CAPE TOWN – In an attempt to resolve ongoing statement of account errors in some of the country’s biggest companies, the SA Payroll Association (SAPA) is set to meet with the SA Revenue Services (Sars) acting head Mark Kingon later this month.
Sapa board chairperson Arlene Leggat said when large organisations submitted their EMP201 to Sars, it indicated how much it had deducted from their employees’ pay for tax purposes. The deductions would subsequently be paid over to Sars, clearing an organisation’s account with the revenue collector.
“The problem is that Sars compiles all this information into journals. There are no particular reasons for these journals and no-one in Sars can explain what they are for. The figures that are journalised are invariably not related to any payment or EMP201 on the account,” Leggat notes.
She further explained that these journals often resulted in an accounting error, and subsequently an underpayment reflecting on a particular company’s statement of account. “Although this might not seem like a significant issue, it can lead to further damage to the country’s economy,” Leggat warns.
If an organisation reflects an under-payment at Sars, they are deemed non-tax compliant, and therefore cannot receive tax clearance from the agency. “If a company does not carry tax clearance, it cannot do business – it really is that simple. This issue is affecting the ability of organisations to function, grow and create those jobs we so desperately need. Surely, this is something we really need to fix. It is stemming from utter incompetence within SARS.”