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As the pressure on South African wine businesses rises due to the ban on local alcohol sales, and the industry still awaits feedback on whether Treasury will grant a blanket excise extension to the liquor industry, businesses are advised to apply for a deferment in their individual capacity.

 

“We have obtained confirmation that individual businesses can apply for excise extensions directly via the South African Revenue Service (SARS). This will be a backstop in the event that Treasury does not grant a blanket extension to the liquor industry and/or refers us back to SARS in light of the time constraints at play,” said Vinpro in correspondence to its members on 13 January 2021.

Although the industry has not yet received formal feedback from the Minister of Finance’s office on its request for the deferment of excise liabilities, some businesses who have since applied for deferment in their individual capacity have had success. They have shared some practical advice on the application process.

The Customs and Excise Relief Committee uses the template below to process the claim for the deferment of excise:
DOWNLOAD TEMPLATE

Each application should also be supported by information as to why the extension should be granted, with more specific details of the amounts involved, demonstrating the financial hardship, a clean compliance record, as well as any other relevant supporting information/documentation (as if this were a normal debt postponement request). In previous correspondence SARS advised that the following documents should be sent along with any application:

  • The name and customs code of the person applying for payment relief (juristic or natural).
  • SARS tax reference number.
  • Physical and postal address, as well as other contact details.
  • The type and amount of debt (Customs/VAT/PAYE/PIT).
  • The repayment plan, including amount of the debt, instalment amount and period, etc.
  • A concise motivation for the application.
  • Bank statement for a period of six months.
  • Documentary evidence of the applicant’s finances, including an audited financial statement for the financial year preceding the date of the application.
  • Applicant’s anticipated income and receipts during the proposed of repayment.
  • The applicant’s assets, investments and policies including descriptions of the assets.
  • The applicant’s debtors and creditors, including their contact details, names and amounts owed or owing.
  • Contracts or tenders awarded to the applicants.
  • A certified copy serving as documentary evidence authorising the person submitting the application to act on behalf of the applicant.

Applications should be submitted to the following email address:
osc@sars.gov.za

It is suggested that each applicant copy the office of the Customs & Excise Chief Officer, Mr Beyers Theron (btheron@sars.gov.za) and their own tax relationship manager (where applicable).

The individual who responds to the application is:
Simphiwe Hlazo
Operations Specialist: Excise
SHlazo@sars.gov.za
Cell +27 61 521 9836
SARS Head Office, Brooklyn

The official who signs off on the deferment is:
Mr. Beyers Theron (Chairperson)
Customs and Excise Relief Committee

 
Further enquiries may be directed to:
Christo Conradie
Vinpro Manager: Wine Business
tel:       +27 (0)21 276 0429
email: christo@vinpro.co.za

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