South African Revenue Service Act
5 September 1997 No. 1165.
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VAT collection administrative arrangements advisory board asset safeguarding auditing board membership board procedure budgeting commencement compliance confidentiality conflict of interest definitions delegation of powers disclosure of information education support employee benefits establishment financial recordkeeping financial records financial statements financial year end funds management governance +22 more
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5 September 1997 No. 1165. This text announces that the President assented to the South African Revenue Service Act, 1997 and that it is being published for general information. This section is titled “Definitions” and identifies Part 1 for the South African Revenue Service material. This section is titled “Powers” and refers to the Commissioner. Section heading: Acting Commissioner.
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Provisions of South African Revenue Service Act
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September 1997 No. 1165.
AI-assisted research summary: 5 September 1997 No. 1165.
5 September 1997 No. 1165. - 5 Verify source ↗
September 1997
AI-assisted research summary: This text announces that the President assented to the South African Revenue Service Act, 1997 and that it is being published for general information.
5 September 1997 It is hereby notified that the President has assented to the following Act which is hereby published for general information:— H i e r b y w o r d b e k e n d gemaak dat die President sy goedkeuring geheg het aan die onderstaande Wet wat hierby ter algemene inligting gepubliseer word:— No. 34 of 1997: South African Revenue Service Act, 1997, No. 34 van 1997: Wet op die Suid-Afnkaanse Inkomstediens. 1997, 7 N{). I S257 Act No. 34, 1997 GOVERNMENT GAZETTE, 5 SEPTEMBER 1997 SOUTH AFRICAN REVENUE SERVICE ACT, 1997 GENERAL EXPLANATORY NOTE: [ 1 Words in bold type in square brackets indicate omissions from existing enactments. Words underlined with a solid line indicate insertions in existing enactments. ACT To make provision for the efficient and effective administration of the revenue collecting system of the Republic; and, for this purpose, to reorganise the South African Revenue Service and to establish an Advisory Board; and to provide for incidental matters. (Afrikaans text signed by the Pt-esidellt. ) (Assented to 28 August 1997.) B E IT ENACTED by the Parliament of the Republic of South Africa, as follows:— ARRANGEMENT OF SECTIONS
Part
ARRANGEMENT OF SECTIONS
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Definitions
AI-assisted research summary: This section is titled “Definitions” and identifies Part 1 for the South African Revenue Service material.
1. Definitions Part 1 SOUTH AFRICAN REVENUE SERVICE
Part
Part 1
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Powers
AI-assisted research summary: This section is titled “Powers” and refers to the Commissioner.
5. Powers Pall 2 COMMISSIONER - 7 Verify source ↗
Acting Commissioner
AI-assisted research summary: Section heading: Acting Commissioner.
7. Acting Commissioner - 8 Verify source ↗
Proof of appointment
AI-assisted research summary: This section is titled “Proof of appointment.”
8. Proof of appointment - 10 Verify source ↗
Assignment of powers and duties
AI-assisted research summary: This section is titled “Assignment of powers and duties” for Part 3, Advisory Board.
10. Assignment of powers and duties Part 3 ADVISORY BOARD - 2 Verify source ↗
The South African Revenue Service is hereby established as an organ of state
AI-assisted research summary: The South African Revenue Service is established as an organ of state within the public administration, and it is outside the public service.
2. The South African Revenue Service is hereby established as an organ of state within the public administration. but as an institution outside the public service. 5 Objective - 3 Verify source ↗
SARS’S objective is the eficient and effective collection of revenue.
AI-assisted research summary: SARS’s job is to collect revenue efficiently and effectively, and the Minister appoints the Commissioner.
3. SARS’S objective is the eficient and effective collection of revenue. Functions 4. ( 1 ) To achieve its objective SARS must— (a) secure the efficient and effective, and widest possible. enforcement of— 1 10 (i) the national legislation listed in Schedule I: and (ii) any other legislation concerning the collection of revenue that may be assigned to SARS in terms of either legislation or an agreement between SARS and the organ of state or institution entitled to the revenue; and (b) advise the Minister. at the Minister’s request. on— 15 (i) all matters concerning revenue: and (ii ) the exercise of any power or the performance of any function assigned to the Minister or any other functionary in the national executive in terms of legls]atioll referred [O in paragraph (a). (2) SARS must perform its functions in the most cost-eficient and effective manner 20 and in accordance with the values and principles mentioned in section 195 of the Constitution. (3) SARS oerforms its functions— (a) (/3) un~er the policy control of the subject to” any” directives and Minister. Minister: and guidelines on policy matters issued by the 25 Powers 5. (1) properly. (a) (b) ((’) (d) (e) (,/’) (g) (}1 ) (i) (j) SARS may do all that is necessary or expedient to perform its functions including to— determine its own staff establishment. appoint employees and determine their 30 terms and conditions of employment in accordance with section 18; bargain collectively with the recognised trade unions representing SARS employees: obtain the services of any person. including any state department. functionary or institution, to perform any specific act or function; acquire or dispose of any right in or to movable or immovable property, which ma} include ownership; open and operate on its own bank accounts: insure itself against any loss. damage. risk or liability; perform any specific act or function within its competence on behalf of any 40 other person, including any state department, functionary or institution; impose fees or charges when performing an act or function in terms of paragraph (g): perform legal acts, or institute or defend any legal action in its own name; engage in any activity. whether alone or together with other organisations in 45 35 s No. 18257 GOVERNNIENT GAZETTE. 5 SEPTEMBER 1997 Act No. 34, 1997 SOUTH AFRICAN REVENUE SERVICE ACT. 1997 the Republic or elsewhere, to promote proper. etlicient and effective tax administration, including customs and excise duty administration: and (k) do anything that is incidental to the exercise of any of its powers. (2) When exercising its powers SARS must comply with any conditions imposed b) the Minister in a directive issued under section 4(3). This may include a requirement that 5 an) specitic power. including the power to borrow money. may be exercised only with the prior approval of the Minister. Part 2 CONIMISS1ONER Appointment 10 6. ( 1 ) The Minister must appoint a person as the Commissioner for the South African Revenue Service. (2) The Minister must consult both the Cabinet and the Board before appointing a person as the Commissioner. (3) A person appointed as the Commissioner who is not an employee of SARS 15 becomes such an employee. (4) The person appointed as the Commissioner holds office— (a) for an agreed term not exceeding five years, but which is renewable: and (b) subject to the rules and determinations applicable to SARS employees. Acting Commissioner 7. ( 1 ) When the Commissioner is absent or otherwise unable to perform the functions of off]ce, or during a vacancy in the office of Commissioner. the Minister may designate another SARS employee to act as Commissioner. (2) No employee may be designated as acting Commissioner for a period longer than 90 days at a time. Proof of appointment
Part
Part 3
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Establishment
AI-assisted research summary: Section 11 is titled “Establishment.”
