Feedback from the National Operations Meeting between SARS and the RCB Forum

The Chartered Institute for Business Accountants (CIBA) is a member of the Recognised Controlling Bodies (RCB) Forum. Below is a summary of key matters discussed during the recent National Operations meeting between the South African Revenue Service (SARS) and the RCB Forum, held on 18 April 2024.

Detailed Discussion Points:

1. E-filing Profile Highjacking Concerns:
   Recent incidents of e-filing profile highjacking have raised significant concerns among tax practitioners. SARS has responded by emphasising that tax practitioner level should include:

   • The need for robust security measures, such as two-factor authentication, and diligent management of user access, especially in instances of personnel changes within a practice.

   • It is advised to avoid public Wi-Fi for accessing sensitive information as these networks often lack sufficient security protocols.

   The Tax Ombud, Yanga Mputa, reported high volume of queries raised to her office, underscoring the urgency of this issue. It was proposed to hold a public workshop to further assess the situation and formulate systemic solutions.

2. Perception and Engagement with Tax Practitioners (TPs):
   There is an ongoing concern regarding how TPs perceive their relationship with SARS, with feelings that their role and contributions are not fully recognised or valued. The discussions highlighted the need for SARS to foster a more positive relationship with TPs, including improving public and media communications to reflect the collaborative and essential nature of TPs in the tax system.

   SARS expressed its commitment to working closely with strategic partners and ensuring TPs have the support and resources they need to serve taxpayers effectively.

3. Ongoing Challenges with the SARS Appointment System:
   Tax practitioners have experienced difficulties with the SARS appointment system, particularly with the scarcity of available slots for necessary in-person updates and processes. These challenges have been particularly acute in specific regions and for critical updates that cannot be performed online, such as updating banking or ID details. SARS acknowledged these issues and is actively working to enhance the system's responsiveness and capacity, aiming to reduce waiting times and improve the overall efficiency of service delivery.

4. Training and Compliance for Third-party Data Filing:
   The filing of specific forms, such as IT3(d) and IT3(t), remains a requisite, with SARS emphasizing the need for better training and educational support for Public Benefit Organizations (PBOs). The approach includes bolstering online resources and providing targeted training to ensure that PBOs are well-prepared to meet their filing obligations accurately and on time.

5. Regulatory Compliance and Penalisation Issues:
   A significant issue addressed was the inappropriate penalization of TPs for the submission of outdated returns not required by current regulations. Additionally, there are concerns regarding the slow process of deregistration for entities that have ceased operations but are still registered due to outstanding obligations. SARS is looking into modernising and streamlining these processes to alleviate the administrative burden on TPs and ensure that compliance requirements are clear and manageable.

In Conclusion

SARS and the RCB Forum are committed to continuous improvement and active engagement to resolve these issues. Tax practitioners are encouraged to utilise designated channels for communication with SARS to report any challenges and to keep updated with the latest guidelines and support mechanisms. CIBA will continue to monitor these developments and advocate on behalf of tax practitioners to enhance their working relationship with SARS, ensuring a more effective and collaborative tax administration system.

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