Sars errors hit taxpayers

Pretoria – The year had scarcely begun when taxpayers were again queueing to resolve errors in their 2009 returns.

The problems relate to returns that were completed at the offices of the South African Revenue Service (Sars).

In September last year Johan Snyman of Pretoria handed his return in the Sars office in Pretoria East. He has a copy of the submitted return as proof.

He received a huge shock when he was informed that the Sars system had no record of his return.

Sars spokesperson Malerato Sekha says such instances are rare and generally related to postal submissions.

But it seems that people who enlisted the aid of Sars have also experienced problems.

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