The South Africa Revenue Service (SARS) has successfully converted all its business critical systems to be Y2K compliant, and will be ready for the Year 2000 date change. As part of our Y2K project, a contingency plan is now being finalised.
As early as April 1997, SARS established its Year 2000 Project. The purpose of the project is to ensure that all SARS business critical systems are corrected for the Y2K, and to ensure that SARS surpasses the year 2000 problem with minimum disruption.
Being the main revenue-collecting agency of the government, SARS has dedicated the month of September to present to a wide range of stakeholder groups - particularly the business community - the Y2K status of the different systems. These will include systems in the Customs, VAT, PAYE, RFT, and the Income Tax environment.
All taxpayers that rely on computers or computer technology to calculate their tax liability are urged to ensure Y2K compliance to avoid liability for any penalties and interest resulting from non-compliance. Furthermore, 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