Global Courant 2023-04-17 13:40:03
A draft public notice from the South African Revenue Service (SARS) indicates that the tax authorities intend to use solar installers to obtain additional information from taxpayers.
According to tax experts at Tax Consulting SA, SARS is proposing that solar installers report taxpayer information directly to the authority.
The group said this is an “innovative approach” by the IRS to address non-compliance while enabling the newly proposed tax credits for solar panels.
SARS will know exactly who had the money to install solar, and the tax refund promises to be seamless for taxpayers who adhere to it.
“This appears to be very much part of the SARS drive to ensure compliance and embrace technology for collecting taxpayer data.”
In particular, SARS’s new announcement considers requiring the solar installer to report taxpayer and solar installation information when the solar installation is affected in a residential home.
Furthermore, it is proposed that the notification take effect retroactively from 1 March 2023.
“If implemented, taxpayers who have installed solar panels on their homes since March 1 can expect their solar installers to be contacted again to collect the information they need to provide to SARS,” said Tax Consulting SA.
The latest draft public notice has been published in the most recent tax collection information laws requiring certain third parties to file returns with specific information.
Tax Consulting SA said that under the current regime, organizations such as banks, financial institutions, listed companies and medical schemes are required to file third-party returns with SARS detailing the taxpayer, transactions and amounts involved.
Solar installers appear to be the next institution to be added to this list, the IRS said.
As a result of the draft public notice, the person issuing a certificate of solar energy compliance for the installation of new or unused solar panels in a residential home will have the responsibility to disclose specified information.
The notification obligation is aimed at the certificate of conformity that is issued upon delivery of a new solar installation.
Some of the mandatory data are:
IB number or, if no IB number is available, the identification number of the person on whose behalf the installation was carried out The physical address of the installation The date on which it was first commissioned
The draft public notice was issued pursuant to the Tax and Customs Administration Act, which, among other things, authorizes SARS to collect information from third parties and impose fines on those who fail to comply.
Section 234(2)(d) of the Act provides that anyone who, intentionally or negligently, fails to report to SARS when required to do so, commits a criminal offence. As a sanction for such an offense, a fine or imprisonment of up to two years can be imposed, according to Tax Consulting SA.
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