Education Plan
Q4 2012/13
New Tax Clearance System
Points Of Discussion
• Overview • Comparison: TCC vs TCS • Applying for a TCS • E-filing activation • Entity Reference Number – ERC01 • E-Filing Tax Compliance Status Overview • Applying for a TCS Pin • My Compliance Profile • Pin Management • 3rd Party Verification
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Tax Compliance Status (TCS)
What is it for?
• TCS is used by SARS to certify that SARS has, after checking its records, found
that the taxpayer named on the TCS has filed all required tax returns and has paid all taxes, penalties, and interest due as of the date the TCS is issued.
• This certificate allows a third party and the applicant e.g. application for tender /
bids, to confirm the tax status of the applicant.
Tax Compliance Status (TCS)
You can apply for a Tax Compliance Status(TCS) to validate your status of a taxpayer. A TCS is issued free of charge and may be required for: • Tenders – when applying for a tender or bid advertised • Good standing - to confirm that the applicant is tax compliant (his/her
affairs are in order with SARS) • Foreign investment allowance (FIA)- Investing Overseas • Emigration- Immigrating
TCS Overview…
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Tax compliance status (TCS) based on consolidated entity registered profile Online view of current compliance profile (MCP) with “robot” indicators Electronic application for TCS/ TCC (Good Standing, Tender, FIA and Emigration) No validity period for the TCS issued – based on compliance behaviour & realtime Access PIN to authorise 3rd parties to view TCS Online ability to print TCC with systematic withdrawal – for transition period Electronic TCS/ TCC verification for authorised 3rd party Full audit trail stored for requests and verification NT interface from CSD to TCC/ TCS to enable automatic compliance verification without human
intervention
Why change to TCS?
• Eliminate point in time compliance and move to continuous compliance • Introduce entity compliance view • Increase compliance visibility prior to application. • Reduce the risk of fraud in obtaining tax clearance/ compliance as well as fraudulent usage
of tax clearance/ compliance in the market place • Phase out the manual, paper-based tax clearance process • Improve track and trace (audit trail) and increase reporting ability • Totally online - Reduce branch office visits (more than 2million visits). Option Online or
branch • Reduce printing volumes (more than 10million certificates) • Ability to check if printed PIN is valid (Contact centre & Online)
Tax Clearance Certificate vs Tax Compliance Status
• Apply via post, e-filing, and at a SARS Branch Office.
• Receives a print out on water marked paper
• Valid for 12 months • 48 hour waiting period via e-
filing, • 21working days via manual
submission
• Apply via E-filing and at a SARS Branch Office
• Receives a Compliance Clearance Pin (CCP)
• Dependant on duration of contract (min 1 month max 12months)
• Real-time compliance indicators
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Tax Clearance Certificate Tax Compliance Status
Applying for a TCS
When applying for a TCS for tenders and / or good standing a TCS could be declined for any of the following reasons:
• There is outstanding money more than R1000 where no arrangements have
been made (including STC, administrative penalties and Employees Tax),
• There is outstanding money where deferred arrangements not adhered to (Income Tax / VAT, PAYE, SDL and UIF).
Validity of a Tax Compliance Status (TCS)
• There are outstanding returns where no arrangement acceptable to SARS has been made for the submission of the return.
• Taxpayer not registered for Income Tax reference number.
• Taxpayer status inactive / deregistered
• TCS Application not signed by taxpayer / representative
• If established that the company is registered for income tax but deregistered at CIPC (The TCS application will be rejected).
Manage TCS Request
Types: Good standing, Tender, FIA or Emigration Capture and submit the information to support the request –
dynamic flex form Each submission will be logged and tracked on the TCS
dashboard Risk based evaluation – approve or select for review An overall TCS and access PIN will be issued for each
approved request The overall TCS is not static and will change as and when the
taxpayers compliance behaviour changes Case management to evaluate and approve TCS requests
selected for review
REQUEST TCS
Challenge Status
Where the taxpayer disagree with the compliance status displayed the status can be challenged
The taxpayer must provide reasons why SARS must re-evaluate the status and submit
Case management to evaluate and approve the request with one of the following possible outcomes: • There are non-compliance matters that must be
resolved by the taxpayer – no change to status • SARS fixed all non-compliance on behalf of the
taxpayer – systematic change to compliant status • The non-compliance cannot be fixed immediately and
a limited time override is approved – manual change of status to compliant
An override impacts all TCS requests past and going forward.
