Most Read Contributor in South Africa, September 2016
The Commissioner: South African Revenue Service
("SARS") recently announced that companies and close
corporations ("CCs") will, in certain cases, be required
to complete and submit a supplementary declaration for companies
and CCs, Form IT14SD.
The new form will require companies and CCs to reconcile
financial information across various tax types and customs. The
IT14SD will require taxpayers to submit reconciliation statements
for employees' tax ("PAYE"), income tax, value-added
tax ("VAT") and customs.
Most companies and CCs which are not currently reconciling
financial information for the various taxes should proceed to do
so, so that they will be in a position to supply the information
that will be required by SARS.
It will be important for taxpayers, who are required to submit
the Form IT14SD, to reconcile the turnover reflected as per the
Annual Financial Statements ("AFS"), to the turnover
reflected on the VAT returns. SARS is also seeking a reconciliation
of the input tax as per the VAT returns and the expenditure as
reflected in the AFS.
SARS will require taxpayers to submit details of salaries as per
the AFS and to reconcile that to the figures submitted via the PAYE
In addition, information will be required by importers and
exporters regarding customs information submitted to SARS and
information contained in the AFS.
SARS has indicated that where companies and CCs submit their
returns electronically, and that taxpayers who are identified for
verification, an initial verification letter will be displayed on
the taxpayer's e-Filing profile and e-Filing will automatically
make the Form IT14SD available on the taxpayer's profile. Those
taxpayers who do not submit tax returns electronically, will
receive an IT14SD via the mail and will be required to complete the
form and submit it to SARS.
SARS has advised taxpayers that the new Form IT14SD can be
submitted either through e-Filing, via SARS branches or by
It is important that taxpayers who are not currently reconciling
the information regarding the various taxes to the information
contained in the AFS undertake to do so, with a view to the
requirement that such information must, in future, be submitted to
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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Effective collaboration amongst government agencies, automation of processes and capacity building by tax authorities have always been identified by stakeholders as strategies for achieving an efficient tax system.
In response to information provided by FIRS, NSE has sent letters to publicly listed companies, who were purportedly identified by FIRS as non-compliant.
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