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Moonstone Monitor - 7 September 2017 |
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Paul Kruger
Author/Editor |
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Advertising may be described as the science of arresting the human
intelligence long enough to get money from it – Stephen Leacock |
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Distributed to 48,692 subscribers.
To advertise with us
click here |
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From the Crow's Nest |
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Tax Ombud finds against SARS |
In these times of rapidly diminishing action against wrongdoers, it is
refreshing to read the Tax Ombud’s findings after an investigation into
“…alleged delayed payment of refunds as a systemic and emerging issue.”
Taxpayers have over the years been complaining that SARS unduly delays the
payment of verified refunds. The complaints reached their peak in the period
December 2016 to March 2017. Taxpayers identified certain mechanisms allegedly
employed by SARS, unfairly, in the implementation of the tax collections system,
to cause the delay. This resulted in financial hardships to them and, in some
instances, the near collapse of their businesses and in others, job losses.
The wish expressed by taxpayers is that these mechanisms be eliminated from the
system or, alternatively, be employed in a manner that would cause the least
possible delay in the payment of the refunds.
The Tax Ombud’s management summary then lists 12 obstacles allegedly in place at
SARS to delay the payment of refunds. These include:
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The unwarranted placing of “Special Stoppers” on taxpayers’ accounts in order
to stop refunds from being paid out. In most of these cases taxpayers are
required to verify bank details in person at a SARS branch. Whilst the OTO
understands this is done to prevent payment of refunds that are not due, or
fraud, there is, however, too long a delay in paying these refunds despite a
taxpayer’s banking details having been verified, or a taxpayer having complied
with SARS’s requirements.
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The placing of a stopper every time a new return for the next period is
filed. The system blocks already verified refunds the moment a subsequent return
is submitted by the taxpayer. Therefore, even where specific returns are not
identified for audit/verification, the mere submission of the next return
results in the payment of the refund being stopped. This may have a knock-on
effect especially in the case of VAT where the periods for declaration are close
to each other.
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SARS refuses to release refunds that have been verified for a specific tax
period until such time as all audits/verifications that may be pending on other
tax periods have been finalised.
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SARS raises assessments to absorb credits on taxpayers’ accounts where for
example overpayments are made. In doing so, SARS creates fictitious tax
liabilities, instead of taking a decision on a refund. Failure to take such a
decision is subject to objection and appeal, but SARS avoids this, it seems, by
raising an assessment, a step which takes the dispute resolution procedure in
another direction, away from paying the refund. The Ombud feels “strongly that
the practice should cease altogether.”
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SARS auditors keep audits pending while repeatedly requesting information
from taxpayers. Apart from delaying the refund, the incidental consequence is
that if successive requests for further information are sent out each within
21 days of the other, interest will not start accruing on the refund.
In conclusion, the Ombud remarks:
“It was commendable to pay out as many taxpayers as possible as SARS says it
did, however, the residual (non-paid) taxpayers may be of very high value, as
indicated in the Report, whose payments, once made, would reduce the amount of
tax collected over that particular period.”
“It is clear that the system allows for SARS to unduly delay the payment of
verified refunds to taxpayers in certain circumstances. This has become a
systemic issue. The system does not sufficiently protect taxpayers. The removal
of the obstacles discussed in the Report, as well as any others, would go a long
way towards addressing the problem.”
The report was sent to Finance Minister Malusi Gigaba and SARS Commissioner Tom
Moyane who is yet to comment on it.
Let’s hope that the reaction to these findings proof to be refreshingly
different from what appears to have become the norm – having blame storming
meetings, firing a few scapegoats and continuing business as usual.
Click here to download the full report. |
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Your Practice Made Perfect |
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FIC Amendment Act Implementation Update |
The Financial Intelligence Centre (FIC) Act has been amended with the
first set of provisions coming into effect on 13 June 2017. These
provisions do not have any effect on accountable institutions.
The next set of provisions will come into operation on 2 October 2017
and relate to:
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Adoption of a risk-based approach to ensure that institutions
understand money laundering and terrorist financing risks they face in
their businesses and put appropriate measures in place to prevent or
mitigate such risks.
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Establishment of appropriate policies, procedures, systems and
controls that are effective for mitigation of money laundering and
terrorist financing risk.
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Developing, documenting, maintaining and implementing a Risk
Management and Compliance Programme.
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Applying appropriate customer due diligence measures to manage money
laundering and terrorist financing risks.
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Establishing and verifying identity of beneficial owners of legal
persons, trusts and partnerships.
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Managing relationships with Prominent Persons (i.e. Domestic Prominent
Influential Persons and Foreign Prominent Public Officials).
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Keeping records of single transactions and business relationships.
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Assigning senior person/s in the business to take responsibility for
governance of AML/CTF compliance.
