SARS is aware that many employers still fail to adhere to the guidelines set by SARS on the completion of IRP5, IRP5(a) and IT3 certificates. As it is the intention of SARS, as from the 2001 tax year, to outright reject any of the aforementioned certificates that are not completed according to the prescribed validation rules the following information is once again brought under the attention of employers:
Paragraph 13(1) of the Fourth Schedule to the Income Tax Act. No. 58 of 1962, stipulates that an employees tax certificate must be issued to each employee in SUCH FORM as the Commissioner may prescribe. The new IRP 5, IRP 5(a) and IT 3(a) certificates were introduced during August 1998 (1999 tax year) when the IRP 10(a) "Introduction of the New Certificates" was issued to all employers.
According to the guidelines which are prescribed by SARS, an employer must apply certain standards when issuing an employees tax certificate to employees. An examination of all certificates received from employers was done by SARS and it was found that approximately 70% of manual certificates do not comply with the prescribed standards.
Strict measures will be applied by SARS with effect from the 2001 tax year (1 March 2000 to 28 February 2001) to ensure that employers comply with the standards as prescribed. SARS will reject employees tax certificates, which do not comply with the standards and such rejected certificates will be referred to the relevant employer for the re-issuing of a standardised certificate. This will result in an additional workflow for employers who failed to apply the prescribed standards when issuing the initial certificate. Employers are therefore requested to ensure that the prescribed standards have been complied with before submitting their employees tax certificates and reconciliation statement.
The requirements for issuing certificates have been included in the IRP 10 "Guidelines for Employees Tax". However, a document containing all the validation rules, which will be applied by SARS, is obtainable from any SARS branch office or on SARS Online at http://www.sars.gov.za
ISSUED BY THE COMMISSIONER FOR THE SOUTH AFRICAN REVENUE SERVICE
PRETORIA