Latest news with #Kieswetter
The Citizen
4 days ago
- Business
- The Citizen
Looming tax deadline and glitches cause frustration
Additional measures were implemented to help taxpayers stay compliant – and if not for the 'procrastinators' the problem 'could have been fixed' by now. The chances of an extension to Friday's deadline are slim. Picture: AdobeStock In the run-up to this year's filing season, employers are battling to meet the deadline for submission of their annual employer reconciliation declarations to the South African Revenue Service (Sars). The deadline is Friday. Employers experienced glitches after Sars released an updated version of e@syFile, the software used to reconcile and validate the payroll data and electronic employee tax certificates submitted to Sars. Employers submit monthly declarations, and the annual declaration (EMP501) reflects all the payments made in terms of employee pay-as-you-earn (PAYE) tax, Unemployment Insurance Fund (UIF) contributions, and employee tax incentive (ETI) and skills development (SDL) levies. ALSO READ: 'Sars needs to play catch up,' says Kieswetter as tax collector goes digital System issues The system error forced Sars to make additional channels and measures available to enable employers to submit their information on time, says Ettiene Retief, independent tax specialist. The new version created 'unexpected' issues where employers were unable to submit their EMP501 returns. Following complaints from several recognised controlling bodies that represent tax practitioners, Sars acknowledged the problems. It gave employers access to the older version when they could not solve their issues with the new version, and addressed issues through a dedicated email support channel. Retief says the newer version might have been incompatible with specific anti-virus programmes used by employers or tax practitioners. System updates by employer payroll systems may also have caused the incompatibility with e@syFile. 'There are also procrastinators. We have had two months to deal with issues – if people started engaging earlier, the problem could have been fixed already,' he adds. ALSO READ: Sars beats expectations by collecting R1.855 trillion in 2024/25 tax year The go-between The Sars e@syFile software plays 'middleman' in the validation and reconciliation of the employer's payroll system and the validation of the electronic IRP5 tax certificate that is submitted to Sars. This enables Sars to pre-populate the tax returns of almost four million individual taxpayers, and those with more complicated tax affairs can submit their tax returns with correct tax information. According to Sars, the three elements that must reconcile for employer submissions include: Monthly employer declarations submitted (PAYE, SDL, UIF and ETI); Payments made (excluding penalty and interest payments); and IRP5/IT3(a)s generated. The chances of an extension of Friday's deadline are slim. Sars only has a month to process the information and start pre-populating tax returns for the start of the July filing season. 'If one deadline moves, it moves everything and that causes its own complications,' says Retief. Another system glitch that frustrated taxpayers and practitioners last month was the inability to upload documentation relating to value-added tax (Vat) returns. 'As far as I am aware the issues were addressed.' ALSO READ: Sars records increase in taxpayers who filed returns Refund delays André Daniels, head of tax controversy and dispute resolution at Tax Consulting SA, says taxpayers and tax practitioners alike are reporting a surge in delayed refunds. Sars is citing 'pending verifications or audits' – but only after a manual status check is performed. 'This is not a procedural glitch – this is a systemic failure with serious financial implications,' Daniels said in a recent statement. In many cases Sars has requested further verification documentation without issuing any formal notification through eFiling or via email. 'Making matters worse, there is often no link available to upload the required documents because no verification or audit letter was ever generated.' Daniels says even if the link is provided and documentation uploaded, additional assessments are subsequently issued, stating that the 'burden of proof' was not discharged. His advice to taxpayers is to act proactively and to confirm whether any verifications or audits have been raised behind the scenes. He also advises taxpayers to use the dispute resolution steps to correct assessments where appropriate. Retief notes that Sars is constantly upgrading, adding and changing its systems and programmes as part of its modernisation and digitalisation drive. It is normal that there will be glitches. Sars is generally alerted to problems and issues through the different representative bodies. 'I know there were issues, but Sars was quick to respond and solve some of it.' This article was republished from Moneyweb. Read the original here.
