There is some confusion in the legal fraternity about the submission of IT3(b) data from their clients’ investments to SARS.
I spoke to Lizette Burger, the Professional Affairs Manager at the Law Society of South Africa to get her input on the matter. She said that there is a meeting scheduled this week between SARS, the Law Society of SA and the Banks to discuss the issue and process.
The previous May 2013 deadline for these returns, found that a number of law firms could not submit their clients’ investment information, as the banks had not yet supplied the law firm with the information, causing a ripple effect of late submissions .
Let’s have a look at what is needed for this submission.
- Law firms need to submit data on all the investments they have made on behalf of their clients to SARS for the previous tax year by the 31st May each year.
- The information required for natural persons is:
- First Name, Surname, Initials and Date of Birth
- Address, either postal or physical
- ID Number or Passport number including country of issue
- Tax reference number
- Account number with the institution where the interest is received
- Date of opening the account
- Date of closing the account
- Balance at the closing date of the account or last day of tax year
- Interest received for the period
- Monthly debits and credits to the account
- An indicator of account verification status in terms of FICA.
- The information required for other parties is:
- Registered name
- Address, either postal or physical
- Entity registration number
- Tax reference number
- Account number with the institution where the interest is received
- Date of opening the account
- Date of closing the account
- Balance at the closing date of the account or last day of tax year
- Interest received for the period
- An indicator of account verification status in terms of FICA.
These returns must be submitted electronically with SARS through the e-Filing system.
Let’s see what comes from the meeting this week, we will keep you posted.
A copy of the text of the Government Notice:
GOVERNMENT GAZETTE, 29 FEBRUARY 2012 Number No. 35090
GOVERNMENT NOTICE
SOUTH AFRICAN REVENUE SERVICE
No. 173 Dated 29 February 2012
NOTICE TO REPORTING INSTITUTIONS TO FURNISH BI-ANNUAL RETURNS OF INVESTMENT AND INTEREST WITH EFFECT FROM THE 2013 YEAR OF ASSESSMENT IN TERMS OF SECTION 69 OF THE INCOME TAX ACT, 1962 (ACT NO. 58 OF 1962)
1. Notice is hereby given in terms of section 69 of the Income Tax Act, 1962, (“the Act”), that reporting institutions must furnish returns of moneys invested with, loaned to and deposited with the reporting institution and of interest received by or accrued to or in favour of any person from the reporting institution or from any business carried on by the reporting institution in the Republic during the period 1 March 2012 to 28 February 2013.
2. Reporting institutions for purposes of this notice are:
(a) Banks regulated by the Registrar of Banks in terms of the Banks Act, 1990 or the Mutual Banks Act, 1993;
(b) Co-operative Banks regulated by the Co-operative Banks Development Agency in terms of the Co-operative Banks Act, 2007;
(c) The South African Postbank Limited (Postbank) regulated in terms of the South African Postbank Limited Act, 2010;
(d) Financial institutions regulated by the executive officer, deputy executive officer or board, as defined in the Financial Services Board Act, 1990, whether in terms of that Act or any other Act;
(e) Companies listed on the JSE, and connected persons in relation to the companies, that issue bonds, debentures or similar financial instruments;
State-owned companies, as defined in section 1 of the Companies Act, 2008, that issue bonds, debentures or similar financial instruments; and
(g) Organs of state, as defined in section 239 of the Constitution of the Republic of South Africa,1996, that issue bonds or similar financial instruments.
3. Unless otherwise agreed in terms of paragraph 4, returns must be furnished by the following dates:
(a) for the period 1 March 2012 to 31 August 2012, 31 October 2012; and
(b) for the period 1 March 2012 to 28 February 2013, 31 May 2013.
4. The South African Revenue Service (“SARS”) and a reporting institution may agree to different periods and dates for the submission of returns in respect of persons with years of assessment that do not end on the last day of February.
5. The following information must be disclosed in the returns, unless SARS and a reporting institution agree otherwise in writing on good cause shown-
5.1 Natural persons
(a) Surname, first names, initials and date of birth;
(b) Address details (physical or postal);
(c) Identity number or passport number (including country of issue);
(d) Tax reference number;
(e) Account number;
Date the account was opened and date it was closed;
(g) Closing balance of account at end of return period;
(h) Interest received by, accrued to or in favour of the person from the reporting institution during the period covered by the return, other than interest on instruments and interest rate agreements that the reporting institution deals in and which interest the reporting institution does not report as interest for financial reporting purposes;
(i) Monthly totals of all credits and debits to the account; and
(i) Indicator of account verification status in terms of the Financial Intelligence Centre Act, 2001.
5.2. Other persons
(a) Registered name;
(b) Address details (physical or postal);
(c) Reference number issued by the relevant regulatory authority, such as the Companies and Intellectual Property Registration Office (CIPRO), the Companies and Intellectual Property Commission (CIPC) or the Master of the High Court;
(d) Tax reference number;
(e) Account number;
Date the account was opened and date it was closed;
(g) Closing balance of account at end of return period;
(h) Interest received by, accrued to or in favour of the person from the reporting institution during the period covered by the return, other than interest on instruments and interest rate agreements that the reporting institution deals in and which interest the reporting institution does not report as interest for financial reporting purposes;
Monthly totals of all credits and debits to the account; and
(j) Indicator of account verification status in terms of the Financial Intelligence Centre Act, 2001.
6. Returns must be filed electronically with SARS.
7. For purposes of this notice, any word or expression to which a meaning has been assigned in the Act bears the meaning so assigned.
8. Further information may be obtained from the website: www.sars.gov.za
