Page 538 - Juta's Indirect Tax

Electronic records TAX ADMINISTRATION ACT: REGULATIONS AND NOTICES Electronic records
5.2 If a person keeps ‘records’ in an electronic form and uses computer software or an electronic platform that is altered or adapted for that person’s environment, is created or designed for the person or is not commonly recognised in South Africa, then the person must keep the documentation described in this rule.
5.3 A person referred to in rule 5.2 must—
(a) keep any computer and software manuals that are relevant to accessing and understanding the person’s
method of electronic recordkeeping; and
(b) if the documents referred to in rule 5.3(a) do not adequately describe the person’s system of electronic
record keeping, then the person must prepare and keep a written document that accurately describes the
person’s system of electronic record keeping.
5.4 The written document referred to in rule 5.3(b) must contain a description of the following—
(a) how transactions are created, processed and stored;
(b) how and what reports are generated;
(c) how often electronic records are stored;
(d) the format used to store and archive the ‘records’, that includes a description of the media, software and
hardware used;
(e) the physical locality where ‘records’ are stored or archived;
(f) a data dictionary that explains how ‘records’ are indexed when created, processed, stored or backed-up; and (g) the procedures and protocols in place to prevent the unauthorised deletion, alteration and destruction of
‘records’ and reports.
5.5 If the ‘electronic record’ consists of any non-electronic ‘record’ that is converted to an electronic form, or of any
‘electronic record’ that is converted to another electronic form, a separate record must be kept of the following--
(a) a chronological record and explanation of all changes or upgrades to the software and hardware used,
including explanations of how the new system can recreate an ‘acceptable electronic form’;
(b) where applicable, explanations of migrations of data that may have taken place across either software or
hardware;
(c) a detailed record of the controls which maintain the integrity of an old system together with a record of
the ‘records’ processed to an electronic or another electronic format as applicable; and
(d) an explanation of archival and back-up facilities for any electronic systems that are no longer used by the
person.
5.6 If a person carries out internet-based transactions, the written document or record referred to in rule 5.3 and 5.5
must also contain a description of the—
(a) log les created to identify individual transactions; and
(b) security measures used to maintain the identity, integrity and authenticity of transactions.
6 Storage, back-up and conversion
A person who keeps ‘records’ in an electronic form must ensure that measures are in place for the adequate storage of the ‘electronic records’ for the duration of the period referred to in section 29 of the Act, which include—
(a) the appropriate storage of the media on which the ‘electronic records’ are recorded;
(b) the storage of all electronic signatures, log-in codes, keys, passwords or certi cates required to access the
‘electronic records’; and
(c) procedures to obtain full access to any ‘electronic records’ that are encrypted.
7 Inspection of electronic system by SARS
7.1 A person who keeps or retains ‘electronic records’ must have the ‘electronic records’ available for inspection by SARS in terms of section 31 of the Act—
(a) at all reasonable times; and
(b) at premises physically located in South Africa, or accessible from such premises if authority in terms of
rule 4.2 has been granted.
7.2. In the course of an inspection carried out in terms of section 31 of the Act, the electronic system used by
the person who keeps ‘records’ in an electronic format, must be capable of demonstrating positively that the provisions of these Rules are complied with, including, but not limited to, validating that—
(a) the electronic records meet the standard of integrity referred to in rule 3.2(a); and
(b) an ‘acceptable electronic form’ can be displayed or produced.
7.3 Any electronic signatures, log-in codes, keys, passwords or certi cates required to access the ‘electronic records’ must be available at all reasonable times to enable an inspection in terms of section 31 of the Act to be carried out.
7.4 The written document and records required to be maintained in terms of rule 5 must be available at all reasonable times to enable an inspection in terms of section 31 of the Act to be carried out.
8 Making electronic records available for audit or investigation
‘Electronic records’ must be able to be made available for the purpose of an audit or investigation in terms of section 48 of the Act, which includes having the following available on the date and at the time that the audit or investigation is scheduled to start—
(a) any electronic signatures, log-in codes, keys, passwords or certi cates required to access the ‘electronic records’ for the purpose of audit or investigation; and
(b) the written document and records required to be maintained in terms of rule 5.
9 Duration of keeping or retaining electronic records
A person who keeps ‘records’ in an electronic form must be able to comply with the provisions of these Rules throughout the period that the person is required to keep ‘records’ in terms of section 29 of the Act.
530 Juta’s IndIrect tax 2016