Andrew Stegmann

Artificial Intelligence In the World of Tax

Data analytics and automated robotic processes – two concepts that have become business game-changers.

– Shohana Mohan (Relocation Africa Expatriate Tax Consultant)

Just how far can artificial intelligence (AI) take us in ensuring that we maintain levels of compliance and ensure efficiency in the world of tax?

Tax technology is the new normal in enabling the business process, improving efficiencies in the integrity of critical data sets and acting as a safety net during business interruption. Increasing the integrity of data ensures that it can be used for diagnostic reviews and to provide definitive tax solutions for businesses.

Tax compliance? Software can enable the tax function through robotic process applications (RPAs). Business risk management and control frameworks can therefore be automated to collate real-time information to provide businesses and tax reviewers with dashboards of reliable information.

For tax practitioners, capacity and resource planning is a critical aspect in the tax life cycle. Prescribed timelines provided for in the Tax Administration Act must be adhered to. Pegging key milestones based on the alternative dispute resolution process can help the tax practitioner to act within the prescribed timelines and for the taxpayer to keep abreast of the developments in the dispute resolution process.

Volume submissions, including bottlenecked deadlines, can include provisional tax filing, employer tax declarations and Vat submissions due simultaneously – with RPAs ensuring accurate transfer of data and extrapolation for specific disclosures, with minimal manual intervention.

Through customised automation and interface of an organisation’s enterprise resource planning (ERP), the submission of tax and related declaration information, and the ultimate upload onto the Sars easyFile platform, should be less of the focus. Time is well spent when resources are in a position to free their time to focus on more risk management aspects (such as whether specific fringe benefits are being included in remuneration, subject to employees’ tax withholding).

AI for global mobility

Globally mobile employees require specific tax reporting and disclosure in multiple jurisdictions. Lack of tracking of travel associated with physical presence in a jurisdiction can create tax risks for the business. For example, creation of potential permanent establishment risks for corporate income tax purposes can be triggered by the physical presence of an employee in a specific jurisdiction. Building AI to inform the physical presence of an employee can trigger specific red flags for business through an automated process, thereby assisting businesses to reduce potential tax risk.

Gathering of information is a time consuming process for a person who is a tax resident of one country and non-resident in another where they physically render a service. Different tax treatment in the resident and non-resident locations present opportunities for the taxpayer to claim certain tax relief, such as overseas work days as non-sourced income. Data from a single data entry perspective can help business to mitigate tax risks and enables the employee to remain tax compliant in the locations in which work is performed, thereby reducing reputational risk for new start-up businesses in foreign locations.

Is AI necessary, and what could go wrong?

Non-compliance includes the non-rendition of a return or not submitting specific information as required in the form and manner required by Sars. Lack of accurate data, coupled with gearing toward submission deadline, can lead to inaccurate submissions being made to Sars, in which case the risk of audit is high and underpayment of tax is subject to specific penalties. Having clearly defined automated processes, attaching to specific timelines and deliverables assists in on-time submission of documentation or responses to Sars.

Automating the tax return life cycle, including the dispute resolution processes, can significantly enhance the service offering for most tax practitioners. Although RPAs operate as enablers within the tax function, artificial intelligence cannot replace the tax technical and advisory in its entirety. Typical process flows to enable the compliance function should therefore be automated and pegged with specific milestones. Automating processes to reduce manual intervention and error is critical in providing a value added service offering.

Death by automation

Methodology is important in order to understand the objectives for RPAs and other automated processes.

* Automation for data sets, mining of data: Data analytics plays a vital role in enhancing the quality of the data extracted in order for accurate advice and estimations of tax liability to be provided. Analysing data sets can be used for the different tax disciplines; for example, data extracted can be used for various transactional tax reviews, such as employees’ tax (PAYE) and Vat.

* Automation for tax technical: Tax advisory as a specialist tax function makes use of specific facts and circumstances to present possible tax outcomes. Infinite permutations and ‘what if’ scenarios can present significant challenges for the tax practitioner and should be cautioned. Reliance on automated tax opinions and solutions should be cautioned given that specific carve-outs (indemnities/disclaimers attaching to use of the software) may result in the taxpayer not having recourse at a later stage.

Automating an arrangement of principles to achieve a tax technical outcome can be achieved by automating the process elements used to provide definitive results, advice and recommendations. However, manual intervention based on tax technical is applied on a case by case basis.

AI following the shift

Recent legislative changes are making reporting a key requirement for multi-jurisdictional entities. The Country by Country Reporting Standards legislation mandates the form and manner in which multi-jurisdictional entities are required to report in terms of the headquarter reporting regime. RPA can enable the compliance requirement to ensure the integrity of the data that gets extracted, allowing sufficient time for resources to focus on the critical aspects linked to the technicalities of such reporting.

