Welcome to the SARS Tax Workshop · 2016-04-26 · Welcome to the SARS Tax Workshop IT14 SD The...

Welcome to the SARS Tax Workshop

IT14 SD

The purpose of this presentation is merely to provide information in an easily understandable format and is intended to make the provisions of the legislation more accessible to the layman. The information therefore has no binding

legal effect and the relevant legislation must be consulted in the event of any doubt as to the meaning or application of any provision.

Points of Discussion

• Introduction

• Documentation required and where to find relative information about the IT14SD?

• How to complete the IT14SD form?

• Why should you complete the IT14SD form?

• Where do you find the IT14SD form?

• How to register on e-filing to obtain the IT14SD form?

Introduction

• Once an IT14 return is captured and submitted, an assessment will be raised and issued.

• If the return is flagged for an audit, a letter will be issued to the taxpayer notifying him that the return has been selected for an audit.

• The taxpayer will be given the option to submit a Revised Declaration or a Supplementary Declaration, the IT14SD form.

Introduction

• Only one Revised Declaration will be accepted, if the return fail validation again, a letter will be sent requesting the taxpayer to submit the IT14SD form.

• The purpose of the IT14SD form is to provide a single “bird’s eye view” by reconciling the VAT, PAYE and Customs Declarations to the IT14 Income Tax Declaration.

• The taxpayer must complete fields from the source documents on the IT14SD form, and give explanation of any differences there might be.

Source Documents

Type of Return Declaration

Return of Income: Companies and Close Corporations

IT14

Vendor Declarations VAT 201

Employer Monthly Declaration

EMP 201

Employer Reconciliation Declaration

EMP 501

Customs Declaration SAD 500

Customs Voucher of Correction VOC

Additional Financial Records

Trial Balance

In addition could be used to complete IT14 SD

Signed Financial Statements

In addition could be used to complete IT14 SD

General Ledger

In addition could be used to complete IT14 SD

The IT14SD Return

• The IT14SD form is a 3 page Adobe/flex form that is currently issued only to Close Corporations and Companies that have been flagged for Audit.

• IT 14 SD Header section

The header section contains the pre-populated information, namely the Income Tax reference number, the Year of Assessment and the Case Number.

• It can be broken down in to the following reconciliation schedules:

i. PAYE Recon Schedule

ii. Income Tax Recon Schedule

iii. VAT Recon Schedule

iv. Customs Recon Schedule

The PAYE Recon schedule

IT14SD PAYE Recon Schedule • IT14SD PAYE Recon Schedule

• In order to complete this reconciliation schedule, the taxpayer must have the following documentation:

• IT14 Company Income Tax Return

• Employer Reconciliation Declaration (EMP201 and/or EMP501)

• The taxpayer must ensure that he has the total amount for PAYE calculated from the all the EMP201’s submitted for the year of assessment.

• The PAYE reconciliation schedule should reflect the total salaries and wages/employment.

• Costs declared under “Income Statement Information” section of the IT14 return and the EMP201 returns.

IT14SD PAYE Recon Schedule • The reconciliation must include all PAYE declarations

that is connected to the Company.

• i.e. if the Company/Closed Corporation has branches that are registered separately for

• PAYE, the total PAYE declarations for all the branches must reconcile with the salaries and wages/employment costs declared on the IT14.

• NOTE: NO supporting documents is required for the submission of the IT14SD form.

• NOTE : Complete ‘0’ (zero) if the Company or Close Corporation is not registered for VAT or PAYE

• or does not have any import/export transactions.

The Income Tax Reconciliation

schedule

IT14SD IT Recon Schedule

• In order to complete this section of the IT14SD form, the taxpayer will require the following Information:

• IT14 Company Income Tax Return

• Optional: Trial Balance

• Optional: Signed Financial Statements

• Optional: General Ledger

• This schedule should reflect the amounts declared under the “Tax Computation” section of the IT14 and the Accounting Profit or Loss declared under the “Income Statement Information” section of the IT14.

