Tax
time!
Being a tax compliant South
African has never been easier...
1 July 2009 marked the start of the annual tax filing season
for individuals and trusts, the single largest public engagement
between any one state entity and ordinary South Africans in
there millions.
Reflecting on last year
Last year over four million taxpayers filed their tax returns
either manually or electronically and a record 76% of returns
where assessed within 48 hours, clearly marking the increased
efficiency, simplicity and ease with which Personal Income
Tax can be administered in South Africa.
In a statement issued by SARS it was confirmed that over
the past decade we have enjoyed a sustained growth in the
tax base of 10% each year, allowing for tax relief in various
forms to all taxpayers. The simplicity and efficiency of the
process has had the added benefit of making non-compliance
and abuse more easily detectable and further contributing
towards increasing the tax base which must be a primary objective
considering the shortfall in collections anticipated for this
year. The principle is simple – more people paying tax
relieves the burden for all.
But who is required to submit a tax return and how can this
be done?
What you need to know
As with last year, if you earn less than R120 000 total income
before tax from a single employer and you have no other sources
of income or deductions to declare, you are not required to
submit a tax return.
If you do not meet these requirements you are required to
submit your return by the due dates below and can do so either
manually or electronically.
- Manual returns by 18 September 2009
- Electronic submissions by 20 November 2009
If you are registered on SARS e-Filing, a pre-populated tax
return has already been electronically issued and a simple,
on-line process of customising your tax return for this year
need only be followed before you are ready to complete and
submit your return.
A Tax Return Request form was mailed to approximately two
million taxpayers at the end of June 2009. If you wish to
submit your return manually you must complete this form and
return it to SARS as soon as possible. A customised tax return
will then be created and posted to you for completion and
submission. Did not receive this form? You can also request
your tax return via the call centre.
SARS will assess the return and issue a Notice of assessment
and a Statement of account. If you used e-Filing you can expect
to receive these as early as 48 hours after submission. At
the very latest, you will be assessed within 60 days of submitting
your return, and refunds paid within 48 hours of the assessment
being issued.
In addition to an easier to understand assessment and a detailed
statement of account showing all financial details and any
outstanding taxes, returns and penalties and interest charged,
this year SARS has also expanded the on-line tax calculator
on e-Filing to include more complex tax calculations such
as foreign tax income, capital gains tax, farming operations
and business income. Before submitting your return use the
tax calculator via e-Filing to check your tax calculations
and determine the refund or payment due.
Not registered for e-Filing?
If you are not an e-Filing user and wish to submit your return
electronically you can register for e-Filing by following
the simple registration process on the website www.sarsefiling.co.za.
SARS is encouraging taxpayers to move to the electronic method
of filing tax returns instead of manual submissions as it
is the more efficient of the two methods providing turnaround
times of 48 hours and easier communication with the taxpayer.
Incorrect assessments
On receiving the assessment you should check that you have been
assessed correctly. If you find minor errors such as incorrect
amounts typed in, a Request for Correction form must be completed
and submitted to SARS. If you do not agree with application
or interpretation of tax laws then a Notice of Objection must
be lodged with SARS. Both options are also available on e-Filing.
Assistance to taxpayers
Officials at SARS branches around the country will be available
to offer any assistance to you should you require it, from
requesting manual returns to completion of the return manually
or electronically. However, ensuring that the information
submitted on the tax return is accurate and complete remains
your responsibility. While every effort has been made to ensure
that the information on the pre-populated returns is correct,
it is up to you to check this information for accuracy and
correct it where necessary. This may include correcting information
previously submitted by your employer. Make corrections to
information on the manual return by writing over the pre-printed
information with black ink. Only black ink can be detected
by the scanners and your information will be corrected when
the return is entered onto the system.
If you intend on making use of the assistance provided at
the branches for completing your return you must have all
the relevant documentation required, including:
- Proof of identity
- Employee tax certificates (IT3(a)/IRP5)
- Medical aid, retirement annuity and pension fund tax
certificates
- Details of business travel
- Lump sum tax certificates
- Banking details
Of further interest
SARS has advised that last year approximately 150 000 refunds
where paid late as a result of incorrect banking details supplied
by taxpayers. Check that your correct banking details appear
on your tax return to avoid problems with paying out refunds
due to you.
Experience tells all
Does it all sound too easy? For those who remain sceptical,
this taxpayer decided to put SARS to the test. Being a registered
SARS e-Filing user, I logged on, completed a short series
of questions and was promptly taken to my customised, pre-populated
return for checking and completion. A half hour later my tax
return was completed, checked and submitted with no difficulty
other than that caused by the evils of a slow internet connection
(which, for the record, cannot be blamed on SARS).
However, this is only midway through the process, there was
still an assessment and refund that must be settled, and I
was very interested to see if the much talked of 48 hour turnaround
time would be achieved. Exactly two days later I received
a sms and e-mail confirmation of my assessment and statement
of account being issued. A quick check of my bank account
confirmed my refund had been paid as well. No objections where
necessary as I was correctly assessed and my tax filing obligations
where met for this year.
I can therefore happily confirm that the process really is
as simple as it claims to be, taxpayers need only take the
time to file their returns by the due date.
For more information visit the SARS website at www.sars.gov.za
or contact the call centre on 0800 00 7277.
13 July 2009
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