Edward Kieswetter to exit revenue service
The Sunday Times has seen an internal letter to staff, mapping out the transition period when he leaves.
READ: Discussion | SARS Commissioner Kieswetter talks on collections of over R1bn
President Cyril Ramaphosa extended Kieswetter's contract by two years, before his initial five-year term that started in 2019, could expire.
He was mandated with turning around the Revenue Service, after it was hollowed out under the leadership of Tom Moyane, during the State Capture years.
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The Citizen
2 hours ago
- The Citizen
Responses to US tariff increases may trigger closer tax scrutiny
Graphene Economics says even Mauritius is looking into intra-group transactions more closely. Global crises – such as the 2008 financial crisis, the Covid-19 pandemic, and the recent international trade tensions created by US President Donald Trump – generally result in renewed focus on tax collection, particularly from multinational companies. Tax authorities will take a closer look at companies' transfer pricing policies and whether prices are being adjusted because of outside shocks, or whether the tariff increases are a convenient opportunity to shift profits to head office countries, warns Michael Hewson, director at Graphene Economics. Transfer pricing is the price set when different parts of the same company, like its branches or subsidiaries, buy and sell things from each other – whether it is products, services, or ideas. Transfer pricing policies influence how much tax a company pays in the countries where it operate. ALSO READ: US tariffs: SA sends new proposal but no changes to laws Reduced prices Hewson says companies may react to the punitive tariffs introduced by the US by reducing the price of goods they export to the US in order to remain competitive. The risk is that they will lose market share if they do not make price adjustments to respond to the increased tariffs. This, says Hewson, may attract the attention of revenue authorities. 'The South African Revenue Service [Sars] may challenge why prices to a related party in the US are now lower than prices to third parties in other countries,' he explains. Hewson gives the example of a local manufacturer. If a global retailer, which manufacturers in China and other markets affected by high tariffs, sells more into SA, the demand for the local manufacturer's products may reduce. Especially if the prices charged by the global retailer reduce. This would impact the profitability of the local manufacturer. 'These reduced profits may cause Sars to ask whether the lower profits are due to its transfer pricing policy, even though it's actually impacted by external commercial factors.' ALSO READ: US tariff an existential threat for a third of metals and engineering sector Commercial rational Companies need to carefully record their decisions for making pricing adjustments, along with the commercial rationale behind them. When a dispute arises, it may be years after the actual event, and it can be quite a challenge to find the right documentation – or even people who were involved in the decision-making at the time. Hewson says Graphene Economics is increasingly receiving transfer pricing queries from countries it had not previously heard from. It has seen a notable increased focus on transfer pricing policies from East and West Africa. 'Governments are seeing transfer pricing as a big opportunity for revenue collections and the global shocks are proliferating the attention.' The work done by institutions such as the African Tax Administration Forum (Ataf), the Organisation for Economic Cooperation and Development (OECD), the United Nations, and the World Bank have assisted with capacity building, training, and the introduction of transfer pricing legislation into Africa. There has also been increased information sharing between Sars and revenue authorities in East Africa and West Africa. Mauritius, too, has recently been scrutinising intra-group transactions more closely and the number of audits has increased – something that has been unheard of in the recent past, notes Hewson. ALSO READ: Transfer pricing: 'Days of pleading ignorance are over' Reducing risk and costs Important tools to mitigate disputes with tax authorities include advanced pricing agreements (APAs) and mutual agreement procedures (MAPs). Hewson says there are several companies in SA that are keen to enter into APAs with the tax authorities. The main aim of an APA is to establish how prices will be set for future transactions, thereby reducing the risk of disputes following an audit, and the possibility of double taxation. Draft legislation for a proposed APA Programme was introduced in 2023 and according to ENSafrica, the draft bill included a clause indicating that a chapter on the APA programme will be inserted into the Income Tax Act. 'The introduction of the APA programme is a positive and significant development in South Africa's efforts to enhance its tax administration system. It provides taxpayers with an alternative, binding arrangement with Sars, and it will also offer upfront certainty on transfer pricing positions for a defined period,' the firm said at the time. Hewson notes that companies generally do not care where their profits are taxed, but they want to avoid double taxation. Several countries in Africa are using APAs. MAPs, on the other hand, offer a safety net when double taxation has already occurred due to tax authorities taking different positions. The key differences between APAs and MAPs Source: Microsoft Co-Pilot This article was republished from Moneyweb. Read the original here.