11. Establishment 5 15 20 ‘$ No. 18257 Act No. 34, 1997 GOVERNMENT GAZETTE, 5 SEPTEMBER 1997 SOUTH AFRICAN REVENUE SERVICE ACT. 1997 12. 13. 14. 15. 16. 17. Constitution Powers and functions Procedures Disclosure of interest Remuneration Vacation of office Part 4 EMPLOYEES 18. 19. ~o, ‘?1-. Terms and conditions of employment Pension rights Training and education Existing staff Part 5 FINANCIAL MATTERS y, 23, ’24. 25, 26. 27, 28. 29, 30. 31. 32. 33. 34. 35. Accountability Application of Exchequer Act Funds Chief source of income Estimates of income and expenditure Refunds to state Audits Annual report Part 6 MISCELLANEOUS Restrictions on names implying connection with SARS Protection of confidential information Exemption from transfer and stamp duty Amendment of Schedule 1 Amendment of legislation affected by this Act Short title and commencement Schedule 1 LEGISLATION ADMINISTERED BY COMMISSIONER Schedule 2 TRANSITIONAL PROVISIONS Schedule 3 AMENDMENT OF LEGISLATION AFFECTED BY THIS ACT 10 15 20 25 30 35 Definitions - 14 Verify source ↗
The Board ma! determine its own procedures
AI-assisted research summary: The Board may determine its own procedures.
14. The Board ma! determine its own procedures Disclosure of interest 20 - 15 Verify source ↗
A Board member who has a personal or financial interest in any matter on which
AI-assisted research summary: A Board member with a personal or financial interest in a matter must disclose the interest and leave the Board proceedings when that matter is discussed.
15. A Board member who has a personal or financial interest in any matter on which the Board gives advice must disclose that interest and withdraw from the proceedings of the Board ~ben that matter is discussed. Remuneration - 16 Verify source ↗
SARS must remunerate a rnembel- mentioned in section 12(
AI-assisted research summary: SARS must pay and compensate the member mentioned in section 12(o), with the expense amount determined by the Minister.
16. SARS must remunerate a rnembel- mentioned in section 12( )(o) and compensate 25 the member for expenses. as determined b) the Minister. Vacation of office - 17 Verify source ↗
A member mentioned in section 12(1 )(a) ceases to be a member if—
AI-assisted research summary: A member referred to in section 12(1)(a) stops being a member if they resign from the Board or if the Minister ends the membership for sufficient reason.
17. A member mentioned in section 12(1 )(a) ceases to be a member if— (a) that person resigns from the Board: or (b) the Minister terminates that person’s membership for a sufficient reason. 30 Part 4 EMPLOYEES Terms and conditions of employment 18. ( 1 ) SARS employees are employed subject to terms and conditions of employment determined b> SARS— 35 (({) after collective bargaining between SARS and the recognised trade unions: and (b) with the approval of the Minister. (2) The collective bargaining referred to in subsection ( I ) must be conducted in accordance with the procedures agreed on between SARS and the recognised trade 40 unions. Pension rights 19. ( 1 ) A person appointed by SARS as an employee— (a) becomes a member of the Government Employees’ Pension Fund mentioned in section 2 of the Government Employees’ Pension Law, 1996 (Proclamation 45 No, 21 of 1996): and (b) is entitled to pension and retirement benefits as if that person is in service in a post classified in a division of the public service mentioned in section 8(1 )(a)(i) of the Public Service Act. (~) The commissioner is entitled to the pension and retirement benefits calculated 011 50 the same basis as those of a head of department in the public service. 14 No. 18257 GOVERNMENT GAZETTE, 5 SEPTEMBER 1997 Act No. 34.1997 SOUTH AFRICAN REVENUE SERVICE ACT, 1997 Training and education
Part
Schedule 3
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In this Act. unless the context indicates otherwise—
AI-assisted research summary: This section defines key terms used in the Act, unless the context indicates otherwise.
1. In this Act. unless the context indicates otherwise— “Board” means the Advisory Board established by section 11; “Commissioner” means the Commissioner appointed in terms of section 6; 40 “financial year” means a financial year defined in section 1 of the Exchequer Act, 1975 (Act No. 66 of 1975); “Minister” means the Minister of Finance; “Public Service Act” means the Public Service Act, 1994 (Proclamation No. 103 of 1 994); “recognised trade union” means a trade union registered in terms of the Labour Relations Act, 1995 (Act No. 66 of 1995), and recognised by SARS as a collective bargaining agent of SARS employees; “revenue” means income derived from taxes, duties, levies, fees, charges, additional tax and any other moneys imposed in terms of legislation, including 50 penalties and interest in connection with such moneys; “SARS” means the South African Revenue Service established by section 2; ~d “this Act” includes any rules made or directives issued in terms of this Act. 45 6 No. 18257 GOVERNMENT GAZETTE, 5 SEPTEMBER 1997 Act No. 34, 1997 SOUTH AFRICAN REVENUE SERVICE ACT, 1997 Part 1 SOUTH AFRICAN REVENUE SERVICE Establishment - 1 Verify source ↗
Scc(ion I i\ hcreh! amcndccl-
AI-assisted research summary: This section amends definitions, including “Commissioner” and “South African Revenue Service.”