The devil is in the detail. Having a trusted RPA with a reliable method for reporting and disclosure can make the world of tax a little more certain!

 

Relocation Africa provides a range of Expat Tax-related services. These include services relating to tax advisory, compliance, and calculations. To find out more, visit our website by clicking here.

For information as to how Relocation Africa can help you with your Mobility, Immigration, Research, Remuneration, and Expat Tax needs, email marketing@relocationafrica.com, or call us on +27 21 763 4240.

Sources: [1], [2]. Image sources: Franck V [1], [2].

Andrew Stegmann
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Relief for SA-based Zimbabwean Students: Registrations and Visa Applications

If you are need assistance with study visas, we may be able to help. Feel free to contact us via info@relocationafrica.com or on 2721 763 4240, or visit our website here for more information.

South Africa-based Zimbabwean students have been offered a lifeline as universities there have agreed to keep the registration period open while the South African embassy in Harare and the South African Ministry of Home Affairs are expediting visa applications.

There had been anxiety as academic visas in South Africa were taking too long to be issued while registration deadlines lapsed.

After pressure from South African students’ union, authorities in the country assured Zimbabwean students of a quick resolve and a registration waiver.

South Africa`s Higher Education Minister Naledi Pandor said they have negotiated with universities in the country to be lenient with Zimbabwean students who might miss their deadlines as a result of document delays.

“Regarding international students, in particular Zimbabwean students and visa delays, I am informed that there has been discussion with IEASA (International Education Association of South Africa) and Home Affairs and individual institutions to allow places to be kept open for students who have been affected by the delays in processing visas,” she said in a recent statement.

The delays in the processing of visas have been attributed to understaffing at the Harare embassy, with reports suggesting that the South African mission receives an average of 120 applications per day but there are three people tasked with processing them.

“This work is ongoing. I am also informed that the visa backlog is being addressed and many students have been able to enter the country. We are committed to assisting in addressing these matters with Departments of Home Affairs, International Relations and Cooperation, and universities, where possible,” Pandor said.

The Southern Times sent questions to South Africa`s Home Affairs Minister Siyabonga Cwele but he had not responded at the time of going to print.

SA universities have also given their assurances to students, on their registration deadlines and penalties.

University of Cape Town (UCT) Vice Chancellor Mamokgethi Phakeng met with student unions at their campus last week and addressed the Zimbabwean student issue.

A promise was made that Zimbabwean students will not face a late registration penalty when they register.

The institution later released a statement affirming her undertaking.

“The university recognises the deeply unfortunate and difficult situation faced by our Zimbabwean students – not only at UCT but other institutions across the country. The university, through the International Academic Programmes Office (IAPO) has been engaging the Department of Home Affairs on the matter as well,” read the statement.

UCT has provided a leeway for Zimbabwean students to register even in the absence of proof of payment.

“UCT has been allowing Zimbabwean students to register as long as they provide proof of transaction even without the money being cleared by financial institutions. Our Zimbabwean students also have the option of utilising UNESCO bonds, through which they make a payment to UNESCO and the money is later paid to UCT.

“UCT has also exempted all affected Zimbabwean students from incurring the late registration charges,” the university added.

Although they have tried to assist, the institutions are still cautious as there are chancers who may try to take advantage of the break from the usual bureaucratic systems.

“The university is addressing each situation on a case by case basis, being sensitive to the fact that different programmes would have different attendance requirements in order to ensure optimum success for the student,” the statement said.

Students have been organising themselves supplying lists to international offices at their various institutions as they wait for their documentation.

The Zimbabwean Government also added its voice to the issue, urging students to stay calm as the situation was being contained.

“Foreign Affairs intervened and they were given the visas. I think there were about 70 students who were affected but it is sorted now,” Information, Publicity and Broadcasting Services Minister Monica Mutsvangwa said.

There are many Zimbabwean students at South African universities and the recurring visa hiccups have been a cause for concern for a few years.

The Zimbabwe National Students Union South Africa Chapter, which has been at the forefront of lobbying for the extension of deadlines, says there are still loose ends which need to be tied.

Speaking to The Southern Times, Zinasu-SA representative, Tafadzwa Kwaramba, said most students whom applied for permits in January had their paperwork sorted.

“We have made considerable progress, many students who applied in December and January have managed to acquire their study permits and it appears the embassy ended up sending them to be processed in Pretoria where they presumably have manpower.

“However, we can safely say that the majority of students have acquired study permits through our efforts,” Kwaramba said.

He, however, said their concern is on students who applied for their visas late.

“However, a few questions remain on those who applied after the batches were sent to Pretoria for processing. We will only concur once we see results just as we saw them with the study permits. Right now we have students at the University of Johannesburg who have been denied registration and they have forfeited their spots as they were late for university due to getting permits late,” said Kwaramba.