IOL News
5 hours ago
- IOL News
Sars notice for non-residents: key tax filing insights
Discover the latest updates from Sars regarding non-resident taxpayers and learn how to confirm your tax residency status before the filing deadline. Image: Supplied On 28 July 2025, the South African Revenue Service (Sars) issued another notice specifically aimed at South Africans abroad concerning their tax residency status. It deals with how an individual who is a non-resident taxpayer on the Sars system should complete their tax return this filing season. While Sars announced enhancements to this year's ITR12 return to make it easier for non-resident taxpayers to declare South African-sourced income, it does not address the critical issue of what will happen if their Sars profile does not match their non-resident tax status. There are many South Africans abroad who think they are non-resident taxpayers, but this status is not reflected as such on the Sars system. With South Africa's residency-based tax system, different tax rules apply to residents and non-residents, with a significant difference in tax liabilities. Therefore, expatriates should urgently confirm their tax residency status before they submit their returns this filing season. This is crucial because even taxpayers who previously ceased tax residency by following the formal process of financial emigration and have records to show it, now find the Sars system may have reverted them to being tax residents. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ There are various reasons as to why one's status can be reverted, but the important takeaway for expatriates is that Sars will tax them according to the tax residency status on record. South Africans living and working abroad should not assume they are non-resident if that is not what is reflected on their eFiling profile. The correct legal document expatriates must have in their possession is the Sars issued Non-Resident Tax Status Confirmation Letter, introduced in 2021. This letter confirms cessation of tax residency, indicating the effective date of ceasing tax residency in South Africa. With this letter, you will protect your worldwide income from being taxed in South Africa. The Sars note serves as a timely reminder to expatriates to check their non-residency tax status. With the filing deadline of October 20, 2025, this allows non-resident taxpayers enough time to obtain the Non-Resident Tax Status Confirmation Letter should their tax status on eFiling reflect incorrectly. With this letter in hand, you will be sure to file according to your status. South Africans abroad who are uncertain of how to check their status should seek assistance from tax specialists. Completing a tax diagnostic as a first step will provide an all-encompassing review of the taxpayer's tax affairs and reveal any inconsistencies. If your status is indeed correctly reflected as non-resident, you can proceed with submitting your tax return, either a zero return or a return declaring your South African-sourced income for the year of assessment. Should the system incorrectly show your tax residency status, follow the process of requesting your Non-Resident Tax Status letter with a simple submission to Sars. Once issued, your details will be corrected on the Sars eFiling platform.
Daily Maverick
16 hours ago
- Daily Maverick
Don't ghost a SARS letter of demand
There are serious implications for ignoring a letter of demand from SA's revenue service. It's that time of year again – tax-filing season – and there's nothing that can light a fire up your butt quite like a letter of demand from the South African Revenue Service (SARS). I must confess that for years whenever I got my return back with a negative number, I would double and triple check that it didn't mean I owed SARS money. (It means you are in for a refund). When it comes to letters of demand, the onus is on you to be aware of the timelines – and to check your SARS profile. SARS typically uploads the letter of demand on your eFiling profile and, provided you have updated your contact details, it also sends an email or SMS notification. 'Unfortunately, many taxpayers only realise they've received this when their bank account is already frozen or their salary garnished,' says Razael Manikus, chief operations officer at tax advisory business Latita Africa. 'At that stage it's very serious, but you can still solve the problem by acting immediately.' What is a letter of demand? It's a formal notice issued when SARS believes you owe tax. Often this debt is due to incorrect IRP5s or third-party data mismatches; unclaimed deductions not reflected correctly (such as medical aid or retirement contributions); undisclosed investment or rental income; penalties on late submissions or underpayments from previous years; or reversed refunds after a SARS audit. If there is incorrect information on your auto-assessment, you cannot simply tell SARS and expect a correction. You have to go back to the responsible third party and they have to notify SARS of the correction required. For example, if the amount you contributed to a tax-free savings account with your bank has been overreported, you have to contact the bank to correct the information that was supplied to SARS. Manikus says that although SARS often sends reminders before the official final letter of demand, the reminders are more a courteous gesture than a legally required step. 'SARS can send SMSs, emails or eFiling notifications reminding you of outstanding balances. These are not legal letters and don't trigger the 10-business-day enforcement countdown. The purpose is to give taxpayers a chance to settle before formal debt collection begins,' he says. The final (and only) letter of demand issued via eFiling, email or physical post to your registered address is the first legal step in SARS debt collection. This letter starts the 10-business-day period before SARS can take enforcement action such as debiting your bank account, garnishing your salary or attaching your property. The worst thing you can do is ignore the letter of demand in the hope that it will go away. It won't. A late payment automatically incurs a penalty of 10% of the total amount payable – and SARS charges interest at a rate of 10% a year. In cases of repeat noncompliance, SARS can even refer you to the National Prosecuting Authority. How to proactively address a letter of demand Log into your SARS eFiling profile to check the date when the letter of demand was issued (under 'correspondence'). That's the start of your 10-business-day response window. Review your statement of account to identify the source of your debt and the tax period involved. If the amount is correct and you're able to pay, do this immediately. Apply for a suspension of payment if you can't pay or need breathing space before disputing the amount. This legal mechanism doesn't cancel the debt but pauses SARS's ability to collect. You can apply for a suspension of payment via eFiling or your tax representative. Attach a statement of financial hardship and your latest bank statements, or a note explaining your intention to dispute. If you accept your debt but can't pay in full, SARS may agree to a deferred payment plan with instalments. Or you could negotiate a compromise of tax debt, where SARS reduces your debt if the full payment would cause you financial hardship. Disagreements or objections Manikus points out that you have the right to lodge a formal notice of objection on eFiling if you disagree with your assessment. You have 30 business days from the original assessment to lodge an objection. 'Clearly explain the reason for your objection and attach supporting documentation [such as invoices, proof of payments or bank statements],' he advises. Individual taxpayers have until Monday, 20 October, to submit their returns. Provisional taxpayers have until Monday, 19 January 2026, to submit their returns. SARS contact details SARS website: visit and click on the Individuals tab. SARS online query system: SARS WhatsApp: send 'Hi' or 'Hello' to 0800 117 277. AI virtual assistant: available 24/7 on the SARS website to answer queries. USSD services: Dial *134*7277# to access SARS services. SARS YouTube: visit @sarstax for how-to videos. DM This story first appeared in our weekly Daily Maverick 168 newspaper, which is available countrywide for R35.
