For one of my clients who works full time and has his own part time home based business I got him a refund in less than 2 weeks. SARS made a mistake with the return, but even that didn't cause a dalay and was sorted out the week after I lodged an objection.
8 April 2008
Recently we indicated our intention to modernise the PAYE process as part of our journey to transform the personal income tax (PIT) process from a complex manual one to a simplified automated process. In doing so we requested employers to postpone the PAYE reconciliation process and issuing of IRP5/IT3(a) certificates pending further instructions from SARS.
Our experience each year shows that the vast majority of employers only begin the reconciliation process towards the end of March, in April or even later. Of course, we realise that some employers have already done their reconciliations as required. In many cases – as long as the reconciliations have been done correctly and accurately – this work will not be wasted and the employees will be able to use these IRP5s.
By holding back the issuance of tax certificates and the IRP5 reconciliation process until further notice employers will be assisting SARS and their employees.
Please note that until further notice SARS will not be:
• Issuing IRP501 forms for the 2008 year of assessment
• Providing manual IRP5 books
• Accepting any reconciliations or IRP5/IT3(a) certificates for the 2008 year of assessment either electronically or manually
• Accepting any related test or live data.
We realise that employers are eager for additional information about our plans and how they will impact them and their employees. Within the next month we will provide this clarity and certainty.
In the meantime the information below should assist employers with decisions they may currently be facing in connection with PAYE.
What happens to the 60-day requirement to submit reconciliations?
The 60-day requirement will be extended in respect of the 2008 tax year and you will be advised
of the new deadline when we announce full details of the new process. No penalties will be levied until the end of the extended period.
What if I have already finished my reconciliations but not yet printed the certificates?
Postpone printing and issuing certificates to employees until you hear from us.
What if I have already issued certificates to employees and submitted my reconciliation to SARS?
We will work with you to incorporate the work done and assist you in meeting any new requirements.
How is SARS going to help employers adapt to the changes?
We are working hard to ensure the new process is easier and more efficient for everyone and we will work with payroll software providers and employers to implement the changes.
When am I going to find out further details of the changes?
SARS will communicate changes during the next month to employers and payroll software providers directly as well as via representative organisations and via the media.
How does this relate to the broader Filing Season programme?
Within the next month we will make an announcement on the Filing Season deadlines – which are likely to again be staggered depending on the channel of submission. Taxpayers and employers will be given ample time to meet their obligations this year.
We look forward to working together with you to continue our journey to easing the burden of compliance for all stakeholders.