SARS auto-assessment changes for taxpayers

SARS has introduced new changes to the auto assessment process this year, using the data SARS receives from employers, medical aid, banks and retirement annuity funds, SARS will generate an auto assessment and notify the taxpayer by SMS or email. 

Once the tax payer receives an SMS or email, the taxpayer an view their auto assessment on the eFilling website or the SARS MobiApp. The taxpayer must check that the data is correct and contains all the relevant information. If satisfied and a payment is due to SARS, the taxpayer must make payment within the specified date. If a refund is due to the taxpayer, no action is needed.

If however the taxpayer is not satisfied with the auto assessment containing all relevant information such as all sources of income or allowable deductions, the taxpayer has 40 business days to access, complete and file their tax return.

Under justifiable grounds the tax payer can apply for an extension via eFilling site or the MobiApp before the 40 days.

Actions you can take to be best prepared:

• Register on eFilling or the MobiApp
• Check and update your details beforehand
• Collect all supporting documents of other sources of income and expenses
• Check if you are a provisional taxpayer, in which case your returns need to be filed by 23 January 2023. (Non-provisional taxpayers have earlier filing dates).
• If you receive a salary and interest less than R23,800 (under 65 years of age) or less than R34,500 (65 and older), and no other sources of income, then you are likely not a provisional taxpayer and will need to file returns by 24 October 2022 (unless you are auto-assessed).
• In the case that you are not a provisional taxpayer, receiving salary and interest only from the bank, you may be auto-assessed and issued with a pre-populated assessment from SARS.
• Log in and check your auto-assessment soonest (once you receive your SMS/email from SARS). If you are due a refund, the process takes up to 72 hours from the date the assessment was issued to you. If you owe SARS tax, you will be liable to make payment by the due date stated on the assessment or incur interest penalties.
• If you are not satisfied with the assessment, you need to obtain and complete a tax return via eFilling within 40 business days from the date the assessment was issued. If you are not satisfied with the third-party data issued you will be required to first get the data corrected with the relevant third-party.

Be aware of Penalties
Joon Chong, partner at Webber Wentzel, warns that there are administrative penalties for the late filing of tax returns. In contrast to previous years when penalties only kicked in when two or more tax returns were outstanding, SARS has implemented an administrative levy when more than one tax return is outstanding. These penalties, based on taxable income, can range from R250 to R16,000 for each month the return is outstanding and start to mount from the first day the return is late.

Source: Business Tech (shorturl.at/eqwBV)