1 Scc(ion I i\ hcreh! amcndccl- (t/I h! the delc[lon of” [he dcfin- (][)n of “Chlcl ExecuI!\c Office]-”: (/,1 h! the \utw[ttu(Iotl tor lhc clcfini[]or of “Con]ml\- .i(,ner” c~f (k fI,llo\T Ing dcfl - altmn: “ ‘Comm]\sloner’ means (hc Cmmmlssioncr for [Inland Revenue] {he Snu[h Africatl Rc\cnuc Scr\ice:”: and (~ J h! [he !nser[inn nf[m the de(i - n][![)n of “Soulh African cotnpan!” of [he lollo\\ in! dcfinl(icrn: “ ‘Soalh Africm Rc\enuc Set-vice” means [he South .Alticac Revenue Ser\ Icc cs[ablj shed h\ scctlon 2 ol the Snu[h Africar Re\enuL’ Ser\ icc Ac(, 1997:”’. - 2 Verify source ↗
Scc(ion 2 )\ hcreh) amended
AI-assisted research summary: This section amends another Act to require officers to act under the Commissioner’s control, require employed persons to take a prescribed oath or declaration before acting, and keep an offence and penalty for contraventions.
2. Scc(ion 2 )\ hcreh) amended t~> (he delc!ion nf \uhsecuon (2). ? Sec~ion 4 IS hereh) amcnckcl- (~JJ h} the \uh$[i[u[irm Ior par:t- grilph ((, ) “f the pro\ iso [c \uhwc [inn ( 1 ) of [he fclll(l\w !ng pamgraph: ‘“((/) m} informa[ior ob- [ainml hy {he Ccrmmi\- sloner in the pcrf’o-- mancc of hi\ du[ies uncle!- [he pm\ islons of’ (hi\ Ac( or any prc\im]\ lncunv? Tax ACI ma> hc UWCf h> hlm In!- [hr purposes of the pm\i- sion\ of an! o[her fiscJl Iau admini$[ered h> hlm [or he ma~, if he 30 No. 1 8 2 57 Act No. 34, 1997 GOVERNMENT GAZETTE, 5 SEPTEMBER 1997 SOUTH AFRICAN REVENUE SERVICE ACT, 1997 NUMBER AND YEAR OF LAW SHORT TITLE EXTENT OF REPEAL OR AMENDMENT is satisfied that any such information is required for the pur- pose of preventing or combating evasion of any tax, duty or levy imposed under any fiscal law administered by the Commissioner for Customs and Ex- cise, supply such in- formation to the last- mentioned Commissioner]:”: (b) by the deletion of paragraph (c) of the proviso to subsec- tion (1); (c) by the deletion of subsections (1A) and (l B); (d) by the substitution for para- graph (a) of subsection (2) of the following paragraph: “(u) Every person so em- ployed [and the Chief Executive Officer] shall. before acting un- der this Act, take and subscribe hefcrre a mag- istrate or justice of tbe peace or [an o5cer of the South African Revenue Service who is] a commissioner of oaths, such oath or sol- emn declaration, as the case may be, of fidelity or secrecy as may be prescribed.”; and (e) by the substitution for sub- section (3) of tbe following subsection: “(3) Any person who contra- venes the provisions of sub- section (1) [(1A), (lB)] or (2A) shall be guilty of an offence and liable on convic- tion to a fine not exceeding R5 000 or to imprisonment for a period not exceeding two years or to both such fine and such imprisonment.”. 32 No, 18257 GOVERNMENT GAZETTE, 5 SEPTEMBER 1997 Act No. 34, 1997 SOUTH AFRICAN REVENUE SERVICE ACT. 1997 NUMBER AND YEAR OF LAVI SHORT TITLE ZXTENT OF REPEAL OR 4MENDMENT ACI No. 91 Of 1964 Cus[oms and Excise Acl, 1964 1, Section 1 is hereby amended— by the substitution for the definition of “Commis- sioner” in subsection (1) of the following definition: “ ‘Commissioner’ means the Commissioner for [Customs and Excise mentioned in section lB] the South Afri- can Revenue Service;”: and by the insertion after the definition of “ship” of the following definition: “ ‘South African Revenue Service’ means the South African Revenue Service established bv section 2 of tbe South African Revenue Service Act. 1997;”. Z. Sections 1A and lB are hereby .epealed. }. Section 4 IS hereby amended— by the substitution for sub- section (1 ) of the following subsection: “(l ) [Subject to the laws governing the public ser- vice officers employed in the Office] Otlcers shall act under tbe control and direc- tion of tbe Commissioner.”: by the deletion of paragraph (c) of subsection (3): and by the insertion after subsec- tion (3A) of tbe following subsection: “’(3B ) Tbe provisions of sub- section (3) shall not be con- strued as preventing an of- ficer from using any information obtained bv him in the exercise of his powers or the performance of his duties under this Act for the purposes of anv other law administered bv him.”. 34 No. 18257 Act No. 34, 1997 GOVERNMENT GAZETTE, 5 SEPTEMBER 1997 SOUTH AFRICAN REVENUE SERVICE ACT, 1997 NUMBER AND YEAR OF LAW SHORT TITLE EXTENT OF REPEAL OR AMENDMENT 4, Section 43 is hereby amended by the substitution for the word “Office” wherever it occurs in subsection (3) of the word “Commissioner”. - 5 Verify source ↗
Section 82 is hereby amended
AI-assisted research summary: Section 82 is amended so that paragraph (a) in subsection (1) is replaced with wording about use under the authority of the Commissioner.
