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Investigation to Throw Light on Tax Refunds

March 31, 2017

Pfumo Tax and Accounting.

3/31/2017

Edition 3

Investigation to Throw Light on Tax Refunds

The investigation by the tax Ombudsman into tax refunds will determine whether the South African Revenue Service (SARS) has been withholding refunds to boost tax revenue artificially.

Deputy Finance Minister Mcebisi Jonas has given tax Ombudsman Judge Bernard Ngoepe the go-ahead to investigate.

Tax practitioners, like Pfumo, have raised a red flag over delays in the payment of tax refunds for some time, but SARS strongly rejects the allegations that it is doing this deliberately. It has also denied claims that its administrative deficiencies contributed to the R30bn shortfall in tax revenue in the 2016-17 fiscal year.

Concern about the shortfall was raised by Finance Minister Pravin Gordhan in a briefing ahead of his budget speech in the National Assembly and he has had engagements with senior SARS executives about the matter.

The tax Ombudsman has seen a spike in complaints about delayed payment of tax refunds by SARS.

CEO Eric Mkhawane expected the probe to be completed in one or two months.

While the tax Ombudsman had helped solve individual cases of delayed tax refund payments, it had not been able to address the issue systemically.

The investigation would allow it to deal with the problem in a holistic way and look at the underlying causes.

The tax authority welcomed and would fully co-operate with the investigation, which would bolster taxpayer confidence in its systems.

*Source: Business Day by Linda Ensor.


This months Featured Customer of the month is…

Terence Tobin

Terence assists his clients in creating financial plans to meet their financial objectives through savings & investments, tax reduction and personal protection plans within their affordability. This is to ensure they reach FINANCIAL WELLNESS.

As each client is a unique individual with their own desires, needs and requirements, he offers professional step-by-step financial planning that is based on a detailed personalised financial needs analysis. This is undertaken over a period of time and in line with ever-changing budgetary and family requirements.

He prides himself in offering holistic planning services, educating his clients through the decision-making process and allowing them to make the ultimate decision without being pressured into products/services that they do not need or cannot afford.

In his practice, he works with all individuals, whether just starting in a new job, recently married/divorced, new parents, professionals, retirees and those who have lost loved ones.

Yes, he knows you are busy juggling your career, family, going to gym, looking great and keeping in contact with your friends. He is there to take the stress out of your life with regards to financial planning and show you how easy it actually is. The best part is that he doesn’t work for an insurance company, so he is completely independent and unbiased.

For more information please contact Terence at:
Tel: 083 337 9576 or
Email: terence@eternityfs.co.za

Did you know?
Pfumo is a proud supporter of ‘Stand with Stan’.

A charity dedicated to providing prosthetic limbs to those who can’t afford them.

Stan is looking for donors to commit to as little as R50-00 a month to assist in returning mobility to someone less fortunate.

If you think you can help, please contact Stan on the below details:

Email: info@standwithstan.co.za

Web: www.stanandrews.co.za

NB. Thank you to all those that have responded thus far and for your generous pledges and donations!

Don’t forget your 30 Second fix!


30 SECONDS…

Governments around the world have become progressively aware of the level of undisclosed wealth held in offshore accounts which is not being reported for tax purposes.

These governments’ revenue authorities are now working together with each other and collecting and sharing data.

An example:

A South African person has invested / inherited assets in the Isle of Man.

The Isle of Man is obviously aware of the asset.

In terms of the ‘Automatic Exchange of Financial Account Information’ agreement, {to which many countries are now signatories, (Including South Africa)}, the Isle of Man revenue authorities are obliged to share all the information of this asset with the SA revenue authorities.

If the SA resident has not declared this to the SARS that resident can be liable to prosecution involving heavy fines and / or imprisonment.

There is a mechanism to make the SARS aware of previously undisclosed foreign assets.

Fortunately Pfumo can help shield you but, can only do so until 30 June 2017.

Pfumo Tax and Accounting Services (Pty) Limited is a proud member of Business Networking International, Legacy chapter.

http://www.bni-jhb.co.za/bni-johannesburg-north-bni-legacy/index.php