The Commissioner: South African Revenue Service ("SARS") recently announced that companies and close corporations ("CCs") will, in certain cases, be required to complete and submit a supplementary declaration for companies and CCs, Form IT14SD.
The new form will require companies and CCs to reconcile financial information across various tax types and customs. The IT14SD will require taxpayers to submit reconciliation statements for employees’ tax ("PAYE"), income tax, value-added tax ("VAT") and customs.
Most companies and CCs which are not currently reconciling financial information for the various taxes should proceed to do so, so that they will be in a position to supply the information that will be required by SARS.
It will be important for taxpayers, who are required to submit the Form IT14SD, to reconcile the turnover reflected as per the Annual Financial Statements ("AFS"), to the turnover reflected on the VAT returns. SARS is also seeking a reconciliation of the input tax as per the VAT returns and the expenditure as reflected in the AFS.
SARS will require taxpayers to submit details of salaries as per the AFS and to reconcile that to the figures submitted via the PAYE process.
In addition, information will be required by importers and exporters regarding customs information submitted to SARS and information contained in the AFS.
SARS has indicated that where companies and CCs submit their returns electronically, and that taxpayers who are identified for verification, an initial verification letter will be displayed on the taxpayer’s e-Filing profile and e-Filing will automatically make the Form IT14SD available on the taxpayer’s profile. Those taxpayers who do not submit tax returns electronically, will receive an IT14SD via the mail and will be required to complete the form and submit it to SARS.
SARS has advised taxpayers that the new Form IT14SD can be submitted either through e-Filing, via SARS branches or by post.
It is important that taxpayers who are not currently reconciling the information regarding the various taxes to the information contained in the AFS undertake to do so, with a view to the requirement that such information must, in future, be submitted to SARS.