Sars re-establishes Large Business Centre to drive voluntary corporate compliance

Sars Commissioner Edward Kieswetter presented the value proposition that the re-established Centre would offer to bring about voluntary compliance among corporate South Africa. Photo: Oupa Mokoena/African News Agency (ANA)

Sars Commissioner Edward Kieswetter presented the value proposition that the re-established Centre would offer to bring about voluntary compliance among corporate South Africa. Photo: Oupa Mokoena/African News Agency (ANA)

Published Oct 24, 2019

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CAPE TOWN – The Commissioner of the SA Revenue Service (Sars) Edward Kieswetter on Thursday launched the re-established Large Business Centre at its new premises in Woodmead, Johannesburg.

Speaking to chief executives of top companies, Kieswetter presented the value proposition that the re-established Centre would offer to bring about voluntary compliance among corporate South Africa. 

Corporate income tax is the third-largest revenue contributor, having brought in 16.6 percent of the total revenue in the 2018/2019 financial year, according to the Sars statement.

Sars said its Vision 2024, introduced by Kieswetter, was to build a smart modern Sars with unquestionable integrity, which was trusted and admired by all stakeholders, as well as its international peers. 

“Kieswetter identified that the strategic objectives that will drive the Large Business Centre will be a focus on voluntary compliance, effective and efficient revenue collection, and enhancing service and Sars’s relationship with large business. 

“In addition, the Large Business Centre is to become a centre of excellence that responds effectively to challenges and requirements presented by this complex taxpayer segment and which is aligned to international tax administration best practice,” said Sars.

The taxpayer segment that the centre focuses on is large businesses defined as groups or entities with a turnover greater than R1 billion; are listed on the JSE; financial services with a turnover greater than R500 million; mining companies with turnover greater than R500 million, all entities or groups of companies with a combined total assets value greater than R100 million, as well as multinational companies. 

The other client segment is Ultra High Net-Worth Individuals whose total assets are in excess of R75 Million.  Taxpayers who meet one of these criteria are registered with the SARS Large Business Centre.

In an earlier statement Sars reminded employers that they had two weeks before the close of the Employer Interim Reconciliation tax period on October 31.

The interim reconciliation period for employers covers the six-months’ transaction period from March 1, to August 31, while the final annual reconciliation is for the full tax year from March 1, to the last day of February, and must be submitted during April and May. 

This totals two reconciliation declarations that employers are required to make during the year of assessment to ensure that employee IRP5/IT3(a) certificates are accurately issued on time for the personal income tax filing season.

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