Application Guide for efiling Tax Voluntary Disclosure Programme 2010
Introduction The South African Revenue Service (SARS) will implement a Voluntary Disclosure Porgramme (VDP) that will be effective from November 2010 to October 2011. Under the VDP applicants are invited to disclose their tax defaults and obtain various forms of relief from SARS, including interest and penalty relief as well as avoiding possible criminal prosecution. However, the full amount of tax will remain due and a successful applicant will have to agree with SARS on payment terms. To obtain this relief from SARS an applicant will have to meet the following requirements: The disclosure is complete in all material respects and made in the prescribed form and manner; SARS was not aware of the default which must have occurred prior to 17 February 2010; A penalty or additional tax would have been imposed had SARS discovered the default in the normal course of business. The default would not otherwise have been detected during an audit or investigation It would not result in a refund due by the Commissioner The VDP is being implemented in terms of the Voluntary Disclosure Programme and Taxation Laws Second Amendment Act (No 8 of 2010), which: Introduces the concept of voluntary disclosure; Prescribes the relief that may be provided under the VDP; States who may apply for relief and the minimum requirements to be met to qualify for relief; and Prescribes when, where and how to apply for the VDP. To assist prospective applicants in the application process and to encourage electronic applications as a secure method of submitting an application, this document provides a step by step guide to completing an application form using efiling. The legislation also allows for anonymous applications to be made in the initial stages of the process and this guide explains how this can be done. (NOTE: The VDP also provides for applicants to regularise their exchange control contraventions. This aspect is administered by the South African Reserve Bank. For more information on the Excon VDP, please contact the Financial Surveillance Department of the SARB on 0123133169) Application Guide for efiling VOLUNTARY DISCLOSURE PROGRAMME 1
There are two parts to the application process: Tax Practitioner / Organisation profile application, and Individual taxpayer application The Tax Practitioner and Organisation profiles allow the user to apply for VDP on behalf of someone else. This profile also allows for anonymity on the application where the applicant s details are not disclosed. Individual taxpayers who apply on efiling will have to reveal their identity as logging onto efiling cancels all anonymity. Tax Practitioner Once logged into efiling, the tax practitioner will select the Voluntary Disclosure -> New Application menu from the side menu options under Returns. The tax practitioner will then be presented with the option to be able to then select how s/he would like to perform the application, whether by selecting a taxpayer from the taxpayer list or by selecting Anonymous in order to do an anonymous application where the applicant s details Application Guide for efiling VOLUNTARY DISCLOSURE PROGRAMME 2
Registered Taxpayer Application The default taxpayer can be changed by selecting the desired taxpayer from the Taxpayer List at the top of the page, depending on the number of taxpayers registered for the profile, this will either be a dropdown selection list or a pop-up where the tax practitioner can search for the desired taxpayer. Once the desired taxpayer has been selected, the tax practitioner will click on Continue to proceed with the application, this will present an Adobe form that is already pre-populated with the selected taxpayer s demographical information, the tax practitioner will then complete all the client information that is required for the processing of the application. The tax practitioner will also be required to capture his/her details in the appropriate fields. Application Guide for efiling VOLUNTARY DISCLOSURE PROGRAMME 3
Once all the required fields have been captured, the application can then be filed by clicking on the File button on the form, after which the following message will be displayed. Anonymous Application The anonymous application is only available under the tax practitioner and organisation profiles, this allows for these two profiles to submit applications on behalf of their clients anonymously. In this case the applicants details are not disclosed, the only details that will be required on the form are those of the declarant. Application Guide for efiling VOLUNTARY DISCLOSURE PROGRAMME 4
After all the mandatory fields have been completed, the form can submitted to SARS by clicking on the File button on the form. The following message will be displayed. Saved Applications Should the session timeout or the user decides to abort the application process, the application is saved to be accessed later. In order to view and or access saved applications, the user will click on Saved Applications under the Voluntary Disclosure menu. From the displayed list, the user can select to open the saved application by clicking on Open. History After an application has be submitted to SARS, it is stored under the History option of the Voluntary Disclosure menu, in order to view the items that have been submitted to SARS, one will click on History and will be presented with a list of all submitted applications. Application Guide for efiling VOLUNTARY DISCLOSURE PROGRAMME 5
From the list, the user will be able to open the desired return by clicking on Open Once open, several additional options become available for the taxpayer to choose from, from here, the taxpayer will be able to attach supporting documents should they chose to do so by clicking on the Add Supporting Documents button. This will open another window that will allow the user to either user a scanner that is attached to his/her pc or to browse for documents that are saved on the pc. Application Guide for efiling VOLUNTARY DISCLOSURE PROGRAMME 6
Once uploaded, the document[s] can be viewed, deleted or submitted to SARS by clicking on the appropriate buttons. Once supporting documents are submitted to SARS, the Add Supporting Documents button will be removed, should the taxpayer wish to view previously submitted docs or add more docs, s/he would have to click on the Supporting Documents link, which will open up the option to view and to upload additional documents. Application Guide for efiling VOLUNTARY DISCLOSURE PROGRAMME 7