SARS outlines alternative payment scheme

Alan Peat SA REVENUE Services (SARS) has created an alternative mechanism for large payments with the opening of a bank account into which electronic payments in excess of R5-m can be made. This follows the ban on cheques of over R5-million - and different limits on other forms of monetary transfer - from January 2, which led to urgent negotiations between the forwarding community and customs & excise head office. "To facilitate electronic payments to SARS customs in the short-term," said SARSÕ Johan van Rooyen, "it was decided to utilise an existing process whereby payments in excess of R5-million can be made directly into the customs bank account at First National Bank." Last November Edward Little, executive director of the SA Association of Freight Forwarders (SAAFF), warned members that the various limitations would have an adverse impact on the method of payment from agent to customs. This, he told FTW, was because the SA Banking Institute had introduced risk reduction measures with the approval of the SA Reserve Bank, and implemented them in the National Payment System. "The limits agreed to were R5-m per item for cheques, EFT (Electronic Fund Transfer) credits and ZAPS (SA Rand Payment System) transactions; R500 000 for EFT debits; and R10 000 for SASWITCH transactions. "As these limits would impact on the payments made by agents to SA Revenue Services (SARS) in respect of duty and VAT, SAAFF immediately contacted the authorities. "At the time, they indicated that they were in the final stages of opening a bank account into which it would be possible to effect electronic payments that were in excess of the R5-m limit." With this now finalised, Van Rooyen has stressed that any such monetary transfers must bear accurate reference number information. To page 16 From page 1 This will ensure that the payment can be identified and correctly allocated upon receipt by SARS. The First National Bank details are: l Account number - 62029548693 l Account Holder - SARS l Branch Code - 253145 l Reference Number - 1000281124C02012002 (Example) But SAAFF members have already identified two practical difficulties in the system which are already under discussion between Little and Van Rooyen. The first, Little told FTW, related to submission of "proof of payment". The original instruction, he added, stated: "Note that the current procedure regarding the processing of the transaction/s to be settled on the CAPE or CCA systems will still apply. The only difference will be that the proof of the successful transfer of the funds to the above account should accompany the transaction to be settled to the customs cashier and not the cheque." The problem here, said Little, is that there is presently no link between the receiving bank - into which the monies are paid - and the various customsÕ controllers. "In the circumstances," he told FTW, "it is essential - in order that the payment be captured on the Cape System, and suspension or penalties be avoided - that the customary documentation and the proof of the payment be handed in within the period set down for this." The second area of concern is in the form of the "proof of payment". On this, Van Rooyen advised all his controllers to specifically look for the following information on the EFT "proof of payment": l The bank account detail to which the money has been transferred; l The reference number declared; and l An indication that the transfer had been processed successfully. "Some controllers, however, have also expected the "proof of payment" to be printed on the bankÕs letterhead," said Little. "This is certainly not the case. "Different banks have different formats in which the "proof of payment" is issued, and not all contain the bankÕs logo, or other clear means of identifying the bank." The answer to this, Little suggested, would be for agents to furnish the respective customs controllers with a copy of the "proof of payment" for them to be able to recognise the format. "In addition," he added, "most, if not all, payments will be made from the agentÕs head office. It is therefore suggested that a senior staff member in each branch visit his customs controller, taking with him a copy of the "proof of payment" so that the controller will know what he can expect in future. "It will be important to point out that the "proof of payment" document will generally be a faxed copy as the original will be retained by the clearing agentÕs head office."