“If pronouncements are being made at ministerial level, there needs to be compliance at implementation level. Zimbabwe students at UCT still can’t register because of the fee blocks and late release of money by the Reserve Bank of Zimbabwe,” he said.

Bank transfers are delaying from the Zimbabwean side, so South African financial institutions cannot clear tuition payments, yet international students need to have paid full amounts before the commencement of the semester.

Other universities like UCT have been accepting proof of deposit from the Zimbabwean side even before the money is cleared into the South African banking system.

However, there were reports that there were students at other institutions who were not enjoying the same clemency.

 

For information as to how Relocation Africa can help you with your Mobility, Immigration, Research, Remuneration, and Expat Tax needs, email marketing@relocationafrica.com, or call us on +27 21 763 4240.

Sources: Leroy Dzenga via The Southern Times [1], [2]. Image sources: [1], Ross Sneddon [2], Priscilla Du Preez [3].

Andrew Stegmann

Tracking Your South African Visa Application in 2019

If you need assistance with VFS applications visas or other documents, we may be able to assist. Feel free to contact us via info@relocationafrica.com or on 2721 763 4240, or visit our website here for more information.

VFS is an acronym that stands for Visa Facilitation Services. There are a number of companies to facilitate this process such as an Indian company known as VFS Global, which also handles other passport issues. Established in 2001, this private company is now, as the name suggests, in most parts of the world. So, what is the procedure for VFS tracking in South Africa?

VFS South Africa

In line with the changing South African immigration regulations, the Department of Home Affairs contracted the services of VFS Global, an external organization, in opening of Visa Application Centers across the country. These centers are located in Bloemfontein, Durban, Cape Town, Johannesburg, George, Nelspruit, Kimberly, Port Elizabeth, Mangaung, Pretoria, and Rustenburg. This move eradicated the need for applicants to submit visa applications to the Department of Home Affairs regional offices but instead encourages physically handing in of biometric data and applications at the VFS centers. Applying for South Africa Temporary Residence Visa or Permanent Residence permit? Here is how you can track your application after following the application procedure.

VFS tracking South Africa

Now, you have prepared your application, correctly followed the application steps, and after submission, you can track the progress of the process. Here are the simple steps for VFS South Africa tracking 2019.

  1. Visit VFS Global South Africa website.
  2. Click on the “click here” button and then enter the required reference number.
  3. You will be redirected to the page where you will be required to enter the tracking or AURN number and your last name.
  4. After feeding these details, click on submit and you will get information on your application’s progress.

Depending on the outcome of the application, you can collect the decision yourself, or send a representative to the Visa Facilitation Centre with the required details to collect the decision.

How long does it take to get a visa in South Africa?

Depending on the category of visa application, Temporary Residence Permit applicants can wait for a minimum of 8-10 weeks for the process to be carried out. On the other hand, Permanent Residence Permit applicants have to wait for 8-10 months. Since each application is evaluated individually, processing time varies. So, note that South Africa’s Department of Home Affairs does not give a specific length of time to process visa applications. How long does it take to get a visa to go to South Africa? For those in other countries, there is no standard period but it all depends on the visa policies in your country.

Visa costs in South Africa

Different countries have different regulations as well as varying payment systems and rates. In South Africa, visa payments are done online. If you have all the supporting documents, fill the online application form and pay the mandatory pre-pay minimum amount of R1,350 to secure and schedule your appointment online. This pre-payment can be made:

  • Online through the secure online portal using a debit or credit card
  • At Standard Bank, you will be required to download and then complete the online generated bank receipt and then deposit the cash into the nearest Standard Bank or make an EFT payment through a secure online portal.

It is important to note that after paying the amount, you can visit your online application form after three business days to schedule your appointment. For the Financially Independent Permanent Residence applicants, you will be required to pay R120,000, which should be deposited into the account of the Department of Home Affairs prior to the issuance of the permit, and the proof of payment forwarded for attention to the relevant email addresses.

What are the requirements for South Africa visa?

For those outside South Africa, the requirements for each country vary but there are some general things that you must have. These things include:

  1. A valid passport that has at least three clear pages. It has to have a validity of at least one month when you leave South Africa.
  2. A photocopy of the bio-data page of the passport and a professional passport size photograph.
  3. Self-employed people need to have letters from their business, certificates of ownership, and registration of the business. Retired people must present proof of retirement.
  4. A completed application form.
  5. A copy of a yellow fever certificate.
  6. A return ticket that can be verified or something similar.
  7. If you are going to work, you need a signed proof of employment from the employer.
  8. A non-refundable fee that you will be informed of during the application. The fee does not include the VFS service fee.

