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Tax Mandate Letter - Anglo PDF
Tax Mandate Letter - Anglo PDF
Dear Sir/Madam
Dear Client
We are pleased to confirm the arrangement for OUR FIRM to provide your taxation services. Please sign and date
this mandate on the last page where indicated and return to us. This mandate letter covers a period of one year
from the date of signature and has to be signed by you or a representative of the company in terms of the SARS e-
Filing terms and conditions. If we do not have a signed copy of this mandate in our possession, we will be
unable to file any of your tax returns.
INTRODUCTION
You have requested us to assist you in the preparation and submission to the South African Revenue Services
(SARS) of your income tax returns, to submit the returns according to the time specifications that SARS have
stipulated and that we have arranged with you. We will also review related tax assessments for correctness and
assist you with responses to queries from SARS and to deal with errors in assessments identified by our review
and to a lodge the appropriate objections where considered necessary.
The work to be performed will be based on our interpretation of the tax law and SARS practices and policies at the
relevant time. These tax laws are subject to change occasioned by future legislative amendments, court decisions
as well as changes in SARS policies. You are advised to keep abreast of such developments and are welcome to
engage our services for this purpose. We confirm that it is your responsibility to provide us with complete, reliable
and accurate information in respect of your tax affairs timeously in order for us to provide the required services. In
the event that you miss an agreed deadline we cannot be held responsible for any penalties and interest levied by
SARS.
Please note that if you are an individual provisional taxpayer tax returns have to be submitted by the end of
January of the following year and if a company 12 months after the year end.
DELIVERY ADDRESS
You agree that MY FIRMS electronic address will be used for all communications with SARS in respect of our
services to you. If SARS has not recorded our address as your official postal or electronic address, we cannot be
held responsible for any penalties or interest on the late submission of returns or late payments of any taxes if the
returns, assessments, and other relevant documents were not timeously presented to us for action. You also
confirm that the email address used in this communication to you is the address that will be used for our
communications with you.
PROVISIONAL TAX
In the event that you are a provisional taxpayer we will between 60 – 30 days prior to the provisional tax payment
date communicate with you and if necessary, discuss with you the amount that is due to SARS for provisional tax.
We will be processing your provisional tax forms (IRP6) on an electronic basis, which means that at least ten days
prior to the provisional tax payment date which will be the 18th February, the 21st August and the 20th September
of each year in the case of February year ends we require confirmation that you agree with the provisional tax
payments to be made in regard to P1, P2 and P3 or top up payment respectively. In regard to other year ends we
require confirmation 10 days prior to the payment date of the amounts to be submitted to SARS.
The payment in regard to your provisional tax returns remains your responsibility and must be paid by the due
date. The payment reference necessary to make payment by EFT is indicated on the bottom of the IRP6 form that
we emailed to you. In the event that you require us to generate the payment on your behalf we require instructions
in a separate document or by way of email. In the event that there is a payment failure because of bank failure or
for any reason whatsoever the responsibility of missing the payment rests with you.
If we have not heard from you confirming your payments by the above-mentioned dates, we will not be able to
process your provisional tax submission at all. Please bear in mind that you will definitely be penalised if a
provisional tax payment is required by SARS and the payment is not made. In the event that you miss a payment
or pay provisional tax one day late SARS will take your payment as zero and apply all the penalties legislated
which of course can be quite substantial.
In the event that we use an estimate lower than the Basic Amount in order to calculate a provisional tax payment
we require a proper motivation from you as SARS may query the lower amount and ask for a justification of the
income used.
PARAGRAPH 19 (3)
In regard to any provisional tax calculation, Paragraph 19(3) of the Fourth Schedule permits the Commissioner to
increase any provisional tax estimate to an amount that SARS considers reasonable. In certain cases, the
Commissioner will request you to justify your Basic Amount estimate and in the event the commissioner is not
satisfied with the justification the estimate will be increased by SARS. This decision by SARS may be used
whenever enough information is available to substantiate the increase. Should you be aware of any reason why
the last taxable income should not be used as the Basic Amount, you need to contact us.
It is important for you to advise us what your situation is in regard to the Covid-19 relief before we start the
provisional tax payments.