5. Section 82 is hereby amended by the substitution for paragraph (a) of subsection (1) of the fol- lowing paragraph: “(a) which is used [in the Of- fice] under the authority of the Commissioner;”. - 6 Verify source ↗
Section 114 M hereby amended
AI-assisted research summary: This provision amends section 114M and updates definitions, including replacing a word with “Commissioner” and revising the definitions of “Commissioner” and “South African Revenue Service”.
6. Section 114 M hereby amended by the substitution for the word “Of lice” wherever it occurs in subsection ( 1 ) of the word “Commissioner”. Section 1 is hereby amended— (a) by the substitution for the definition of “Commis- sioner” of the following defi- nition: “ ‘Commissioner’ means the Commissioner for [Inland Revenue] the South African Revenue Service;”; and (b) by the insertion after the definition of “regulation” of the following definition: “ ‘South African Revenue Service’ means the South African Revenue Service established bv section 2 of the South African Revenue Service Act. 1997:”’. - 1 Verify source ↗
Section I is hereby amended—
AI-assisted research summary: This section amends definitions in Section I by deleting one definition, replacing the definition of “Commissioner,” and inserting a definition of “South African Revenue Service.”
1. Section I is hereby amended— (a) by the deletion of the defini- tion of “Chief Executive Officer”; (b) by the substitution for the definition of “Commis- sioner” of the following defi- nition: “ ‘Commissioner’ means the Commissioner for [Inland Revenue] the South African Revenue Service;”; and Act No. 77 of 1968 Stamp Duties Act, 1968 Act No. 89 of 1991 Value-Added Tax Act, 1991 36 No. 18257 GOVERNMENT GAZETTE, 5 SEPTEMBER 1997 Act No. 34, 1997 SOUTH AFRICAN REVENUE SERVICE ACT, 1997 NUMBER AND YEAR OF LAW SHORT TITLE EXTENT OF REPEAL OR AMENDMENT (c) by the insertion after the defi- nition of “Share Blocks Con- trol Act” of the following definition: “ ‘South African Revenue Service’ means the South African Revenue Ser\, ice established by section 2 of the South African Re\,cnue Service Act, 1997;’”. - 2 Verify source ↗
SectIon 4 is hereby amended
AI-assisted research summary: Section 4 is amended by deleting subsection (2).
2. SectIon 4 is hereby amended by the deletion of subsection (2). - 3 Verify source ↗
Section 6 is hereby amended—
AI-assisted research summary: The provision limits disclosure and access to information by people working under the Act, while allowing specified access for the Chief Executive Officer, the Auditor-General, and a court order.
3. Section 6 is hereby amended— (a) by the substitution for sub- sec[ion ( 1 ) of the following subsection: “(1 ) [The Chief Executive Officer or] A person em- ployed m carrying out [hc provisions of this Ac[ shall nOt— (a) disclose to any person or his representative an) matter in respect of any other person tha[ mq [in the case of the Chief Executive Officer, in the performance of his du- ties as Chief Executive Officer, or in any other case] in the exercise of his powers or the perftn- mance of his duties un- der the said provisions come to his knowledge; or (h) permit any person to have access [o any records in the possessmn or custody of the Com- missioner, except [in the case of the Chief Executive Officer, in the performance of his du- ties as Chief Executive Of- ficer, or in wry other case] in the exercise of his powers or the performance of his 38 No. 18257 Act No. 34, 1997 GOVERNMENT GAZETTE, 5 SEPTEMBER 1997 SOUTH AFRICAN REVENUE SERVICE ACT, 1997 NUMBER AND YEAR OF LAW SHORT TITLE EXTENT OF REPEAL OR AMENDMENT duties in terms of this Act or by order of a competent court: Provided that [the Chief Executive Officer, in the performance of his du- ties as Chief Executive Of- ficer, or] the Auditor-General in the performance of his duties in terms of section 3 of the Auditor-General Act, 1995 (Act No. 12 of 1995), shall have access to all records and documents in the possession or custody of the Commissioner for the pur- poses of this Act.”; (b) by the deletion of paragraph (b) of subsection (2): (c) by the substitution in subsec- tion (3) for the words preced- ing the proviso of the follow - irrg words: “NO person shall in any man- ner publish or make known to any other person (not be- ing an officer performing his duties under the control, di- rection or supervision of the Commissioner [or the Com- missioner for Customs and Excise] or the Postmaster- General) the contents or tenor of any instruction or commu- nication given or made by the Commissioner [or the Com- missioner for Customs and Excise] or the Postmaster- General or any such officer in the performance of his or their duties in terms of this Act for or concerning the examination or investigation of the affairs of any person or class of persons or the fact that such instruction or com- munication has been given or made, or any information concerning tbe tax matters of a person or class of per- sons:”: 40 No. 18257 GOVERNMENT GAZETTE, 5 SEPTEMBER 1997 Act No. 34, 1997 SOUTH AFRICAN REVENUE SERVICE ACT, 1997 NUMBER AND YEAR OF LAW SHORT TITLE EXTENT OF REPEAL OR AMENDMENT (d) by the substitution for para- graphs (b) and (c) of the pro- viso to subsection (3) of the following paragraphs: “(b) subject to the provi- sions of subsections ( 1 ) and (4), as in any way limiting the duties or powers of the Commis- sioner [or the Commis- sioner for Customs and Excise] or the Postmaster-General or any such officer; or (c) as preventing any per- son from publishing or making known anything which has been pub- lished or made known by that person or his representative as con- templated in paragraph (a) or by the Commis- sioner [or the Commis- sioner of Customs and Excise] or the Postmas- ter-General or any such officer in the exercise of his duties or powers.”; and (c) by the deletion of subsection (4). - 4 Verify source ↗
Section 7 is hereby amended
AI-assisted research summary: This section amends Section 7 by deleting paragraph (c) of subsection (3).