During the override period, the taxpayer is regarded as compliant
CHALLANGE STATUS
Manage PIN/ TCC
PIN issuing – SMS, print, email (SARS branch or CC) PIN maintenance – cancel, request new The PIN is the access mechanism for 3rd parties, to
whom the PIN was shared by the taxpayer, to verify the taxpayer’s current TCS status
TCC issuing – print (online or SARS branch) TCC availability – only when the taxpayer’s overall TCS
reflects as compliant The TCC looks and feels like existing TCC and
communicates point-in-time compliance – validity must be checked
PIN MANAGEMENT
PRINT T C C
Verification – TCC
Manual distribution of paper TCC to receiving entity TCC reflects that the validity is dependent on taxpayers
compliance – must be checked by receiving entity The TCS validity can be checked online, at the SARS branch
or call centre Verification result reflects current TCC status and can be
issued in written format to verifying entity
VERIFY CERTIFICATE
Verification – TCS via PIN
eFiling specific: • Activate the TCS verification service • Once-off activation process • View history of verifications performed
Branch specific: • Case management – standard SARS processes
General: • Access with PIN and tax number • Taxpayer details confirmation • View verification result • The TCS displayed is the current tax status of the
taxpayer as at the date and time of the verification • A colour indicator will be displayed (RED = Non-
compliant, GREEN = Compliant) • Additional information relating to the specific request will
be displayed (e.g. Trading name, VAT number, investment amount, asset list etc.)
• Result available to print
ELECTRONIC VERIFICATION
Verification – Interface
Standardised real-time interface requirement 3rd Party submits a single request containing taxpayer
registered particulars and SARS issues response containing the compliance status of the corresponding taxpayer
No human intervention *(Only National Treasury (NT) currently – between CSD and TCC/ TCS)
VERIFICATION INTERFACE
Access – Selected taxpayers (eFilers only) Full scope TCS solution “testing”
• Online • Branch • Call Centre
Apply for TCC on legacy system NT verification interface between CSD and SARS
Phase1: Pilot Dec – 2015
TCS Phased Implementation
Phase2: MCP Jan – 2016
Access – Any taxpayer My Compliance Profile (MCP) only
• Online • Branch • Call Centre
Apply for TCC on legacy system NT verification interface between CSD and SARS
Phase3: Full Apr – 2016
Access – Any taxpayer Full scope TCS solution operational
• Online • Branch • Call Centre
Switch-off TCC application on legacy system NT verification interface between CSD and SARS
E-filing: Activation
Activate Tax Compliance Status Rights
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Organization – Rights Groups – Manage Groups – Group details - Open
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Activation of Tax Compliance process
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Activation of Tax Compliance process
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Activation of Tax Compliance process
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Entity Reference Number – ERC01
Entity Reference Number – ERC01
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My Compliance Profile
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The following compliance requirements will be displayed on the MCP dashboard: • Registration status – you have to be registered and active for the tax products that you are liable for • Submission of Return – make sure that no returns that you are liable for are outstanding after the stipulated filing due dates • Debt - make sure that you do not have any outstanding tax debt with SARS for which payment arrangements have not been made • Relevant Supporting Documents – make sure that you do not fail to submit information requested from you by SARS
My Compliance Profile
My Compliance Profile
My Compliance Profile
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My Compliance Profile
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ANY Form of NON-Compliance status
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Challenge the Status
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Challenge Status
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Tax Compliance Status Request
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Tax Compliance Status Request
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Tax Compliance Status Request
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Tax Compliance Status Request
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PIN Management
QUESTIONS
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