The South African Revenue Services (SARS) can access and search any company’s premises without a warrant thanks to the Tax Administration Bill that was recently gazetted into law on Wednesday, July 4 2012.
Expected to come into effect in the next three months, the legislation is aimed at enhancing tax compliance in order to increase equity, bringing to book tax evaders.
According to SARS, it has become apparent that stricter ways were necessary to deal with the more aggressive and complex tax evaders and tax evasion schemes that were common in places like the criminal economy that included gambling world.
“Most taxpayers are compliant, and the act should ensure better service and a lower compliance cost for them, and to maintain confidence in the tax system. SARS is, however, duty-bound to actively pursue tax evaders in order to maintain compliant tax payers’ confidence in the integrity of the tax system, SARS said.
The new law is aimed at creating a single and novel way for the administration of the tax act, to simplify and provide greater coherence in South African Tax Law.
The act will come into operation on a date to be determined by PresidentJacob Zuma by proclamation in the gazette.
SARS announced:”SARS’s preparations for the implementation of the act are at an advanced stage and it is anticipated that it will come into operation within the next three months.”
Some of the key features of the new Act include:
- self-assessment of taxes so taxpayers don’t wait for a SARS assessment
- making SARS rules clearer
- Online access to information in order to ensure that tax liabilities can be determined more quickly and accurately
- Clear requirements and timelines for issuing tax clearance certificates for the provision of greater certainty and responsiveness to business
- Feedback on audit progress and findings to engage more fully with taxpayers and ensure they understand the reasons for any adjustments
- and the appointment of a Tax Ombudsman ,to provide taxpayers with a low-cost mechanism to address administrative issues that cannot be resolved through SARS’s normal channels.
Source : Public Eye News
Palesa Lekeka