4. Section 7 is hereby amended by the deletion of paragraph (c) of subsection (3). - 5 Verify source ↗
Section 13 is hereby amended
AI-assisted research summary: The Commissioner and the Postmaster-General may make necessary arrangements for collecting VAT on imported goods, except as covered by subsection (4).
5. Section 13 is hereby amended by the substitution in subsection (5) for the words preceding para- graph (b) of the following words: “Except as contemplated in sub- section (4), the Commissioner [the Commissioner for Customs and Excise] and the Postmaster- General may make such arrarrge- ments as they may deem neces- sary— 42 No. 18257 GOVERNMENT GAZETTE, 5 SEPTEMBER 1997 Act No. 34.1997 SOUTH AFRICAN REVENUE SERVICE ACT, 1997 NUMBER AND YEAR OF LAW SHORT TITLE EXTENT OF REPEAL OR Proclamation No. 103 of 1994 Public Service Act, 1994 AMENDMENT (a) for the collection (in such manner as they may deter- mine) by the [Commissioner for Customs and Excise and the] Postmaster-General on behalf of the Commis- sioner of the value-added tax payable in terms of [his Act in respect of the importation of any goods into the Repub- lic: and”. Schedule 1 is hereby amended— (a) by the deletion of the expres- sion “South African Re\,enue Ser\ice” in Column I: and (b) by the deletion of the expres- sion “Direc[crr-General: South African Revenue Ser- vice” in Column II.
Part
Part 2
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If the Minister has given notice in the Ga:erre of any appointment of a person as the
AI-assisted research summary: The Commissioner has responsibility for SARS’s functions and can delegate or assign duties; the Advisory Board may advise and seek information, and the Minister must consult before certain appointments.
8. If the Minister has given notice in the Ga:erre of any appointment of a person as the Commissioner or as an acting Commissioner. this notice may be presented in a court as proof of the appointment. Responsibilities 9. ( 1 ) The Commissioner— 20 25 30 (a) is responsible for the performance by SARS of its functions: (b) takes all decisions in the exercise by SARS of its powers: (c) performs any function and exercises any power assigned to the Commissioner in terms of any Iegis]ation or agreement referred to in section 4(1)(a): and 35 (d) is the chief executive ofiicer and also the accounting officer of SARS. (2) As chief executive officer the Commissioner is responsible in particular for— (a) the formation and development of an efficient administration; (b) the organisation and control of the staff, (c) the maintenance of discipline: and (dj the effective deployment and utilisation of staff to achieve maximum operational results. (3) As accounting officer the Commissioner is responsible fol-— (a) all income and expenditure of SARS: (b) all revenue collected by SARS: (c) all assets and the discharge of all liabilities of SARS; and (d) the proper and diligent implementation of Part 5. (4) The Commissioner must perform the functions of ofice as required by this Act. 40 45 10 No. 18257 GOVERNMENT GAZETTE. 5 SEPTEMBER 1997 Act No. 34, 1997 SOUTH AFRICAN REVENUE SERVICE ACT, 1997 Assignment of powers and duties 10. (l) The Commissioner may— (a) assign management or other duties to employees with appropriate skills to assist the Commissioner in the management, and the control over the functioning, of SARS; (b) delegate any of the Commissioner’s powers in terms of this Act to a SARS employee; or (c) instruct a SARS employee to perform any of the Commissioner’s duties in terms of this Act, (2) An assignment. delegation or instruction under subsection (1 )— (a) may be issued subject to any conditions the Commissioner may impose; and (b) does not divest the Commissioner of the responsibility concerning the exercise of the power or the performance of the duty. (3) This section applies only to the Commissioner’s powers and functions contained in this Act. Establishment Part 3 ADVISORY BOARD 5 10 15 11. ( 1 ) A board called the SARS Adviso~ Board is hereby established. (2) The Board acts as an advisory and consultative body for the Minister and the 20 Commissioner on matters concerning the administration of the revenue collecting system under this Act. Constitution 12. (1) The Board consists of— (a) not more than eight persons who are unconnected with SARS and appointed 25 by the Minister; (b) the Commissioner; and (c) not more than two senior employees of SARS designated by the Commis- sioner. (2) The Minister must— 30 (a) consult the Cabinet before appointing a member mentioned in subsection ( l)(a); and (b) appoint a chairperson and a deputy chairperson from among the members after having consulted the members, (3) A member mentioned in subsection (1)(a) is appointed for a term not exceeding 35 five years, which is renewable, and must— (a) be a fit and proper person; and (b) have appropriate expertise, skills, knowledge or experience and the ability to perform effectively as a member. Powers and functions 40 13. ( 1 ) The Board advises the Minister and the Commissioner on any matter concerning— (a) the management of SARS, including operational, financial and administrative policies and practices; (b) the improvement of efficiency and performance in revenue collecting efforts; 45 (c) the terms and conditions of employment of SARS employees; (d) collective bargaining in SARS; (e) SARS’S budget; and V) the implementation of this Act. (2) For the purposes of subsection (1) the Board— (a) may examine and comment on any policies, and investigate, evaluate and advise on any practices and decisions, of SARS and the Commissioner under this Act: 50 l? N(), 18257 GC)\’ERNMENT GAZETTE, 5 SEPTEMBER 1997 Act No. 34, 1997 SOLJTH AFRICAN’ REVENUE SERVICE ACT. 1997 (b) is entitled m all relevant information concerning the administration of the revenue collecting system. excludin~ any information which is subject to a provision referred to in section 31: (c) may require— (i) the Commissioner to submit a report concerning a matter on which the 5 Board must give ad~ice: or (ii ) any SARS employee to appear before it and give explanations concerning such a matter: and (d) must inform the Minister of any advice it gives to the Commissioner. (3) The powers and functions of the Board to give advice in terms of this section may 1(1 not be construed as to interfere with the powers and functions assigned to the Commissioner in terms of any legislation or agreement referred to in section 4( I )([1 ). in so far as those powers and functions of the Commissione]- rela[e to— (a) the interpretation of that legislation or agreement: (b) the exercise of a discretion conferred on the Commissioner by that legislation 15 or agreement: or (c) the deterrnina[ion of the liabilit~ of a person for an~ revenue. Procedures
Part
Part 4
- 20 Verify source ↗
SARS—
AI-assisted research summary: SARS must provide internal training for its employees and may give bursaries or loans for education purposes to employees and other suitable candidates.
