Questions to ask a tax pro

Many people are baffled by tax and often terrified by any mention of the SA Revenue Servive (Sars) and tax returns.

It is worthwhile engaging a tax practitioner who will ensure all your tax obligations are met timeously and efficiently, while providing you with a clear understanding of how the tax system works. Here are things to ask:

Are you a registered tax practitioner? It is a criminal offence for a person to provide tax advice or complete returns on behalf of a third party for fees if they are not registered as a tax practitioner with Sars and a recognised controlling body;

How are your fees calculated? Most practitioners will charge fees based on their time spent and skills level;

What tax returns will I be required to submit and when? If you are a nonprovisional taxpayer, you are an employee who earns mainly salary income on which PAYE is withheld and have limited investment income. You will be required to submit only an annual income tax return. Returns for the year ended February 28 of each tax year will be available on Sars e-filing four months after the tax year end on July 1. The deadline for submission is generally the end of November of that year. If you are a provisional taxpayer, you will be required to submit provisional tax returns for the preceding six months by August 31 and end February.

What documentation must I provide? IRP5 and IT3 certificates, RA contribution and S18A donations certificates and medical aid contribution certificates. Additional documentation such as details of income for a provisional taxpayer, and a logbook recording travel if vehicle allowance is received. Preferentially, documents should be electronic and supporting documentation should be submitted via e-filing.

When can I expect a refund? A refund should be received within a few business days unless the return was selected by Sars for review or audit. In this case, the refund will only be paid out once the process has been completed. This can take between 30 to 90 days.

How do I make tax payments? Your practitioner can either set this up on e-filing or provide you with the payment details to pay directly to the relevant Sars bank account. When can I throw out supporting certificates? Generally documents should be kept for a period of five years.

Jeremy Burman is a director of Private Client Financial, which is the specialist tax and financial services division of Private Client Holdings.