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Providing ongoing training to employees on the provisions of the FIC
Act and Risk Management and Compliance Programme.
The FIC recently published four documents on the implementation of the
FIC Amendment Act for public comment and action. It appears that
stakeholders are largely unaware of these publications. To address this,
the FIC plans the following:
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Consultation with stakeholders to discuss the fact that the ability
and capacity to comply with the provisions of the FIC Amendment Act may
not be the same for both large and smaller accountable institutions.
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Readiness assessment: a survey is to be circulated during September to
assess the state of readiness of the industry.
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Transitional period: Depending on the outcome of the survey, the
Registrar’s office may consider a transitional period for all
accountable institutions to allow businesses additional time to
implement the new requirements.
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Compliance Gap: Accountable institutions should start now and continue
to develop policies, procedures, systems and controls to implement the
requirements of the FIC Amendment Act. Accountable institutions will be
expected to demonstrate progress towards full compliance at agreed
milestones and timelines.
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Inspections: The Registrar’s office will continue to conduct FIC
inspections during the transition period to monitor compliance, provide
guidance an advise accountable institutions on implementation of the new
requirements.
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Sanctions: Sanctioning non-compliance with the new requirements of the FIC Amendment Act will be delayed in order to allow sufficient time to
accountable institutions to make the necessary adjustments to implement
the new requirements. However, administrative sanctions will be imposed
on non-compliance with the current provisions of the FIC Act that are
not amended, such as registration and reporting obligations.
Attendees to the Moonstone Regulatory Update Workshops will, in addition
to an update at the workshop, be provided with access to a professional
summary of the Act, to assist with implementation of the measures
outlined above. |
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Moonstone Regulatory Update Workshops 2017
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Please note: this is NOT
regulatory examination training.
The following topics will be covered by Billy Seyffert, COO Moonstone
Compliance, and Alan Holton, industry legal expert:
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A brief update on the RDR
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The proposed changes to the Long- and Short-term Insurance Regulations
and the impact on remuneration
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The proposed changes to the Policy Holder Protection Rules with a
focus on replacement business
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The Financial Intelligence Centre Amendment Act and how it impacts
Accountable Institutions
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The future of Fit and Proper and what will be expected of
intermediaries
The workshops are scheduled as follows:
|
Town |
Venue |
Date |
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Port
Elizabeth |
PE
Golf Club |
05/09/2017 |
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East
London |
EL Golf Club |
06/09/2017 |
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Cape
Town |
The River Club |
11/09/2017 |
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Johannesburg |
Houghton Golf Club |
19/09/2017 |
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Pretoria |
Diep in die Berg |
20/09/2017 |
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Durban |
Coastlands Hotel Umhlanga |
21/09/2017 |
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Bloemfontein |
Kopano Nokeng |
27/09/2017 |
Please note that Cape Town registration
closes today.
Click here for more details and to register.
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Compliance Officer Regulatory Exam Deadlines
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FAIS Newsletter 24 indicates that 4 084 compliance officers were
required to successfully complete the relevant REs by 31 August 2017.
This includes those operating abroad.
These requirements were covered in detail in the article
Compliance
Officer RE Obligations published on 29 May 2017. |
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Technologically Speaking
Moonstone Information Refinery |
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Machine Platform Crowd
Harnessing Our Digital Future |
This is the title of a new book by Andrew McAfee and Erik Brynjolfsson,
directors of the MIT Centre for Digital Business, which was recently
reviewed in News24.
We live in what is certainly the most creative and disrupted period
in human history – so far. This mind-bending reality is a function
of the emergence of, for example, effective artificial intelligence
in areas as different from each other as health care, transportation
and retailing.
There are three primary contributing forces driving our
revolutionary advances: machines, platforms and crowds.
The authors then explain the difference between major drivers of the
past, and its modern manifestation. For example, machines of the
second industrial revolution will do for people’s mental ability
what the first industrial revolution did for muscle power.
Click here to read this fascinating insight.
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labelled and seamlessly integrated with a client’s core CRM or
banking platform. SuiteBox is available via monthly subscription, is
delivered via the cloud and requires no technical expertise to use.
Visit www.suitebox.com
for more information.
Suitebox Media contact
Neil Summers, Sales Manager, Moonstone Business Services
Mobile: +27729088994
Email:
neil@suitebox.com.
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Regulatory Examinations
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Frequently Asked Regulatory Exam
Questions |
| 1. |
What exam must I write?
Both the RE 5 and RE are Level One exams. RE 5 is for Representatives and
RE1 for Key Individuals. The RE 3 exam is for licence category II
candidates.
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How much does it cost?
The FSB determines the fee. Currently it costs R1163 per exam, also in
the case of a re-write.
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What preparation material is available?
