Curbing ETI Abuse – Relaxation of Confidentiality

The Payroll Authors Group of South Africa (PAGSA) is responsible for communicating changes to payroll-related legislation and regulations to its members. These changes may require returns to be made or taxes to be withheld. PAGSA also provides interpretations and opinions on the law by partnering with statutory bodies such as the Employment Equity Directorate, the Unemployment Insurance Fund, the Compensation Fund, and SARS.

In order to protect the confidentiality of this information, PAGSA has historically restricted access to its newsflashes to PAGSA members and the aforementioned statutory bodies. However, due to the complexity of recent changes to the Employment Tax Incentive Act (ETI) aimed at curbing abuse, PAGSA has decided to relax the confidentiality requirement for one specific newsflash (2022-15).

This means that PAGSA members can now directly share the contents of newsflash 2022-15 with their clients, ensuring a consistent message is delivered to employers. This will also help prevent any errors that may arise from rewording the original newsflash.

It is important to note that while sharing the newsflash with clients is permitted, the PAGSA must be acknowledged as the author of the document. Additionally, clients should be instructed not to distribute the information beyond their own business.

If clients have any queries regarding the new ETI requirements, they should first contact their PAGSA member. If the member is unable to resolve the query, then it can be raised with the PAGSA. Clients should not contact the PAGSA directly.

It is possible that unexpected problems may arise as the implementation of this complex legislation progresses. If such issues arise, PAGSA will communicate with its members through newsflashes.

Please note that all information provided by the PAGSA is subject to the organization’s disclaimer.

Regards,
Rob Cooper
Chairman, Payroll Authors Group of South Africa