Global Courant 2023-04-24 19:32:08
The South African Internal Revenue Service (SARS) has announced changes to the Tax Compliance Status process with immediate effect.
Tax Consulting SA said the new changes include significant changes related to emigration, where SARS has introduced an application called “Approved International Transfer (AIT)” which replaces the existing “Emigration” and “Foreign Investment Allowance (FIA)” application types. will replace. .
“The changes have already taken place in e-Filing, and it is imperative that the general public understand the impact on the emigration process and the withdrawal of funds from South Africa abroad,” said Tax Consulting SA.
With SARS’ commitment to making complaints easier for taxpayers themselves, the group has released a guide to inform taxpayers about the e-filing process.
SARS said the system needed to be changed in line with international standards and the goal of further modernization.
Ultimately, the updated Tax Compliance Status (TCS) system revised what it means to be a tax complaint in terms of the system, the business process and the usability of the system to drive compliance, the abandonment of “tender” as a option for TCS requests and strengthening legislative alignment with the South African Reserve Bank (SARB).
The new AIT application now requires that when taxpayers apply for TCS status in relation to international transfers, they submit the following supporting documentation:
Specific documents demonstrating the sources of capital to be invested; Statement of assets and liabilities over the past three years; If the taxpayer is a ‘non-resident for tax purposes’, relevant evidence of discontinued tax residency; Details of locally listed securities; Applicable power of attorney when the TCS application is filed by someone other than the taxpayer.
The full guide is accessible here.
The IRS has made increasing efforts in recent years to ensure compliance becomes the cornerstone of the institution, and as a result has not only made it easier to be compliant and approach them, but more rigorous in their investigations.
As emigration continues to take its toll on the country’s tax base, Tax Consulting SA said those considering jumping ship are finding it increasingly difficult to do so.
Thomas Lobban, the company’s head of individual cross-border taxation, said it is increasingly important for a taxpayer to remain compliant, leaving the authority less choice when it comes time to end tax residency.
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