Fully updated resources are available for those requiring access to the
legislation applicable to the regulatory examinations:
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Please make sure that you first read the
FSB’s Preparation Guide to
make sure you follow the right process in preparing. Page seven includes
a recent amendment to guide candidates in studying in the correct
manner. |
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Click on the following highlighted sections to download the relevant
updated Inseta learning material for key individuals,
RE 1, and
representatives,
RE 5. |
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LexisNexis provides a “Legislation Handbook” together with a
“Preparation Guide” containing the qualifying criteria, with a link to
the relevant legislation. |
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The
Juta FAIS Pocket Statutes also contains a CD with a comprehensive
list of updated supplementary legislative material for reference
purposes. Please click here to order this from our online shop. |
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The FSB’s telematics broadcast on the RE 1 and RE 5
provides a good introduction and overview, and can also be ordered
online in: |
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DVD format or on a
USB memory stick |
| 4. |
Where can I write?
Go to:
http://www.faisexam.co.za/show_venues |
| 5. |
What dates are available?
Go to:
http://www.faisexam.co.za/view_schedule |
| 6. |
What training is available?
As an Exam body we are not allowed to recommend companies that offer
face-to-face Regulatory exam classes. You can try Google for someone in
your area.
Bear in mind that this exam tests your knowledge about the laws
applicable to the provision of financial advice and intermediary
services. The questions are based on very specific qualifying criteria
set out in the FSB preparation guide. Any training that does not have
this as a basis will not prepare you properly for the exam. Do your own
research and don’t just accept what others say. |
| 7. |
Where can I buy old question papers?
There are no genuine “old question papers” available. Be very careful
when buying such preparation aids as some of those on offer are not in
line with the high standard prevailing in the actual exams and often
lead to a false sense of knowledge which is sadly exposed when
confronted by the actual exam. Follow the guidelines provided in the FSB
Preparation Guide and you are far more likely to achieve success. |
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Careers Platform
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Are you hiring? Advertise your position on Moonstone’s Career Platform
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The Moonstone website -
www.moonstone.co.za
- enjoys an average of 15 000 visits and approximately 39 000 page views per month. |
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Moonstone boasts an exclusive newsletter mailing list of over 48000
dedicated financial decision makers who receive 2 newsletters per week. |
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Our audience is relevant and industry specific: individual and corporate advisors and brokers in the following financial sectors:
Investment, Risk, Healthcare, Banking, Retirement, and Insurance. |
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Featured Positions |
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Financial Advisors:
Quantum Invest (Pty) Ltd, Randburg Ridge, Johannesburg - If you have
a Matric and RE5 Certificate with 8 months experience in the Insurance
Industry, then
Read More
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Short Term Commercial
and Domestic Sales Consultant:
Wealth Solutions Capital Insurance Brokers, Bedfordview - We are
looking for dynamic and energetic go getters for short term commercial
and personal lines insurance, as well as for Financial Advisers.
Read More
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In Lighter Wyn |
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Computer: Male or female? |
A Spanish Teacher was explaining to her class that in Spanish,
unlike English, nouns are designated as either masculine or
feminine. “House” for instance, is feminine: “la casa.” “Pencil,”
however, is masculine: “el lapiz.”
A student asked, “What gender is ‘computer’?”
Instead of giving the answer, the teacher split the class into two
groups, male and female, and asked them to decide for themselves
whether “computer” should be a masculine or a feminine noun.
Each group was asked to give four reasons for its recommendation.
The men’s group decided that “computer” should definitely be of the
feminine gender (“la computadora”), because:
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No one but their creator understands their internal logic;
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The native language they use to communicate with other computers
is incomprehensible to everyone else;
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Even the smallest mistakes are stored in long term memory for
possible later retrieval and
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As soon as you make a commitment to one, you find yourself
spending half your pay check on accessories for it.
The women’s group, however, concluded that computers should be
Masculine (“el computador”), because:
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In order to do anything with them, you have to turn them on;
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They have a lot of data but still can’t think for themselves;
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They are supposed to help you solve problems, but half the time
they ARE the problem and
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As soon as you commit to one, you realize that if you had waited
a little longer, you could have gotten a better model.
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Tel: +27 21 883 8000 | Fax: +27 21 883 8005
info@moonstoneinfo.com
www.moonstone.co.za
P.O. Box 12662, Die Boord, Stellenbosch, 7613, Republic of South Africa
Disclaimer:
Services and products advertised by external product suppliers in
this newsletter are paid for by the respective suppliers. Moonstone
does not endorse any opinions, conclusions, data, products, services
or other information contained in this e-mail which is unrelated to
the official business of Moonstone and furthermore accepts no
liability in respect of the unauthorised use of its e-mail facility
or the sending of e-mail communications for other than strictly
business purposes.
The complete disclaimer can be accessed
here.
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©2015 Moonstone. All rights reserved. |
