A draft public notice from the South African Revenue Service (SARS) indicates that the taxman wants to use solar installers to gain additional information on taxpayers.<\/p>\n
According to tax experts from Tax Consulting SA, SARS is proposing that solar installers report taxpayer information directly to the authority.<\/p>\n
The group said this is an “innovative approach” by the revenue service to tackling non-compliance at the same time as enabling the newly proposed tax credits for solar panels.<\/p>\n
“SARS will know exactly who had the money to install solar, and the tax refund claim promises to be seamless for compliant taxpayers,” said the tax firm.<\/p>\n
“This appears very much part of the SARS drive to ensure compliance and embrace technology for taxpayer data collection.”<\/p>\n
Notably, the new announcement from SARS considers imposing a requirement on the solar installer to report taxpayer and solar installation information where the solar installation is affected at a domestic residence.<\/p>\n
It is further proposed that the notice will be backdated to 1 March 2023.<\/p>\n
“Should this be implemented, taxpayers who have installed solar panels at their domestic residences since 1 March can expect to be reapproached by their solar installers to collect the information which they are required to submit to SARS,” said Tax Consulting SA.<\/p>\n
The latest draft public notice was issued in the tax authority’s latest information gathering laws – requiring select third parties to submit returns containing specific information.<\/p>\n
Tax Consulting SA said that under the current regime, organisations such as banks, financial institutions, listed companies, and medical schemes are required to submit third-party returns to SARS, detailing relevant taxpayer information, transactions, and amounts involved.<\/p>\n
Solar installers seem to be the next institution that will be added to this list, said the tax firm.<\/p>\n
As a result of the draft public notice, the person who issues a solar installation certificate of compliance for the installation of either new or unused solar panels at a domestic residence will have the responsibility to disclose specified information.<\/p>\n
The reporting obligation is aimed at the certificate of compliance issued on completion of a new solar installation.<\/p>\n
Some of the mandatory information includes:<\/p>\n
The draft public notice was issued under the Tax Administration Act, that among other things, empowers SARS to gather third-party information and impose penalties on those who do not comply.<\/p>\n
Section 234(2)(d) of the Act provides that any person who wilfully or negligently fails to submit a return to SARS when required to do so commits a criminal offence. As a sanction for a such criminal offence, a fine or imprisonment for up to two years may be imposed, said Tax Consulting SA.<\/p>\n