Question NW174 to the Minister of Finance
14 March 2017 - NW174
Van Der Walt, Ms D to ask the Minister of Finance
(a) What is the total number of tax refunds for (i) taxpayers and (ii) vendors that were lodged prior to the end of the (aa) 2014-15 and (bb) 2015-16 financial years that have not been refunded by (aaa) 31 March 2015 and (bbb) 31 March 2016 respectively and (b) what were the total amounts due in each case?
Reply:
The following information was submitted by the South African Revenue Service (SARS):
The process of return submission covers the aspect of submitting a return and as such declaring the liability of the taxpayer for a specific period/ year. The submission and declaration does not however automatically entitle the taxpayer to a refund. The return is therefore lodged and not the refund. The assessment result might be an amount due to SARS and not to the taxpayer.
It is important to note that submissions by taxpayers, where the amount reflects as being due to the taxpayer, do not result in automatic refunds but rather may be credit assessments which may undergo risk evaluation by SARS, prior to being determined to result in a refund.
In general the refund process is subject to certain compliance interventions and follows a standardised process in line with legislation.
These steps include but are not limited to:
- A declaration by a taxpayer is subjected to an automated risk mitigation system
- A declaration is reviewed where risks are identified or refunds are released where no risk is identified.
- Where risk is identified, a generic request for information from clients in support of their declaration is sent to the taxpayer. These requests are made in writing to the taxpayer’s E-filing account or registered address.
- Evaluation by SARS of the data in support of the declaration is conducted, and requests for further specific supporting documentation is sent to the taxpayer where deemed necessary by the auditor. This second request is made telephonically and followed up by a written request sent to the E-filing account or other registered details
- If required an adjustment is made to the assessment
As indicated above, all reviews are conducted based on the risk identified by the system and all procedures and legislation is adhered to at all times in dealing with identified cases. The TAA, chapter 5, Sec 40, differentiates between an Audit and Verification. Once again, the compliance interventions determine whether a case will be Verified or Audited. Sec 42 of the TAA requires that a taxpayer be kept informed of progress with an Audit. The same obligations do not exist in the case of Verification.
(a)(i)(ii)(aa)(bb)(aaa)(bbb)(b)
Based on data that is readily available the following statistics can be provided.
It should be noted that the statistics includes all refunds as a result of current or prior tax year’s returns received. These may also include multiple returns where multiple years were outstanding.
Personal Income Tax (PIT): Refunds processed during these two performance periods that includes refunds paid out for both current and previous tax years
|
FY 2015/2016 |
Cumulative Number of Refunds |
Cumulative % of Volume |
Cumulative Refund Value (R) |
Cumulative % of Value |
|
Within 1 day |
2 078 529 |
93.55% |
17 636 156 292 |
89.51% |
|
Within 2 day |
2 080 018 |
93.62% |
17 648 106 895 |
89.57% |
|
Within 3 day |
2 081 400 |
93.68% |
17 660 046 629 |
89.64% |
|
Within 4 day |
2 082 565 |
93.73% |
17 671 685 820 |
89.69% |
|
Within 5 day |
2 083 563 |
93.78% |
17 682 211 625 |
89.75% |
|
Within 10 day |
2 093 691 |
94.23% |
17 791 309 571 |
90.30% |
|
Within 21 day |
2 098 039 |
94.43% |
17 834 333 227 |
90.52% |
|
Within 30 day |
2 105 910 |
94.78% |
17 917 459 188 |
90.94% |
|
Within 60 day |
2 131 416 |
95.93% |
18 226 010 663 |
92.51% |
|
Within 90 day |
2 158 953 |
97.17% |
18 588 300 391 |
94.35% |
|
More than 90 days |
2 221 795 |
100.00% |
19 702 139 151 |
100.00% |
|
Grand Total |
2 221 795 |
100% |