IOL News
26-05-2025
- Business
- IOL News
Sars banks on 1700 debt collectors to close gap
Sars Commissioner Edward Kieswetter also said their commitment was that they expected to yield at least R20 billion from the Debt Recovery Project. Image: Screenshot: Newzroom Afrika The South African Revenue Service (SARS) is set to bolster its debt collection capabilities significantly, announcing plans to hire 1700 debt collectors in the 2025/26 financial year. This strategy is part of a concerted effort to improve revenue collection and recover debts in light of ongoing fiscal challenges. Commissioner Edward Kieswetter announced this while addressing the joint committees of finance and appropriations on Friday. 'We have already employed 500, used the month of April and early May to train them, to induct them, to get them going, and they will now start collecting debt. In addition to that, next week, June 1, we will bring in a further 250 and continue to ramp that up,' he said. 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 Next Stay Close ✕ Ad Loading Kieswetter also said their commitment was that they expected to yield at least R20 billion from that Debt Recovery Project. 'But our aspiration is to go much closer to R50 billion as far as that is concerned. So you should see next year a significant step up ahead of inflation, just on the debt recovery.' In his Budget, Finance Minister Enoch Godongwana allocated R7.5 billion to the SARS over the next three years to increase the effectiveness in collecting more revenue. National Treasury's Budget documents said the funding will focus on using technology, data science, and artificial intelligence to improve efficiency and transparency in tax administration. Kieswetter said the current revenue projection did not include the current projection of revenue that will be derived from the Focus Debt Recovery Project. 'The minister has indicated that over the next six months, as he builds confidence, it will provide him the opportunity to consider how much of that he would like to include, both in the in-year but also out-of-year budgets.' He told the MPs that the Debt Recovery Project had a ring-fenced allocation in the previous financial year to focus on revenue recovery. 'Some of that we applied very specifically to debt recovery, spent just over R300 million in the last financial year, and we were able to employ just short of about 760 additional employees on a project basis, train them up, and get them to use our systems.' He said the cohort of debt collectors hired last year delivered just short of R25 billion that was included in the revenue outcomes of last year. SARS's final unaudited revenue outcome for 2024/25 stood at R1.86 trillion. Kieswetter said the first year of the debt recovery project has confirmed their view that revenue administration was integral to the fiscal integrity of South Africa and should not be taken for granted. Commenting on the modernisation of SARS, he said it was integral to the quality, the efficiency, and the effectiveness of their compliance programme. 'A significant amount of that is the work that SARS performs through auditors, investigators, and debt collectors to follow up not only service-related issues, but also non-compliance-related issues. Cumulatively, that work yields additional revenue, which, if not done, will not be collected.'
IOL News
24-05-2025
- Business
- IOL News
SARS aims for R50 billion as it hires 1,700 debt collectors
Sars Commissioner Edward Kieswetter also said their commitment was that they expected to yield at least R20 billion from the Debt Recovery Project. Image: Screenshot: Newzroom Afrika The South African Revenue Service (SARS) is set to bolster its debt collection capabilities significantly, announcing plans to hire 1,700 debt collectors in the 2025/26 financial year. This strategy is part of a concerted effort to improve revenue collection and recover debts in light of ongoing fiscal challenges. Commissioner Edward Kieswetter announced this while addressing the joint committees of finance and appropriations on Friday. 'We have already employed 500, used the month of April and early May to train them, to induct them, to get them going, and they will now start collecting debt. In addition to that, next week, June 1, we will bring in a further 250 and continue to ramp that up,' he said. 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 Next Stay Close ✕ Kieswetter also said their commitment was that they expected to yield at least R20 billion from that Debt Recovery Project. 'But our aspiration is to go much closer to R50 billion as far as that is concerned. So you should see next year a significant step up ahead of inflation, just on the debt recovery.' In his Budget, Finance Minister Enoch Godongwana allocated R7.5 billion to the SARS over the next three years to increase the effectiveness in collecting more revenue. National Treasury's Budget documents said the funding will focus on using technology, data science, and artificial intelligence to improve efficiency and transparency in tax administration. Kieswetter said the current revenue projection did not include the current projection of revenue that will be derived from the Focus Debt Recovery Project. 'The minister has indicated that over the next six months, as he builds confidence, it will provide him the opportunity to consider how much of that he would like to include, both in the in-year but also out-of-year budgets.' He told the MPs that the Debt Recovery Project had a ring-fenced allocation in the previous financial year to focus on revenue recovery. 'Some of that we applied very specifically to debt recovery, spent just over R300 million in the last financial year, and we were able to employ just short of about 760 additional employees on a project basis, train them up, and get them to use our systems.' He said the cohort of debt collectors hired last year delivered just short of R25 billion that was included in the revenue outcomes of last year. SARS's final unaudited revenue outcome for 2024/25 stood at R1.86 trillion. Kieswetter said the first year of the debt recovery project has confirmed their view that revenue administration was integral to the fiscal integrity of South Africa and should not be taken for granted. Commenting on the modernisation of SARS, he said it was integral to the quality, the efficiency, and the effectiveness of their compliance programme. 'A significant amount of that is the work that SARS performs through auditors, investigators, and debt collectors to follow up not only service-related issues, but also non-compliance-related issues. Cumulatively, that work yields additional revenue, which, if not done, will not be collected.'
