SOUTH AFRICAN REVENUE SERVICE
MEDIA RELEASE NUMBER 21 OF 1999

9 SEPTEMBER 1999

SARS AND THE Y2K

The South Africa Revenue Service (SARS) has successfully converted all its business critical systems to be Y2K compliant, and is ready for the Year 2000 date change. All the business critical systems that are currently running at the SARS, will take us through to the year 2000 with minimal disruption. These systems include:

To date, all of the above systems have gone through the assessment, conversion, and testing processes. This process started as early as April 1997 by establishing the SARS Year 2000 Project. The purpose of the project is to ensure that all SARS business critical systems are converted for the Y2K, and to ensure that SARS surpasses the year 2000 problem with minimum disruption.

SARS has dedicated the month of September to demonstrate the Y2K status of the various business systems to a wide range of stakeholder groups; particularly the business community. The first demonstration will take place next week, and will focus on the Custom system. All these demonstrations will culminate to the presentation of the Y2K Certificate to the Minister of Finance scheduled for the month of October.

Finally, SARS would like to urge all taxpayers that rely on computers or computer technology to calculate their tax liability to ensure Y2K compliance to avoid liability for any penalties and interest resulting from non-compliance. SARS will not accept the Y2K problem as a reason for failing to fulfill one's tax obligations. The various Acts administered by the SARS provide us with the necessary authority to estimate revenue and levy interest and penalties accordingly. A further amendment to the Fourth Schedule of the Income Tax Act has been proposed to enable SARS to raise an estimated assessment on employee tax due.

ISSUED BY THE COMMISSIONER FOR THE SOUTH AFRICAN REVENUE SERVICE
PRETORIA



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