Taxpayers generally require tax clearance
certificates as evidence to third parties of their tax compliant status and are
a requirement when applying for foreign investment allowances, emigration and
tenders.
This process may potentially start as
early as May 2013 as it is our understanding that SARS will introduce new
procedures around this time with regard to the approval as well as the issue of
tax clearance certificates.
Although SARS has not issued formal
communication in this regard, we understand that the new procedures may include
a mandatory audit of the applicant taxpayer before approval of the application.
What level of audit will be conducted, which SARS office or division will be
responsible for the audit and what the expected turn-around time will be if this
requirement is implemented is not clear at this stage. Furthermore, taxpayers
who have successfully tendered for work will be ear-marked for audit to ensure
full-disclosure of the taxable income made from such tender.
Therefore, should you be considering
applying for a tax clearance certificate we suggest that you do so now to
potentially avoid the application of the new procedures.
PKF
