Discontinuation of Debit Pull Transactions on eFiling

[Christel]

I'm not sure how SARS is trying to simplify service to tax payers by doing this... and why did they at least not warn us....
Discontinuation of DebitPull Transactions on eFiling
Since 2009SARS has been modernising payment and accounting processes with the aim ofempowering taxpayers to manage their financial responsibilities moreindependently, effectively and efficiently.

Starting 4 September 2013, debit pull transactions on eFiling will be phasedout and discontinued. This process will take place over a month. A warningmessage will appear on eFiling, where a debit pull transaction is no longeravailable. You are encouraged to perform credit push transactions or use one ofour alternative methods of payment.

Top tip: Where you don’t register for credit push transactionsimmediately, a Debit Pull payment option will be allowed, on condition that youagree to the declaration which appears on the screen.

“Additional Payments” on eFiling for Income Tax, Provisional Tax, Value-AddedTax (VAT) and Pay-As-You-Earn (PAYE) is not available via the Debit Pullfacility. In such the Credit Push facility must be used.

A credit push transaction refers to a payment transaction that is initiated oneFiling and presented to the banking product as bill presentation, i.e. at thebank as a payment request awaiting authorisation. You are required to log intothe banking product (e.g. internet banking) and authorise the payment requestto finalise the transaction. Credit push transactions are irrevocable onceapproved. Contact your bank for further information on how to register and usecredit push transactions.

Alternative methods of payment available include:

• Over the counter payments at a bank
• EFT – electronic funds transfer using internet banking
• At a specific SARS branch (including customs).

[Wildsniper911]

So this measn that VAT needs to be paid on the 25th of each month if you do not have the credit push facility. This is quite bad, just when you think SARS couldn't get any worse they always surprise you

[CLIVE-TRIANGLE]

I think what it means is presently you use debit pull, which means SARS "pulls" the payment after you lodged it on efiling. Whereas credit push means you still load it on efiling, but you then have to logon to your bank and authorise release of the payment. The payment dates will not be affected, I think, where you still lodge the return via efiling.

[Dave A]

I'm not sure how SARS is trying to simplify service to tax payers by doing this...

Quite simply, they're not

So this measn that VAT needs to be paid on the 25th of each month if you do not have the credit push facility.

I think you're still OK paying at the end of the month as long as you're filing your return via eFiling. As I recall it's the manual returns that have to be in and paid for by the 25th.

EDIT: I see Clive sees this the same way too.

[Christel]

Yes, this is the way I see it too, BUT just remember that the normal EFT rules will now apply, i.e. if your bank payment takes 24 hours to process, you need to take the time into account when releasing the payment.
My biggest concern is that my clients will forget to release the payment. According to the message on efiling you have to authorise the payment on the same day as what you have requested it via efiling, ... otherwise it will lapse. Then you have to request it again via efiling....

[CLIVE-TRIANGLE]

My biggest concern is that my clients will forget to release the payment. According to the message on efiling you have to authorise the payment on the same day as what you have requested it via efiling, ... otherwise it will lapse. Then you have to request it again via efiling....

I concern I share. I will most likely let them pay me so that I can release the lot at once.
If nothing else, my account will look stellar!

[Dave A]

You know what - even if I load the payment as a post-dated EFT this still isn't going to work out. If you post-date an EFT transaction using Standard Bank Internet Banking you're not allowed to change the recipient's reference number (been down this road once before for something else). And essentially each payment to SARS should have a unique PRN to ensure correct allocation.

I certainly hope the debit push payments I loaded on eFiling earlier this week for EMP201 payments go through tomorrow.

[Dave A]

It seems all is not lost yet. According to a SAIT technical release this morning:

In this regard we wish to point out that SAIT has been informed by SARS that if the taxpayer/practitioner agrees to the terms and conditions, the debit pull will still continue (that is it is not phased out yet). However, this will only apply if the payment is on a return and if the taxpayer/practitioner is not using additional payments. Thus the debit pull has not stopped, but there is a warning and a tax practitioner can still use debit pull if you agree to the terms and conditions.

It seems negotiations on the issue are well under way.

[Christel]

Thanks Dave. I really hope this is the way it will work. But still, for all other payments it's gonna be a hassle.

[Dave A]

For tax practitioners loading payments on behalf of their clients, it's still going to be a problem as things stand - the terms and conditions require the initiator of the transaction to be an authorised signatory on the bank account. May common sense prevail in the end.

What seems to have got everyone ticked off more than anything else has been the lack of consultation beforehand.

SARS decides.
SARS implements.
We're all left scrambling trying to point out issues and negotiate after the fact.