The SARS EFiling Service

1
The SARS E-Filing Service
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Agenda

• Introduction
• 3rd Party Challenges
• Refined Model
• Marketing and Communication
• Benefits
• Services offered
• Future

3
Introduction

• The service was first introduced in July 2001 as
  part of Siyakha Programme, model used was that of
  3rd party Service Providers
• eFiling originated with the objective of
  cultivating an online taxpayer community where
  their tax related matters could be dealt with in
  a more electronic, easy to use and self help way
  - via the Internet
• As Internet usage in South Africa is climbing
  steadily in both private and business sectors,
  the Internet was seen as the ideal means for
  electronic communication, particularly for the
  business community.

4
Introduction

• Manual reconciliation, cheque fraud and postal
  service delays have become some of the main
  reasons why SARS has been experiencing late and
  non payment of taxes in many instances, SARS
  were reactive rather than pro-active
• Some payment mechanisms were flawed
• Requirement to standardise processes and leverage
  technology and services

5
3rd Party Challenges

• Service seen as being a private sector initiative
  without SARS support
• Marketing and communications conflicts
• Taxpayers had to pay for the ability to submit
  returns online
• Service providers not taken seriously by the
  Banks
• Insufficient capital
• Technology focused
• Confusion as to the benefits

6
Refined Model

• SARS launched free service www.sarsefiling.co.za
  on 14 July 2003
• Single brand
• Customer centric approach shift from technology
  focus
• Performance excellence using private sector
  management style
• Training and education
• Ease of use and system availability
• Open architecture
• Alternative communication channels (SMS secure
  mail)

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Refined Model

• Proof of concept to a limited segment of the
  market works
• Marketing Communications are critical to the
  success of any public project
• Overcome resistance to change
• Increase adoption rates after pilot projects are
  successful
• View public as corporate
• Leadership from the top is essential
• Broad understanding of the strategy by all

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Marketing and Communications

• Communications to internal SARS members via email
  and explanatory brochures
• SARS eFiling call centre available to assist with
  advanced queries - 0860 709 709
• Direct marketing to large Corporates and tax
  practitioners using internal consultants.
• Online campaigns using Internet portals such as
  WorldOnline, Ananzi, Moneymax, Mweb, etc. as
  these are the Internet users and
• eFiling Kiosks at SARS Branch Offices/Service
  Centres

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Services Offered

• Currently VAT201, EMP201, Provisional Tax (IRP6),
  IT12 TR Returns, Transfer Duty and the associated
  payments, Stamp Duty as well as Ad hoc Payments
  
• Additional features for the taxpayer offered by
  eFiling include
• Online Extensions
• Directives
• Context help and workflow
• Notifications and reminders
• Frequently asked questions
• Viewing correspondence with SARS
• Full payment and forms submission history
• Online user guides
• End-to-end forms and payment tracking
• Electronic confirmation of transactions

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Benefits to the Stakeholders

• SARS
• Reduced paperwork, postage, printing costs
• Reduced time spent per query
• Totally automated reconciliation process
• Increased accuracy of taxpayer data
• Guaranteed Revenue stream (on time and
  irrevocable)
• Improved service delivery to tax practitioners
  and taxpayers
• Progressive position w.r.t. other government
  departments

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Benefits to the Stakeholders

• Taxpayers
• Detailed electronic record of all interaction
  with SARS
• Greater accuracy in submissions and returns
• Greater flexibility to interact with SARS
• Additional 3-5 day window to submit certain
  payments
• Full support via the web or dedicated call
  center
• Reconciliation and confirmation of forms and
  payments and
• Reminder service email or SMS.

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Benefits to the Stakeholders

• Tax Practitioners
• Increased level of service provision to clientele
  through a basic web presence
• Competitive advantage over practitioners NOT
  using eFiling
• Improved management, auditing and accuracy of
  client records and subsequent transactions with
  SARS
• Faster turnaround time regarding queries and
  responses
• Dual reminder service via email and SMS
• Increased flexibility regarding payment options
  to SARS and
• Additional time window to submit VAT payments.

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Future Functionality

• Offline Application
• Small business package
• Tax Directives Bulk Delivery
• IT14s (busy testing)
• Secondary Tax for Companies (STC)
• IRP5 Reconciliations
• Additional Incentives

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Some Statistics
Number of Registered Taxpayers 420,000 for all
tax types Increasing at an exponential
rate Number of Forms Submitted Over 1.3
million Increasing substantially every month R134
billion in value Payments made 1.1 million
payments to the value of R41 billion to
date Increasing as trust grows
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Closing Remarks

• Research and experience to date indicates that
  eFiling is certainly widely perceived as an
  exciting and positive development for South
  African taxpayers
• There is a high propensity for taxpayers to adopt
  this method of interacting with SARS
• The banks play a very important role in the
  eFiling initiative and have a significant impact
  on the adoption rate taxpayers generally trust
  their banks when it comes to the online movement
  of their money
• SARS has taken the eFiling initiative seriously
  and have invested substantially to deliver and
  maintain a quality product

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Thank you! Submit your return electronically
within minutes, day or night, 365 days a year.