20. SARS— (a) must provide for appropriate internal training of its employees; and (b) may grant bursaries and loans to employees and other suitable candidates for educational purposes within its field of operation. Existing staff - 21 Verify source ↗
Items 1 to 5 of Schedule 2 apply to all persons in the public service who occupied
AI-assisted research summary: Items 1 to 5 of Schedule 2 apply to certain public service staff at SARS before the Act took effect, and item 6 also applies to persons appointed by SARS afterwards.
21. Items 1 to 5 of Schedule 2 apply to all persons in the public service who occupied posts on, or were additional to, the staff establishment of the Department: South African Revenue Service immediately before this Act took effect, and item 6 applies to both those persons and persons appointed by SARS after this Act took effect. 5 10 Part 5 FINANCIAL MATTERS Accountability
Part
Part 5
- 22 Verify source ↗
As accounting officer the Commissioner must—
AI-assisted research summary: The Commissioner, as accounting officer, must keep proper records, prepare annual financial statements, and safeguard SARS resources.
22. As accounting officer the Commissioner must— (a) keep full and proper record, in a manner determined by the Minister. of— 15 (i) all income and expenditure of SARS; (ii) all its assets, liabilities and financial transactions: and (iii) all revenue collected by it; (b) prepare annual financial statements in accordance with generally accepted accounting practice; and (c) ensure that the available resources of SARS are properly safeguarded, and used economically and in the most efficient and effective way. Z() Application of Exchequer Act - 23 Verify source ↗
The Exchequer Act, 1975 (Act No, 66 of 1975). and any regulations or instructions
AI-assisted research summary: This section says which financial rules apply to SARS, how its funds and income are handled, and what the Commissioner and Minister must do about budgets and approvals.
23. The Exchequer Act, 1975 (Act No, 66 of 1975). and any regulations or instructions issued in terms of the Act— 25 (a) apply to all revenue collected by SARS in terms of section 4( 1 )(a)(i); and (b) apply to the funds and transactions of SARS to the extent that that Act applies to statutory bodies. Funds 24. (1) The funds of SARS consist of— 30 (a) money to which it is entitled in terms of section 25; (b) any government grants made to it; (c) any fees and charges mentioned in section 5(1 )(h); and (d) any other money legally acquired by it. (2) (u) SARS may accept donations and bequests, but only with the approval of the 35 Minister. (b) Particulars of each donation or bequest accepted by SARS must be given in SARS’s annual report. Chief source of income 25. (1) SARS is entitled to money appropriated annually by Parliament for its services 40 mentioned in section 4(1 )(a)(i) and (b). (2) The amount of the money must be calculated in accordance with the estimates of income and expenditure mentioned in section 26, and once appropriated— (a) must be paid to SARS in amounts determined in accordance with an agreement between SARS and the Minister; and 45 I 6 No. 1s257 GOVERNMENT GAZETTE. 5 SEPTEMBER 1997 Act No. 34, 1997 SOUTH AFRICAN REVENLIE SERVICE ACT. 1997 (b) may be reviewed by the Minister and. if necessary, adjusted accordingly in terms of the Exchequer Act. 1975 (Act No. 66 of 1975). (3) For services mentioned in section 4( I )(a)(ii) SARS may charge the organ of state or institution concerned at an agreed rate. Estimates of income and expenditure 5 26. ( 1 ) The Commissioner— (a) must prepare during each financial year. but before a date set by the Minister. estimates of SARS’S income and expenditure for the next financial year; and (b) may prepare at any time during a financial year estimates of SARS’S income and of SARS “s expenditure for essential purposes supplementary to the estimates mentioned in paragraph (a). (2) The estimates mentioned in subsection ( 1 )(a) or (b) must — (a) be in a format determined b~ the Minister; (b) make adequate provision for SARS to perform its functions mentioned in section 4(1 )(a)(i) and (b); and (c) be submitted to the Minister fol- appro~’al. (3) Before approving the estimates the Minister— (a) must consult the Board: and (b) may refer the estimates back to the Commissione]- fol- any adjustment suggested by the Minister or the Board. (4)(a) The Minister must table the approved estimates in the National Assemhl} fol- debate and adoption. (b) The estimates must be tabled a reasonable period before the commencement of the financial year to which the estimates relate, Refunds to state 25 - 27 Verify source ↗
SARS must refund to the National Revenue Fund an) mone~ paid to SARS in
AI-assisted research summary: SARS must refund unused money paid to it under section 25(2) to the National Revenue Fund at the end of the financial year, unless the Minister agrees otherwise.
27. SARS must refund to the National Revenue Fund an) mone~ paid to SARS in terms of’ section 25(2) that has not been used at the end of the financial year. unless otherwise agreed with the Minister. Audits - 28 Verify source ↗
The Auditor-General must audit the accounts and financial records of SARS.
AI-assisted research summary: The Auditor-General must audit SARS’s accounts and financial records, including records about revenue collection.
