20. Does your payroll-system cater for the RSC or JSB implications of the 'remuneration' you pay?
21. Does your payroll-system cater for any fringe-benefits tax involved in making loans to employees?
22. When last was your payroll system reviewed for its compliance with the provisions of the Income Tax
Act?......................
23. Please furnish a copy of any report prepared as part of such review, including a report by an external/internal auditor
or any other person.
24. Please furnish a brief description of the types of non-taxed payments made to your employees that lead to the issue of
IT 3(a) certificates.
25. Are all such payments the subject of IT 3(a) certificates?
26. Do you use your payroll-system to reduce the PAYE deductions of employees belonging to retirement annuity funds?
27. If so, please furnish a brief description of the circumstances in which such deductions are made.
Generation of tax certificates
28. At the end of their latest tax year, did all your employees requiring to be issued with IRP 5 certificates receive them?
29. Did you issue any IT 3(a) certificates to any employees or others?
Cashbook payments
30. Are any payments made to your employees via your cashbook or cash takings?
31. Are any payments made on behalf of any of your employees from your cashbook or cash takings?
32. Do you reimburse employees for expenditure incurred for the purposes of your business?
33. If so, are they required to support their claims for reimbursement with vouchers?
34. If so, are they required to present a claim-form?
35. If so, are they permitted to estimate or approximate any expenditure?
36. Are any of your employees required to travel overnight on business?
37. If so, do you pay all the costs of that travel directly?
38. If so, do you pay them a regular, daily allowance?
39. If so, do you pay them a monthly allowance?
40. Please supply a brief description of your policy governing employees' travel for the purpose of your business.
41. Do you reimburse employees for the cost of entertainment for business purposes?
42. If so, are employees required to report on the persons entertained and the reason for the entertainment?
43. Do your branches or divisions have the authority to make any cash payments or payments by cheque to employees,
whether to cover the cost of business expenditure or otherwise?
44. Are any overtime, leave or salary-adjustments payments made by way of cash or cheque?
45. If so, are these payments processed through your payroll-system?
46. Do you make loans to employees?
Contractors, labour brokers and incorporated individuals
47. Did you make any payments to any independent contractor, labour broker or privately owned company or close
corporation for services rendered that were previously rendered by an employee of the company?
Salary-sacrifices
48. Does any element of your employees' remuneration-packages comprise salary-sacrifices (salary-substitutions)?
49. If you have a provident fund, is it non-contributory?
50. If you have a pension fund, is it non-contributory?
51. If you have a medical-aid scheme, is it non-contributory?
52. Do you have a deferred-compensation scheme?
53. Are employees able to purchase 'back-service' under any fund by way of salary-sacrifices?
54. Are employees able to make 'top-up' payments to any fund, scheme or medical aid by way of salary-sacrifices?
55. Do you have a group-accident or group-disability policy?
56. Are any of your employees able to contribute to the cost of life policies in their own names by way of salarysacrifices?
57. Are your employees allowed to acquire assets (for example, computers) or services (for example, travel) by way of
salary-sacrifices?
Restraints
58. In the current and the past five years, have you made any restraint payments to any of your employees?
59. If so, please furnish a brief description of the circumstances, the names of the employees involved, the amounts paid
and state whether any of these amounts was claimed by you as a deduction for income tax purposes.
Remuneration-packages
60. Do any of your employees receive a monthly or annual payment totalling R500 a year in consideration for 'occasional
services'?
61. Does any part of your remuneration-structuring rely upon 'reimbursive' payments?
62. Does any part of your remuneration-structuring rely upon an allowance for overnight travel on business?
63. Does any part of your remuneration-structuring rely upon an allowance for foreign travel, whether for business or
private purposes?
64. Are any of your employees able to 'invest' an annual or a special bonus in any type of retirement fund, scheme or
benefit (for example, deferred compensation)?
Allowances
76. Do the employees receiving monthly travelling allowances actually travel on business (that is, excluding travel
between home and business)?
77. Please furnish a brief description of the manner in which individual employees' travelling allowances are calculated.
78. Are any of your employees provided with 'garage cards'?
79. If so, are they permitted to use these cards for expenditure unrelated to the vehicles they use for business purposes?
80. Do you have a formal system for checking variable travelling expenditure forming part of a travelling allowance?
81. Does the company reimburse any of the motor-vehicle travelling expenditure incurred by employees who also receive
a motor-vehicle travelling allowance?
82. Do you directly pay the cost of insurance, tyres or major repair costs incurred on behalf of employees receiving
travelling allowances?
83. Is the motor vehicle travelling expenditure reimbursed on a salary-sacrifice basis?
84. Do you pay 'reimbursive' travelling allowances on a per-kilometre basis?
85. Are such allowances paid to any one already receiving a monthly travelling allowance?
86. Do you pay cellphone allowances?
87. Do you pay 'home-office' allowances?
88. Do you pay computer allowances?
89. Do you pay uniform, 'dress' or grooming allowances?
90. Do you pay meal allowances?
91. Do you pay any other allowances?
92. If so, please furnish a brief description of these allowances.
93. Are all allowances paid to employees subject to the deduction of PAYE?
94. If not, please furnish a list of the allowances from which no PAYE deduction is made.
Travelling and subsistence allowances
95. Has any employee been paid a travelling and subsistence allowance on a salary-sacrifice basis?
96. Does the company pay a travelling and subsistence allowance as well as the full cost of company travel?
Cellphones and PCs
97. Has any expenditure incurred by employees on cellphones or PCs been reimbursed by the company?
98. Are employees allowed to purchase items, for example, a personal PC, on a salary-sacrifice basis?
99. Does the company reimburse cellphone call costs on a salary-sacrifice basis?
Pension, provident, retirement and medical-aid funds
100. Do you have an updated copy of all your fund rules at your head office premises?
101. If any of these rules has been changed over the past twelve months, please furnish a brief description of the fund
involved and the broad nature of the changes to the rules made.
102. Does the company contribute the full medical aid subscription on behalf of any employee?
103. Does the medical aid fund pay for any non-medical expenditure, such as gym fees or sun-glasses?
104. Does the medical aid fund incorporate a savings scheme on behalf of individual employees?
105. Does the medical aid fund refund unused contributions?
Prizes, awards and gift vouchers
106. Do you award any of your employees with prizes, achievement-awards or gift vouchers?
107. If so, please furnish a brief description of the your policy in making such awards.
108. If so, do you tax (IRP 5) or report (IT3(a)) all such awards?
109. Did any of your employees receive a prize, award or gift voucher on a salary-sacrifice basis?
Staff discounts and purchases, trading stock
114. Do you have any canteens or dining rooms for employees in which meals are provided?
119. Are employees allowed to elect how their annual bonus are to be used?
120. Is the annual bonus allowed to be used, say, to 'pay' for a holiday?
121. Can annual bonuses be written off against staff-loans?
Directors and senior management
122. Do your employees in these categories enjoy or derive any benefits (other than cash) not already mentioned?
123. Do any of these employees earn remuneration for services rendered outside of the RSA?
Other issues
133.
If so, please state whether a directive is sought from SARS when employees derive a 'gain' under any
such scheme.
134.
If so, please state whether employees electing to defer the taxation of any 'gain' make their elections in
writing addressed to SARS in the appropriate tax year.