SA REVENUE Services has tightened the screws on warehouse operators using provisional payments in lieu of surety bonds, according to Deloitte & Touche. According to Sars, in certain instances, and particularly where surety bonds for 470.03 rebate registrants are concerned, forms DA 70 have been accepted in lieu of security bonds. “This practice will cease with immediate effect,” a spokesman said. “A valid surety bond or bank guarantee must be lodged with immediate effect to replace all existing forms DA 70 currently held in lieu of surety bonds, within 30 days from 9 October 2003. Failure to do so could result in the warehouse being sealed by Sars.” Once valid surety bonds or bank guarantees have been lodged with authorised insurance companies or registered banking institutions, the DA 70 forms will be liquidated. The minimum amounts currently required for all rebate registrants is R100 000.
