Following the increasing trend for consumers and businesses to take advantage of the Internet and the benefits it brings in terms of saving time and money for financial transacting, the South African Revenue Service (SARS) has introduced a new service that allows companies to file their tax electronically.
The move by SARS complements electronic banking, which is increasingly becoming the de facto method for consumers and businesses alike to conduct their financial affairs. Like electronic banking, eFiling reduces paperwork, saves time and delivers the instantaneity of the Internet to yet another function that is often perceived as a hassle factor.
Many banks are linking their online presences to the eFiling site, allowing business clients to submit specific returns and payments to the Receiver of Revenue via the Internet.
The SARS eFiling service is the result of a collaborative effort between SARS and private enterprise. The technology has been under development for two years and reflects international trends in taking advantage of technology to expedite the process of taxation.
The sophisticated system brings security and convenience to the duty of paying tax. Payments are easy to calculate and the system navigation is straightforward. Most important, though, is that the eFiling system allows firms` senior management to focus on what is most important - their business.
The service is offered to employers, vendors and provisional taxpayers; however, no personal income tax returns can be submitted electronically as yet.
The eFiling system is a logical step forward for the process of tax remittance. Electronic banking has delivered enormous benefits, both business and personal, which are complemented by the eFiling system. There are no queues and few delays, and companies can pay their tax at any time of the day or night.
Convenience is no longer a value-add, but has become an imperative. SARS is extending the convenience of online banking to tax returns, helping businesses to keep up to date with their responsibilities at times that are most suitable to them. And, best of all, it`s free of charge.
The move by SARS complements electronic banking, which is increasingly becoming the de facto method for consumers and businesses alike to conduct their financial affairs.
Lee-Anne van Zyl, national director of client management, FNB Business Electronic Banking.
Companies that want to take advantage of the service can register as eFilers at www.sarsefiling.co.za. Following online registration, SARS authenticates the user by issuing a confirmation notice, assigning a security profile to each user. The security profile takes place within 24 hours of registration and provides customers with a private access code and password to access the available services.
The private access code and password will only be issued once the taxpayer, or his/her representative, has been authenticated in accordance with the regulatory measures for electronic signatures and checked against the SARS master database.
Through the site, customers will be able to complete and pay provisional tax returns (IRP6); value-added tax (VAT201); pay as you earn, skills development levies and unemployment insurance fund returns (EMP201); trust returns (IT I2TR); tax directives and extensions.
The secure site automatically displays the return information in the same manner as the traditional printed tax forms. Taxpayers are able to complete the return on the Web and make payments. All information is encrypted, from the moment the taxpayer accesses the SARS eFiling Web site, to the time the return is delivered to the relevant tax system. Only SARS will be able to view the return information.
Those using the service will receive an e-mail or SMS from SARS once a return is received.
Apart from the clear benefit of around-the-clock convenience, eFiling also offers three- to five-day extensions on certain payments, payment reminders sent via SMS or e-mail, and online electronic calculation and verification of information to reduce accounting errors.
In the past, the Receiver of Revenue experienced problems with incorrect payment referencing. However, the SARS eFiling site provides a complete interface that ensures payment is automatically populated and fully referenced, avoiding this issue altogether. However, clients should note that authorisation must take place for the payment to be effected.
The days of standing in long lines at the SARS office to file VAT returns are finally over.
Those requiring more information can contact the FICA compliance division on (011) 371-2111.
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