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Solar panel installers proposed to report taxpayer information to SARS
- 02 May 2023
- Accounting
- South African Accounting Academy
This new announcement specifies that the persons in the attached Schedule must submit returns for 2023 and following years by the dates specified in the Schedule – specifically, a person who issues a solar installation certificate of compliance.
The fact that SARS now considers ordaining solar installers as spies, appears very much part of the SARS drive to ensure compliance and embrace technology for taxpayer data collection.
This proposed strategic initiative by SARS is an innovative approach aimed at tackling non-compliance as well as enabling the newly proposed tax credits for solar panels. SARS will know exactly who had the money to install solar and the tax refund claim promises to be seamless for compliant taxpayers.
Compulsory Information
The draft public notice describes some of the mandatory information to be disclosed to SARS thereunder, including –
- Income tax reference number or, if no income tax reference number is available, the identity number, of the person on whose behalf the installation was done;
- Physical address of installation;
- Cost of the solar panels; and
- Date on which they were first brought into use.
Retrospective Effect?
It is propositioned that the draft notice will be backdated to 1 March 2023.
Should this be implemented, taxpayers who have installed solar panels at their domestic residences since 1 March 2023, can expect to be reapproached by their solar installers to collect the information which they are required to submit to SARS.
This public notice replaces Notice 241 published in Government Gazette No. 41512 dated 23 March 2018 with effect from 1 March 2023.
Click here to download the Draft Notice:
Relevance to Auditors, Independent Reviewers & Accountants:
- The Income Tax Act is yet another piece of legislation that your clients must comply with, and which you must assess compliance with. If they don’t comply with the relevant laws and regulations, you have certain reporting obligations in terms of NOCLAR (NOn-Compliance with Laws And Regulations) – this could include reporting to management, qualifying your audit opinion, reporting a Reportable Irregularity, etc.
- As an auditor, independent reviewer, an accountant or tax practitioner, you need to be aware of the proposed changes to tax legislation that is brought about by the annual budget speech and Draft Notices issued by SARS.
- You might need to advise your clients accordingly, if they are a taxpayer who has solar panels installed, or as an installer of solar panels, because your clients need to comply with the latest legislation.
- As an employer and taxpayer, you also need to comply with the Income Tax Act in your workplace.
Relevance to Your clients:
- An entity (company or close corporation) has a duty to comply with the Income Tax Act, and directors have to fulfil their duties accordingly, otherwise they could be held liable.
- It is important to be aware of the proposed changes to tax legislation that is brought about by the annual budget speech.
- As a taxpayer who has solar panels installed, or as an installer of solar panels, your clients need to comply with the latest legislation.
To stay current with all the latest changes and updates subscribe to our Monthly Compliance and Legislative Update series for R 250.00 per month. This gives you access to a monthly 2-hour webinar and monthly newsletter:
https://accountingacademy.co.za/profession/monthly-legislation-update
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