Corporate Income Tax (CIT): Removal of the Supplementary Declaration for Companies or Close Corporations (IT14SD) Form: 16 September 2022

Corporate Income Tax (CIT): Removal of the Supplementary Declaration for Companies or Close Corporations (IT14SD) Form: 16 September 2022

• 30 August 2022
• Corporate Tax
• SARS

Important: The answer is applicable until further notice by SARS.

From 16 September 2022 SARS will no longer require you to submit the Supplementary Declaration for Companies or Close Corporations (IT14SD) when identified for a verification.

The requirement to submit an IT14SD when a verification case is created will be replaced by a letter requesting specific relevant documents based on the reason for verification.

What does this mean?

• When a company is identified for verification, you will be notified of the verification (the current norm) and will be requested to submit specific relevant documents based on the reason for the verification, or to submit a revised Corporate Income Tax (ITR14 return, by doing a request for correction (RFC).
  • You still have the option of submitting one correction, which may or may not resolve the verification.
  • The revised ITR14 will also be subjected to a risk evaluation
• To comply, you need to upload the requested documents using eFiling, or any other submission channel, including SARS Online Query system (SOQS). The uploading of the relevant documents will enable a SARS verifier to action the case. If the relevant documents are deemed insufficient, or additional documents are required, this will be requested from you.
• You are still required to provide the relevant documents within 21 working days.
• If you still do not comply with the request for relevant documents, SARS will raise a revised assessment to resolve the verification case, and will add back the related expenses, dependent on the specific relevant documents requested.
• Note: The verification of a company always requires the submission of a signed set of Annual Financial Statements (AFS), as well as a detailed Tax Computation and the underlying supporting documentation/schedules (e.g., Tax pack).

What remains the same?

• All correspondence will still be issued as before, and you will still be required to submit the relevant documents within 21 working days. The IT14SD will not be required to be submitted any longer, and the submission of specific relevant documents will be required. The process of dealing with the verification case will remain the same.
• The requirement to submit relevant documents upon submission of the ITR14 will remain the same.

In preparation for the removal of the IT14SD and the introduction of risk specific letters the following should be noted:

• If the IT14SD (before the implementation of this project) has already been submitted, the verification will be dealt with using the IT14SD. If a letter is received for the submission of relevant documents, or additional relevant documents, those documents also need to be submitted.
• If the IT14SD has not been submitted yet (before the implementation of this project), a letter will be issued requesting the submission of specific relevant documents, and the requirement to submit the IT14SD will fall away. For example, if a company was identified for verification two years ago, and never submitted the IT14SD, relevant documents will be required to be submitted.
• Note: As of the date of this letter, you will not be required to submit any outstanding IT14SDs.Should you receive any further notification or final demand letter to submit your IT14SD, please ignore such request.

We continue to work tirelessly to modernise our systems and processes to provide digital and streamlined services. We are committed to building a smart, modern SARS with unquestionable integrity. We believe these changes will contribute to making it easy to comply and to providing clarity and certainty for taxpayers to meet their tax obligations.

Source: SARS

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