Authored by: Tasia Brummer, Immigration Specialist, Xpatweb & Marisa Jacobs, Director and Head of Mobility, Xpatweb
 
In October, the Institute of People Management hosted a panel discussion at their annual convention covering the topic of Globalised Resourcing and Strategic Skills Growth through the import, export and exchange of skills. Four key role-players participated in the panel who discussed the typical challenges of sourcing foreign nationals and strategies to address common challenges.
 
SKILLS SHORTAGES
South Africa is faced with a shortage of skills across a number of sectors. The Critical Skills list published by the Department of Home Affairs was introduced in 2014 (the updated list is expected to be released in April 2019), identifying the sectors and specific occupations plagued with these shortages thereby providing business with the ability to source these skills globally ensuring continued economic growth.
 
SKILLS TRANSFER – HOW?
Mr Phindiwe Mbhele, Director of the Department of Home Affairs’ Corporate Accounts Unit, indicated that in many cases the source of the challenges faced in transferring of skills may not be the ability, but rather the method. This is especially apparent in occupations such as CEO and other executive roles where the skill set is diverse and hard to quantify.

Deputy Director of Labour Migration at Department of Labour, Ms Nonhlanhla Ngwenya, further referred to the ‘Employment Services Act’ promulgated in 2014, that will introduce training processes for South African companies to better enable them to conduct the necessary upskilling of local talent through skills transfer programs.
 
CONCESSION PLANNING
Ms Monyela, whom has experience as an expat herself, advocated the importance of expatriate employees and especially at strategic and executive level. Philafrica being a multi-national organisation with plans to expand further across Africa, Ms Monyela appreciates that expatriates are necessary for the growth of the organisation but requires strategy to ensure skills transfer and concession planning. The skills transfer is further required both locally and abroad to ensure holistic development of the business.
 
She caveats, it is about finding the balance between bringing foreign talent into South Africa and sending skilled local employees abroad with the clear intention that, in both instances, skills are going to be utilized fully and transferred for the prescribed purpose and period that they have been assigned. As an HR executive, Ms Monyela encouraged any HR professional to understand the landscape in which the desired skills of foreign employees ought to be deployed.

ENGAGE
Once the company has determined the set of skills they require, they need to familiarise themselves in terms of the various processes involved when employing a foreign national.This will include engaging both an Immigration Service Provider and the Department of Home Affairs to determine the correct and most feasible methods to proceed in employing a foreign national.

Mr Moeketsi Seboko, Immigration and Technical Manager at Xpatweb, indicated that he is often approached by organizations and professionals after an application for a visa has been rejected, only to find, that numerous errors and incorrect processes were followed in applying for the visa. This naturally incurs unforeseen delays with the project where the expat is required to be onsite within a prescribed timeframe and causes frustration for the employer.
 
At the on-set, it is imperative to determine and qualify a foreign employee correctly within a prescribed visa category as per the Immigration Act of 2002, as amended. This will avoid unnecessary delays and complications. It is best to approach a professional whom has gleaned knowledge in terms of processes and requirements for foreign employees.
 
In most cases, rejections could have been prevented if prior engagement with the Department of Home Affairs had occurred. Mr Mbhele welcomes any Corporate to approach the Department of Home Affairs prior to the implementation of a project and to gain the support of the Department and determine exact requirements and protocols specific to the project.
 
IN CLOSING
The onus is therefore on employers to ensure that the South African labour market is upskilled by the foreign employees within the respective organisations. If further able, to retain these skills to ensure continued input into the South African economy.
 
ENDS

MEDIA CONTACT: Rosa-Mari Le Roux , 082 573 9219, rosa-mari@thatpoint.co.za, www.atthatpoint.co.za
 
ABOUT Tax Consulting SA:
Tax Consulting SA offers a streamlined service in the calculation and filing of individual income tax returns, provisional income tax returns or any other more complex individual tax relate matters. Our highly qualified team of Tax practitioners are registered with SARS under controlling body of the South African Institute of Tax Practitioners (SAIT). As tax specialists, we remove the burden from clients to keep their tax affairs in good order, achieving optimal tax savings while ensuring full compliance.
 
For more information on Tax Consulting please visit:
Website:  http://www.taxconsulting.co.za/
LinkedIn: Tax Consulting South Africa
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​From the 7th of December the South African Revenue Service (SARS) will be implementing their new approach to use information supplied by the Companies and Intellectual Property Commission (CIPC) to determine which companies are not tax compliant and impose penalties accordingly.

The national revenue collector issued an official notice to registered accountants and tax practitioners’ during October to confirm Fabian Murray, acting SARS chief officer’s announcement of the implementation of the new line of attack earlier this year.

The notice, which is signed by acting SARS commissioner Mark Kingon, states that administrative penalties for late Corporate Income Tax (CIT) returns will be imposed on over 300 000 companies. Such penalties can range from R250 to R16 000 per month of lateness.

It is a well-known public fact that SARS is short on collection, and as the Tax Administration Act determines a penalty per month of lateness, this will boost their collection. The law also looks at when a company should have been registered for tax. For instance, if you opened a company five years ago and never registered it, the minimum penalty is R250 x 12 months x 5 years = R15,000.

However, this minimum penalty is only applicable in instances where a company was dormant, as the law still demands CIPC and SARS compliance. Where a company is active, depending on various factors, the Tax Administration Act will determine the level of penalties applicable.

