I need some technical advice. I have a client who is an estate agent they issue IT3’s for rental income. I have been told by another tax practitioner that these IT3’s should be IT3(b)’s (a manual form) and not IT3(a)’s (easyfile form) Is this correct? Do
Important:
This answer is based on tax law year ending 28 February 2017.
Answer:
The matter is dealt with in the notice 241, GG 41512, issued on 23 March 2018 under the Tax Administration Act, 2011. It deals with the “Returns of information to be submitted by third parties in terms of section 26 of the Tax Administration Act, 2011”. It replaced the notices in respect of previous years.
The notice, in paragraph 2, lists the persons required to submit a return as specified in paragraph 3 of the notice. We copied the parts relevant to your request from the notice below:
2. Persons required to submit third party returns
The following persons are required to submit a return as specified in paragraph 3:
2.10 Any person, who for their own account carries on business as an estate agent as defined in the Estate Agency Affairs Act, 1976, and who pays to, or receives on behalf of, a third party, any amount in respect of—
… ; or
2.10.3 the rental of property;
3. Returns required to be submitted
Every person mentioned in Column 1 must submit a third party return that relates to the information specified in Column 2, in the form specified in Column 3 of the following Table:
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2.10, 2.11 |
Amounts incurred or paid in |
IT3(b); or |
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respect of, or by way of any |
Data compiled in |
|
|
rental of immovable |
accordance with SARS’ |
|
|
property. |
Business Requirement |
|
|
Specification: IT3 Data |
||
|
Submission |
The wording of this notice, in respect of previous years were slightly different, but for purposes of your request, rental, it always read the same. An IT(3)(a) was never required – even before the Tax Administration Act becoming effective.
Paragraph 5 deals with the way the return must be submitted:
5. Manner of submitting a third party return
5.1 Where a third party return comprises—
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20 or fewer records, the data must be submitted electronically using the SARS electronic filing service — eFiling;
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21 to 50 000 records, the data must be submitted electronically by using the SARS electronic filing service — hypertext transfer protocol secure (https) bulk data filing; and
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more than 50 000 records, the data must be submitted electronically using the SARS electronic filing service — Connect Direct (C:D) bulk data filing.
5.2 Declarations in respect of third party returns must be submitted electronically using the SARS electronic filing service — eFiling.