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Tax filing season is around the corner – here is the ultimate checklist to see if you are ready

Non-provisional, Individual taxpayers, who file via the eFiling portal, your time to file your tax return is around the corner. File Image: IOL

Non-provisional, Individual taxpayers, who file via the eFiling portal, your time to file your tax return is around the corner. File Image: IOL

Published Jun 16, 2022

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Non-provisional, individual taxpayers, who file via the eFiling portal, your time to file your tax return is around the corner.

This is according to Lambert Roberts, expatriate tax team manager and Rehnu Vallabh, a senior tax consultant at Tax Consulting South Africa.

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The South African Revenue Services (Sars) confirmed that the filing date will be July 1 to October 24, and for registered provisional, individual taxpayers who file via the E-filing portal, July 1 to January 23, 2023.

With the condensed filing season, it is of utmost importance for taxpayers to make the necessary provisions and understand the full tax filing process, according to Roberts and Vallabh.

Provisions to undertake:

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  • Keep record of your employee’s tax certificate – IRP5 certificate. If not applicable, ensure you keep record of all your year of assessment’s pay / salary slips.
  • Keep record of all your third-party data – IT3(b), IT3(c), IT3(e), IT3(s) tax certificates.
  • Ensure your travel logbook is complete up until 28 February 2022.
  • Should any services be rendered abroad, as requested by your employer, ensure relevant passport copies are available.
  • The income tax certificate from your medical aid scheme received for the period 1 March 2021 and ending 28 February 2022 (if you belong to a medical scheme).
  • Proof of qualifying medical expenses paid by you and not recovered from a medical scheme.
  • Keep record of all your donations made – S18A certificate.
  • Make sure all your supporting documents such as invoices or statements with regards to business, rental, or other investment income / expenses are kept should SARS request the same.

Based on the outcomes of the 2021 tax filing season, and the burning issue Sars raised of many taxpayers still not filing their tax returns, Sars will continue to ensure to auto-assess the processes for individuals based on third-party data received from employers, financial institutions, medical schemes, and retirement fund administrators, Roberts and Vallabh say.

It should be noted that these taxpayers will receive a notification from Sars that states that they have a pre-populated income tax return available to review, on eFiling or the Sars MobiApp.

If you accept your auto-assessment, any under or overpayment of tax will be processed as normal. If you want to edit your return, you can do so, on e-Filing or the Sars MobiApp.

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Before accepting the auto-assessment, the taxpayer must ensure to review the preloaded information to confirm the accuracy of this data. Should any data not be corresponding to the original tax certificate, or no tax certificate preloaded, you should immediately approach your employer or medical scheme or retirement annuity fund or other 3rd party data providers to make sure that they have complied with their submission requirements, according to Roberts and Vallabh.

Roberts and Vallabh state, that the burden of proof under section 102(1) of the Tax Administration Act, rests with a taxpayer since the assessment is essentially based on the facts as submitted by the taxpayer in the return. An individual who does not agree with the estimated assessment can file an accurate ITR12 tax return within 40 business days of the date of the estimated assessment.

One should be aware that, if you proceed with editing the preloaded tax return, and Sars is not satisfied, Sars may select your return for review and verification.

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Roberts and Vallabh say argue that should you owe Sars money, you can make a payment on eFiling, via EFT or the Sars MobiApp by the specified due date as per your Notice of Assessment.

Lastly, Roberts and Vallabh state that, failing to ensure accuracy and timeously filing of your tax return or settling any payments thereon, will lead to administrative penalties. The administrative non-compliance penalty for the failure to submit a return comprises fixed amount penalties based on a taxpayer’s taxable income and can range from R250 up to R16 000 a month for each month that the non-compliance continues.

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