Above are the mandatory requirements. Anything else aside from this will be unique to the type of visa you want. For those in South Africa, to get the temporary or permanent residence permit, here are the steps to follow:

  1. Complete the appropriate online form and then pay the required pre-pay fee to schedule an appointment. Have all the documents required for the application.
  2. Go with your printed online application form, appointment letter, proof of payment, valid passport or travel papers and the supporting documents to the Visa Facilitation Centre on the day of the appointment.
  3. At the centre, collect a token and wait for your turn. After the application process, you will be given an acknowledgement receipt which you should keep safe as it will be needed for you to be given the decision later on.

Note that you will have to register your photograph and fingerprints at the Visa Facilitation Centre, and select whether you will personally collect the decision or send a representative.

The Hout Bay neighborhood in Cape Town, South Africa. SA is a popular destination for international tourists and for those looking to start a new life in a diverse country, with an economy full of promise, a rich history, and great weather for outdoor activities.

Can you travel to South Africa without a visa?

This depends on the passport you have. For example, people with US passports are free to visit South Africa without a visa if they are visiting for a period of less than 90 days. Other countries that have a similar privilege to the US include the UK, Norway, Czech Republic, Denmark, Germany, and many more. Regardless of the type of visa, VFS tracking in South Africa should be able to assist you anytime.

And there you have it. You now hopefully have a deeper understanding of VFS tracking in South Africa, as well as of the related costs and visa application processes. Hopefully your application is a success.

For more information straight from the VFS South Africa website, click here.

 

For information as to how Relocation Africa can help you with your Mobility, Immigration, Research, Remuneration, and Expat Tax needs, email marketing@relocationafrica.com, or call us on +27 21 763 4240.

Sources: Julie Kwach via Briefly [1], [2]. Image sources: [1], [2], Sofia M [3].

Andrew Stegmann

Countries South Africans Can Visit Without a Visa in 2019

Arton Capital, a provider of residency and citizenship solutions, has released its latest Passport Index – a system that ranks travel documents by the number of countries that can be visited without having to apply for a visa.

In a surprising shake-up, the United Arab Emirates has replaced Singapore as having the most valuable passport in the world.

Recently, four new countries were added to its visa-free list bringing the total to 167.

Singapore (167) and Germany (166) round up the top three, with the top of the list dominated by European countries.

While South Africa ranks 44th on the overall list, it has shown steady annual improvements – rising to 94 countries in 2018 from 90 countries at the end of 2017.

This number could increase even further in 2019 as the Department of Home Affairs plans to implement a range of visa changes to encourage foreign investment and travel.

South Africa is negotiating visa waiver agreements for ordinary passport holders with a number of countries, as well as simplifying visa requirements for countries such as China and India.

This may result in reciprocal arrangements which could see these countries lower the requirements for South African tourists.

Below is a list of the countries South Africans can currently visit without a visa.

Visa-free for 30 days

  • Angola
  • Costa Rica
  • Guyana
  • Lesotho
  • Panama
  • St. Vincent and the Grenadines
  • Antigua and Barbuda
  • Dominica
  • Haiti
  • Macao
  • Paraguay
  • Tanzania
  • Argentina
  • Dominican Republic
  • Honduras
  • Malawi
  • Peru
  • Thailand
  • Bahamas
  • Ecuador
  • Hong Kong
  • Malaysia
  • Philippines
  • Trinidad and Tobago
  • Barbados
  • El Salvador
  • Indonesia
  • Mauritius
  • Qatar
  • Tunisia
  • Belize
  • Eswatini
  • Ireland
  • Micronesia
  • Russian Federation
  • Uruguay
  • Benin
  • Fiji
  • Israel
  • Mozambique
  • Saint Kitts and Nevis
  • Vanuatu
  • Botswana
  • Georgia
  • Jamaica
  • Namibia
  • Saint Lucia
  • Venezuela
  • Brazil
  • Grenada
  • Kenya
  • Nicaragua
  • Singapore
  • Zambia
  • Chile
  • Guatemala
  • Kosovo
  • Palestinian Territories
  • South Korea
  • Zimbabwe

 

eVisa/Visa on arrival 

  • Armenia
  • Ghana
  • Nepal
  • Togo
  • Azerbaijan
  • Guinea-Bissau
  • Oman
  • Turkey
  • Bolivia
  • Iran
  • Palau
  • Tuvalu
  • Cambodia
  • Jordan
  • Rwanda
  • Uganda
  • Cape Verde
  • Kyrgyzstan
  • Samoa
  • Comoros
  • Laos
  • Senegal
  • Cuba
  • Madagascar
  • Seychelles
  • Djibouti
  • Maldives
  • Somalia
  • Ethiopia
  • Marshall Islands
  • Tajikistan
  • Gabon
  • Myanmar
  • Timor-Leste

To view the interactive Arton Global Passport Index, click here.

 

For information as to how Relocation Africa can help you with your Mobility, Immigration, Research, Remuneration, and Expat Tax needs, email marketing@relocationafrica.com, or call us on +27 21 763 4240.

Sources: [1], [2]. Image sources: [1], [2].