1. My employer deducts tax from my salary every month, why am I expected to file the tax return every tax season?
– The employers are obligated to collect the tax monies from the employees every month in the form of Pay As You Earn. Individuals are further required to validate the information submitted to the receiver of revenue every tax season that takes place in July every year. The employer will issue the tax certificate called – IRP5 to use to cross refer the information submitted against the SARS portal. It must also be added that it is not only the IRP5 that may be required but other third parties tax certificates such as medical aid tax certificate, retirement annuity tax certificate, logbook if the employee receives travel allowance from the employer, and many others applicable to an employee.
2. I received an auto assessment from SARS, and I had a refund that is already paid into my bank account, is there anything that I am expected to do?
– Receiving an auto assessment does not necessary mean that you should not verify the submitted information. You are still required to log into your SARS e-filing profile and check all the details if they are correct. Should you be satisfied, no further action is required. However, should there be any corrections required to be made, you may please go ahead and request the correction to re-submit the assessment. The new assessment will override the initial one made. You may be required to upload the supporting documents to validate the change on your return.
3. I am employed full time however, I have a property that I own that I am receiving a rental income from, do I need to declare the extra income and how?
– All the other extra income that is received by the taxpayer needs to be declared to the receiver of revenue. Under a normal circumstance the employer is the one deducting on your behalf, but in the case that you still need to declare the extra income on your own, you please need to prepare the recon / financial statement to this regard. The recon must include the income less all the expenses incurred because of the operation during the tax period. The individual Tax period runs from March to February every year. When submitting the return on e-filing you must indicate on the question wizard that you have received an extra income so the additional form can be created for you to submit the information as per your reconciliation.
4. What happens when I do not declare the extra income? And how will they know?
– Let it be known that SARS is a very powerful entity. Thus, they can exercise their powers to request from all the third parties your information pertaining to your earnings and contributions. They can request your bank statement from the bank without your knowledge and prepare their own recon to build a strong case against you. You will be given an opportunity to dispute, just as long as you have all the relevant information and supporting documents. I did not know – is not an acceptable defense! J
5. There are scenarios where I receive a refund from SARS and there are cases where I may owe SARS – what could be the reason for these discrepancies?
– Few technicalities may lead to the discrepancies, especially the miscalculations with regards to the employee ‘s pay as you earn. Under payments results to payable by you to SARS & over payments may lead to a refund to you. Other discrepancies may derive from the third parties such as own medical payments that you have paid for yourself were the medical aid could not pay for your medical bill – SARS can refund you the portion of that ‘own payment’. But there are may technicalities to this effect.
The interview took place on Capricorn FM with @mrmao_AF #CapricornSunrise and Ms. Dikeledi Seoloane – Chief Accountant and Tax Practitioner at the accounting firm Matsobanemetja Business Consulting (Pty) Ltd – http://www.matsobanemetja.co.za
For more information, please contact us: enquiries@matsobanemetja.co.za
I did not know, it is not an acceptable reason not to comply with the taxman
Dikeledi Seoloane
Matsobanemetja Business Consulting Pty Ltd 