Category: Industry

The South African Revenue Service (SARS) has warned the public of scams that are defrauding taxpayers.

The syndicate saw fraudulent incidents or unauthorised changes of tax practitioners and/or taxpayers’ eFiling profiles changed with the sole intention to defraud SARS and affected taxpayers.

SARS in a statement said the fraudulent activities were carried out by individuals who gain access to eFiling profiles through phishing or other nefarious scams to change a legitimate taxpayer’s bank details to divert refunds.

The revenue collector said the individuals also submitted fraudulent tax returns to generate refunds.

It said: “SARS takes all necessary steps to mitigate security breaches of our information systems and there is no evidence of the SARS systems being hacked; instead they remain secure.

“In the past week, several changes were implemented to augment the integrity of the SARS systems”.

The changes include a process to advise tax practitioners when their access to taxpayer/client profiles are removed as well as an enhanced personal income tax and eFiling registration process, amongst others.

SARS said the changes were done to make it difficult for criminal elements to obtain sensitive information and then perpetrate fraud.

To safeguard eFiling profiles, SARS has urged tax practitioners to ensure that profile credentials were not shared within their practices or companies.

“All eFiling user access within practices or companies must be routinely reviewed and where required employee access should be revoked, particularly when an employee leaves the practice or company. The public is urged to always be alert for phishing scams that call for the sharing of sensitive identity and banking details,” SARS said.

Incidents of fraudulent or unauthorised changes of eFiling profiles can be reported to the SARS Anti-Corruption and Fraud Hotline on 0800 00 2870. Taxpayers and tax practitioners are urged not to use social media platforms, such as Facebook, to report such incidents or disclose sensitive information.

SARS Commissioner Edward Kieswetter has sent a strong message to fraudsters engaged in the swindle. “Let me leave no one in doubt about SARS’ capacity and capability to deal a massive blow to those hell-bent on these criminal activities.”

Working with other law enforcement agencies, SARS said it would leave no stone unturned to hunt and find these criminals.

“This is no idle threat, be warned,” said the Commissioner.

Source: South African Government News Agency

Employment and Labour Minister Thulas Nxesi has called on Nedlac to lead a review on labour laws in order to cut red tape and administrative costs for small medium and micro enterprises (SMMEs).

Addressing the opening of the 26th Nedlac’s Annual Summit under the theme: “Recovering and Building Together”, the Minister said a general review was due.

“There are signs that the present collective bargaining system is taking strain – and needs to be strengthened,” he said.

South Africa’s major amendment to labour legislation happened in 2010 with a focus on the Labour Relations Act, the Basic Conditions of Employment Act, the Employment Equity Act, and the Employment Services Act.

The amendments to the four labour laws focused on:

Regulating labour brokers and atypical forms of employment;

Facilitating unionisation in vulnerable sectors;

Adding protection for vulnerable workers;

Improving the functioning of labour market institutions, including the CCMA, bargaining and statutory councils;

Addressing current problems in industrial disputes and dispute resolution;

Streamlining enforcement and enhancing compliance;

Promoting equity in the labour market.

Providing a new legal framework for the operation of public and private employment services.

Minister Nxesi said in 2022 Nedlac would be called upon to tackle a number of additional priorities. These, he said, would include “plugging the holes in the social protection safety net and this would include a discussion about the very definition of what constitutes a ‘worker’ and an ‘employee’”.

He said another area of focus would be a conversation and analysis of the impact of technological change and the Fourth Industrial Revolution on the world of work and on society in general. He also challenged Nedlac to address issues of energy and sustainability.

Reflecting on the first year of the pandemic, during which the Gross Domestic Product (GDP) fell by over 7% and the county lost well over one million jobs, he said: “The pain continues – reflected in the most recent StatsSA unemployment figures – rising to 34.9%.”

He said amidst the shadow of the beginnings of the Fourth Wave – early signs show that the new Omicron variant was more infectious than the Delta variant.

“The pandemic placed a heavy responsibility, not only upon government, but also on the social partners and Nedlac. I believe that in such periods of economic, social and political crisis that the need for social dialogue and strong institutions such as Nedlac becomes very apparent,” Nxesi said.

Source: South African Government News Agency

The South African Revenue Service (SARS) will from 1 March 2022, introduce changes to its systems, in an effort to prevent large tax return debt for taxpayers who receive income from more than one source.

This, SARS said in a statement on Wednesday, would benefit taxpayers where one of the sources was income from a retirement fund. Until then, such taxpayers ended up with a large tax debt payable to SARS after assessment of their income tax return.