28. The Auditor-General must audit the accounts and financial records of SARS. 30 including those relating to the collection of revenue. Annual report 29. ( 1 ) The Commissioner must annually submit to the Minister a report on the activities of SARS during a financial year. (2) The report must be submitted within six months. or within a longer period fixed b) 35 the Minister. after the end of the relevant financial year. and must include- (a) a summary of SARS’S performance during the year; (b) audited financial statements reflecting SARS’S financial affairs during the year. consisting of at least— (i) a balance sheet: (ii) an income statement; (iii) a cash flow statement: (iv) a statement showing loans and advances to SARS; and (v) a report of the auditors; (c) audited financial statements of all revenue collected by SARS: and (d) any other matters required by the Minister to be dealt with in the report. (3) The financial statements forming part of the report must— (o) be prepared in accordance with generally accepted accounting practice; (b) fairly reflect the activities and performance of, and the state of affairs in. SARS; and 40 45 50 18 No. ]8257 GOVERNMENT GAZETTE. 5 SEPTEMBER 1997 Act NO. 34, 1997 SOUTH AFRICAN REVENUE SERVICE ACT. 1997 (c) draw attention to any matters that may or would probably affect the affairs of SARS. (4) The Minister must without delay— (a) table a copy of the report in the National Assembly; and (b) submit a copy of the report to the National Council of Provinces. 5 Part 6 MISCELLANEOUS Restrictions on names implying connection with SARS 30. ( 1 ) No person may apply to any company, body. firm. business or undertaking a name or description signifying or implying some connection between the company, 10 body, firm. business or undertaking and SARS. (2) Any person who contravenes subsection (1) is guilty of an offence and on conviction liable to a fine or to imprisonment not exceeding 10 years or to a fine and imprisonment. Protection of confidential information 15
Part
Part 6
- 31 Verify source ↗
Nothing in this Act affects provisions in other legislation prohibiting or regulating
AI-assisted research summary: This section says this Act does not override other laws that prohibit or regulate disclosure of information held by the Commissioner.
31. Nothing in this Act affects provisions in other legislation prohibiting or regulating disclosure of information in the possession of the Commissioner. Exemption from transfer and stamp duty - 32 Verify source ↗
No transfer duty is payable by SARS in respect of the acquisition of any property
AI-assisted research summary: SARS does not have to pay transfer duty on property it acquires, and it does not have to pay stamp duty on instruments in the stated circumstances.
32. No transfer duty is payable by SARS in respect of the acquisition of any property by SARS. and no stamp duty is payable by SARS in respect of any instrument if the 20 stamp duty thereon would be payable by SARS in terms of the applicable legislation. Amendment of Schedule 1 - 33 Verify source ↗
The President may amend Schedule 1 by proclamation in the Ga:erte
AI-assisted research summary: The President may amend Schedule 1 by proclamation in the Gazette.
33. The President may amend Schedule 1 by proclamation in the Ga:erte Amendment of legislation affected by this Act 34. ( 1 ) The legislation mentioned in Schedule 3 is hereby amended to the extent set 25 out in the third column of the Schedule. (2) A reference in any other legislation to the Commissioner for Inland Revenue, the Secretary for Customs and Excise or the Commissioner for Customs and Excise must be construed as a reference to the Commissioner in terms of this Act. Short title and commencement 30 35. ( 1 ) This Act is called the South African Revenue Service Act. 1997. and takes effect, subject to subsection (2). on a date fixed by the President by proclamation in the Gazette. (2) The amendment to Schedule 1 of the Public Service Act. 1994 (Proclamation 103 of 1994), in terms of Schedule 3 of this Act, takes effect on the date on which the 35 Department: South African Revenue Service is abolished in terms of item 2 of Schedule 2 of this Act. 20 No. 1 s257 GOVERNMENT GAZETTE. 5 SEPTEMBER 1’)97 .Act No. 3’L 1997 SOLITH AFRICAN REVENUE SERVICE ACT. 1997 Schedule 1 LEGISLATION ADMINISTERED BY COMMISSIONER 1. ‘3 ;: 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. Union and Southern Rhodesia Death Duties Act. 1933 (Act No. 22 of 1933) Marketable Securities Tax Act. 1948 (Act No. 32 of 1948) Transfer Duty Act. 1949 (Act No. 40 of 1949) Estate Duty Act. 1955 (Act No. 45 of 1955) Income Tax Act. 1962 (Act No. 58 of’ 1962) Customs and Excise Act. 1964 (Act No. 91 of 1964) Stamp Duties Act, 1968 (Act No. 77 of 1968) Value-Added Tax Act. 1991 (Act No. 89 of 199 I ) Section 60 of the Income Tax Act. 1993 (Act No. 113 of 1993) Section 39 of the Taxa[ion Laws Amendment Act. 1994 (Act No. 20 of 1994) Company Tax Amendment Decree. 1994 (Decree No. 2 of 1994). of the former Republic of Ciskei Section 41 of the Income Tax Act, 1994 (Act No. 21 of 1994) Tax Amnesty Act. 1995 (Act No. 19 of 1995) Sections 56 and 57 of the Income Tax Act. 1995 (Act No. 21 of’ 1995) Tax on Retirement Funds Act. 1996 (Act No. 38 of 1996) Final Relief on Tax. Interest. Penalty and Additional Tax Act. 1996 (Act No. 101 of 1996) The Sales Tax Act. 1978 (Act No. 103 of 1978). to the ex[ent that it remains in force in terms of section 85 of the V’alue-.Added Tax Act. 199 i (Act No. 89 of 1991) Any regulation. proclamation. gove[mment notice o]- rule issued in terms of [he above-mentioned legislation or any agreement entered into in terms of this ]egisla[ion or the Constitution. ?9 .- No. 18257 GOVERNMENT GAZETTE. 5 SEPTEMBER 1997 Act No. 34, 1997 SOUTH AFRICAN REVENUE SERVICE ACT, 1997 Schedule 2 TRANSITIONAL PROVISIONS Definitions
Part
Schedule 2
- 1 Verify source ↗
In this Schedule. unless the context indicates otherwise—
AI-assisted research summary: This Schedule defines “Department,” “departmental employee,” and “effective date,” unless the context indicates otherwise.
