Managing tax for multiple entities is a difficult, manual, and time-consuming process. Usually, the process or tax workflow between teams requires a manual setup or multiple unspecialised applications to offer you specific functionality. For example, using Outlook for communication and file sharing, SharePoint for “secure” file storage, Excel/Spreadsheets for calculations and sometimes even deadline tracking.
Using manual processing across multiple applications can cause error and increase the time spent on tax returns and general tax management. Therefore using a specialised tax management or tax compliance software is a necessary step for any finance team.
While there are many different available tax software in South Africa, having important tax functions covered in a single place for a groups multi-entity structure is not only beneficial for your tax compliance but necessary in our ever-changing world.
Konsise offers the functionality of the typical applications used by tax professionals in a single place. You can manage your teams tax workflow while keeping each entity you manage tax compliant in the eyes of SARS.
Konsise gives increased ease of oversight across the finance teams tax compliance responsibilities which allows for more time for teams to work on higher value tasks such as tax reporting for senior committees.
How is tax compliance measured by SARS?
SARS measures your tax compliance status using several different aspects across an entity. Generally, SARS looks at 2 main things to measure your tax compliance. Payments and Submissions.
How to be SARS tax compliant?
There are a few different things that SARS recommend one does to stay compliant in the eyes of SARS, including:
- You do not have any outstanding tax returns
- You do not owe any money to SARS unless a payment arrangement or suspension of debt has been agreed to
- You are registered for all the tax products that you are liable for
- Your registered particulars are updated. For more information on how to update registered particulars click here.
- You have either merged (via the Merge tool on eFiling) or declared (on the ERC01 form available as part of the TCS process on eFiling), all your registered tax reference numbers. For more information on Merge, click here.
How to verify Tax Compliance Status
PIN-based verification
Taxpayers can authorise any third party to verify their compliance status through the Tax Compliance Status (TCS) system with the use of a pin.
In order to verify a taxpayer’s compliance status via SARS eFiling, the PIN must be used. PIN verification results reflect the current tax compliance status at the time and date of verification.
How to verify a TCS via SARS eFiling
Step 1: Login to eFiling
You must be authorised to use eFiling to access the new Tax Compliance Status Verification service. A person authorised by the organisation to setup user groups and user rights must login and activate the service (for example, the representative taxpayer or the eFiling administrator).
Step 2: Activate the Tax Compliance Verification service
You only need to activate the Tax Compliance Verification service once.
- Set up your user groups and applicable user rights once you have logged in to perform TCS verifications
- Click on “Tax Status”
- Select “Tax Compliance Status Verification”
- Complete the activation process.
Step 3: Verify the taxpayer’s TCS
- Go to the “New Verification Request” menu.
- Capture and submit the taxpayer’s tax reference number and PIN number. It is important to confirm that the information displayed for the taxpayer corresponds to the information for the taxpayer you intend to verify.
In addition to the taxpayer’s current tax compliance status, a detailed description of the status will be displayed.
Color coding indicates whether a taxpayer’s current taxes are in order:
- Red – Taxes are not in order and the taxpayer is not tax compliant
- Green – Taxes are in order and the taxpayer is tax compliant.
For recording purposes, you can now print the verification. In addition, you will be able to access your verification through “History” at any time.
Konsise tax compliance status indicator
Konsise offers tax filing cards for each tax return. In these filing cards you find all the relevant information, files, notes, etc. that pertains to that return. On these cards there is a compliance section which includes an indicator that allows you to see the compliance of a return at a glance.
For all SARS integrated tax filings, we have included a level of compliance, as follows:
Submission Compliance – All submissions related to that tax filing has been submitted.
Payment Compliance – All payments related to that tax filing has been paid. There is no outstanding payments to SARS.
The compliance indicator displayed on a card will display the compliance status for that particular return, and the overall compliance for that tax filing.
There are a few different compliance statuses that one might see for each tax filing card.
For the specific return the statuses will display as follows:
- Submission Compliance – Once the submission is filed, a green tick will display.
- Submission Non-compliance – If the submission is not filed, or passed its deadline, a red cross will display.
- Payment Compliance – Once the submission is paid or the return is in a refund position, a green tick will display.
- Payment Non-compliance – If the return has not been paid, or the deadline has passed, a red cross will display.
For the overall compliance of the specific tax filing or tax type the statuses will display as follows:
- Submission Overall Compliance – If all submissions have been filed, a green circle will display.
- Submission Non-compliance – If any submission has not been filed and were due to be filed, a red circle will display.
- Payment Compliance – If cumulative balance on the Statement of Account is 0.00 or less, a green circle will display.
- Payment Non-compliance – If cumulative balance on the Statement of Account is greater than 0.00, a red circle will display.
Konsise tax compliance indicator report
Konsise also offers a way to see the compliance of each entity and its tax types in the tax compliance report. On this report you will see each company and a breakdown of its tax types. It will show you the overall compliance of this tax type for the specific company. The data can then be broken down even further into the specific tax filing. Therefore, showing you the compliance of a specific tax return for a specific company.
This report gives you the ability to filter by a specific period for better reporting functionality. An added benefit of this report is the functionality to export all the information directly to an excel spreadsheet for continued reporting or calculation.
Conclusion
Often we find difficulty in relying on SARS to provide us with correspondence notifications that are contextual to a specific tax return, audit or verification. One can see how quickly Konsise can add value to a finance head and the rest of the finance team that need oversight over all details of a corporations tax responsibilities.
Konsise is the next era of tax management and tax compliance management. Would you like to see Konsise in action? Schedule a demo here.