CAPITAL GAINS
It is imperative that if a capital gain is earned during the tax year, that the gain is included in provisional tax in order
to avoid an understatement penalty. In the event that you do not advise us of a capital gain that should be included
in provisional tax an understatement penalty will definitely be levied by SARS on assessment.
We would like to point out that if you are not a provisional taxpayer and you earn a capital gain that it is imperative
that provisional tax is paid on the gain. If this situation arises please consult with us.
After we have prepared your tax returns for submission which will be done on a totally electronic basis, we will
provide you with a set of reports which will indicate the income declared and after you have confirmed in writing or
by signature that you are happy with the income figures we will then proceed with the electronic submission of your
tax returns.
Please be advised that we will not file any of your returns unless you have signed and returned a copy of this
mandate letter to us as well as a signed copy of the tax return documents specifying your net income.
DIGITAL SIGNATURES
In the event that MY FIRM adopts a digital signature system you will have no objection to confirming and signing
documents like this mandate and tax returns to be filed by way of a digital signature. We will advise you how to set
up and sign the documents where the need arises.
ISSUE OF ASSESSMENTS
Please take note that on receipt of an assessment notice from SARS with either tax to pay or a refund due it does
not necessarily mean that the tax return is finalised as there may be additional requirements based on queries that
SARS specifies which may only be communicated by SARS after the assessment is issued. In the event that
SARS requires us to perform additional work on your behalf because there are queries, this work will be
chargeable at our standard tax rate charges.
SARS may withhold refunds until they are satisfied with the outcome of any verification, query or audit! Please bear
in mind that SARS uses methods of risk aversion which may result in your tax return being selected for verification
or audit. We have no control over this and in the event that this happens we have to comply with the request. Such
requests may happen because your tax return is measured against industry statistics or changes in the return from
previous years. The cost incurred in doing this work will be charged at our standard tax charge rate.
A tax return is not finalised until SARS sends a letter indicating that the return is finalised.
It is therefore imperative that before we submit your ITR14 that all the necessary abovementioned reconciliations
be completed by your accounting staff or MY FIRM. If you have difficulty with this the onus is on you to liaise with
us so that we can deal with any issues you may have. It is absolutely imperative that all the reconciliations be done
before we e-file as differences found after the filing of the ITR14 tax return will lead to difficult explanations being
offered to SARS and may result in penalties or the resubmission of the ITR14.
If you require us to handle the ITR14SD on your behalf this will be chargeable at our standard tax rates.
PENALTY REGIME
You may well be aware that SARS now have administrative penalties which results in SARS imposing a penalty on
a monthly basis based on a table of income. This penalty may be imposed every 30 days provided the non-
compliant act is not sorted out. It is therefore imperative that you provide us with the information that we require
timeously so that we can attend to your tax affairs properly and timeously.
Compliance now means that simple things like having the correct physical address on your tax return or the correct
e-mail address could result in a penalty if incorrect. In the event that any of the information changes and you do
not advise us of these changes timeously we cannot be held responsible for the imposition of any of these
penalties. This would also apply to the latest information required for the completion and submission of your tax
returns.
OUR FEE
Our fees which may be billed as the work progresses are based on the degree of responsibility and skill involved
and, in the time, necessary to conduct the work plus reimbursement of our expenses and VAT.
You shall pay our fees without any right of setoff on presentation of our invoice. We will be entitled to charge
interest at the prevailing overdraft rates on a monthly basis on all amounts outstanding on our fees for whatsoever
reason older than 30 days from the date reflected on our invoice.
In the event that there is a damage claim against us the damages computed cannot be more than twice the fee we
charge for tax services.
Without prejudice to any other rights that we may have in law we reserve the right to suspend or terminate the
performance of our service or any part thereof to you immediately, at any time, without notice, should payment of
any of our fees be overdue or in the event that you do not comply with our requests.
Owing to the fact that SARS makes no representations, warranties or guarantees that the SARS e-Filing website
shall be accessible at all times we acknowledge that the SARS e-Filing website may be inaccessible due to
maintenance activities or due to circumstances beyond the reasonable control of SARS, including, but not limited
to virus infection, unauthorised access (hacking), power failure or other instances of force majeure beyond SARS'
reasonable control and in this case, we can’t be held liable if we cannot process your returns or payments due to
any one of these occurrences.
Yours Faithfully
MARK SILBERMAN
Partner