SARS can search without warrant

The Tax Administration Bill was promulgated yesterday in the Government Gazette. SARS expected it to come into operation in the next three months, it said. It contains a clause that permits a warrantless search.

SARS spokesman Adrian Lackay said yesterday searching without a warrant will be in “narrowly defined” situations.

“It will mostly be in cases of crime where we get to a premises and find evidence is being destroyed,” he said.

SARS got legal opinion on the constitutionality on the specific clause in the act from two senior counse ls, Gilbert Marcus and Steven Budlender, who found it to be in order.

Lackay cited an example in Durban where SARS staff had to stand by helplessly while a suspect burned documents and financial statements in the courtyard of his offices.

via Bill gives SARS more teeth – Times LIVE.

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Can you claim VAT back on materials used for accommodation?

English: solar thermal thermosyphon water heat...

We have workers who are collected on Monday mornings and dropped off in Bonnievale on Friday afternoons. As we are a working farm and 30Km away from Bonnievale we have to supply accommodation for the workers whilst they are at work. This is normal.We have built a new workers cottage, re-conditioned one cottage and built a flushing toilet, shower and wash-up area. Installed solar heating and lighting, and cooking facilities.We have claimed VAT on the materials used and Sars say that as we are not charging rental and paying VAT over to them we cannot claim the VAT back on materials.My husbands auditor in Durban said we are entitled to claim the VAT back and my accountants in Dbn say we are not allowed to?What is our position?Sars have said if I give them the Act that covers the VAT that can be claimed then they will accept that. So I have to do their work.Please could you help us on this?

Response by Muneer Hassan CASA, project director, Saica StandardsI had a look at section 12cii and agree that this is an exempt supply hence no input tax can be claimed on direct attribution method.

via Moneywebtax – Can you claim VAT back on materials used for accommodation? – Integritax.

Sars nails security boss for R2.2m

border|22x20px South Africa, Durban beach

A former Durban police detective, who now owns a security company, is facing a tax fraud, alternatively tax evasion, charge for just over R2.2 million after a company audit by the SA Receiver of Revenue.

Sandile Nkabinde, 37, who is now wheelchair-bound, appeared briefly in the Durban Magistrate’s Court on Wednesday. Nkabinde and his close corporation, Inside Edge, which trades under the name Sandile Security Services, have been charged for tax fraud.

According to the charge sheet, Nkabinde is listed as the sole member of the company that is registered as a value-added tax vendor. The state alleges that Nkabinde intended to defraud Sars by submitting false VAT returns on behalf of his company for the period June 2006 to February 2010, causing Sars to suffer a prejudice of just over R2.2 million.

The security company had a contract with the Mangosuthu University of Technology, in Umlazi, during this time.

According to Nkabinde’s LinkedIn profile, he was a detective with the South African Police for 11 years. During this time as a detective, it said, he led a team of detectives that was responsible for investigating police killings in Durban. He was also part of a team that investigated the political killings in Richmond.

His company was listed as providing a service to various government departments, specialising in physical guarding, special events, bodyguarding, skilled investigators and includes former guerrilla freedom fighters.

Nkabinde is also listed as being a chairman of a non-governmental organisation that helps raise funds for paraplegics and quadraplegics.

State advocate Selvan Govender requested an adjournment for representations to be made, and Nkabinde will again appear on February 28.

via Sars nails security boss for R2.2m – Daily News | News | IOL.co.za.

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Five things every taxpayer in South Africa should know

The third draft of the long awaited Tax Administration Bill “TAB” was recently published for a final round of public comment. The TAB is an initiative to incorporate certain generic administrative provisions, which are currently duplicated in the different tax acts, into one piece of legislation. Since the TAB is now nearing the final stages of the legislative process, every taxpayer requires a basic knowledge of its implications.

Know your new identity

The TAB provides for a single registration system whereby taxpayers will register for all tax types by means of a single registration form. For example, an enterprise will no longer have to register separately for income tax and value-added tax. The South African Revenue Services “SARS” may, however, allocate various reference numbers to one taxpayer to differentiate between various tax matters. Should the taxpayer correspond with SARS without mentioning the allocated reference number, SARS may disregard such correspondence.In most instances, registration must take place within 21 business days from becoming liable or entitled to register under a tax act. “Business days” now also excludes days from 16 December to 15 January each year. Do not be surprised if SARS asks you to wink at them while you register, as “biometric information” may now be used to authenticate the identity of an individual. This includes any biological data, such as retina, voice, facial or fingerprint recognition. SARS is, however, obliged to put measures in place to secure the confidentiality and protection of such personal data.  In line with the single registration system, a single taxpayer accounting system will also be introduced. Taxpayers will have one tax account with a rolling balance of all outstanding taxes. Payment allocation rules may be applied in respect of a specific tax type and SARS may recover taxes by applying the first-in-first-out rule. This could give rise to some interesting issues where the amounts of certain taxes are in dispute and others are not.

via Five things every taxpayer in South Africa should know – Lexology.