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New tax clearance application process

21st March 2014

By: Callie Lombard

  

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On March 3, the South African Revenue Service (Sars) announced that it had introduced an enhanced tax clearance certificate (TCC) application process on eFiling and at its branches. According to Sars, this is the first step in the phased implementation of a modernised tax compliance process to be introduced in the first quarter of 2014.

One simply has to apply online using Sars’ improved online system and collect the certificate at a Sars branch. To do this, one needs to use the holding company’s (legal entity’s) income tax reference number. Ideally, the entity’s value-added tax (Vat) and pay-as-you-earn (Paye) reference numbers should also be used. For a branch or division of the main company or entity, the following should be used: the branch Vat reference number and the branch registration number for payroll taxes, as well as the skills development levy or Unemployment Insurance Fund reference numbers. Sars will add all the subentities belonging to the holding company and provide a consolidated compliance status.

According to Sars, the tax compliance of subentities, divisions or branches of a holding company will have an impact on the holding company’s tax compliance status, which means that, if any one of the holding company’s subentities is noncompliant, the holding company will also be regarded as noncompliant and a TCC will not be issued.

Protection of Crucial Infrastructure Draft Bill
In the Government Gazette of March 3, notice was given of the publication of the Protection of Crucial Infrastructure Bill for public comment. The Bill follows a notice given by Democratic Alliance MP Lindiwe Mazibuko on February 25 of her intention to introduce a private member’s Bill to make provision for the establishment, composition, function and duties, meetings, financing and reporting of the Crucial Infrastructure Board, the suspension and removal of members of the board, the determination and declaration of crucial infrastructure and ensuring that security measures are implemented at crucial infrastructure, the creation of a register containing the areas declared as crucial infrastructure, setting out the rights and duties of owners of crucial infrastructure, the limitation of the liability of the state, Parliamentary oversight of the board, the creation of offences and penalties, transitional provision, and the repeal of the National Key Points Act of 1980 and related legislation.

The object of the Bill is to ensure the adequate protection of crucial infrastructure in South Africa, the creation of procedures for the determination and protection of crucial infrastructure that are open and transparent and accountable administration of crucial infrastructure, while ensuring that the security of South Africa is maintained.

Comments are due by April 1.

Tariff Amendments
On March 7, Sars informed of the insertion of tariff subheadings 7318.16.20 and 7318.16.30 and the substitution of tariff subheadings 7318.15.39 and 7318.15.43 in order to increase the rate of customs duty on certain screws, bolts and nuts. This follows an application by CBC Fasteners, which was initiated on May 24, 2013. The description of tariff 7318.16.90 reads: “Hexagon dome nuts, hexagon nuts with nonmetallic inserts, hexagon collared nuts and hexagon self-locking nuts, that of tariff subheading 7318.16.30. Other, hexagon nuts, that of tariff subheading 7318.15.39. Other screws, fully threaded with hexagon heads (excluding those of stainless steel), and that of tariff subheading 7318.15.43. Other bolts (excluding bolt ends, screw studs and screw studding) with hexagon heads.”

Sars also informed of the amendment of antidumping item 207.01/3920.49/01.06 to exclude specific polyvinyl chloride (PVC) strips of a thickness of 2 mm and a width not exceeding 20 mm from the existing antidumping duties applicable on PVC rigid, originating in or imported from the People’s Republic of China. The description reads: “Plates, sheets, film, foil and strip of PVC, noncellular and not reinforced, laminated, supported or similarly combined with other materials and having a plasticiser content not exceeding 6% (excluding PVC strips with a diameter of 2 mm thickness and a width not exceeding 20 mm).”

The rate of antidumping duty is 32.7%. The imposition is with retrospective effect to October 26, 2007, which means a possible refund is due. The application was lodged by Austro Group.

In an earlier instalment of this column, I informed of the termination of the antidumping duty on coated paper originating in or imported from the People’s Republic of China and the Republic of Korea. The provisional payment was imposed on September 27, 2013, up to and including March 14, 2014. On March 7, Sars informed of the withdrawal of the provisional payment.

Vitreous Enamels Tariff
On February 21, the International Trade Administration Commission of South Africa published the proposed increase in the rate of customs duty on vitreous enamels from free of duty to 10% ad valorem by the creation of an additional eight-digit tariff subheading.

Comment is due by March 21.

EU/SA Geographical Indications Protection
On February 22, an ‘Information Notice – Public Consultation: Geographical Indications from the Republic of South Africa’ appeared in the official journal of the European Union. The notice contains a number of wine names, and Honeybush and Rooibos, with Karoo lamb being absent. As mentioned in an earlier instalment of this column, the protection of Karoo lamb under the Merchandise Marks Act is still due. Comment is due by April 22.

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

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