What should you do if you feel nervous
The directors of companies that are found to be not tax compliant, should rightly feel uneasy, as SARS will undoubtedly come after them personally, especially where the company does not have means to pay penalties, or plainly ignores it.

There are very clear company law provisions creating a personal liability against being reckless and delinquent on statutory duties.
Therefore:

• A head in sand approach will not be wise here, as everyone dealing with SARS will agree – you fix the problem before SARS targets and / or the system penalises you.
• Where you have ever setup a company or been a director, and you are unsure whether the company is tax compliant, immediately get the status checked up with a CIPC registered tax practitioner, who can access both CIPC and SARS systems and give you a complete and accurate picture. This only takes a day or two to complete. This process is generally known as a tax diagnostic which gives you a complete update and visibility of your situation.
• If there are any sensitivities about your situation, deal with tax attorneys, which ensures you have legal privilege. This is not obtainable from accountants or normal tax practitioners.
• Where you are on the wrong side, fix anything outstanding, before the penalty is imposed. Your ideal skill set is someone who can provide full accounting sign-off, tax attorneys and those who know how to fix tax issues proactively, without causing you to be placed automatically on the SARS audit list.
• The issue comes in in cases where the penalty has already been imposed, as they are not easily waived. SARS makes penalty waiver decisions by committee and you therefore need an experienced accountant, or ideally a tax attorney on more complex matters.

 
ENDS
 
MEDIA CONTACT: Rosa-Mari Le Roux , 060 995 6277 , rosa-mari@thatpoint.co.za, www.atthatpoint.co.za
 
ABOUT Tax Consulting SA:
Tax Consulting SA offers a streamlined service in the calculation and filing of individual income tax returns, provisional income tax returns or any other more complex individual tax relate matters. Our highly qualified team of Tax practitioners are registered with SARS under controlling body of the South African Institute of Tax Practitioners (SAIT). As tax specialists, we remove the burden from clients to keep their tax affairs in good order, achieving optimal tax savings while ensuring full compliance.
 
For more information on Tax Consulting please visit:
Website:  http://www.taxconsulting.co.za/
LinkedIn: Tax Consulting South Africa
Facebook: Tax Consulting South Africa

Authored by: Christopher Renwick, Attorney at Tax Consulting
 
More than a year after the Ombud’s rather critical report on the South African Revenue Service’s (SARS’) value-added tax (VAT) refund structure was issued, frustration among taxpayers has been intensified by the revenue service’s excessive verification demands, which seem to be driven by the aim to delay legitimate VAT refunds.
 
The most brazen example brought to our attention, was when SARS withdrew money from a taxpayer’s bank account without following due procedure. Upon proving his case, the taxpayer was owed the funds back and a refund was due. SARS immediately requested a verification of bank details. Let me repeat that. SARS requested a verification of bank details from an account they had just drawn funds from.
 
Holding horses
Two possible conclusions can be drawn from this practise. Either, SARS officials aren’t properly equipped in their duties or the verification request was deliberate in an attempt to delay a refund. Reviewing the example above, we will let you decide.
 
The biggest aspect of tax that seems to be subject to excessive requests for verification is the area of Value-Added Tax (VAT). The frustrations arising out of SARS’s verification process on VAT not only aggravates the taxpayer but also endangers the livelihood of the enterprise they operate. Particularly we have found that, when refunds start exceeding the R1-million amount, the process becomes somewhat further drawn out.
 
Fraud is real
It is common knowledge that SARS’ verification process is to prevent fraudulent VAT claims. In a modern world with modern criminals, fraud is a real concern. The integrity of the VAT system needs to be protected and no doubt SARS has the full support of the taxpaying community in preventing fraudulent depletion of Treasury funds through fraudulent VAT claims. No need to add to the ongoing political looting that is the talk of the town currently.
 
Kicker
What is to be done though, where SARS has no basis for a request for verification and yet persistently requests same? For those throwing their hands in the air right now, I understand your frustration. Why should your legitimate VAT refund be delayed?
 
The short answer is, it shouldn’t. At least, that’s what the Ombud said. The Nugent Commission is likely to come to the same conclusion. Refunds are being delayed because, ultimately, SARS doesn’t want to pay them. It affects the collection figures. Probably also affects performance bonuses too?
 
What should you do?
In our experience, the easiest route is to go direct. To call SARS to order and get a response. Too many taxpayers believe that, once their refund is within the system that is SARS, there is no hope and it becomes a wait and pray type of game.
How do you go direct? You use your years of experience and expertise to garner a result. If you’re short on these, contact a professional.
 
ENDS
 
MEDIA CONTACT: Idéle Prinsloo, 082 573 9219, idele@thatpoint.co.za, www.atthatpoint.co.za
 
ABOUT Tax Consulting SA:
Tax Consulting SA offers a streamlined service in the calculation and filing of individual income tax returns, provisional income tax returns or any other more complex individual tax relate matters. Our highly qualified team of Tax practitioners are registered with SARS under controlling body of the South African Institute of Tax Practitioners (SAIT). As tax specialists, we remove the burden from clients to keep their tax affairs in good order, achieving optimal tax savings while ensuring full compliance.
 
For more information on Tax Consulting please visit:
Website:  http://www.taxconsulting.co.za/
LinkedIn: Tax Consulting South Africa
Facebook: Tax Consulting South Afric