• NO supporting documents must be attached to the form when submitting it to SARS.

The VAT Reconciliation schedule

IT14SD VAT Recon Schedule • In order for the taxpayer to complete this section of the form, he will

require the following Information:

• IT14 Company Income Tax Return

• VAT201 Vendor Declarations

• NOTE:

• The taxpayer should ensure that he has the following totals from the VAT201’s that he

• submitted for the relevant tax periods relating to that particular year of assessment:

• Total amount of output VAT as declared under field 13

• Total zero rated supplies as declared per field 2 and 2A

• Total exempt and non-supplies as declared per field 3

• Total VAT input claimed per the submitted VAT201’s (field 19)

• Total goods exported by you as claimed per the VAT201 (field 2A)

• Total goods imported by you as per the VAT 201’s (field 15A)

IT14SD VAT Recon Schedule • The VAT reconciliation schedule is divided into two parts:

• Output VAT declared for tax periods falling within the year of assessment

• Input VAT claimed for tax periods falling within the year of assessment.

• This schedule reflects the amounts declared for VAT in the “Income Statement

• Information” section of the IT14 and the VAT declared as per the VAT201’s previously submitted to SARS.

• If the taxpayer submits the VAT201’s in uneven/even months or over a 6 months period , exclude all the supply for the next financial year end.

• NOTE:

• Complete ‘0’ (zero) if the Company or Close Corporation is not registered for VAT or PAYE

• or does not have any import/export transactions.

Customs Reconciliation

IT14SD Customs Schedule • In order for the taxpayer to complete this section of the form, he will

require the following Information:

• IT14 Companies Income Tax Return

• Customs Declaration (SAD 500) form and Voucher of Correction (VOC)

• NOTE:

• The taxpayer should ensure that he has the following totals from the SAD500’s and VOC’s

• submitted for the year of assessment:

• Total amount of imported goods

• Total amount of exported goods

• NO supporting documents must be attached to the form when submitting it to SARS

IT14SD Customs Schedule

• This section is divided into two parts:

• Imported Goods: Declare the total value of imported goods for the year of assessment

• Exported Goods: Declare the total value of exported goods for the year of assessment

• This schedule should reflect the amounts included in terms of goods imported and exported in the “Income Statement Information” section of the IT14 and the amounts of goods imported and exported declared as per the Bill of Entries (SAD500’s) and VAT201’s previously submitted to SARS.

The Reconciling Differences

containers

Each of the schedules/containers must be completed in full. If any of the mandatory fields are not completed, a pop-up message will be displayed (For eFiling) advising the taxpayer that the form cannot be printed/submitted until the fields have been completed.

IT14SD Recon Items • Where there is a difference of R100 or more, the taxpayer will have

to complete the

• detailed reasons for reconciling items as stated under each reconciliation schedule and

• ensure that amounts are completed for each reason.

• If the form is submitted online use the “+” or “-“ box next to the “Amount field” to add more

• reason fields or remove fields added but not required.

• Taxpayers completing manual forms must visit the nearest SARS branch if more fields for

• reconciling reason (s) are required.

IT14SD Recon Items • It is important to note that IT14SD forms that are completed on

eFiling or on BFE in the

• Branch Offices will run field validations on the reconciling items. E.g. If the Reconciling D

• Difference amount for PAYE is R 21 889 in the PAYE container, and an amount of R21 998

• is carried over to the PAYE Reconciliation Difference container, a pop up message will

• prompt the taxpayer to amend the amount carried over.

In closing

• You are obliged to ensure that a full and accurate disclosure is made of all relevant information as required in the IT14SD.

• Misrepresentation, neglect or omission to submit a form or supplying false information may result to prosecution.

• Read the declaration on the front page of the form. • If you are registered as an e-Filer and submit your

IT14SD electronically, the password received during registration as an e-Filer will serve as your digital signature

24

The End