SARS circulated a press release last week that included the statement that “SARS has an obligation to both taxpayers and the IRS to ensure that fraudulent and invalid claims are stopped.” They have asked South Africans to be patient this tax season and not expect tax refunds to be paid immediately. The reason for the delay is the result of implementing additional risk assessment processes. They also stated that they are fully aware of the taxpayer’s expectations regarding refunds, but that processes must be completed prior to payment of refunds.
Last year we saw the implementation of special plugs which resulted in many delays. The SARS rationale behind implementing special caps was to add security controls to combat fraudulent claims. This year additional fields have been added to your income tax return that SARS will use to verify expenses against third parties. (For example, travel, medical and retirement annuity contributions).
Tax Season 2017 is now open and individual taxpayers will be able to file their returns for the tax year ending February 28, 2017. The South African Revenue Service (“SARS”) has published the deadlines for filing tax returns. income taxes. The deadlines depend on the form of presentation of the declaration. These deadlines do not apply to companies that must file their returns within 12 months after the end of their fiscal year through e-Filing.
The Income Tax Law has been modified to impose administrative sanctions for non-compliance. These fines can range from R250 to R16,000 per month. Make sure you have all the supporting documentation for your return, as SARS might request it if you are selected for review. Safeguard supporting documentation for at least five years in case SARS needs to access it in the future.
Do you need assistance?
To help with the compilation and filing of your income tax return, your tax advisor will require information such as:
- Your bank details.
- Your IRP5/IT3(a) certificate(s) that you will receive from your employer or pension fund.
Where appropriate:
- Certificate of Medical Assistance as well as a summary of additional medical expenses, not covered by your medical assistance and diagnosis of disability (ITR-DD), if applicable.
- Certificate(s) of pension and retirement annuity.
- Travel log book (if you receive travel allowance).
- Tax certificates that you have received as investment income (IT3).
- Financial statements, for example business income (where applicable).
- Any other documentation related to income that you have received or deductions that you want to claim.
- Information related to capital gains operations.
