How will SARS review your surety?
Last week, SARS released the latest revision of its external policy on bonds. The policy document explains when SARS will ask you for surety as an excise client. It also explains when you'll be exempted from lodging surety and what to do if you disagree with SARS decision.
can ask you for surety
to be lodged in the form, nature and amount they determine, to protect the State from any possible loss of revenue based on your actions.
You'll have to lodge surety upfront for a warehouse license or registration if:
You apply for licensing of a tobacco manufacturing or tobacco special storage warehouse and intend to manufacture or store cigarettes.
You register as a schedule 6 rebate user and intend to receive and store spirits.
In all other instances, the need for surety
will be based purely on assessed risk
. This assessment
will take place on an annual basis starting 12 months after licensing/registration. Surety
may also be called for at any time to cover a detected risk posed.
Surety must be in the form of a surety bond
Provisional payments won't be accepted as surety in lieu of a surety bond
You'll be exempted from lodging surety
if your assessed risk
warrants a surety amount of less than R20 000.
Here's what you can do if you disagree with SARS' decision
If you're not happy with SARS
' decision, you can take it to the relevant appeal committee. If you're then still unhappy with the appeal committee's decision, you can lodge an application for ADR (Alternative Dispute Resolution) with the relevant appeal committee. The committee will add its comments and forward the application to the ADR Unit.
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