19 702 139 151 |
100% |
|
FY 2014/2015 |
Cumulative Number of Refunds |
Cumulative % of Volume |
Cumulative Refund Value (R) |
Cumulative % of Value |
|
Within 1 day |
2 228 408 |
92.62% |
17 475 039 484 |
89.19% |
|
Within 2 day |
2 231 094 |
92.73% |
17 497 695 274 |
89.30% |
|
Within 3 day |
2 233 430 |
92.83% |
17 517 603 195 |
89.40% |
|
Within 4 day |
2 235 407 |
92.91% |
17 534 051 997 |
89.49% |
|
Within 5 day |
2 237 478 |
93.00% |
17 551 802 975 |
89.58% |
|
Within 10 day |
2 245 757 |
93.34% |
17 629 562 736 |
89.97% |
|
Within 21 day |
2 259 968 |
93.93% |
17 771 765 155 |
90.70% |
|
Within 30 day |
2 269 100 |
94.31% |
17 865 671 786 |
91.18% |
|
Within 60 day |
2 317 618 |
96.33% |
18 342 690 800 |
93.61% |
|
Within 90 day |
2 348 282 |
97.61% |
18 661 029 254 |
95.24% |
|
More than 90 days |
2 405 902 |
100.00% |
19 594 118 415 |
100.00% |
|
Grand Total |
2 405 902 |
100% |
19 594 118 415 |
100% |
Corporate Income Tax (CIT): Refunds processed during these two performance periods that includes refunds paid out for both current and previous tax years
|
FY 2015/2016 |
Cumulative Number of Refunds |
Cumulative % of Volume |
Cumulative Refund Value (R) |
Cumulative % of Value |
|
Within 1 day |
29 011 |
73.14% |
1 926 857 827 |
56.18% |
|
Within 2 day |
29 084 |
73.32% |
1 941 310 905 |
56.60% |
|
Within 3 day |
29 134 |
73.45% |
1 944 784 101 |
56.70% |
|
Within 4 day |
29 189 |
73.59% |
1 948 683 819 |
56.82% |
|
Within 5 day |
29 239 |
73.71% |
1 952 820 096 |
56.94% |
|
Within 10 day |
29 437 |
74.21% |
1 975 891 033 |
57.61% |
|
Within 21 day |
29 880 |
75.33% |
2 120 522 535 |
61.83% |
|
Within 30 day |
30 190 |
76.11% |
2 168 459 999 |
63.23% |
|
Within 60 day |
31 362 |
79.07% |
2 368 672 630 |
69.06% |
|
Within 90 day |
32 708 |
82.46% |
2 526 549 638 |
73.67% |
|
More than 90 days |
39 666 |
100.00% |
3 429 659 974 |
100.00% |
|
Grand Total |
39 666 |
100% |
3 429 659 974 |
100% |
|
FY 2014/2015 |
Cumulative Number of Refunds |
Cumulative % of Volume |
Cumulative Refund Value (R) |
Cumulative % of Value |
|
Within 1 day |
31 258 |
74.11% |
1 740 028 825 |
51.67% |
|
Within 2 day |
31 327 |
74.28% |
1 744 623 695 |
51.81% |
|
Within 3 day |
31 382 |
74.41% |
1 753 376 243 |
52.07% |
|
Within 4 day |
31 432 |
74.53% |
1 758 537 723 |
52.22% |
|
Within 5 day |
31 482 |
74.65% |
1 762 717 215 |
52.35% |
|
Within 10 day |
31 684 |
75.13% |
1 780 635 814 |
52.88% |
|
Within 21 day |
32 041 |
75.97% |
1 843 791 302 |
54.75% |
|
Within 30 day |
32 370 |
76.75% |
1 894 872 625 |
56.27% |
|
Within 60 day |
33 393 |
79.18% |
2 054 283 521 |
61.01% |
|
Within 90 day |
34 614 |
82.07% |
2 225 138 970 |
66.08% |
|
More than 90 days |
42 175 |
100.00% |
3 367 388 343 |
100.00% |
|
Grand Total |
42 175 |
100% |
3 367 388 343 |
100% |
Value Added Tax (VAT): Refunds processed during these two performance periods that includes refunds paid out for both current and previous tax years
|
FY 2015/2016 |
Cumulative Number of Refunds |
Cumulative % of Volume |
Cumulative Refund Value (R) |
Cumulative % of Value |
|
Paid within 2 days |
240 268 |
67.71% |
20 543 123 568 |
16.14% |
|
Paid within 21 days |
282 753 |
79.69% |
77 882 420 639 |
61.19% |
|
Paid within 30 days |
304 595 |
85.84% |
95 477 947 992 |
75.02% |
|
Paid within 60 days |
337 605 |
95.15% |
116 017 076 739 |
91.15% |
|
Paid in more than 60 days |
354 828 |
100.00% |
127 276 361 477 |
100.00% |
|
Grand Total |
354 828 |
100% |
127 276 361 477 |
100% |
|
FY 2014/2015 |
Cumulative Number of Refunds |
Cumulative % of Volume |
Cumulative Refund Value (R) |
Cumulative % of Value |
|
Paid within 2 days |
249 313 |
67.51% |
24 522 511 615 |
19.61% |
|
Paid within 21 days |
322 604 |
87.35% |
96 674 033 289 |
77.31% |
|
Paid within 30 days |
338 011 |
91.52% |
107 434 615 456 |
85.91% |
|
Paid within 60 days |
357 374 |
96.77% |
118 940 253 003 |
95.11% |
|
Paid in more than 60 days |
369 315 |
100.00% |
125 052 605 017 |
100.00% |
|
Grand Total |
369 315 |
100% |
125 052 605 017 |
100% |