TimesLIVE
21-05-2025
- Business
- TimesLIVE
Sars gets R4bn to hire army of debt collectors
Finance minister Enoch Godongwana has allocated R4bn to the South African Revenue Service (Sars) in the current financial year to help it strengthen its capacity to collect more tax revenue. The tax authority will immediately use the money to hire more than 1,000 debt collectors to claw back up to R50bn per year in revenue owed to Sars. Godongwana made the announcement when he tabled the 2025/2026 budget in parliament on Wednesday, his third attempt since February. The two previous budget proposals, the first on February 19 and the second on March 12, were rejected by some ANC ministers, parties in the government of national unity (GNU) including the DA and the Freedom Front Plus, and those outside the GNU including the EFF and MK Party. They had clashed over Godongwana's proposals to raise VAT, since dumped after the DA and the EFF challenged the matter in court. Godongwana's latest budget documents show Sars collected R95bn during the previous financial year of 2024/2025. 'Over the medium term expenditure framework (MTEF) period [of three years], the agency will receive an additional R7.5bn relative to the baseline. Part of the allocation is expected to increase debt collection by R20bn to R50bn per year. 'The potential revenue is not included in the revenue estimates. However, the performance of Sars will be monitored by assessing the change in the amount of cash collected, which will be published monthly.' Godongwana had previously allocated R3.5bn to Sars during the medium budget policy statement in November last year. The allocations will also see Sars investing in new technology, data science and artificial intelligence to beef up its capacity to collect more money. Sars commissioner Edward Kieswetter has previously called on National Treasury to allocate it more resources for it to go after tax dodgers. At a pre-budget briefing, Kieswetter said he would hire up to 1,700 debt collectors to chase billions owed to Sars. 'In April we hired 500. We've used April to train and upskill them. From June 1 we'll bring a further 250 and that takes us to about 750,' Kieswetter said. Sars was aiming to collect at least R120bn in total tax debt in the MTEF period. Less for early retirement spending and defence amid DRC withdrawal Godongwana has reduced allocations to the government's early retirement programme. The early retirement plan is aimed at reducing the number of public servants by encouraging government employees aged 55 and above to retire early without incurring early withdrawal penalties. The early retirement package has been cut from R11bn to R5.5bn from this year up to 2027. 'Discussions with organised labour on the process are under way in the Public Service Co-ordinating Bargaining Council (PSCBC). The allocation will be revisited on the conclusion of the consultations as part of the next budget process, though functions that are not parties to the PSCBC process, such as the department of defence, can proceed with implementation.' Allocations to the department of defence have been cut by R2bn due to the 'expedited schedule for withdrawal' of SANDF troops from the Democratic Republic of the Congo.
The South African
27-04-2025
- Business
- The South African
Here's what SARS had to say about the VAT hike reversal
The South African Revenue Service (SARS) has confirmed that it will implement Finance Minister Enoch Godongwana's decision to reverse the planned 0.5% increase in Value-Added Tax (VAT), which was initially set to come into effect on 1 May 2025. SARS Commissioner Edward Kieswetter acknowledged the Finance Minister's announcement, noting the 'significant practical implications' for both VAT vendors and consumers. In a statement, Kieswetter stressed that SARS, as the administrator of national tax measures, would ensure the necessary adjustments are made promptly. The reversal follows the Minister's media statement and the publishing of Government Notice No. 6157 of 24 April 2025, alongside the Rates and Monetary Amounts and the Amendment of Revenue Laws Bill, which Parliament is expected to pass shortly. Vendors who have not yet implemented the 15.5% VAT rate should immediately stop any system changes. any system changes. All vendors must charge VAT at 15% for goods and services in line with the VAT Act from May 1, 2025. for goods and services in line with the VAT Act from May 1, 2025. Vendors unable to adjust their systems immediately may continue charging 15.5% until no later than May 15, 2025 but must report these correctly on VAT returns. but must report these correctly on VAT returns. VAT charged at 15.5% must be reported in Field 12 (output tax) and Field 18 (input tax) of the VAT return. and of the VAT return. Refunds or adjustments related to the 0.5% overcharge must also be reflected in Fields 12 and 18. The VAT return system will auto-calculate VAT at 15% for all tax periods starting on or after May 1, 2025. for all tax periods starting on or after May 1, 2025. Vendors who have already fully implemented both the 15.5% rate and any associated zero-rating are encouraged to reverse these changes before May 1. Kieswetter acknowledged the confusion the reversal has caused, stating: 'We understand the complexity and confusion that has resulted from this process. SARS will do its best to provide further clarity to create certainty of obligation for all vendors.' The VAT rate adjustment process comes after a period of public uncertainty and Parliamentary debate. SARS has promised to support vendors through the transition with further guidance as necessary. Vendors and taxpayers are urged to stay updated via official SARS communications as the May 1 deadline approaches. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1 Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
