The South African Revenue Service (SARS) has agreed to amend its new application process for issuing Tax Clearance Certificates in respect of Foreign Investment Allowance.
This new application process, introduced in August 05 (Media Release No. 13 of 2002), became necessary in the light of the abuses of the old process. These amendments follow a meeting held recently between SARS and representatives of the Insurance and Banking industry, and the SA Reserve Bank.
The following amendments will be implemented with immediate effect:
Any application for a Tax Clearance Certificate which exceeds the permissible limit of R750 000 will be rejected by SARS. Agents who assist taxpayers to exceed the permissible limit would be guilty of contravening the permissible regulations. Furthermore, agents will ensure that their contracts with taxpayers include a clause making provision for the repatriation of the amount in excess of the permissible limit.
SARS has and will continue to check and verify the information submitted when a taxpayer applies for a Tax Clearance Certificate to ensure that no further abuse occurs.
ISSUED BY THE COMMISSIONER FOR THE SOUTH AFRICAN REVENUE SERVICE