“SARS is aware that a significant tax debt can arise at year-end when all sources of income are combined in order to determine taxable income and the tax due,” it said.

In response to this, recently introduced legislation makes provision for SARS to determine the effective rate of tax in respect of the combined employment and/or pension sources of income of a taxpayer.

SARS said the effective rate of tax was based on the latest data available to SARS and that the rate would be provided to the retirement fund administrators for purposes of withholding Pay-As-You-Earn (PAYE) based on that data.

This rate was then made available via e@syFile™ to the employer and would only apply to taxpayers who have a form of retirement income.

SARS said its PAYE system allowed for a taxpayer to request to be taxed monthly at a higher rate so that any tax due at year-end was adequately covered. However, not many taxpayers who fall into the category are making use of this option.

SARS Commissioner Edward Kieswetter said the organisation remains committed to providing clarity and certainty to taxpayers about their legal obligations. SARS also strives to make it easy to comply through system changes such as this.

Source: South African Government News Agency

South Africa’s Gross Domestic Product (GDP) decreased by 1.5% in the third quarter of 2021, Statistics South Africa (StatsSA) said on Tuesday.

During this period, the trade, catering and accommodation industry decreased by 5.5%, contributing -0.7 of a percentage point to GDP growth.

The statistics agency said decreased economic activities were reported for wholesale, retail and motor trade, and catering and accommodation services.

Statistician-General Risenga Maluleke said between July and September, the manufacturing industry decreased by 4.2% in the third quarter, contributing -0.5 of a percentage point to GDP growth.

“Eight of the ten manufacturing divisions reported negative growth rates in the third quarter. The motor vehicles, parts and accessories and other transport equipment division made the largest contribution to the decrease in the third quarter.

“The food and beverages division and basic iron and steel, non-ferrous metal products, metal products and machinery division also made noteworthy contributions to the contraction. The agriculture, forestry and fishing industry decreased by 13.6% and contributed -0.4 of a percentage point to GDP growth,” he said.

The Statistician-General said the decrease was mainly due to decreased production of field crops and animal products.

“The transport, storage and communication industry decreased by 2.2%, contributing -0.2 of a percentage point. Decreased economic activity was reported for land transport and air transport. Unadjusted real GDP at market prices for the first nine months of 2021 increased by 5.8% compared with the first nine months of 2020.”

Expenditure on real GDP during this period decreased by 1.6%.

Household final consumption expenditure (HFCE) decreased by 24% in the third quarter, contributing -1.6 percentage points to total growth.

Stats SA said the largest decreases were reported for expenditures on durable and non-durable goods. The main negative contributors to growth in HFCE were expenditures on transport (-4.1% and contributing -0.6 of a percentage point), furnishings (-9.9% and contributing -0.6 of a percentage point), recreation (-70% and contributing -0.5 of a percentage point), food (-1.8% and contributing -0.3 of a percentage point) and restaurants (-6.1% and contributing -0.2 of a percentage point).

The agency said expenditure on health, the ‘other’ category and education contributed positively to growth in HFCE.

Spending on life insurance services was the main contributor to the increase in the ‘other’ category in the third quarter. Final consumption expenditure by general government increased by 0.1% in the third quarter.

Maluleke said an increase in compensation of employees was reported in the third quarter. “Total gross fixed capital formation was flat between the second and third quarters. The asset types that recorded positive growth were other assets (8.8% and contributing 1.0 percentage point), machinery and equipment4 (1.8% and contributing 0.7 of a percentage point) and residential buildings (1.5% and contributing 0.2 of a percentage point).”

He said there was a R915 million drawdown of inventories in the third quarter of 2021, saying there were large decreases in manufacturing and trades, which contributed to the inventory drawdowns experienced in the quarter.

During this period, net exports contributed positively to growth in expenditure.

“Exports of goods and services decreased by 5.9%, largely influenced by decreased trade in vehicles and other transport equipment; chemical products; machinery and equipment; pearls, precious and semi-precious stones, precious metals; and textiles and textile articles.

“Imports of goods and services decreased by 2.8%, driven largely by decreases in mineral products; base metals and articles of base metals; and prepared foodstuffs, beverages and tobacco,” said Stats SA.

Source: South African Government News Agency

Public Service Commission Commissioner Michael Seloane says non-payment of suppliers by government departments impacts negatively on businesses.