1. In this Schedule. unless the context indicates otherwise— “Department” means the Department: South African Revenue Service; “departmental employee” means a member of the public service who occupied a post on, or was additional to, the staff establishment of the Department immediately before the effective date: and “effective date” means the date on which this Act took effect. Abolition of Department - 2 Verify source ↗
The Department is abolished on the effective date.
AI-assisted research summary: The Department is abolished on the effective date.
2. The Department is abolished on the effective date. Commissioner 3. (1) The person who occupied the post of Commissioner for Inland Revenue and Commissioner for Customs and Excise immediately before this Act took effect. must be regarded as having been appointed as the Commissioner in terms of section 6 for a term of five years. (2) The term of the person referred to in subitem (1) runs from the date this Act took effect, and that person may be reappointed when the term expires. Persons in service of Department 4. ( 1 ) A departmental employee becomes an employee of SARS on the effective date. (2) The transfer of departmental employees to SARS must be effected in accordance w ith— (a) section 197 of the Labour Relations Act. 1995 (Act No. 66 of 1995): and (b) any collective agreement reached between the State and the trade union parties of the Departmental Chamber of the Public Service Bargaining Council: SARS. before the effective date. Persons becoming employees of SARS 5. (1) When a departmental employee becomes an employee of SARS, the Commissioner must appoint that employee in a post on the establishment of SARS. (2) A person mentioned in subitem ( I ) remains subject to any decisions, proceedings, rulings and directions applicable to that person immediately before the effective date. Any proceedings against such a person which were pending immediately before the effective date, must be disposed of as if this Act had not been enacted. Collective bargaining 6. (1) There is established a collective bargaining forum for SARS employees on the effective date, (2) The constitution of the fomm is, subject to any changes required by the context, the same as the constitution of the Departmental Chamber of the Public Service Bargaining Council: SARS. (3) The trade union parties to the forum are those that were parties to the Departmental Chamber of the Public Service Bargaining Council: SARS. The employer representatives must be appointed by the Commissioner. (4) The constitution may be amended only by agreement of all the parties to the forum. (5) For the purposes of section 18 of this Act— 24 No. 18257 GOVERNMENT GAZETTE. 5 SEPTEMBER 1997 Act !40. 34, 1997 SOUTH AFRICAN REVENUE SERVICE ACT. 1997 (a) the trade union parties to the forum are regarded as having been recognised by SARS as recognised trade unions: and (b) the procedures contained in the constitution of the forum must be applied as if they were the agreed procedures for the negotiations on terms and conditions of employment. Assets and liabilities 7.( 1 ) Immovable property of the state used by the Department immediately before the effective date remains at the disposal of SARS on terms and conditions as may be agreed on between SARS and the responsible Cabinet member. (2) All movable assets of the state which were used by or which were at the disposal of the Department immediately before the effective date. except those assets excluded by the Minister, become the property of SARS. (3) As from the effective date all contractual rights. obligations and liabilities of tbe Department are vested in SARS. Financial and administrative records of Department - 8 Verify source ↗
All financial, administrative and other records of the Department, including all
AI-assisted research summary: The Department must transfer all its financial, administrative, and other records, including documents held before the effective date, to SARS.
8. All financial, administrative and other records of the Department, including all documents in the possession of the Department immediately before the effective date. must be transferred to SARS. 26 No. 18257 Act No. 34, 1997 GOVERNMENT GAZETTE. 5 SEPTEMBER 1997 SOUTH AFRICAN REVENUE SERVICE ACT, 1997 Schedule 3 AMENDMENT OF LEGISLATION AFFECTED BY THIS ACT NLTMBER AND YEAR OF LAW SHORT TITLE ;XTENT OF REPEAL OR \MENDMENT Ac( No. 32 of 19-$8 Marketable Securities Tax Act. ;ectlon I is hereby amended— 1948 Act No. .lfl of 1949 rransfer Du(y Act. 1949 Ac[ NO 45 of 1955 ktate Duty ACL, 1955 a) by the subsutution for the definition of “Commis- sioner” of the following defi- nition: “ ‘Commissioner’ means the Commissioner for [Inland Revenue] the South Afr]can Revenue Service;”: and h) by the insertion after the defimtion of “member” of the fol]uwing defimtmn: “ ‘South African Revenue Service’ means the South African Revenue Service established bv section 2 of the South African Revenue Service Act. 1997:”. iection 1 IS hereby amended— 0) by the substitution for the definition of “Commis- sioner” of the following defi- nition: ‘“ ‘Commissioner’ means the Commmsioner for [Inland Revenue] the South African Revenue Service;”: and b) by tbe insertion after the definition of “registration off]cer” of the following defmltion: ‘“ ‘South African Revenue Service’ means the South .4 fr]can Revenue Serv]ce established bv section 2 of the South African Revenue Service Act. 1997;”. ;ection I is hereby amended— a) by the substitution for the definition of “’Commis- sioner” of the following detl nlt]on “’ ‘Commissioner’ means the Commissioner for [Inland Revenue] the South African Revenue Service:”: and 28 N(). I X257 Act No. 34, 1997 GOVERNMENT GAZETTE. 5 SEPTEMBER 1997 SOLTTH AFRICAN REVEN(E SERVICE ACT. 1997 NL’LIBER AND >“EAR OF I.AW’ SHORT TITLF. EXTENT OF REPEAL OR AMENDMENT (h) h) [hr inset’uon after the detini[]on of ‘“relati\e” of the following ckfini[inn: “ ‘South A1l-ican Revenue Scr\lce’ means the Snuth .Af’ncan Rc\ cnuc SCI-VKC csmblistwd h; $cc[ion 2 of the South ,Africar Rc\ enuc Scr\ KC .Ac[. 1997:”. .\c( No. 5S (,1” 1902 ln~<)n]c Ta\ .Ac[. 11)(12
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