This year tax systems and officials are expected to be more efficient and focused on collecting revenue – which means you should be sure you’ve included everything in your return, urges Allan Gray Tax Manager Meagan Fraser.

“For the majority of South Africans, the reversal of the proposed 0.5% VAT increase earlier this year provided a sense of relief in terms of their monthly budget,” asserts Fraser. “However, the loss of the anticipated revenue from this proposed increase resulted in a R75-billion shortfall in the national budget.”

This has resulted in a renewed drive on the part of SARS to ensure that outstanding taxes are accurately and efficiently collected. “Its efforts during tax-filing season will therefore be focused on taxpayer compliance and on collecting outstanding taxes that are due,” Fraser comments.

However, this doesn’t necessarily mean you’ll pay more tax. “SARS can’t collect more tax from you than you owe,” she clarifies. “As a taxpayer, you have the right to consistent and impartial application of the law, but you also have the obligation to submit timely, complete and accurate information to SARS.”

Make sure your auto-assessment is correct

Not everyone needs to submit a tax return. If you earn below R500,000 a year and have no deductions and only one employer, you are exempt from filing a tax return. In addition, 5.8 million taxpayers have been chosen this year to be auto-assessed, which means they don’t have to prepare their own return – but should carefully check the assessment.

“SARS uses the data they have received from employers, financial institutions and medical aid schemes to pre-populate amounts on behalf of taxpayers,” Fraser explains. “The intention is both to improve the accuracy and verifiability of the amounts completed on returns, and to assist SARS in issuing estimated assessments for taxpayers who have relatively simple tax affairs.”

If you have been auto-assessed, SARS will notify you via SMS or email. “It’s up to you to ensure that the information SARS has populated in your return is both accurate and complete by cross-checking it against the tax certificates you have been issued by your various service providers,” highlights Fraser.

“If you disagree with any amounts that have been pre-populated, you will need to query the amounts directly with the relevant third-party data providers and request that they resubmit the corrected information to SARS.”

She adds that if you have any additional income or deductions that have not been pre-populated in your return, you will need to add the relevant information manually.

If you accept your auto-assessment, you will be paid by SARS within 72 hours.

Get your tax documents ready

To complete your tax return, you will need to get your tax documents ready. These may include an IRP5 from your employer, an IT3(b), IT3(c), IT3(s) and a retirement annuity fund contribution certificate from your investment manager, your medical scheme tax certificate and proof of qualifying medical expenses, as well as documents related to any rental properties.

“Remember, you are required to keep copies of all supporting documents for five years from the date of submitting your return, as SARS may request these documents to verify the information you declared,” notes Fraser.

With tax season in full swing, she urges taxpayers not to wait until the last moment to submit their return to avoid incurring penalties.

“It’s important to ensure you comply by filing your income tax return accurately and by the set deadline, as well as settling any outstanding taxes in full and on time,” she concludes.

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