The Tax Administration Act now requires persons to submit Third Party Returns to SARS on an annual and bi-annual basis. The persons who are required to submit these returns include banks, financial institutions, medical schemes, attorneys, estate agents and companies listed on the JSE. These persons have to submit information about their clients in an electronic format. The information supplied must be in the electronic IT3 format as prescribed by the Business Requirement Specification document published on the SARS website at http://www.sars.gov.za/home.asp?pid=57309
This new requirement holds significant implications not only for the persons having to submit the third party returns but also simplifies the SARS administration process and the completion of individual tax returns. The first third party submission must be completed for the period 01 March to 31 August and submitted to SARS before 31 October 2013. The annual submission must be completed for the period 01 March to 28 February and submitted to SARS by 31 May 2014.
SARS will now be able to collect information about our medical aid, retirement annuity and income replacement policy contributions as well as any additional earnings received in the form of interest and dividends. The benefit is that this information will be used to pre-populate our tax returns with all the additional information relating to our contributions and earnings that do not involve our employers.