Section 25 of the Tax Administration Act, 2011, deals with the submission of tax returns in South Africa.

• Anyone required to submit a return must do so in the form and manner prescribed by SARS (South African Revenue Service).
• The return must contain all information prescribed by SARS or by a tax Act, and it must be a full and true return.
• The person signing the return (whether the taxpayer or an authorized representative) is regarded as being fully aware of the statements made in the return, for all purposes related to a tax Act.
• SARS may, before issuing an original assessment, request a person to submit an amended return to correct an undisputed error in a return.

In summary, Section 25 ensures that tax returns are complete, accurate, and submitted in the manner required by SARS, holding the signatory responsible for the contents of the return.

Country by Country Reporting

Section 25 of South Africa’s Tax Administration Act (TAA) provides the legal basis for SARS to mandate CbC reporting for multinational enterprises (MNEs). Specifically:

• Public Notices under Section 25 require MNEs to submit CbC reports, master files, and local files.
• Thresholds:
  • CbC Reports are required for MNE groups with consolidated revenue ≥ R10 billion (or equivalent) in the preceding fiscal year.
  • Local/Master Files must be filed if cross-border transactions exceed R100 million.
• Deadlines: CbC reports must be submitted within 12 months of the MNE group’s fiscal year-end.
• Purpose: These reports help SARS assess transfer pricing risks and base erosion/profit shifting (BEPS) concerns.