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SARS to spread tax net with proposed changes in 2010
Several proposed changes to current legislation governing tax submission, to be promulgated as law in time for the 2010 tax period, will essentially expand the influence- and enhanced operation of the South African Revenue Services (SARS).
According to executive management at Accsys, these changes – which include additional information required on employee tax certificates for the February 2010 reporting period - have been established to assist SARS in the future administration of the country’s National Social Security.
In addition to the fact that the tax submission form is now two pages and not one, other changes facing tax payers include:
• Period of reconciliation will be twice a year in the 2011 tax year. The view is that in the years to come, reporting will take place every quarter.
• Everyone has to have an Income tax reference number and therefore, must be registered.
• All contact numbers must be included (employee email address if available, as well as home number, business number, fax number and cell number)
• Employee personal physical address details as well as personal postal address, and work address (which may be different from the company address used, if the employee works, for example, at a branch) are required.
• Bank account details must be included. If not, and the employee is due a refund, SARS will expect them to go through a FICA process to collect what is due to them.
It is against this framework that payroll administrators – with the support of solution and service providers – have begun to earnestly research information resources and seriously look into the availability of related training providers in order to clearly understand and effectively administer the legal changes.
Whilst the changes represent a significant development within the marketplace and the governance of tax submission, Accsys representatives are also mindful of the important role that payroll administrators will play in this process and the value of the company’s continued service, support and solutions towards this mission-critical business discipline.
“We understand the work required by large employers is onerous, we believe that the dramatic improvement already shown in processing of individual tax returns will extrapolate into making this worthwhile for the country – and it is an exciting phase of growth as far as the development of payroll administration in South Africa is concerned. As a leading service provider in this space, our objective is to ensure that the interests of payroll administrators and their company’s are well served,” says Teryl Schroenn, CEO at Accsys.
At the heart of Accsys’ ongoing initiative to educate and train payroll personnel is the advice that the market should be prepared for a more vigorous, more expedient process of tax submission and enforcement of laws.
This will have an impact on the service of payroll administrators adds Schroenn.
“Due to the fact that this information has never been required before, payroll administrators will have a substantial amount of work to complete before the end of February next year – in terms of gathering information from employees and updating systems,” she says. “It remains to be seen just how significant these changes will prove to be in the market. At this stage, however, it definitely lays the foundation for the Revenue Services to intensify the broader focus on tax payment and submission, and, effectively broaden the tax net.”
For more information, click through to www.accsys.co.za or call (011) 719-8000.
