Industry movers and shakers in the computer monitor space have come together under the umbrella of the IT Association of SA (ITA) to oppose a South African Revenue Service (SARS) determination that could cost them millions of rands in backdated import duties.
Monitors with only data inputs (such as 15-pin D-sub connectors) have traditionally been exempt from import duties. However, the ITA says as technology changed, manufacturers started fitting monitors with video inputs (such as S-video or DVI) for, among others, gaming and home entertainment purposes.
SARS, at the beginning of the year, decided there should be a distinction between these two kinds of monitors. It found those who have been importing video-input monitors should be held liable for up to 35% to two years' worth of import duties, plus penalties and interest.
Standing together
Delanie Bezuidenhout, ITA GM, says the association has partnered with KPMG to assist its members in lodging a response to SARS. While she cannot quantify the amount that would have to be paid by industry yet, she says it will be in the range of "millions". Stakeholders gathering under the ITA's auspices in this battle include Axiz, Fujitsu Siemens, Hewlett-Packard, Insource, Mustek, Dell, Tarsus, Samsung, Acer and Amap.
Monitor player LG is also working with KPMG in opposing its monitor fines, but is unwilling to disclose how much money is at stake.
Bezuidenhout says those affiliated to the ITA in opposing SARS' fines now have two options. The first, which is less popular, is to point out the majority of monitors imported in the two-year period only had data inputs and that fines should only be paid for the balance of the monitors imported.
However, Bezuidenhout says most role-players are opting for the route of lobbying SARS to acknowledge the issue of changing inputs should have been addressed at the time it arose. They believe they would then have been able to obtain new South African Bureau of Standards certificates and could still have qualified for import duty exemptions.
Stakeholders in the monitor debate have until 13 August to decide which route they want to take, after which the ITA will take the matter further.
Related story:
SARS moves taxpayers to e-filing
Share