Seloane said evidence has shown that the departments are not adhering to the principles of efficient and effective use of public resources and accountability.

Addressing a media briefing in Pretoria earlier today, Seloane said unpaid invoices have the potential of destabilising any business, especially the SMMEs whose lifeblood is the sufficient availability of cash flow, which ultimately impact negatively on government’s initiative of achieving its job creation and economic growth outcomes.

“In discharging its constitutional mandate, the PSC has been monitoring the payments of suppliers within the prescribed period since the 2017/18 financial year,” he said.

Seloane said non-compliance has impacted negatively on small businesses with some of the suppliers forced to close their doors.

“The PSC welcomes the consideration by the Minister of Finance in terms of the small business support measures to enable these businesses to bounce back from the negative impact of COVID-19 and the economic hardship,” Seloane said.

He said there has been some improvements in some departments even though some departments and provinces continue to fail to adhere to the PFMA requirements.

Seloane acknowledged that there has been some improvements in the payment of suppliers by the national departments as compared to the first quarter.

“The challenge remains on the late and non-submission of reports by departments to the National Treasury, such as the Department of Traditional Affairs and the department of Correctional Services and Justice and Constitutional Development failed to submit their reports for September 2021,” he said.

Seloane said provinces such as the Eastern Cape, Gauteng and North West are still facing major challenges in terms of the 30-day payments and have the highest amounts owed to suppliers.

As at end of September 2021, the Eastern Cape recorded 4 648 invoices with a related cost of R2 280 024 142 as compared to 8 057 invoices with a related cost of R2 228 122 449 as at the end of September 2021.

For Gauteng, 4 855 invoices with a related cost of R1 044 398 803 was recorded at the end of September 2021 as compared to 1 677 invoices with a related cost of R790 771 938 as at end of June 2021.

The North West province recorded 4 340 invoices with a related cost of R266 912 565 at the end of September 2021 as compared to 5 527 invoices with a related cost of R456 021 865 at end of June 2021.

Source: South African Government News Agency

By Dikeledi Molobela – Abidjan, Côte d’Ivoire

Chief “Dwasaho” which means “The Great Warrior” is the name President Cyril Ramaphosa was given by Ivorian Traditional leadership during his state visit on Thursday, in the Republic of Côte d’Ivoire.

The President arrived to a warm reception and loud cheers by the locals who held huge banners of his face at the City Hall in Abidjan where he was given the status of a Chief.

Overcome with emotion, President Ramaphosa was handed over the Key of the Autonomous district of Abidjan and presented with and robed in Ivorian traditional garb by Traditional Leadership during the handover ceremony.

He said the gesture of honour of traditional recognition was unbelievable as he never expected this type of honour being bestowed on him.

“I am truly humbled by this honour, it is impressive in many ways, because it is a demonstration of the rituals of our African people and ancestors. You started off with three greetings and I immediately thought about home but this is my new home now,” the President said.

Filled with gratitude and humility, the President said that he’s always wanted to be a Chief and now the Ivorians have given him the “key to the city as well as traditional title of being a chief amongst Ivorian people”.

“The rituals that you have, connected us between the present and the past and they also give us a pathway to the future. I am delighted that the people of Côte d’Ivoire are not only focusing on the past and present but they are also focusing on the future. That future for us was clearly represented and demonstrated in the important agreements that we signed with the government of Côte d’Ivoire,” he said.

Reacting to the ceremony, the President said that “this ceremony has given me this wonderful robe. I never thought in my life that I would wear a crown. I never thought I would also wear a necklace with an elephant, an elephant is a totem for my family”.

The statesman said the gesture by traditional leaders also proves their common ancestry and he feels very connected to the local people in Abidjan.

Speaking at the ceremony, governor of the Autonomous District of Abidjan, Robert Beugré Mambé said that Côte d’Ivoire is now the President’s home second to South Africa.

“You are our family. (Our ancestors) they are there for you for whatever you may need in the future…we will pray for you and South Africa to be supported for whatever you need in the future,” he said.

Later in the evening, President Ramaphosa was hosted by President Ouattara and Mrs Ouattara at a State Banquet in his honour and was bestowed with Côte d’Ivoire’s distinguished Order of the Dignity of the Grand Cross.

Today, he will tour the Autonomous Port of Abidjan before addressing the Côte d’Ivoire-South Africa Business Forum and later on proceed to lay the foundation stone for MTN’s new headquarters in Côte d’Ivoire.

Source: South Africa Government News Agency