sars extends e-filing deadline for companies 
01 February 2008

Companies, CC's will be able to file their returns within 15 months of the financial year-end, said the South African Institute of Professional Accountants (Saipa).  However, only companies and close corporations using a tax practitioner registered with the SARS would be able to take advantage of the extension, said Nicolaas van Wyk from Saipa. “The extension was granted in light of the rolling blackouts that reduced company working hours by up to two hours in some cases, and in others longer,” he said.

As of last week, more than 65% of taxpayers had filed returns, including almost 500 000 e-filers. Of these, 75% had already been assessed, the SARS said. SARS had been unable to assess some returns, most were incomplete submissions. Some taxpayers had been referred to audit before refunds would be paid.

The SARS had also granted an extension to practitioners who had until tomorrow to electronically submit individual taxpayers’ returns. Practitioners have until February 28 to submit 75% of clients’ returns by e-filing. They have until March 14 to submit all of clients’ returns on e-filing. This includes individuals and trusts. SA has 7-million registered taxpayers, of whom 5-million are individuals,
1,7-million companies and 300000 trusts.

The SARS had had a formal submission from the South African Institute of Chartered Accountants (Saica) and Saipa to review submission dates for tax returns. Van Wyk said practitioners still favoured e-filing, but had been experiencing a number of difficulties with use of the system.  “We wanted the SARS to address some of the challenges facing tax advisers,” he said. Some included late availability of tax return forms and related registration facilities, by contrast with previous tax years. Some practitioners estimated they were more than three months behind schedule because of this.

There were a number of e-filing system problems preventing practitioners from accessing or effectively using the system, he said. Practitioners also complained about overload of the call centre and e-filing system.

Sanchia Temkin, www.businessday.co.za